Registration No. 333-104713
- --------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
- --------------------------------------------------------------------------
POST-EFFECTIVE AMENDMENT NO. 3
to
FORM S-3
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
AXA EQUITABLE LIFE INSURANCE COMPANY
(Exact name of registrant as specified in its charter)
NEW YORK
(State or other jurisdiction of incorporation or organization)
13-5570651
(I.R.S. Employer Identification No.)
1290 AVENUE OF THE AMERICAS, NEW YORK, NEW YORK 10104
(212) 554-1234
(Address, including zip code, and telephone number,
including area code, of registrant's
principal executive offices)
DODIE KENT
VICE PRESIDENT AND COUNSEL
AXA EQUITABLE LIFE INSURANCE COMPANY
1290 AVENUE OF THE AMERICAS, NEW YORK, NEW YORK 10104
(212) 554-1234
(Name, address, including zip code, and telephone number, including area code,
of agent for service)
Please send copies of all communications to:
CHRISTOPHER E. PALMER, ESQ.
GOODWIN PROCTER LLP
901 NEW YORK AVENUE, N.W.
WASHINGTON, D.C. 20001
- -------------------------------------------------------------------------------
Accumulator(R) Plus(SM)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2005
Please read and keep this Prospectus for future reference. It contains
important information that you should know before taking any action under your
contract. You should read the prospectuses for each Trust, which contain
important information about the portfolios.
- --------------------------------------------------------------------------------
WHAT IS THE ACCUMULATOR(R) PLUS(SM)?
Accumulator(R) Plus(SM) is a deferred annuity contract issued by AXA Equitable
Life Insurance Company. It provides for the accumulation of retirement savings
and for income. The contract offers death benefit protection and a number of
payout options. You invest to accumulate value on a tax-deferred basis in one
or more of our variable investment options, the guaranteed interest option or
fixed maturity options ("investment options"). Certain features and benefits
described in this Prospectus may vary in your state; all features and benefits
may not be available in all contracts or all states. Please contact your
financial professional and/or review your contract for state variations that
may apply to you.
- -------------------------------------------------------------------------------
Variable investment options
- -------------------------------------------------------------------------------
o AXA Aggressive Allocation(1) o EQ/Equity 500 Index
o AXA Conservative Allocation(1) o EQ/Evergreen Omega
o AXA Conservative-Plus Allocation(1) o EQ/FI Mid Cap
o AXA Moderate Allocation(1) o EQ/FI Small/Mid Cap Value
o AXA Moderate-Plus Allocation(1) o EQ/International Growth(3)
o AXA Premier VIP Aggressive Equity o EQ/J.P. Morgan Core Bond
o AXA Premier VIP Core Bond o EQ/JP Morgan Value Opportunities
o AXA Premier VIP Health Care o EQ/Janus Large Cap Growth
o AXA Premier VIP High Yield o EQ/Lazard Small Cap Value
o AXA Premier VIP International Equity o EQ/Long Term Bond(3)
o AXA Premier VIP Large Cap Core o EQ/Lord Abbett Growth and Income(3)
Equity o EQ/Lord Abbett Large Cap Core(3)
o AXA Premier VIP Large Cap Growth o EQ/Lord Abbett Mid Cap Value(3)
o AXA Premier VIP Large Cap Value o EQ/Marsico Focus
o AXA Premier VIP Small/Mid Cap o EQ/Mercury Basic Value Equity
Growth o EQ/Mercury International Value
o AXA Premier VIP Small/Mid Cap Value o EQ/Mergers and Acquisitions(3)
o AXA Premier VIP Technology o EQ/MFS Emerging Growth Companies
o EQ/Alliance Common Stock o EQ/MFS Investors Trust
o EQ/Alliance Growth and Income o EQ/Money Market
o EQ/Alliance Intermediate Government o EQ/Montag & Caldwell Growth(2)
Securities o EQ/PIMCO Real Return(3)
o EQ/Alliance International o EQ/Short Duration Bond(3)
o EQ/Alliance Large Cap Growth(2) o EQ/Small Company Index
o EQ/Alliance Quality Bond o EQ/Small Company Value(2)
o EQ/Alliance Small Cap Growth o EQ/TCW Equity(2)
o EQ/Bear Stearns Small Company o EQ/UBS Growth and Income(2)
Growth(2) o EQ/Van Kampen Comstock(3)
o EQ/Bernstein Diversified Value o EQ/Van Kampen Emerging Markets
o EQ/Boston Advisors Equity Income(2) Equity(2)
o EQ/Calvert Socially Responsible o EQ/Van Kampen Mid Cap Growth(3)
o EQ/Capital Guardian Growth o EQ/Wells Fargo Montgomery Small
o EQ/Capital Guardian International Cap(3)
o EQ/Capital Guardian Research o Laudus Rosenberg VIT Value Long/
o EQ/Capital Guardian U.S. Equity Short Equity
o EQ/Caywood-Scholl High Yield Bond(3) o U.S. Real Estate -- Class II
- --------------------------------------------------------------------------------
(1) The "AXA Allocation" portfolios.
(2) This is the option's new name, effective on or about May 9, 2005, subject
to regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former
name.
(3) Available on or about May 9, 2005, subject to regulatory approval. Please
see "Portfolios of the Trusts" in "Contract features and benefits" later in
this Prospectus for more information on the new investment option.
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of Separate Account No. 49. Each
variable investment option, in turn, invests in a corresponding securities
portfolio ("portfolio") of EQ Advisors Trust, AXA Premier VIP Trust, The
Universal Institutional Funds, Inc. or Laudus Variable Insurance Trust (The
"Trusts"). Your investment results in a variable investment option will depend
on the investment performance of the related portfolio.
You may also allocate amounts to the guaranteed interest option and the fixed
maturity options, which are discussed later in this Prospectus.
TYPES OF CONTRACTS. Contracts were offered for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only.
o An individual retirement annuity ("IRA"), either traditional IRA ("Rollover
IRA") or Roth IRA ("Roth Conversion IRA").
o An annuity that is an investment vehicle for a qualified defined
contribution plan ("QP").
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") --
("Rollover TSA").
A contribution of at least $10,000 was required to purchase a contract. We add
an amount ("credit") to your contract with each contribution you make. Expenses
for this contract may be higher than for a comparable contract without a
credit. Over time, the amount of the credit may be more than offset by fees and
charges associated with the credit.
A registration statement relating to this offering has been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2005, is part of the registration statement.
The SAI is available free of charge. You may request one by writing to our
processing office or calling 1-800-789-7771. The SAI has been incorporated by
reference into this Prospectus. This Prospectus and the SAI can also be
obtained from the SEC's website at www.sec.gov. The table of contents for the
SAI appears at the back of this Prospectus.
The SEC has not approved or disapproved these securities or determined if this
Prospectus is accurate or complete. Any representation to the contrary is a
criminal offense. The contracts are not insured by the FDIC or any other
agency. They are not deposits or other obligations of any bank and are not bank
guaranteed. They are subject to investment risks and possible loss of
principal.
This contract is no longer available for new purchasers. This contract is no
longer being sold. This Prospectus is designed for current contract owners. In
addition to the possible state variations noted above, you should note that
your contract features and charges may vary depending on the date on which you
purchased your contract. For more information about the particular features,
charges and options applicable to you, please contact your financial
professional or refer to your contract, as well as review Appendix VI later in
this Prospectus for contract variation information and timing. You may not
change your contract or its features as issued.
X01010/Plus '02 Series
Contents of this Prospectus
- --------------------------------------------------------------------
ACCUMULATOR(R) PLUS(SM)
- --------------------------------------------------------------------------------
Index of key words and phrases 4
Who is AXA Equitable? 5
How to reach us 6
Accumulator(R) Plus(SM) at a glance -- key features 8
- --------------------------------------------------------------------------------
FEE TABLE 11
- --------------------------------------------------------------------------------
Example 14
Condensed financial information 17
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 18
- --------------------------------------------------------------------------------
How you can contribute to your contract 18
Owner and annuitant requirements 20
How you can make your contributions 20
What are your investment options under the contract? 20
Portfolios of the Trusts 21
Allocating your contributions 26
Credits 27
Your benefit base 28
Annuity purchase factors 28
Our Living Benefit option 29
Guaranteed minimum death benefit 30
Your right to cancel within a certain number of days 31
- --------------------------------------------------------------------------------
2. DETERMINING YOUR CONTRACT'S VALUE 33
- --------------------------------------------------------------------------------
Your account value and cash value 33
Your contract's value in the variable investment options 33
Your contract's value in the guaranteed interest account 33
Your contract's value in the fixed maturity options 33
Termination of your contract 33
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG THE INVESTMENT OPTIONS 34
- --------------------------------------------------------------------------------
Transferring your account value 34
Disruptive transfer activity 34
Rebalancing your account value 35
- ----------------------
"We," "our," and "us" refer to AXA Equitable.
When we address the reader of this prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the contract owner.
When we use the word "contract" it also includes certificates that are issued
under group contracts in some states.
2 Contents of this Prospectus
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 37
- --------------------------------------------------------------------------------
Withdrawing your account value 37
How withdrawals are taken from your account value 38
How withdrawals affect your guaranteed
minimum income benefit and guaranteed
minimum death benefit 38
Loans under rollover TSA contracts 38
Surrendering your contract to receive its cash value 39
When to expect payments 39
Your annuity payout options 39
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 42
- --------------------------------------------------------------------------------
Charges that AXA Equitable deducts 42
Charges that the Trusts deduct 44
Group or sponsored arrangements 44
Other distribution arrangements 44
- --------------------------------------------------------------------------------
6. PAYMENT OF DEATH BENEFIT 45
- --------------------------------------------------------------------------------
Your beneficiary and payment of benefit 45
How death benefit payment is made 45
Beneficiary continuation option 46
- --------------------------------------------------------------------------------
7. TAX INFORMATION 49
- --------------------------------------------------------------------------------
Overview 49
Contracts that fund a retirement arrangement 49
Transfers among variable investment options 49
Taxation of nonqualified annuities 49
Individual retirement arrangements (IRAs) 51
Tax-Sheltered Annuity contracts (TSAs) 60
Federal and state income tax withholding and information
reporting 63
Special rules for contracts funding qualified plans 64
Impact of taxes to AXA Equitable 64
- --------------------------------------------------------------------------------
8. MORE INFORMATION 65
- --------------------------------------------------------------------------------
About Separate Account No. 49 65
About the Trusts 65
About our fixed maturity options 65
About the general account 66
About other methods of payment 66
Dates and prices at which contract events occur 67
About your voting rights 67
About legal proceedings 68
About our independent registered public accounting firm 68
Financial statements 68
Transfers of ownership, collateral assignments, loans
and borrowing 68
Distribution of the contracts 68
- --------------------------------------------------------------------------------
9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 71
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed financial information A-1
II -- Purchase considerations for QP contracts B-1
III -- Market value adjustment example C-1
IV -- Guaranteed enhanced death benefit example D-1
V -- Hypothetical illustrations E-1
VI -- Contract variations F-1
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Contents of this Prospectus 3
Index of key words and phrases
- --------------------------------------------------------------------------------
This index should help you locate more information on the terms used in this
Prospectus.
Page
6% Roll up to age 85 enhanced death benefit 28
account value 33
administrative charge 42
annual administrative charge 42
Annual ratchet to age 85 enhanced death benefit 28
annuitant 18
annuity maturity date 41
annuity payout options 39
annuity purchase factors 28
automatic investment program 67
beneficiary 45
Beneficiary continuation option ("BCO") 46
benefit base 28
business day 67
cash value 33
charges for state premium and other applicable taxes 44
contract date 9
contract date anniversary 9
contract year 9
contributions to traditional IRAs 52
regular contributions 52
rollovers and transfers 53
credit 27
disability, terminal illness or confinement to nursing home 43
disruptive transfer activity 34
distribution charge 42
EQAccess 6
ERISA 38
Fixed-dollar option 26
fixed maturity options 25
free look 31
free withdrawal amount 43
general account 66
General dollar cost averaging 26
guaranteed interest option 25
guaranteed minimum death benefit 30
guaranteed minimum death benefit charge 43
guaranteed minimum income benefit 29
IRA cover
IRS 49
investment simplifier 26
lifetime required minimum distribution withdrawals 38
Page
Limits on contributions 52
Living Benefit option 29
Living Benefit charge 44
loan reserve account 39
loans under Rollover TSA contracts 38
lump sum withdrawals 37
market adjusted amount 25
market value adjustment 25
market timing 34
maturity dates 25
maturity value 25
Mortality and expense risks charge 42
NQ cover
participant 20
portfolio cover
principal assurance allocation 26
processing office 6
Protection Plus(SM) 31
Protection Plus(SM) charge 44
QP cover
rate to maturity 25
Rebalancing 35
Rollover IRA cover
Rollover TSA cover
Roth Conversion IRA cover
Roth IRA cover
SAI cover
SEC cover
self-directed allocation 26
Separate Account No. 49 65
Standard death benefit 28
substantially equal withdrawals 37
Successor owner and annuitant 46
systematic withdrawals 37
TOPS 6
TSA cover
traditional IRA cover
Trusts 65
unit 33
variable investment options 20
wire transmittals and electronic applications 66
Withdrawal charge 42
To make this Prospectus easier to read, we sometimes use different words than
in the contract or supplemental materials. This is illustrated below. Although
we use different words, they have the same meaning in this Prospectus as in the
contract or supplemental materials. Your financial professional can provide
further explanation about your contract or supplemental materials.
- --------------------------------------------------------------------------------------
Prospectus Contract or Supplemental Materials
- --------------------------------------------------------------------------------------
fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts
in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
Living Benefit Guaranteed Minimum Income Benefit
Guaranteed Interest Option Guaranteed Interest Account
- --------------------------------------------------------------------------------------
4 Index of key words and phrases
Who is AXA Equitable?
- --------------------------------------------------------------------------------
We are AXA Equitable Life Insurance Company ("AXA Equitable") (previously, The
Equitable Life Assurance Society of the United States), a New York stock life
insurance corporation. We have been doing business since 1859. AXA Equitable is
a subsidiary of AXA Financial, Inc. AXA, a French holding company for an
international group of insurance and related financial services companies, is
the sole shareholder of AXA Financial, Inc. As the sole shareholder, and under
its other arrangements with AXA Equitable and AXA Equitable's parent, AXA
exercises significant influence over the operations and capital structure of
AXA Equitable and its parent. No company other than AXA Equitable, however, has
any legal responsibility to pay amounts that AXA Equitable owes under the
contract.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$598 billion in assets as of December 31, 2004. For over 100 years AXA
Equitable has been among the largest insurance companies in the United States.
We are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office
is located at 1290 Avenue of the Americas, New York, N.Y. 10104.
Who is AXA Equitable? 5
HOW TO REACH US
You may communicate with our processing office as listed below for the purposes
described. Certain methods of contacting us, such as by telephone or
electronically, may be unavailable or delayed (for example our facsimile
service may not be available at all times and/or we may be unavailable due to
emergency closing). In addition, the level and type of service available may be
restricted based on criteria established by us.
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Accumulator(R) Plus(SM)
P.O. Box 13014
Newark, NJ 07188-0014
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Accumulator(R) Plus(SM)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY
REGULAR MAIL:
- --------------------------------------------------------------------------------
Accumulator(R) Plus(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY
EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Accumulator(R) Plus(SM)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year and any
calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract
year, including notification of eligibility to exercise the guaranteed
minimum income benefit, if applicable.
- --------------------------------------------------------------------------------
TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND
EQACCESS SYSTEMS:
- --------------------------------------------------------------------------------
TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQAccess is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for the fixed maturity options;
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
available through TOPS).
You can also:
o change your allocation percentages and/or transfer among the variable
investment options;
o elect to receive certain contract statements electronically;
o change your address (not available through TOPS);
o change your TOPS personal identification number ("PIN") (through TOPS only)
and your EQAccess password (through EQAccess only); and
o access Frequently Asked Questions and Service Forms (not available through
TOPS).
TOPS and EQAccess are normally available seven days a week, 24 hours a day. You
may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our website at www.axaonline.com and
logging in to access your account. All other clients may access EQ Access by
visiting our website at www.axa-equitable.com. Of course, for reasons beyond
our control, these services may sometimes be unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or Internet are genuine. For example, we will require
certain personal identification information before we will act on telephone or
Internet instructions and we will provide written confirmation of your
transfers. If we do not employ reasonable procedures to confirm the genuineness
of telephone or Internet instructions, we may be liable for any losses arising
out of any act or omission that constitutes negligence, lack of good faith, or
willful misconduct. In light of our procedures, we will not be liable for
following telephone or Internet instructions we reasonably believe to be
genuine.
We reserve the right to limit access to these services if we determine that you
engaged in a disruptive transfer activity, such as "market timing" (see
"Disruptive transfer activity" in "Transferring your money among investment
options" later in this Prospectus).
- --------------------------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVE:
- --------------------------------------------------------------------------------
You may also use our toll-free number (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
6 Who is AXA Equitable?
(2) conversion of a traditional IRA to a Roth Conversion IRA contract;
(3) election of the automatic investment program;
(4) election of the rebalancing program;
(5) requests for loans under Rollover TSA contracts;
(6) spousal consent for loans under Rollover TSA contracts;
(7) requests for withdrawals or surrenders from Rollover TSA contracts;
(8) tax withholding elections;
(9) election of the beneficiary continuation option;
(10) IRA contribution recharacterizations;
(11) certain Section 1035 exchanges;
(12) direct transfers;
(13) exercise of the Guaranteed minimum income benefit; and
(14) death claims.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between variable investment options;
(4) contract surrender and withdrawal requests; and
(5) general dollar cost averaging (including the fixed dollar and interest
sweep options).
TO CANCEL OR CHANGE ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) automatic investment program;
(2) dollar cost averaging (including the fixed dollar amount and interest sweep
options);
(3) rebalancing;
(4) substantially equal withdrawals;
(5) systematic withdrawals; and
(6) the date annuity payments are to begin.
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us to
take.
SIGNATURES:
The proper person to sign forms, notices and requests would normally be the
owner. If there are joint owners all must sign.
Who is AXA Equitable? 7
Accumulator(R) Plus(SM) at a glance -- key features
- -------------------------------------------------------------------------------------------------------------------------------
Professional investment Accumulator(R) Plus(SM) variable investment options invest in different portfolios managed by
management professional investment advisers.
- -------------------------------------------------------------------------------------------------------------------------------
Fixed maturity options o Fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years
(subject to availability).
o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to
maturity.
---------------------------------------------------------------------------------------------------
If you make withdrawals or transfers from a fixed maturity option before maturity, there will be
a market value adjustment due to differences in interest rates. If you withdraw or transfer only
a portion of a fixed maturity amount, this may increase or decrease any value that you have left
in that fixed maturity option. If you surrender your contract, a market value adjustment also
applies.
- -------------------------------------------------------------------------------------------------------------------------------
Guaranteed interest o Principal and interest guarantees.
option
o Interest rates set periodically.
- -------------------------------------------------------------------------------------------------------------------------------
Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or
receive annuity payments.
o No tax on transfers among variable investment options inside the contract.
---------------------------------------------------------------------------------------------------
Annuity contracts that were purchased as an Individual Retirement Annuity (IRA) or Tax Sheltered
Annuity (TSA), or to fund an employer retirement plan (QP or Qualified Plan), do not provide tax
deferral benefits beyond those already provided by the Internal Revenue Code. Before you
purchased your contract, you should have considered its features and benefits beyond tax
deferral -- as well as its features, benefits and costs relative to any other investment that
you may have chosen in connection with your retirement plan or arrangement -- to determine
whether it would meet your needs and goals. Depending on your personal situation, the contract's
guaranteed benefits may have limited usefulness because of required minimum distributions
("RMDs").
- -------------------------------------------------------------------------------------------------------------------------------
Living Benefit protection The Living Benefit provides a guaranteed minimum income benefit. The guaranteed minimum income
benefit provides income protection for you during the annuitant's life once you elect to
annuitize the contract.
- -------------------------------------------------------------------------------------------------------------------------------
Contribution amounts o Initial minimum: $10,000
o Additional minimum: $500 (NQ, QP and Rollover TSA contracts)
$100 monthly and $300 quarterly under our automatic investment program
(NQ contracts)
$50 (IRA contracts)
---------------------------------------------------------------------------------------------------
Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million.
- -------------------------------------------------------------------------------------------------------------------------------
Credit We allocate your contributions to your account value. We allocate a credit to your account value
at the same time that we allocate your contributions. The amount of credit may be up to 6% of
each contribution, depending on certain factors. The credit is subject to recovery by us in
certain limited circumstances.
- -------------------------------------------------------------------------------------------------------------------------------
Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Loans under Rollover TSA contracts
o Contract surrender
You may incur a withdrawal charge for certain withdrawals or if you surrender your contract.
You may also incur income tax and a tax penalty.
- -------------------------------------------------------------------------------------------------------------------------------
Payout options o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout options
- -------------------------------------------------------------------------------------------------------------------------------
8 Accumulator(R) Plus(SM) at a glance -- key features
- -------------------------------------------------------------------------------------------------------------------------------
Additional features o Guaranteed minimum death benefit options
o Dollar cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually, and annually)
o Free transfers
o Waiver of withdrawal charge for disability, terminal illness, or confinement to a nursing home
o Protection Plus(SM), an optional death benefit available under certain contracts (subject to state
availability)
- -------------------------------------------------------------------------------------------------------------------------------
Fees and charges o Daily charges on amounts invested in the variable investment options for mortality and
expense risks, administrative, and distribution charges at an annual rate of 1.40%.
o The charges for the guaranteed minimum death benefits range from 0.0% to 0.60%, annually,
of the applicable benefit base. The benefit base is described under "Your benefit base" in
"Contract features and benefits" later in this Prospectus.
o An annual charge of 0.35% of the account value for the Protection Plus(SM) optional death
benefit.
o An annual charge of 0.60% of the applicable benefit base charge for the optional Living
Benefit until you exercise your guaranteed minimum income benefit, elect another annuity
payout or the contract date anniversary after the annuitant reaches age 85, whichever
occurs first. The benefit base is described under "Your benefit base" in "Contract features
and benefits" later in this Prospectus.
o If your account value at the end of the contract year is less than $50,000, we deduct an
annual administrative charge equal to $30, or during the first two contract years, 2% of
your account value, if less. If your account value, on the contract date anniversary, is
$50,000 or more, we will not deduct the charge.
o No sales charge deducted at the time you make contributions.
o During the first eight contract years following a contribution, a charge will be deducted
from amounts that you withdraw that exceed 15% of your account value. We use the account
value at the beginning of each contract year to calculate the 15% amount available. The
charge is 8% in each of the first two contract years following a contribution; the charge
is 7% in the third and fourth contract years following a contribution; thereafter, it
declines by 1% each year in the fifth to eighth contract year following a contribution.
There is no withdrawal charge in the ninth and later contract years following a
contribution. Certain other exemptions apply.
--------------------------------------------------------------------------------------------------------
The "contract date" is the effective date of a contract. This usually is the business day we
received the properly completed and signed application, along with any other required documents,
and your initial contribution. Your contract date appears in your contract. The 12-month period
beginning on your contract date and each 12-month period after that date is a "contract year."
The end of each 12-month period is your "contract date anniversary." For example, if your
contract date is May 1, your contract date anniversary is April 30.
--------------------------------------------------------------------------------------------------------
o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as
premium taxes in your state. This charge is generally deducted from the amount applied to
an annuity payout option.
o We deduct a $350 annuity administrative fee from amounts applied to the Variable Immediate
Annuity payout options.
o Annual expenses of the Trusts' portfolios are calculated as a percentage of the average
daily net assets invested in each portfolio. These expenses include management fees ranging
from 0.10% to 1.50% annually, 12b-1 fees of either 0.25% or 0.35% annually and other
expenses.
- -------------------------------------------------------------------------------------------------------------------------------
Annuitant issue ages NQ: 0-80
Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-80
QP: 20-70
- -------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the
contract. In some cases, restrictions or exceptions apply. Also, all features
of the contract are not necessarily available in your state or at certain ages.
For more detailed information, we urge you to read the contents of this
Prospectus, as well as your contract. Please feel free to speak with your
financial professional, or call us, if you have any questions.
Accumulator(R) Plus(SM) at a glance -- key features 9
OTHER CONTRACTS
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, credits, fees and/or charges that are
different from those in the contracts offered by this Prospectus. Not every
contract is offered through the same distributor. Upon request, your financial
professional can show you information regarding other AXA Equitable annuity
contracts that he or she distributes. You can also contact us to find out more
about any of the AXA Equitable annuity contracts.
10 Accumulator(R) Plus(SM) at a glance -- key features
Fee table
- --------------------------------------------------------------------------------
The following tables describe the fees and expenses that you pay when owning
and surrendering the contract. Each of the charges and expenses is more fully
described in "Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay at the time you
surrender the contract or if you make certain withdrawals or apply your cash
value to certain payout options or if you purchase a Variable Immediate
Annuity. Charges designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state, may also apply. Charges for certain
features shown in the fee table are mutually exclusive.
- --------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value at the time you request certain transactions
- --------------------------------------------------------------------------------------------------------------------------------
Maximum withdrawal charge as a percentage of contributions with-
drawn* (deducted if you surrender your contract, make certain
withdrawals, or apply your cash value to certain payout options).(1) 8.00%
Charge if you elect a Variable Immediate Annuity payout option $350
- --------------------------------------------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically
during the time that you own the contract, not including the underlying trust
portfolio fees and expenses.
- --------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your variable investment options expressed as an annual
percentage of daily net assets
- --------------------------------------------------------------------------------------------------------------------------------
Mortality and expense risks 0.90%*
Administrative 0.25%
Distribution 0.25%
------
Total annual expenses 1.40%
- --------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value on each contract date anniversary
- --------------------------------------------------------------------------------------------------------------------------------
Maximum annual administrative charge
If your account value on a contract date anniversary is less than
$50,000(2) $30
If your account value on a contract date anniversary is $50,000
or more $0
- --------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value each year if you elect the optional benefit
- --------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum death benefit charge (calculated as a
percentage of the applicable benefit base. Deducted annually on each
contract date anniversary for which the benefit is in effect.)
Standard death benefit 0.00%
Annual Ratchet to age 85 0.30% of the Annual Ratchet to age 85 benefit base
6% Roll-up to age 85 0.45% of the 6% roll-up to age 85 benefit base
Greater of 6% Roll-up to age 85 or Annual Ratchet to age 85 0.60% of the greater of the 6% roll-up to age 85
benefit base or the Annual Ratchet to age 85
benefit base, as applicable
- --------------------------------------------------------------------------------------------------------------------------------
Living Benefit charge (calculated as a percentage of the applicable
benefit base. Deducted annually on each contract date anniversary for
which the benefit is in effect.) 0.60%
- --------------------------------------------------------------------------------------------------------------------------------
Protection Plus(SM) benefit charge (calculated as a percentage of
the account value. Deducted annually on each contract date anniver-
sary for which the benefit is in effect.) 0.35%
- --------------------------------------------------------------------------------------------------------------------------------
* These charges compensate us for certain risks we assume and expenses we
incur under the contract. They also compensate us for the expense
associated with the credit. We expect to make a profit from these charges.
Fee table 11
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net
asset value each day. Therefore, they reduce the investment return of the
Portfolio and the related variable investment option. Actual fees and expenses
are likely to fluctuate from year to year. More detail concerning each
Portfolio's fees and expenses is contained in the Trust prospectus for the
Portfolio.
- -------------------------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets
- -------------------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2004 (expenses that are deducted Lowest Highest
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or
other expenses)(3) 0.55% 7.61%
This table shows the fees and expenses for 2004 as an annual percentage of each
Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waivers Annual
Underlying Expenses and/or Expenses
Portfolio (Before Expense After
Manage- 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name ment Fees(4) Fees(5) Expenses(6) Expenses(7) Limitation) ments(8) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 0.29% 0.99% 1.63% (0.29)% 1.34%
AXA Conservative Allocation 0.10% 0.25% 0.41% 0.75% 1.51% (0.41)% 1.10%
AXA Conservative-Plus Allocation 0.10% 0.25% 0.30% 0.80% 1.45% (0.30)% 1.15%
AXA Moderate Allocation 0.10% 0.25% 0.16% 0.83% 1.34% (0.16)% 1.18%
AXA Moderate-Plus Allocation 0.10% 0.25% 0.20% 1.02% 1.57% (0.20)% 1.37%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.18% -- 1.05% -- 1.05%
AXA Premier VIP Core Bond 0.60% 0.25% 0.20% -- 1.05% (0.10)% 0.95%
AXA Premier VIP Health Care 1.20% 0.25% 0.40% -- 1.85% 0.00% 1.85%
AXA Premier VIP High Yield 0.58% 0.25% 0.18% -- 1.01% -- 1.01%
AXA Premier VIP International Equity 1.05% 0.25% 0.50% -- 1.80% 0.00% 1.80%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.32% -- 1.47% (0.12)% 1.35%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.26% -- 1.41% (0.06)% 1.35%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.25% -- 1.40% (0.05)% 1.35%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.25% -- 1.60% 0.00% 1.60%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.25% -- 1.60% 0.00% 1.60%
AXA Premier VIP Technology 1.20% 0.25% 0.40% -- 1.85% 0.00% 1.85%
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.47% 0.25% 0.05% -- 0.77% -- 0.77%
EQ/Alliance Growth and Income 0.56% 0.25% 0.05% -- 0.86% -- 0.86%
EQ/Alliance Intermediate Government Securities 0.50% 0.25% 0.06% -- 0.81% -- 0.81%
EQ/Alliance International 0.73% 0.25% 0.12% -- 1.10% 0.00% 1.10%
EQ/Alliance Large Cap Growth* 0.90% 0.25% 0.05% -- 1.20% (0.10)% 1.10%
EQ/Alliance Quality Bond 0.50% 0.25% 0.06% -- 0.81% -- 0.81%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.06% -- 1.06% -- 1.06%
EQ/Bear Stearns Small Company Growth* 1.00% 0.25% 0.18% -- 1.43% (0.13)% 1.30%
EQ/Bernstein Diversified Value 0.63% 0.25% 0.07% -- 0.95% 0.00% 0.95%
EQ/Boston Advisors Equity Income* 0.75% 0.25% 0.21% -- 1.21% (0.16)% 1.05%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.29% -- 1.19% (0.14)% 1.05%
EQ/Capital Guardian Growth 0.65% 0.25% 0.09% -- 0.99% (0.04)% 0.95%
EQ/Capital Guardian International 0.85% 0.25% 0.17% -- 1.27% (0.07)% 1.20%
EQ/Capital Guardian Research 0.65% 0.25% 0.05% -- 0.95% 0.00% 0.95%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.05% -- 0.95% 0.00% 0.95%
EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.12% -- 0.97% (0.12)% 0.85%
EQ/Equity 500 Index 0.25% 0.25% 0.05% -- 0.55% -- 0.55%
EQ/Evergreen Omega 0.65% 0.25% 0.11% -- 1.01% (0.06)% 0.95%
EQ/FI Mid Cap 0.70% 0.25% 0.06% -- 1.01% (0.01)% 1.00%
EQ/FI Small/Mid Cap Value 0.74% 0.25% 0.08% -- 1.07% 0.00% 1.07%
EQ/International Growth 0.85% 0.25% 0.22% -- 1.32% 0.00% 1.32%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.06% -- 0.75% 0.00% 0.75%
EQ/JP Morgan Value Opportunities 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.08% -- 1.23% (0.08)% 1.15%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.05% -- 1.05% 0.00% 1.05%
EQ/Long Term Bond 0.50% 0.25% 0.25% -- 1.00% 0.00% 1.00%
- ------------------------------------------------------------------------------------------------------------------------------------
12 Fee table
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waivers Annual
Underlying Expenses and/or Expenses
Portfolio (Before Expense After
Manage- 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name ment Fees(4) Fees(5) Expenses(6) Expenses(7) Limitation) ments(8) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.19% -- 1.14% (0.09)% 1.05%
EQ/Marsico Focus 0.88% 0.25% 0.06% -- 1.19% (0.04)% 1.15%
EQ/Mercury Basic Value Equity 0.58% 0.25% 0.05% -- 0.88% 0.00% 0.88%
EQ/Mercury International Value 0.85% 0.25% 0.15% -- 1.25% 0.00% 1.25%
EQ/Mergers and Acquisitions 0.90% 0.25% 1.21% -- 2.36% (0.91)% 1.45%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.06% -- 0.96% -- 0.96%
EQ/MFS Investors Trust 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Money Market 0.34% 0.25% 0.05% -- 0.64% -- 0.64%
EQ/Montag & Caldwell Growth* 0.75% 0.25% 0.12% -- 1.12% 0.00% 1.12%
EQ/PIMCO Real Return 0.55% 0.25% 0.20% -- 1.00% (0.35)% 0.65%
EQ/Short Duration Bond 0.45% 0.25% 0.52% -- 1.22% (0.57)% 0.65%
EQ/Small Company Index 0.25% 0.25% 0.13% -- 0.63% 0.00% 0.63%
EQ/Small Company Value* 0.80% 0.25% 0.12% -- 1.17% 0.00% 1.17%
EQ/TCW Equity* 0.80% 0.25% 0.12% -- 1.17% (0.02)% 1.15%
EQ/UBS Growth and Income* 0.75% 0.25% 0.16% -- 1.16% (0.11)% 1.05%
EQ/Van Kampen Comstock 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Van Kampen Emerging Markets Equity* 1.15% 0.25% 0.40% -- 1.80% 0.00% 1.80%
EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.19% -- 1.14% (0.09)% 1.05%
EQ/Wells Fargo Montgomery Small Cap 0.85% 0.25% 6.51% -- 7.61% (6.33)% 1.28%
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity 1.50% 0.25% 2.35% -- 4.10% (0.96)% 3.14%
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate-- Class II** 0.76% 0.35% 0.26% -- 1.37% (0.10)% 1.27%
- ------------------------------------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject
to regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former
name.
** Expense information has been restored to reflect current fees in effect as
of November 1, 2004.
Notes:
(1) Deducted upon a withdrawal of amounts in excess of the 15% free withdrawal
amount, if applicable.
The withdrawal charge percentage we use is determined by the contract year Contract
in which you make the withdrawal or surrender your contract. For each Year
contribution, we consider the contract year in which we receive that 1 ................ 8.00%
contribution to be "contract year 1") 2 ................ 8.00%
3 ................ 7.00%
4 ................ 7.00%
5 ................ 6.00%
6 ................ 5.00%
7 ................ 4.00%
8 ................ 3.00%
9+ ............... 0.00%
(2) During the first two contract years this charge, if it applies, is equal to
the lesser of $30 or 2% of your account value. Thereafter, the charge is
$30 for each contract year.
(3) "Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2004 and for the
underlying portfolios.
(4) The management fees for each Portfolio cannot be increased without a vote
of that Portfolio's shareholders. See footnote (8) for any expense
limitation agreement information.
(5) Portfolio shares are all subject to fees imposed under the distribution
plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1
under the Investment Company Act of 1940. The 12b-1 fee will not be
increased for the life of the contracts.
(6) Other expenses shown are those incurred in 2004. The amounts shown as
"Other Expenses" will fluctuate from year to year depending on actual
expenses. See footnote (8) for any expense limitation agreement
information.
(7) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and AXA
Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolio's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocations
as of 12/31/04. A "--" indicates that the listed portfolio does not invest
in underlying portfolios, i.e., it is not an allocation portfolio.
(8) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A "--" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver or reimbursement. AXA Equitable,
the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has
entered into Expense Limitation Agreements with respect to certain
Portfolios, which are effective through April 30, 2006. Under these
agreements AXA Equitable has agreed to waive or limit its fees and assume
other expenses of certain Portfolios, if necessary, in an amount that
limits each affected Portfolio's Total Annual Expenses (exclusive of
interest, taxes, brokerage commissions, capitalized expenditures and
extraordinary expenses) to not more than specified amounts. Each Portfolio
may at a later date make a reimbursement to AXA Equitable for any of the
management fees waived or limited and other expenses assumed and paid by
AXA Equitable pursuant to the expense limitation agreement provided that
the Portfolio's current annual operating expenses do not exceed the
operating expense limit determined for such Portfolio. Morgan Stanley
Investment Management Inc., which does business in certain instances as
"Van Kampen," is the manager of The Universal Institutional Funds, Inc. --
U.S. Real Estate Portfolio -- Class II,
Fee table 13
and has voluntarily agreed to reduce its management fee and/or reimburse the
Portfolio so that total annual operating expenses of the Portfolio
(exclusive of investment related expenses, such as foreign country tax
expense and interest expense on amounts borrowed) are not more than
specified amounts. Additionally, the distributor of The Universal
Institutional Funds, Inc. has agreed to waive a portion of the 12b-1 fee for
Class II shares. Van Kampen and/or the fund's distributor reserves the right
to terminate any waiver and/or reimbursement at any time without notice.
Charles Schwab Investment Management, Inc., the manager of the Laudus
Variable Insurance Trust -- Laudus Rosenberg VIT Value Long/Short Equity
Portfolio has voluntarily agreed to reimburse expenses in excess of
specified amounts. See the Prospectus for each applicable underlying Trust
for more information about the arrangements. In addition, a portion of the
brokerage commissions of certain Portfolios of EQ Advisors Trust Portfolio
and each AXA Premier VIP Trust Portfolio is used to reduce the applicable
Portfolio's expenses. If the above table reflected both the expense
limitation arrangements plus the portion of the brokerage commissions used
to reduce portfolio expenses, the net expenses would be as shown in the
table below:
- ----------------------------------------------------
Portfolio Name
- ----------------------------------------------------
AXA Moderate Allocation 1.17%
AXA Premier VIP Aggressive Equity 0.93%
AXA Premier VIP Health Care 1.81%
AXA Premier VIP International Equity 1.75%
AXA Premier VIP Large Cap Core Equity 1.32%
AXA Premier VIP Large Cap Growth 1.30%
AXA Premier VIP Large Cap Value 1.21%
AXA Premier VIP Small/Mid Cap Growth 1.50%
AXA Premier VIP Small/Mid Cap Value 1.54%
AXA Premier VIP Technology 1.75%
EQ/Alliance Common Stock 0.68%
EQ/Alliance Growth and Income 0.80%
EQ/Alliance International 1.08%
EQ/Alliance Large Cap Growth 1.04%
EQ/Alliance Small Cap Growth 0.98%
EQ/Calvert Socially Responsible 1.00%
EQ/Capital Guardian Growth 0.67%
EQ/Capital Guardian International 1.17%
EQ/Capital Guardian Research 0.90%
EQ/Capital Guardian U.S. Equity 0.93%
EQ/Evergreen Omega 0.57%
EQ/FI Mid Cap 0.96%
EQ/FI Small/Mid Cap Value 1.05%
EQ/JP Morgan Value Opportunities 0.76%
EQ/Lazard Small Cap Value 0.86%
EQ/Marsico Focus 1.12%
EQ/Mercury Basic Value Equity 0.86%
EQ/Mercury International Value 1.18%
EQ/MFS Emerging Growth Companies 0.91%
EQ/MFS Investors Trust 0.91%
EQ/Small Company Value 1.16%
EQ/TCW Equity 1.14%
EQ/Van Kampen Emerging Markets Equity 1.75%
EQ/Wells Fargo Montgomery Small Cap 1.26%
- ----------------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses).
The example below shows the expenses that a hypothetical contract owner (who
has elected the Living Benefit with the enhanced death benefit that provides
for the greater of the 6% Roll-up or the Annual Ratchet to age 85 and
Protection Plus(SM)) would pay in the situations illustrated. The annual
administrative charge is based on the charges that apply to a mix of estimated
contract sizes, resulting in an estimated administrative charge for the purpose
of these examples of $1.10 per $10,000.
The fixed maturity options and guaranteed interest option are not covered by
the examples. However, the annual administrative charge, the withdrawal charge,
the charge for any optional benefits and the charge if you elect a Variable
Immediate Annuity payout option do apply to the fixed maturity options and
guaranteed interest option. A market value adjustment (up or down) may apply as
a result of a withdrawal, transfer, or surrender of amounts from a fixed
maturity option.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes that your investment has a 5%
return each year. This example should not be considered a representation of
past or future expenses for each option. Actual expenses may be greater or less
than those shown. Similarly, the annual rate of return assumed in the example
is not an estimate or guarantee of future investment performance.
Although your actual costs may be higher or lower, based on these assumptions,
your costs would be:
14 Fee table
- ------------------------------------------------------------------------------------------------------------
If you surrender your contract
at the end of the applicable time period
------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,297.46 $ 2,217.87 $ 3,173.64 $ 5,379.51
AXA Conservative Allocation $ 1,284.35 $ 2,179.85 $ 3,112.52 $ 5,269.64
AXA Conservative-Plus Allocation $ 1,277.80 $ 2,160.80 $ 3,081.84 $ 5,214.17
AXA Moderate Allocation $ 1,265.57 $ 2,125.17 $ 3,024.35 $ 5,109.68
AXA Moderate-Plus Allocation $ 1,290.91 $ 2,198.87 $ 3,143.12 $ 5,324.75
AXA Premier VIP Aggressive Equity $ 1,234.28 $ 2,033.31 $ 2,875.34 $ 4,835.34
AXA Premier VIP Core Bond $ 1,234.28 $ 2,033.31 $ 2,875.34 $ 4,835.34
AXA Premier VIP Health Care $ 1,321.48 $ 2,287.33 $ 3,284.86 $ 5,577.33
AXA Premier VIP High Yield $ 1,229.97 $ 2,020.54 $ 2,854.52 $ 4,796.59
AXA Premier VIP International Equity $ 1,316.02 $ 2,271.57 $ 3,259.68 $ 5,532.78
AXA Premier VIP Large Cap Core Equity $ 1,279.99 $ 2,167.15 $ 3,092.08 $ 5,232.70
AXA Premier VIP Large Cap Growth $ 1,273.44 $ 2,148.08 $ 3,061.34 $ 5,177.00
AXA Premier VIP Large Cap Value $ 1,272.34 $ 2,144.90 $ 3,056.21 $ 5,167.68
AXA Premier VIP Small/Mid Cap Growth $ 1,294.18 $ 2,208.37 $ 3,158.39 $ 5,352.18
AXA Premier VIP Small/Mid Cap Value $ 1,294.18 $ 2,208.37 $ 3,158.39 $ 5,352.18
AXA Premier VIP Technology $ 1,321.48 $ 2,287.33 $ 3,284.86 $ 5,577.33
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 1,204.08 $ 1,943.67 $ 2,728.84 $ 4,560.65
EQ/Alliance Growth and Income $ 1,213.79 $ 1,972.54 $ 2,776.12 $ 4,649.83
EQ/Alliance Intermediate Government Securities $ 1,208.39 $ 1,956.51 $ 2,749.88 $ 4,600.39
EQ/Alliance International $ 1,239.68 $ 2,049.27 $ 2,901.31 $ 4,883.54
EQ/Alliance Large Cap Growth* $ 1,250.51 $ 2,081.16 $ 2,953.12 $ 4,979.22
EQ/Alliance Quality Bond $ 1,208.39 $ 1,956.51 $ 2,749.88 $ 4,600.39
EQ/Alliance Small Cap Growth $ 1,235.36 $ 2,036.51 $ 2,880.54 $ 4,845.00
EQ/Bear Stearns Small Company Growth* $ 1,275.62 $ 2,154.44 $ 3,071.59 $ 5,195.61
EQ/Bernstein Diversified Value $ 1,223.50 $ 2,001.36 $ 2,823.22 $ 4,738.16
EQ/Boston Advisors Equity Income* $ 1,251.60 $ 2,084.35 $ 2,958.29 $ 4,988.74
EQ/Calvert Socially Responsible $ 1,249.41 $ 2,077.96 $ 2,947.94 $ 4,969.69
EQ/Capital Guardian Growth $ 1,227.81 $ 2,014.15 $ 2,844.10 $ 4,777.16
EQ/Capital Guardian International $ 1,258.15 $ 2,103.50 $ 2,989.30 $ 5,045.63
EQ/Capital Guardian Research $ 1,223.50 $ 2,001.36 $ 2,823.22 $ 4,738.16
EQ/Capital Guardian U.S. Equity $ 1,223.50 $ 2,001.36 $ 2,823.22 $ 4,738.16
EQ/Caywood-Scholl High Yield Bond $ 1,225.65 $ 2,007.75 $ 2,833.66 $ 4,757.68
EQ/Equity 500 Index $ 1,180.35 $ 1,872.85 $ 2,612.47 $ 4,339.09
EQ/Evergreen Omega $ 1,229.97 $ 2,020.54 $ 2,854.52 $ 4,796.59
EQ/FI Mid Cap $ 1,229.97 $ 2,020.54 $ 2,854.52 $ 4,796.59
EQ/FI Small/Mid Cap Value $ 1,236.44 $ 2,039.70 $ 2,885.73 $ 4,854.65
EQ/International Growth $ 1,263.61 $ 2,119.44 $ 3,015.08 $ 5,092.77
EQ/J.P. Morgan Core Bond $ 1,201.92 $ 1,937.24 $ 2,718.31 $ 4,540.72
EQ/JP Morgan Value Opportunities $ 1,223.50 $ 2,001.36 $ 2,823.22 $ 4,738.16
EQ/Janus Large Cap Growth $ 1,253.78 $ 2,090.74 $ 2,968.64 $ 5,007.74
EQ/Lazard Small Cap Value $ 1,234.28 $ 2,033.31 $ 2,875.34 $ 4,835.34
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
If you annuitize at the end of the
applicable time period
------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 847.46 $ 1,867.87 $ 2,923.64 $ 5,729.51
AXA Conservative Allocation $ 834.35 $ 1,829.85 $ 2,862.52 $ 5,619.64
AXA Conservative-Plus Allocation $ 827.80 $ 1,810.80 $ 2,831.84 $ 5,564.17
AXA Moderate Allocation $ 815.57 $ 1,775.17 $ 2,774.35 $ 5,459.68
AXA Moderate-Plus Allocation $ 840.91 $ 1,848.87 $ 2,893.12 $ 5,674.75
AXA Premier VIP Aggressive Equity $ 784.28 $ 1,683.31 $ 2,625.34 $ 5,185.34
AXA Premier VIP Core Bond $ 784.28 $ 1,683.31 $ 2,625.34 $ 5,185.34
AXA Premier VIP Health Care $ 871.48 $ 1,937.33 $ 3,034.86 $ 5,927.33
AXA Premier VIP High Yield $ 779.97 $ 1,670.54 $ 2,604.52 $ 5,146.59
AXA Premier VIP International Equity $ 866.02 $ 1,921.57 $ 3,009.68 $ 5,882.78
AXA Premier VIP Large Cap Core Equity $ 829.99 $ 1,817.15 $ 2,842.08 $ 5,582.70
AXA Premier VIP Large Cap Growth $ 823.44 $ 1,798.08 $ 2,811.34 $ 5,527.00
AXA Premier VIP Large Cap Value $ 822.34 $ 1,794.90 $ 2,806.21 $ 5,517.68
AXA Premier VIP Small/Mid Cap Growth $ 844.18 $ 1,858.37 $ 2,908.39 $ 5,702.18
AXA Premier VIP Small/Mid Cap Value $ 844.18 $ 1,858.37 $ 2,908.39 $ 5,702.18
AXA Premier VIP Technology $ 871.48 $ 1,937.33 $ 3,034.86 $ 5,927.33
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 754.08 $ 1,593.67 $ 2,478.84 $ 4,910.65
EQ/Alliance Growth and Income $ 763.79 $ 1,622.54 $ 2,526.12 $ 4,999.83
EQ/Alliance Intermediate Government Securities $ 758.39 $ 1,606.51 $ 2,499.88 $ 4,950.39
EQ/Alliance International $ 789.68 $ 1,699.27 $ 2,651.31 $ 5,233.54
EQ/Alliance Large Cap Growth* $ 800.51 $ 1,731.16 $ 2,703.12 $ 5,329.22
EQ/Alliance Quality Bond $ 758.39 $ 1,606.51 $ 2,499.88 $ 4,950.39
EQ/Alliance Small Cap Growth $ 785.36 $ 1,686.51 $ 2,630.54 $ 5,195.00
EQ/Bear Stearns Small Company Growth* $ 825.62 $ 1,804.44 $ 2,821.59 $ 5,545.61
EQ/Bernstein Diversified Value $ 773.50 $ 1,651.36 $ 2,573.22 $ 5,088.16
EQ/Boston Advisors Equity Income* $ 801.60 $ 1,734.35 $ 2,708.29 $ 5,338.74
EQ/Calvert Socially Responsible $ 799.41 $ 1,727.96 $ 2,697.94 $ 5,319.69
EQ/Capital Guardian Growth $ 777.81 $ 1,664.15 $ 2,594.10 $ 5,127.16
EQ/Capital Guardian International $ 808.15 $ 1,753.50 $ 2,739.30 $ 5,395.63
EQ/Capital Guardian Research $ 773.50 $ 1,651.36 $ 2,573.22 $ 5,088.16
EQ/Capital Guardian U.S. Equity $ 773.50 $ 1,651.36 $ 2,573.22 $ 5,088.16
EQ/Caywood-Scholl High Yield Bond $ 775.65 $ 1,657.75 $ 2,583.66 $ 5,107.68
EQ/Equity 500 Index $ 730.35 $ 1,522.85 $ 2,362.47 $ 4,689.09
EQ/Evergreen Omega $ 779.97 $ 1,670.54 $ 2,604.52 $ 5,146.59
EQ/FI Mid Cap $ 779.97 $ 1,670.54 $ 2,604.52 $ 5,146.59
EQ/FI Small/Mid Cap Value $ 786.44 $ 1,689.70 $ 2,635.73 $ 5,204.65
EQ/International Growth $ 813.61 $ 1,769.44 $ 2,765.08 $ 5,442.77
EQ/J.P. Morgan Core Bond $ 751.92 $ 1,587.24 $ 2,468.31 $ 4,890.72
EQ/JP Morgan Value Opportunities $ 773.50 $ 1,651.36 $ 2,573.22 $ 5,088.16
EQ/Janus Large Cap Growth $ 803.78 $ 1,740.74 $ 2,718.64 $ 5,357.74
EQ/Lazard Small Cap Value $ 784.28 $ 1,683.31 $ 2,625.34 $ 5,185.34
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
If you do not surrender your contract
at the end of the applicable time period
-----------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 497.46 $ 1,517.87 $ 2,573.64 $ 5,379.51
AXA Conservative Allocation $ 484.35 $ 1,479.85 $ 2,512.52 $ 5,269.64
AXA Conservative-Plus Allocation $ 477.80 $ 1,460.80 $ 2,481.84 $ 5,214.17
AXA Moderate Allocation $ 465.57 $ 1,425.17 $ 2,424.35 $ 5,109.68
AXA Moderate-Plus Allocation $ 490.91 $ 1,498.87 $ 2,543.12 $ 5,324.75
AXA Premier VIP Aggressive Equity $ 434.28 $ 1,333.31 $ 2,275.34 $ 4,835.34
AXA Premier VIP Core Bond $ 434.28 $ 1,333.31 $ 2,275.34 $ 4,835.34
AXA Premier VIP Health Care $ 521.48 $ 1,587.33 $ 2,684.86 $ 5,577.33
AXA Premier VIP High Yield $ 429.97 $ 1,320.54 $ 2,254.52 $ 4,796.59
AXA Premier VIP International Equity $ 516.02 $ 1,571.57 $ 2,659.68 $ 5,532.78
AXA Premier VIP Large Cap Core Equity $ 479.99 $ 1,467.15 $ 2,492.08 $ 5,232.70
AXA Premier VIP Large Cap Growth $ 473.44 $ 1,448.08 $ 2,461.34 $ 5,177.00
AXA Premier VIP Large Cap Value $ 472.34 $ 1,444.90 $ 2,456.21 $ 5,167.68
AXA Premier VIP Small/Mid Cap Growth $ 494.18 $ 1,508.37 $ 2,558.39 $ 5,352.18
AXA Premier VIP Small/Mid Cap Value $ 494.18 $ 1,508.37 $ 2,558.39 $ 5,352.18
AXA Premier VIP Technology $ 521.48 $ 1,587.33 $ 2,684.86 $ 5,577.33
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 404.08 $ 1,243.67 $ 2,128.84 $ 4,560.65
EQ/Alliance Growth and Income $ 413.79 $ 1,272.54 $ 2,176.12 $ 4,649.83
EQ/Alliance Intermediate Government Securities $ 408.39 $ 1,256.51 $ 2,149.88 $ 4,600.39
EQ/Alliance International $ 439.68 $ 1,349.27 $ 2,301.31 $ 4,883.54
EQ/Alliance Large Cap Growth* $ 450.51 $ 1,381.16 $ 2,353.12 $ 4,979.22
EQ/Alliance Quality Bond $ 408.39 $ 1,256.51 $ 2,149.88 $ 4,600.39
EQ/Alliance Small Cap Growth $ 435.36 $ 1,336.51 $ 2,280.54 $ 4,845.00
EQ/Bear Stearns Small Company Growth* $ 475.62 $ 1,454.44 $ 2,471.59 $ 5,195.61
EQ/Bernstein Diversified Value $ 423.50 $ 1,301.36 $ 2,223.22 $ 4,738.16
EQ/Boston Advisors Equity Income* $ 451.60 $ 1,384.35 $ 2,358.29 $ 4,988.74
EQ/Calvert Socially Responsible $ 449.41 $ 1,377.96 $ 2,347.94 $ 4,969.69
EQ/Capital Guardian Growth $ 427.81 $ 1,314.15 $ 2,244.10 $ 4,777.16
EQ/Capital Guardian International $ 458.15 $ 1,403.50 $ 2,389.30 $ 5,045.63
EQ/Capital Guardian Research $ 423.50 $ 1,301.36 $ 2,223.22 $ 4,738.16
EQ/Capital Guardian U.S. Equity $ 423.50 $ 1,301.36 $ 2,223.22 $ 4,738.16
EQ/Caywood-Scholl High Yield Bond $ 425.65 $ 1,307.75 $ 2,233.66 $ 4,757.68
EQ/Equity 500 Index $ 380.35 $ 1,172.85 $ 2,012.47 $ 4,339.09
EQ/Evergreen Omega $ 429.97 $ 1,320.54 $ 2,254.52 $ 4,796.59
EQ/FI Mid Cap $ 429.97 $ 1,320.54 $ 2,254.52 $ 4,796.59
EQ/FI Small/Mid Cap Value $ 436.44 $ 1,339.70 $ 2,285.73 $ 4,854.65
EQ/International Growth $ 463.61 $ 1,419.44 $ 2,415.08 $ 5,092.77
EQ/J.P. Morgan Core Bond $ 401.92 $ 1,237.24 $ 2,118.31 $ 4,540.72
EQ/JP Morgan Value Opportunities $ 423.50 $ 1,301.36 $ 2,223.22 $ 4,738.16
EQ/Janus Large Cap Growth $ 453.78 $ 1,390.74 $ 2,368.64 $ 5,007.74
EQ/Lazard Small Cap Value $ 434.28 $ 1,333.31 $ 2,275.34 $ 4,835.34
- ------------------------------------------------------------------------------------------------------------
Fee table 15
- -----------------------------------------------------------------------------------------------------------
If you surrender your contract
at the end of the applicable time period
-------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 1,228.89 $ 2,017.34 $ 2,849.31 $ 4,786.88
EQ/Lord Abbett Growth and Income $ 1,238.60 $ 2,046.08 $ 2,896.12 $ 4,873.92
EQ/Lord Abbett Large Cap Core $ 1,238.60 $ 2,046.08 $ 2,896.12 $ 4,873.92
EQ/Lord Abbett Mid Cap Value $ 1,243.99 $ 2,062.02 $ 2,922.04 $ 4,921.92
EQ/Marsico Focus $ 1,249.41 $ 2,077.96 $ 2,947.94 $ 4,969.69
EQ/Mercury Basic Value Equity $ 1,215.95 $ 1,978.95 $ 2,786.61 $ 4,669.53
EQ/Mercury International Value $ 1,255.97 $ 2,097.12 $ 2,978.97 $ 5,026.71
EQ/Mergers and Acquisitions $ 1,377.16 $ 2,447.08 $ 3,538.54 $ 6,018.31
EQ/MFS Emerging Growth Companies $ 1,224.58 $ 2,004.56 $ 2,828.44 $ 4,747.93
EQ/MFS Investors Trust $ 1,223.50 $ 2,001.36 $ 2,823.22 $ 4,738.16
EQ/Money Market $ 1,190.05 $ 1,901.86 $ 2,660.21 $ 4,430.34
EQ/Montag & Caldwell Growth* $ 1,241.84 $ 2,055.64 $ 2,911.68 $ 4,902.75
EQ/PIMCO Real Return $ 1,228.89 $ 2,017.34 $ 2,849.31 $ 4,786.88
EQ/Short Duration Bond $ 1,252.69 $ 2,087.54 $ 2,963.47 $ 4,998.24
EQ/Small Company Index $ 1,188.98 $ 1,898.64 $ 2,654.92 $ 4,420.25
EQ/Small Company Value* $ 1,247.23 $ 2,071.57 $ 2,937.57 $ 4,950.60
EQ/TCW Equity* $ 1,247.23 $ 2,071.57 $ 2,937.57 $ 4,950.60
EQ/UBS Growth and Income* $ 1,246.15 $ 2,068.39 $ 2,932.40 $ 4,941.05
EQ/Van Kampen Comstock $ 1,238.60 $ 2,046.08 $ 2,896.12 $ 4,873.92
EQ/Van Kampen Emerging Markets Equity* $ 1,316.02 $ 2,271.57 $ 3,259.68 $ 5,532.78
EQ/Van Kampen Mid Cap Growth $ 1,243.99 $ 2,062.02 $ 2,922.04 $ 4,921.92
EQ/Wells Fargo Montgomery Small Cap $ 1,950.40 $ 3,990.74 $ 5,834.56 $ 9,356.42
- -----------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- -----------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,567.15 $ 2,978.89 $ 4,361.64 $ 7,350.86
- -----------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- -----------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II $ 1,269.07 $ 2,135.36 $ 3,040.80 $ 5,139.67
- -----------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
If you annuitize at the end of the
applicable time period
----------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- --------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 778.89 $ 1,667.34 $ 2,599.31 $ 5,136.88
EQ/Lord Abbett Growth and Income $ 788.60 $ 1,696.08 $ 2,646.12 $ 5,223.92
EQ/Lord Abbett Large Cap Core $ 788.60 $ 1,696.08 $ 2,646.12 $ 5,223.92
EQ/Lord Abbett Mid Cap Value $ 793.99 $ 1,712.02 $ 2,672.04 $ 5,271.92
EQ/Marsico Focus $ 799.41 $ 1,727.96 $ 2,697.94 $ 5,319.69
EQ/Mercury Basic Value Equity $ 765.95 $ 1,628.95 $ 2,536.61 $ 5,019.53
EQ/Mercury International Value $ 805.97 $ 1,747.12 $ 2,728.97 $ 5,376.71
EQ/Mergers and Acquisitions $ 927.16 $ 2,097.08 $ 3,288.54 $ 6,368.31
EQ/MFS Emerging Growth Companies $ 774.58 $ 1,654.56 $ 2,578.44 $ 5,097.93
EQ/MFS Investors Trust $ 773.50 $ 1,651.36 $ 2,573.22 $ 5,088.16
EQ/Money Market $ 740.05 $ 1,551.86 $ 2,410.21 $ 4,780.34
EQ/Montag & Caldwell Growth* $ 791.84 $ 1,705.64 $ 2,661.68 $ 5,252.75
EQ/PIMCO Real Return $ 778.89 $ 1,667.34 $ 2,599.31 $ 5,136.88
EQ/Short Duration Bond $ 802.69 $ 1,737.54 $ 2,713.47 $ 5,348.24
EQ/Small Company Index $ 738.98 $ 1,548.64 $ 2,404.92 $ 4,770.25
EQ/Small Company Value* $ 797.23 $ 1,721.57 $ 2,687.57 $ 5,300.60
EQ/TCW Equity* $ 797.23 $ 1,721.57 $ 2,687.57 $ 5,300.60
EQ/UBS Growth and Income* $ 796.15 $ 1,718.39 $ 2,682.40 $ 5,291.05
EQ/Van Kampen Comstock $ 788.60 $ 1,696.08 $ 2,646.12 $ 5,223.92
EQ/Van Kampen Emerging Markets Equity* $ 866.02 $ 1,921.57 $ 3,009.68 $ 5,882.78
EQ/Van Kampen Mid Cap Growth $ 793.99 $ 1,712.02 $ 2,672.04 $ 5,271.92
EQ/Wells Fargo Montgomery Small Cap $ 1,500.40 $ 3,640.74 $ 5,584.56 $ 9,706.42
- --------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- --------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,117.15 $ 2,628.89 $ 4,111.64 $ 7,700.86
- --------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- --------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II $ 819.07 $ 1,785.36 $ 2,790.80 $ 5,489.67
- --------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
If you do not surrender your contract
at the end of the applicable time period
------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ---------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ---------------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 428.89 $ 1,317.34 $ 2,249.31 $ 4,786.88
EQ/Lord Abbett Growth and Income $ 438.60 $ 1,346.08 $ 2,296.12 $ 4,873.92
EQ/Lord Abbett Large Cap Core $ 438.60 $ 1,346.08 $ 2,296.12 $ 4,873.92
EQ/Lord Abbett Mid Cap Value $ 443.99 $ 1,362.02 $ 2,322.04 $ 4,921.92
EQ/Marsico Focus $ 449.41 $ 1,377.96 $ 2,347.94 $ 4,969.69
EQ/Mercury Basic Value Equity $ 415.95 $ 1,278.95 $ 2,186.61 $ 4,669.53
EQ/Mercury International Value $ 455.97 $ 1,397.12 $ 2,378.97 $ 5,026.71
EQ/Mergers and Acquisitions $ 577.16 $ 1,747.08 $ 2,938.54 $ 6,018.31
EQ/MFS Emerging Growth Companies $ 424.58 $ 1,304.56 $ 2,228.44 $ 4,747.93
EQ/MFS Investors Trust $ 423.50 $ 1,301.36 $ 2,223.22 $ 4,738.16
EQ/Money Market $ 390.05 $ 1,201.86 $ 2,060.21 $ 4,430.34
EQ/Montag & Caldwell Growth* $ 441.84 $ 1,355.64 $ 2,311.68 $ 4,902.75
EQ/PIMCO Real Return $ 428.89 $ 1,317.34 $ 2,249.31 $ 4,786.88
EQ/Short Duration Bond $ 452.69 $ 1,387.54 $ 2,363.47 $ 4,998.24
EQ/Small Company Index $ 388.98 $ 1,198.64 $ 2,054.92 $ 4,420.25
EQ/Small Company Value* $ 447.23 $ 1,371.57 $ 2,337.57 $ 4,950.60
EQ/TCW Equity* $ 447.23 $ 1,371.57 $ 2,337.57 $ 4,950.60
EQ/UBS Growth and Income* $ 446.15 $ 1,368.39 $ 2,332.40 $ 4,941.05
EQ/Van Kampen Comstock $ 438.60 $ 1,346.08 $ 2,296.12 $ 4,873.92
EQ/Van Kampen Emerging Markets Equity* $ 516.02 $ 1,571.57 $ 2,659.68 $ 5,532.78
EQ/Van Kampen Mid Cap Growth $ 443.99 $ 1,362.02 $ 2,322.04 $ 4,921.92
EQ/Wells Fargo Montgomery Small Cap $ 1,150.40 $ 3,290.74 $ 5,234.56 $ 9,356.42
- ---------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ---------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 767.15 $ 2,278.89 $ 3,761.64 $ 7,350.86
- ---------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ---------------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II $ 469.07 $ 1,435.36 $ 2,440.80 $ 5,139.67
- ---------------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject
to regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former
name.
16 Fee table
CONDENSED FINANCIAL INFORMATION
Please see Appendix I at the end of this Prospectus for the unit values and the
number of units outstanding as of the end of the periods shown for each of the
variable investment options available as of December 31, 2004.
Fee table 17
1. Contract features and benefits
- --------------------------------------------------------------------------------
HOW YOU CAN CONTRIBUTE TO YOUR CONTRACT
You may make additional contributions of at least $500 each for NQ, QP and
Rollover TSA contracts and $50 each for IRA contracts, subject to limitations
noted below. The following table summarizes our rules regarding contributions
to your contract. All ages in the table refer to the age of the annuitant named
in the contract. Initial contribution amounts are provided for informational
purposes only. This contract is no longer available to new purchasers.
We may refuse to accept any contribution if the sum of all contributions under
all Accumulator(R) series contracts with the same annuitant would then total
more than $1,500,000. We reserve the right to limit aggregate contributions
made after the first contract year to 150% of first-year contributions. We may
also refuse to accept any contribution if the sum of all contributions under
all AXA Equitable annuity accumulation contracts that you own would then total
more than $2,500,000.
- --------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining
contract benefits. The annuitant is not necessarily the contract owner.
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Annuitant Limitations on
Contract type issue ages Source of contributions contributions
- -----------------------------------------------------------------------------------------------------------------------------------
NQ 0 through 80 o After-tax money. o No additional contributions after attainment
of age 81 or, if later, the first contract
o Paid to us by check or transfer of contract anniversary.
value in a tax-deferred exchange under
Section 1035 of the Internal Revenue
Code.
- -----------------------------------------------------------------------------------------------------------------------------------
Rollover IRA 20 through 80 o Eligible rollover distributions from TSA o No contributions after attainment of age 81
contracts or other 403(b) arrangements, or, if later, the first contract anniversary.
qualified plans, and governmental
employer 457(b) plans. o Contributions after age 70-1/2 must be net of
required minimum distributions.
o Rollovers from another traditional indi-
vidual retirement arrangement. o Although we accept regular IRA contribu-
tions (limited to $4,000 for 2005; same for
o Direct custodian-to-custodian transfers 2006) under Rollover IRA contracts, we
from another traditional individual retire- intend that this contract be used primarily
ment arrangement. for rollover and direct transfer contributions.
o Regular IRA contributions. o Additional catch-up contributions of up to
$500 can be made for the calendar year
o Additional "catch-up" contributions. 2005 ($1,000 for 2006) where the owner is
at least age 50 but under age 70-1/2 at any
time during the calendar year for which the
contribution is made.
- -----------------------------------------------------------------------------------------------------------------------------------
18 Contract features and benefits
- -----------------------------------------------------------------------------------------------------------------------------------
Annuitant Limitations on
Contract type issue ages Source of contributions contributions
- -----------------------------------------------------------------------------------------------------------------------------------
Roth Conversion 20 through 80 o Rollovers from another Roth IRA. o No additional rollover or direct transfer
IRA contributions after attainment of age 81 or,
o Conversion rollovers from a traditional if later, the first contract anniversary.
IRA.
o Conversion rollovers after age 70-1/2 must be
o Direct transfers from another Roth IRA. net of required minimum distributions for
the traditional IRA you are rolling over.
o Regular Roth IRA contributions.
o You cannot roll over funds from a traditional
o Additional catch-up contributions. IRA if your adjusted gross income is
$100,000 or more.
o Although we accept regular Roth IRA con-
tributions (limited to $4,000 for 2005; same
for 2006) under the Roth IRA contracts, we
intend that this contract be used primarily
for rollover and direct transfer contributions.
o Additional catch-up contributions of up to
$500 can be made for the calendar year
2005 ($1,000 for 2006) where the owner is
at least age 50 at any time during the cal-
endar year for which the contribution is
made.
- -----------------------------------------------------------------------------------------------------------------------------------
Rollover TSA 20 through 80 o Direct transfers of pre-tax funds from o Additional rollover or direct transfer contri-
another contract or arrangement under butions may be made up to attainment of
Section 403(b) of the Internal Revenue age 81 or, if later, the first contract
Code, complying with IRS Revenue Ruling anniversary.
90-24.
o Rollover or direct transfer contributions after
o Eligible rollover distributions of pre-tax age 70-1/2 must be net of any required mini-
funds from other 403(b) plans. Subse- mum distributions.
quent contributions may also be rollovers
from qualified plans, governmental o We do not accept employer-remitted
employer 457(b) plans and traditional contributions.
IRAs.
- -----------------------------------------------------------------------------------------------------------------------------------
QP 20 through 70 o Only transfer contributions from an exist- o We do not accept regular ongoing payroll
ing defined contribution qualified plan contributions.
trust.
o Only one additional transfer contribution
o The plan must be qualified under Section may be made during a contract year.
401(a) of the Internal Revenue Code.
o No additional transfer contributions after
o For 401(k) plans, transferred contributions attainment of age 71 or, if later, the first
may only include employee pre-tax contract anniversary.
contributions.
o A separate QP contract must be established
for each plan participant.
o We do not accept employer-remitted
contributions.
o We do not accept contributions from
defined benefit plans.
See Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts.
- -----------------------------------------------------------------------------------------------------------------------------------
See "Tax information" later in this Prospectus for a more detailed discussion
of sources of contributions and certain contribution limitations. For
information on when contributions are credited under your contract see "Dates
and prices at which contract events occur" in "More information" later in this
Prospectus.
Contract features and benefits 19
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from the owner. A joint
owner may also be named. Only natural persons can be joint owners. This means
that an entity such as a corporation cannot be a joint owner. In general we
will not permit a contract to be owned by a minor unless it is pursuant to the
Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act in your
state.
Under all IRA and Rollover TSA contracts, the owner and annuitant must be the
same person. In some cases, an IRA contract may be held in a custodial
individual retirement account for the benefit of the individual annuitant. This
option may not be available under your contract.
Under QP contracts, the owner must be the trustee of the qualified plan and the
annuitant must be the plan participant/employee. See Appendix II at the end of
this Prospectus for more information on QP contracts.
- --------------------------------------------------------------------------------
A participant is an individual who is currently, or was formerly, participating
in an eligible employer's qualified plan or TSA plan.
- --------------------------------------------------------------------------------
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be by check drawn on a U.S. bank, in
U.S. dollars, and made payable to AXA Equitable. We may also apply
contributions made pursuant to a Section 1035 tax-free exchange or a direct
transfer. We do not accept third-party checks endorsed to us except for
rollover contributions, tax-free exchanges or trustee checks that involve no
refund. All checks are subject to our ability to collect the funds. We reserve
the right to reject a payment if it is received in an unacceptable form.
For your convenience, we will accept contributions by wire transmittal from
certain broker-dealers who have agreements with us for this purpose, including
circumstances under which such contributions are considered received by us when
your order is taken by such broker-dealers. Additional contributions may also
be made under our automatic investment program. These methods of payment are
discussed in detail in "More information" later in this Prospectus.
- --------------------------------------------------------------------------------
Our "business day" is generally any day the New York Stock Exchange is open for
trading and generally ends at 4:00 p.m. Eastern Time. A business day does not
include a day we choose not to open due to emergency conditions. We may also
close early due to emergency conditions.
- --------------------------------------------------------------------------------
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
Your investment options are the variable investment options, the guaranteed
interest option and the fixed maturity options.
VARIABLE INVESTMENT OPTIONS
Your investment results in any one of the variable investment options will
depend on the investment performance of the underlying portfolios. You can lose
your principal when investing in the variable investment options. In periods of
poor market performance, the net return, after charges and expenses, may result
in negative yields, including for the EQ/Money Market variable investment
option. Listed below are the currently available portfolios, their investment
objectives and their advisers.
- --------------------------------------------------------------------------------
You can choose from among the variable investment options, the guaranteed
interest option and the fixed maturity options.
- --------------------------------------------------------------------------------
20 Contract features and benefits
PORTFOLIOS OF THE TRUSTS
You should note that some portfolios have objectives and strategies that are
substantially similar to those of certain funds that are purchased directly
rather than under a variable insurance product such as the Accumulator(R) Plus
contract.(SM) These portfolios may even have the same manager(s) and/or a
similar name. However, there are numerous factors that can contribute to
differences in performance between two investments, particularly over short
periods of time. Such factors include the timing of stock purchases and sales;
differences in fund cash flows; and specific strategies employed by the
portfolio manager.
AXA Equitable serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. As such, AXA Equitable oversees
the activities of the investment advisers with respect to the Trusts and is
responsible for retaining or discontinuing the services of those advisers. The
advisers for these Portfolios, listed in the chart below, are those who make the
investment decisions for each Portfolio. The chart also indicates the investment
manager for each of the other Portfolios.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o AXA Equitable
ALLOCATION greater emphasis on current income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o AXA Equitable
ALLOCATION with a greater emphasis on capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
EQUITY o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of risk. o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o AIM Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of current o Alliance Capital Management L.P.
income and capital appreciation. o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P., through
INTERNATIONAL EQUITY its Bernstein Investment Research and
Management Unit
o J.P. Morgan Investment Management Inc.
o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P., through
CORE EQUITY its Bernstein Investment Research and
Management Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH o RCM Capital Management LLC
o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 21
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE o Institutional Capital Corporation
o MFS Investment Management
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management LLC
CAP VALUE o TCW Investment Management Company
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
GOVERNMENT SECURITIES relative stability of principal.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE LARGE CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH(1)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
moderate risk to capital.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BEAR STEARNS Seeks to achieve capital appreciation. o Bear Stearns Asset Management Inc.
SMALL COMPANY GROWTH(7)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment
Research and Management Unit
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BOSTON ADVISORS EQUITY Seeks a combination of growth and income to achieve an o Boston Advisors, Inc.
INCOME(4) above-average and consistent total return.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN GROWTH Seeks long-term growth of capital. o Capital Guardian Trust Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------------
22 Contract features and benefits
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. o Caywood-Scholl Capital Management
YIELD BOND
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates o Alliance Capital Management L.P.
the total return performance of the S&P 500 Index,
including reinvestment of dividends, at a risk level
consistent with that of the S&P 500 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA Seeks long-term capital growth. o Evergreen Investment Management
Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o SSgA Funds Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent with mod- o J.P. Morgan Investment Management Inc.
erate risk to capital and maintenance of liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JP MORGAN VALUE Long-term capital appreciation. o J.P. Morgan Investment Management Inc.
OPPORTUNITIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LONG TERM BOND Seeks to maximize income and capital appreciation o Boston Advisors, Inc.
through investment in long-maturity debt obligations.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT GROWTH AND Capital appreciation and growth of income without o Lord, Abbett & Co. LLC
INCOME excessive fluctuation in market value.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT LARGE CAP Capital appreciation and growth of income with reason- o Lord, Abbett & Co. LLC
CORE able risk.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT MID CAP VALUE Capital appreciation. o Lord, Abbett & Co, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers
VALUE International Limited
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERGERS AND ACQUISITIONS Seeks to achieve capital appreciation. o GAMCO Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary objec- o MFS Investment Management
tive to seek reasonable current income.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve o Alliance Capital Management L.P.
its assets and maintain liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. o Montag & Caldwell, Inc.
GROWTH(5)
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 23
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PIMCO REAL RETURN Seeks maximum real return consistent with preservation o Pacific Investment Management
of real capital and prudent investment management. Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SHORT DURATION BOND Seeks current income with reduced volatility of principal. o Boston Advisors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o Alliance Capital Management L. P.
deduction of portfolio expenses) the total return of the
Russell 2000 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY VALUE(8) Seeks to maximize capital appreciation. o GAMCO Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/TCW EQUITY(3) Seeks to achieve long-term capital appreciation. o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/UBS GROWTH AND INCOME(6) Seeks to achieve total return through capital appreciation o UBS Global Asset Management
with income as a secondary consideration. (Americas) Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN COMSTOCK Capital growth and income. o Morgan Stanley Investment
Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN EMERGING Seeks long-term capital appreciation. o Morgan Stanley Investment
MARKETS EQUITY(2) Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN MID CAP Capital growth. o Morgan Stanley Investment
GROWTH Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/WELLS FARGO MONTGOMERY Seeks long-term capital appreciation. o Wells Capital Management Inc.
SMALL CAP
- ------------------------------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE
INSURANCE TRUST
PORTFOLIO NAME Objective Investment Manager/Adviser
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG VIT VALUE Seeks to increase the value of your investment in bull o Charles Schwab Investment Management,
LONG/SHORT EQUITY markets and bear markets through strategies that are Inc.
designed to have limited exposure to general equity o AXA Rosenberg Investment
market risk. Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL
FUNDS, INC.
PORTFOLIO NAME Objective Investment Manager
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. REAL ESTATE -- CLASS II Seeks to provide above average current income and long- o Van Kampen (is the name under which
term capital appreciation by investing primarily in equity Morgan Stanley Investment Management
securities of companies in the U.S. real estate industry, Inc. does business in certain
including real estate investment trusts. situations)
- ------------------------------------------------------------------------------------------------------------------------------------
* This portfolio information reflects the portfolio's name change effective
on or about May 9, 2005, subject to regulatory approval. The table below
reflects the portfolio name in effect until on or about May 9, 2005. The
number in the "FN" column corresponds with the number contained in the
chart above.
- ------------------------------------------------------
FN Portfolio Name until May 9, 2005
- ------------------------------------------------------
(1) EQ/Alliance Premier Growth
- ------------------------------------------------------
(2) EQ/Emerging Markets Equity
- ------------------------------------------------------
(3) EQ/Enterprise Equity
- ------------------------------------------------------
(4) EQ/Enterprise Equity Income
- ------------------------------------------------------
(5) EQ/Enterprise Growth
- ------------------------------------------------------
(6) EQ/Enterprise Growth and Income
- ------------------------------------------------------
(7) EQ/Enterprise Small Company Growth
- ------------------------------------------------------
(8) EQ/Enterprise Small Company Value
- ------------------------------------------------------
You should consider the investment objectives, risks and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may
call one of our customer service representatives at 1-800-789-7771.
24 Contract features and benefits
GUARANTEED INTEREST OPTION
The guaranteed interest option is part of our general account and pays interest
at guaranteed rates. We discuss our general account under "More information"
later in this Prospectus.
We assign an interest rate to each amount allocated to the guaranteed interest
option. This rate is guaranteed for a specified period. Therefore, different
interest rates may apply to different amounts in the guaranteed interest
option.
We credit interest daily to amounts in the guaranteed interest option. There
are three levels of interest in effect at the same time in the guaranteed
interest option:
(1) the minimum interest rate guaranteed over the life of the contract,
(2) the yearly guaranteed interest rate for the calendar year, and
(3) the current interest rate.
We set current interest rates periodically, according to our procedures that we
have in effect at the time. We reserve the right to change these procedures.
All interest rates are effective annual rates, but before deduction of annual
administrative charges (if permitted in your state) or any withdrawal charges
and any optional benefit charges.
The minimum yearly guaranteed interest rate is 3% for 2005. The minimum yearly
rates we set will never be less than the minimum guaranteed interest rate of 3%
for the life of the contract. Current interest rates will never be less than
the yearly guaranteed interest rate.
See "Transferring your money among the investment options" later in this
Prospectus for restrictions on transfers from the Guaranteed interest option.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied the rate to maturity is 3%. This
means that at points in time there may be no fixed maturity options available.
You can allocate your contributions to one or more of these fixed maturity
options, however, you may not have more than 12 different maturities running
during any contract year. This limit includes any maturities that have had any
allocation or transfers even if the entire amount is withdrawn or transferred
during the contract year. These amounts become part of a non-unitized separate
account. They will accumulate interest at the "rate to maturity" for each fixed
maturity option. The total amount you allocate to and accumulate in each fixed
maturity option is called the "fixed maturity amount." The fixed maturity
options are not available in all states. Check with your financial professional
to see if fixed maturity options are available in your state.
- --------------------------------------------------------------------------------
Fixed maturity options generally range from one to ten years to maturity.
- --------------------------------------------------------------------------------
The rate to maturity you will receive for each fixed maturity option is the
rate to maturity in effect for new contributions allocated to that fixed
maturity option on the date we apply your contribution.
On the maturity date of a fixed maturity option your fixed maturity amount,
assuming you have not made any withdrawals or transfers, will equal your
contribution to that fixed maturity option plus interest, at the rate to
maturity for that contribution, to the date of the calculation. This is the
fixed maturity option's "maturity value." Before maturity, the current value we
will report for your fixed maturity amounts will reflect a market value
adjustment. Your current value will reflect the market value adjustment that we
would make if you were to withdraw all of your fixed maturity amounts on the
date of the report. We call this your "market adjusted amount."
FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with
maturity dates ranging from one to ten years. Not all of these fixed maturity
options will be available for annuitant ages 76 and older. See "Allocating your
contributions" below.
Each new contribution is applied to a new fixed maturity option. When you
applied for an Accumulator(R) Plus(SM) contract, a 60-day rate lock-in was
applied from the date the application was signed. Any contributions received
and designated for a fixed maturity option during that period received the then
current fixed maturity option rate or the rate that was in effect on the date
that the application was signed, whichever had been greater. There is no rate
lock available for subsequent contributions to the contract after 60 days,
transfers from the variable investment options or the guaranteed interest
option into a fixed maturity option, or transfers from one fixed maturity
option to another.
YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days
before each of your fixed maturity options is scheduled to mature. At that
time, you may choose to have one of the following take place on the maturity
date, as long as none of the restrictive conditions listed in "Allocating your
contributions," below would apply:
(a) transfer the maturity value into another available fixed maturity option,
any of the variable investment options or the guaranteed interest option;
or
(b) withdraw the maturity value (there may be a withdrawal charge).
If we do not receive your choice on or before the fixed maturity option's
maturity date, we will automatically transfer your maturity value into the
shortest available maturity option beginning on that date. As of February 15,
2005, the next available maturity date was February 15, 2013. If no fixed
maturity options are available, we will transfer your maturity value to the
EQ/Money Market option.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender of your contract, or when we make deductions for charges) from a
fixed maturity option before it matures, we will make a market value
adjustment, which will increase or decrease any fixed maturity amount you have
in that fixed maturity option. The amount of the adjustment will depend on two
factors:
(a) the difference between the rate to maturity that applies to the amount
being withdrawn and the rate we have in effect at that time for new fixed
maturity options (adjusted to reflect a similar maturity date), and
(b) the length of time remaining until the maturity date.
In general, if interest rates rise from the time that you originally allocate
an amount to a fixed maturity option to the time that you take a
Contract features and benefits 25
withdrawal, the market value adjustment will be negative. Likewise, if interest
rates drop at the end of that time, the market value adjustment will be
positive. Also, the amount of the market value adjustment, either up or down,
will be greater the longer the time remaining until the fixed maturity option's
maturity date. Therefore, it is possible that the market value adjustment could
greatly reduce your value in the fixed maturity options, particularly in the
fixed maturity options with later maturity dates.
We provide an illustration of the market adjusted amount of specified maturity
values, an explanation of how we calculate the market value adjustment, and
information concerning our general account and investments purchased with
amounts allocated to the fixed maturity options, in "More information" later in
this Prospectus. Appendix III at the end of this Prospectus provides an example
of how the market value adjustment is calculated.
ALLOCATING YOUR CONTRIBUTIONS
You may choose from among three ways to allocate your contributions under your
contract: self-directed, principal assurance (at contract issue only), or
dollar cost averaging. We allocate subsequent contributions according to
instructions on file unless you provide new instructions.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options, guaranteed interest option and fixed maturity options.
Allocations must be in whole percentages and you may change your allocations at
any time. No more than 25% of any contribution may be allocated to the
guaranteed interest option. The total of your allocations into all available
investment options must equal 100%. If the annuitant is age 76-80, you may
allocate contributions to fixed maturity options with maturities of seven years
or less. If the annuitant is age 81 or older, you may allocate contributions to
fixed maturity options with maturities of five years or less. Also you may not
allocate amounts to fixed maturity options with maturity dates that are later
than the date annuity payments are to begin.
PRINCIPAL ASSURANCE ALLOCATION
Principal assurance allocation is only available at contract issue. If you
chose this allocation program, you selected a fixed maturity option. We
specified a portion of your initial contribution and allocated it to that fixed
maturity option in an amount that will cause the maturity value to equal the
amount of your entire initial contribution (plus any applicable credit) on the
fixed maturity option's maturity date. The maturity date you selected generally
could not be later than 10 years, or earlier than 7 years from your contract
date. If you were to make any withdrawals or transfers from the fixed maturity
option before the option's maturity date, the amount in the fixed maturity
option will be adjusted and may no longer grow to equal your initial
contribution under the principal insurance allocation. Principal assurance was
not available if none of those maturity dates were available at the time your
contract was issued. You allocated the remainder of your initial contribution
to the investment options and guaranteed interest option however you chose.
For example, if your initial contribution was $10,000, and on February 15, 2005
you chose the fixed maturity option with a maturity date of February 15, 2015
since the rate to maturity was 3.32% on February 15, 2005, we would have
allocated $7,501 to that fixed maturity option and the balance to your choice
of variable investment options. On the maturity date your value in the fixed
maturity option would be $10,400.
The principal assurance allocation was only available for annuitants ages 80 or
younger when the contract was issued. Had the annuitant been age 76-80, your
principal assurance allocation was limited to the seven year fixed maturity
option only. If you anticipated taking required minimum distributions, you
should have considered whether your values in the variable investment options
and guaranteed interest option would be sufficient to meet your required
minimum distributions. See "Tax information" later in this Prospectus.
DOLLAR COST AVERAGING
We offer a variety of dollar cost averaging programs. You may only participate
in one program at a time. Each program allows you to gradually allocate amounts
to the variable investment options by periodically transferring approximately
the same dollar amount to the variable investment options you select. This will
cause you to purchase more units if the unit's value is low and fewer units if
the unit's value is high. Therefore, you may get a lower average cost per unit
over the long term. This plan of investing, however, does not guarantee that
you will earn a profit or be protected against losses. You may not make
transfers to the fixed maturity options.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market
option is at least $5,000, you may choose, at any time, to have a specified
dollar amount or percentage of your value transferred from that option to the
other variable investment options. You can select to have transfers made on a
monthly, quarterly or annual basis. The transfer date will be the same calendar
day of the month as the contract date, but not later than the 28th day of the
month. You can also specify the number of transfers or instruct us to continue
making the transfers until all amounts in the EQ/Money Market option have been
transferred out.
The minimum amount that we will transfer each time is $250. The maximum amount
we will transfer is equal to your value in the EQ/Money Market option at the
time the program is elected, divided by the number of transfers scheduled to be
made.
If, on any transfer date, your value in the EQ/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The dollar cost averaging program will then end. You may
change the transfer amount once each contract year or cancel this program at
any time.
INVESTMENT SIMPLIFIER
Fixed-dollar option. Under this option, you may elect to have a fixed-dollar
amount transferred out of the guaranteed interest option and into the variable
investment options of your choice. Transfers may
26 Contract features and benefits
be made on a monthly, quarterly or annual basis. You can specify the number of
transfers or instruct us to continue to make transfers until all available
amounts in the guaranteed interest option have been transferred out.
In order to elect the fixed-dollar option, you must have a minimum of $5,000 in
the guaranteed interest option on the date we receive your election form at our
processing office. The transfer date will be the same calendar day of the month
as the contract date but not later than the 28th day of the month. The minimum
transfer amount is $50. The fixed-dollar option is subject to the guaranteed
interest option transfer limitations described under "Transferring your account
value" in "Transferring your money among investment options" later in this
Prospectus. While the program is running, any transfer that exceeds those
limitations will cause the program to end for that contract year. You will be
notified. You must send in a request form to resume the program in the next or
subsequent contract years.
If, on any transfer date, your value in the guaranteed interest option is equal
to or less than the amount you have elected to have transferred, the entire
amount will be transferred, and the program will end. You may change the
transfer amount once each contract year or cancel this program at any time.
Interest sweep option. Under this option, you may elect to have monthly
transfers from amounts in the guaranteed interest option into the variable
investment options of your choice. The transfer date will be the last business
day of the month. The amount we will transfer will be the interest credited to
amounts you have in the guaranteed interest option from the last business day
of the prior month to the last business day of the current month. You must have
at least $7,500 in the guaranteed interest option on the date we receive your
election and on the last business day of each month thereafter to participate
in the interest sweep option. We will automatically cancel the interest sweep
program if the amount in the guaranteed interest option is less than $7,500 on
the last day of the month for two months in a row. For the interest sweep
option, the first monthly transfer will occur on the last business day of the
month following the month that we receive your election form at our processing
office.
----------------
You may not participate in any dollar cost averaging program if you are
participating in the rebalancing program. See "Transferring your money among
investment options" later in this Prospectus.
CREDITS
A credit will also be allocated to your account value at the same time that we
allocate your contribution. Credits are allocated to the same investment
options based on the same percentages used to allocate your contributions.
The amount of the credit will be 4%, 5% or 6% of each contribution based on the
following breakpoints and rules:
- ------------------------------------------------------------------
Credit percentage
First year total contributions* applied to
Breakpoints contributions
- ------------------------------------------------------------------
Less than $250,000 4%
- ------------------------------------------------------------------
$250,000-$999,999.99 5%
- ------------------------------------------------------------------
$1 million or more 6%
- ------------------------------------------------------------------
- ----------
* First year total contributions means your total contributions made in the
first contract year.
The percentage of the credit is based on your first year total contributions.
This credit percentage will be credited to each contribution made in the first
year (after adjustment as described below), as well as the second and later
contract years. Although the credit, as adjusted at the end of the first
contract year, will be based upon first year total contributions, the following
rules affect the percentage with which contributions made in the first contract
year are credited during the first contract year:
o Indication of intent: If you indicated in the application at the time you
purchased your contract an intention to make additional contributions to
meet one of the breakpoints (the "Expected First Year Contribution Amount")
and your initial contribution was at least 50% of the Expected First Year
Contribution Amount, your credit percentage is as follows:
o For any contributions resulting in total contributions to date less
than or equal to your Expected First Year Contribution Amount, the
credit percentage is the percentage that applies to the Expected First
Year Contribution Amount based on the table above.
o For any subsequent contribution that results in your total
contributions to date exceeding your Expected First Year Contribution
Amount, such that the credit percentage should have been higher, we
increased the credit percentage applied to that contribution, as well
as any prior or subsequent contributions made in the first contract
year, accordingly.
o For contracts issued in New York, the "Indication of intent" approach
to first year contributions is not available.
o No indication of intent:
o For your initial contribution, we applied the credit percentage based
upon the above table.
o For any subsequent contribution that results in a higher applicable
credit percentage (based on total contributions to date), we increased
the credit percentage applied to that contribution, as well as any
prior or subsequent contributions made in the first contract year,
accordingly.
We may recover all of the credit or a portion of the credit in the following
situations:
o If you exercise your right to cancel the contract, we will recover the
entire credit made to your contract (see "Your right to cancel within a
certain number of days" later in this Prospectus)(1)
- ---------
(1) The amount we return to you upon exercise of this right to cancel will not
include any credit or the amount of charges deducted prior to cancellation
but will reflect, except in states where we are required to return the
amount of your contributions, any investment gain or loss in the variable
investment options associated with your contributions and with the full
amount of the credit.
Contract features and benefits 27
o If you start receiving annuity payments within three years of making any
contribution, we will recover the credit that applies to any contribution
made within the prior three years.
o If at the end of the first contract year your year total contributions were
lower than your Expected First Year Contribution Amount such that the
credit applied should have been lower, we will recover any Excess Credit.
The Excess Credit is equal to the difference between the credit that was
actually applied based on your Expected First Year Contribution Amount (as
applicable) and the credit that should have been applied based on first
year total contributions.
We will recover any credit on a pro rata basis from the value in your variable
investment options and guaranteed interest option. If there is insufficient
value or no value in the variable investment options and guaranteed interest
option, any additional amount of the withdrawal required or the total amount of
the withdrawal will be withdrawn from the fixed maturity options in order of
the earliest maturing date(s). A market value adjustment may apply to
withdrawals from the fixed maturity options.
We do not consider credits to be contributions for purposes of any discussion
in this Prospectus. Credits are also not considered to be part of your
investment in the contract for tax purposes.
We use a portion of the mortality and expense risks charge and withdrawal
charge to help recover our cost of providing the credit. See "Charges and
expenses" later in this Prospectus. The charge associated with the credit may,
over time, exceed the sum of the credit and any related earnings. You should
consider this possibility before purchasing the contract.
YOUR BENEFIT BASE
A benefit base is used to calculate the guaranteed minimum income benefit and
any death benefit, as described in this section. Your benefit base is not an
account value or a cash value. See also "Our Living Benefit option" and
"Guaranteed minimum death benefit" below.
STANDARD DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
o any applicable credit; less
o a deduction that reflects any withdrawals you make. (See "How withdrawals
affect your guaranteed minimum income benefit and guaranteed minimum death
benefit" in "Accessing your money" later in this Prospectus.)
6% ROLL UP TO AGE 85 ENHANCED DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
o any applicable credit; plus
o daily interest; less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money" later in this Prospectus.)
The effective annual interest rate credited to this benefit base is:
o 6% (4% in Washington for the enhanced death benefit only) with respect to
the variable investment options (other than EQ/Alliance Intermediate
Government Securities, EQ/Money Market, EQ/PIMCO Real Return, and EQ/Short
Duration Bond); and
o 3% with respect to the EQ/Alliance Intermediate Government Securities,
EQ/Money Market, EQ/PIMCO Real Return and EQ/Short Duration Bond, the fixed
maturity options, the guaranteed interest option and the loan reserve
account under Rollover TSA (if applicable).
No interest is credited to the benefit base after the contract anniversary
following the annuitant's 85th birthday.
ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT OPTION. Your benefit base is
equal to the greater of either:
o your initial contribution to the contract and any additional contributions;
plus
o any applicable credit;
or
o your highest account value on any contract anniversary up to the contract
anniversary following the annuitant's 85th birthday, plus any contribution
(and any applicable credit) made since the most recent contract
anniversary;
less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money" later in this Prospectus).
GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED
DEATH BENEFIT AND THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is
equal to the greater of the benefit base computed for the 6% Roll up to age 85
or the benefit base computed for the Annual ratchet to age 85, as described
immediately above, on each contract anniversary. For the guaranteed minimum
income benefit, the benefit base is reduced by any applicable withdrawal charge
remaining when the option is exercised.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the guaranteed minimum income benefit and annuity payout
options. The guaranteed minimum income benefit is discussed under "Our Living
Benefit option" below and annuity payout options are discussed under "Your
annuity payout options" in "Accessing your money" later in this Prospectus. The
guaranteed annuity purchase factors are those factors specified in your
contract. The current annuity purchase factors are those factors that are in
effect at any given time. Annuity purchase factors are based on interest rates,
mortality tables, frequency of payments, the form of annuity benefit, and the
annuitant's (and any joint annuitant's) age and sex in certain instances.
28 Contract features and benefits
OUR LIVING BENEFIT OPTION
The following section provides information about the Living Benefit option,
which was only available at the time you purchased your contract, if the
annuitant was age 20 through 75. The Living Benefit option is a guaranteed
minimum income benefit. If you elected the Living Benefit option at purchase,
you pay an additional charge that is described under "Living Benefit charge" in
"Charges and expenses" or in Appendix VI, depending on when the contract was
issued, later in this Prospectus. The Living Benefit may not have been
available in your state at the time of your purchase. If you purchased your
contract to fund a Charitable Remainder Trust, the guaranteed minimum income
benefit was, generally, not available to you. Subject to our rules, the
guaranteed minimum income benefit might have been available for certain
split-funded Charitable Remainder Trusts.
The guaranteed minimum income benefit guarantees you a minimum amount of fixed
income under your choice of a life annuity fixed payout option or an Income
Manager(R) level payment life with a period certain payout option subject to
state availability. You choose which of these payout options you want and
whether you want the option to be paid on a single or joint life basis at the
time you exercise your guaranteed minimum income benefit. The maximum period
certain available under the Income Manager(R) payout option is 10 years. This
period may be shorter, depending on the annuitant's age as follows:
- ---------------------------------------------
Level payments
- ---------------------------------------------
Period certain
years
------------------------
Annuitant's age at
exercise IRAs NQ
- ---------------------------------------------
60 to 75 10 10
76 9 10
77 8 10
78 7 10
79 7 10
80 7 10
81 7 9
82 7 8
83 7 7
84 6 6
85 5 5
- ---------------------------------------------
We may also make other forms of payout options available. For a description of
payout options, see "Your annuity payout options" in "Accessing your money"
later in this Prospectus.
- --------------------------------------------------------------------------------
The guaranteed minimum income benefit, which is also known as a living benefit,
should be regarded as a safety net only. It provides income protection if you
elect an income payout while the annuitant is alive.
- --------------------------------------------------------------------------------
When you exercise the guaranteed minimum income benefit, the annual lifetime
income that you will receive will be the greater of (i) your guaranteed minimum
income benefit which is calculated by applying your guaranteed minimum income
benefit base, less any applicable withdrawal charge remaining, at guaranteed
annuity purchase factors, or (ii) the income provided by applying your account
value at our then current annuity purchase factors. For Rollover TSA only, we
will subtract from the benefit base or account value any outstanding loan,
including interest accrued but not paid. You may also elect to receive monthly
or quarterly payments as an alternative. The payments will be less than 1/12 or
1/4 of the annual payments, respectively, due to the effect of interest
compounding. The benefit base is applied only to the Living Benefit guaranteed
annuity purchase factors in your contract and not to any other guaranteed or
current annuity purchase rates. The amount of income you receive will be
determined when we receive your request to exercise the benefit.
When you elect to receive annual lifetime income, your contract will terminate
and you will receive a new contract for the annuity payout option. For a
discussion of when your payments will begin and end, see "Exercise of
guaranteed minimum income benefit" below.
The guaranteed minimum income benefit provides a form of insurance and is based
on conservative actuarial factors. The guaranteed annuity purchase factors we
use to determine your Income Manager(R) benefit under the Living Benefit are
more conservative than the guaranteed annuity purchase factors we use for the
Income Manager(R) payout annuity option. This means that, assuming the same
amount is applied to purchase the benefit and that we use guaranteed annuity
purchase factors to compute the benefit, each periodic payment under the Living
Benefit Income Manager(R) will be smaller than each periodic payment under the
Income Manager(R) payout annuity option. Therefore, even if your account value
is less than your benefit base, you may generate more income by applying your
account value to current annuity purchase factors. We will make this comparison
for you when the need arises.
ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll up to
age 85 benefit base, the table below illustrates the guaranteed minimum income
benefit amounts per $100,000 of initial contribution, for a male annuitant age
60 (at issue) on the contract date anniversaries indicated, who has elected the
life annuity fixed payout option, using the guaranteed annuity purchase factors
as of the date of this Prospectus, assuming no additional contributions,
withdrawals or loans under Rollover TSA contracts, and assuming there were no
allocations to the EQ/Alliance Intermediate Government Securities, EQ/Money
Market, EQ/PIMCO Real Return, EQ/Short Duration Bond, the guaranteed interest
option, the fixed maturity options or the loan reserve account under Rollover
TSA contracts.
- -------------------------------------------------------
guaranteed minimum
Contract date income benefit -- annual
anniversary at exercise income payable for life
- -------------------------------------------------------
10 $11,891
15 $18,597
- -------------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date
anniversary that you are eligible to exercise the guaranteed minimum income
benefit, we will send you an eligibility notice illustrating how much income
could be provided as of the contract date anniversary. You must notify us
within 30 days following the contract date anniversary if you want to exercise
the guaranteed minimum income benefit. You must return your contract to us
along with any required information within 30 days following your contract date
anniversary, in order to exercise this benefit. You will begin receiving annual
pay-
Contract features and benefits 29
ments one year after the annuity payout contract is issued. If you choose
monthly or quarterly payments, you will receive your payment one month or one
quarter after the annuity payout contract is issued. Payments are always made
on the 15th of the month and generally begin one payment mode from issue. You
may choose to take a withdrawal prior to exercising the guaranteed minimum
income benefit, which will reduce your payments. You may not partially exercise
this benefit. See "Accessing your money" under "Withdrawing your account value"
later in this Prospectus. Payments end with the last payment before the
annuitant's (or joint annuitant's, if applicable) death, or if later, the end
of the period certain (where the payout option chosen includes a period
certain).
You will be eligible to exercise the guaranteed minimum income benefit during
your life and the annuitant's life, as follows:
o If the annuitant was at least age 20 and no older than age 44 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 15th contract date anniversary.
o If the annuitant was at least age 45 and no older than age 49 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
after the annuitant is age 60.
o If the annuitant was at least age 50 and no older than age 75 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 10th contract date anniversary.
Please note:
(i) the latest date you may exercise the guaranteed minimum income benefit is
the contract date anniversary following the annuitant's 85th birthday;
(ii) if the annuitant was age 75 when the contract was issued, the only time you
may exercise the guaranteed minimum income benefit is within 30 days
following the first contract date anniversary that it becomes available;
(iii) If the annuitant was older than age 60 at the time an IRA, QP or Rollover
TSA contract was issued, the Living Benefit option may not be an
appropriate feature because the minimum distributions required by tax law
generally must begin before the guaranteed minimum income benefit can be
exercised;
(iv) for Accumulator(R) Plus(SM) QP contracts, the Plan participant can exercise
the Living Benefit option only if he or she elects to take a distribution
from the Plan and, in connection with this distribution, the Plan's trustee
changes the ownership of the contract to the participant. This effects a
rollover of the Accumulator(R) Plus(SM) QP contract into an Accumulator(R)
Plus(SM) Rollover IRA. This process must be completed within the 30-day
timeframe following the contract date anniversary in order for the Plan
participant to be eligible to exercise;
(v) for Accumulator(R) Plus(SM) Rollover TSA contracts, you may exercise the
Living Benefit option only if you effect a rollover of the TSA contract to
an Accumulator(R) Plus(SM) Rollover IRA. This may only occur when you are
eligible for a distribution from the TSA. This process must be completed
within the 30-day timeframe following the contract date anniversary in
order for you to be eligible to exercise;
(vi) for a successor owner/annuitant, the earliest exercise date is based on the
original contract issue date and the age of the successor owner/annuitant
as of the Processing Date successor owner/annuitant takes effect; and
(vii) if you are the owner but not the annuitant and you die prior to exercise,
then the following applies:
o A successor owner who is not the annuitant may not be able to exercise
the Living Benefit option without causing a tax problem. You should
consider naming the annuitant as successor owner, or if you do not
name a successor owner, as the sole primary beneficiary. You should
carefully review your successor owner and/or beneficiary designations
at least one year prior to the first contract anniversary on which you
could exercise the benefit.
o If the successor owner is the annuitant, the Living Benefit option
continues only if the benefit could be exercised under the rules
described above on a contract anniversary that is within one year
following the owner's death. This would be the only opportunity for
the successor owner to exercise. If the Living Benefit option cannot
be exercised within this timeframe, the benefit will terminate and the
charge for it will no longer apply as of the date we receive proof of
your death and any required information.
o If you designate your surviving spouse as successor owner, the Living
Benefit option continues and your surviving spouse may exercise the
benefit according to the rules described above even if your spouse is
not the annuitant and even if the benefit is exercised more than one
year after your death. If your surviving spouse dies prior to
exercise, the rule described in the previous bullet applies.
o A successor owner or beneficiary that is a trust or other non- natural
person may not exercise the benefit; in this case, the benefit will
terminate and the charge for it will no longer apply as of the date we
receive proof of your death and any required information.
See "When an NQ contract owner dies before the annuitant" under "Payment of
death benefit" later in this Prospectus for more information.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
GUARANTEED MINIMUM DEATH BENEFIT
Your contract provides a death benefit. If you did not elect one of the
enhanced death benefits described below, the death benefit is equal to your
account value (without adjustment for any otherwise appli-
30 Contract features and benefits
cable negative market value adjustment) as of the date we receive satisfactory
proof of death, any required instructions for the method of payment,
information and forms necessary to effect payment OR the standard death
benefit, whichever provides the highest amount. The standard death benefit is
equal to your total contributions, plus any applicable credit (adjusted for any
withdrawals and any withdrawal charges, and any taxes that apply). The standard
death benefit was the only death benefit available for annuitants who were age
85 at issue.
If you elected one of the guaranteed death benefits, the death benefit is equal
to your account value as of the date we receive satisfactory proof of the
annuitant's death, any required instructions for the method of payment,
information and forms necessary to effect payment OR your elected guaranteed
death benefit on the date of the annuitant's death (adjusted for any subsequent
withdrawals, withdrawal charges and taxes that apply) whichever provides the
highest amount.
OPTIONAL ENHANCED DEATH BENEFITS APPLICABLE FOR ANNUITANTS WHO WERE AGES 0
THROUGH 80 AT ISSUE OF NQ CONTRACTS; 20 THROUGH 80 AT ISSUE OF ROLLOVER IRA,
ROTH CONVERSION IRA AND ROLLOVER TSA CONTRACTS; AND 20 THROUGH 70 AT ISSUE OF
QP CONTRACTS.
Subject to state availability, you may have elected one of the following
enhanced death benefits:
6% ROLL UP TO AGE 85.
ANNUAL RATCHET TO AGE 85.
THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85.
Each enhanced death benefit is equal to its corresponding benefit base
described earlier in "Your benefit base." Your enhanced death benefit election
may not be changed.
----------------------------------
In New York only the standard death benefit and the Annual ratchet to age 85
enhanced death benefit were available.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
See Appendix IV at the end of this Prospectus for an example of how we
calculate an enhanced minimum death benefit.
PROTECTION PLUS(SM)
The following section provides information about the Protection Plus(SM) option,
which was only available at the time you purchased your contract. If Protection
Plus(SM) was not elected when the contract was first issued, neither the owner
nor the successor owner/annuitant can add it subsequently. Protection Plus(SM)
is an additional death benefit as described below. See the appropriate part of
"Tax information" later in this Prospectus for the potential tax consequences of
having purchased the Protection Plus(SM) feature in an NQ, IRA or Rollover TSA
contract.
If the annuitant was 70 or younger when we issued your contract (or if the
successor owner/annuitant is 70 or younger when he or she becomes the successor
owner/annuitant), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit less total net contributions, multiplied by 40%
For purposes of calculating your Protection Plus(SM) benefit, the following
applies: (i) "Net contributions" are the total contributions made (or, if
applicable, the total amount that would otherwise have been paid as a death
benefit had the successor owner/annuitant election not been made plus any
subsequent contributions) reduced on a pro rata basis to reflect withdrawals
(including surrender charges and loans). Credit amounts are not included in
"net contributions." Reduction on a pro rata basis means that we calculate the
percentage of the current account value that is being withdrawn and we reduce
net contributions by that percentage. For example, if the account value is
$30,000 and you withdraw $12,000, you have withdrawn 40% of your account value.
If contributions aggregated $40,000 before the withdrawal, it would be reduced
by $16,000 ($40,000 x .40) and net contributions after the withdrawal would be
$24,000 ($40,000-$16,000); (ii) "Death benefit" is equal to the greater of the
account value as of the date we receive satisfactory proof of death or any
applicable guaranteed minimum death benefit as of the date of death.
If the annuitant was age 71 through 79 when we issued your contract (or if the
successor owner/annuitant is between the ages of 71 and 79 when he or she
becomes the successor owner/annuitant under a contract where Protection Plus(SM)
had been elected at issue), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit (as described above) less total net contributions,
multiplied by 25%
The value of the Protection Plus(SM) death benefit is frozen on the first
contract date anniversary after the annuitant turns age 80, except that the
benefit will be reduced for withdrawals on a pro rata basis. This feature is
not available in every state.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
This is provided for informational purposes only. Since this contract is no
longer available to new purchasers, this cancellation provision is no longer
applicable.
If for any reason you are not satisfied with your contract, you may return it
to us for a refund. To exercise this cancellation right you must mail the
contract, with a signed letter of instruction electing this right, to our
processing office within 10 days after you receive it. If state law requires,
this "free look" period may be longer.
Generally, your refund will equal your account value (less loan reserve
account) under the contract on the day we receive notification to cancel the
contract and will reflect (i) any investment gain or loss in the variable
investment options (less the daily charges we deduct), (ii) any
Contract features and benefits 31
guaranteed interest in the guaranteed interest option, and (iii) any positive
or negative market value adjustments in the fixed maturity options through the
date we receive your contract. Some states require that we refund the full
amount of your contribution (not reflecting (i), (ii) or (iii) above). For any
IRA contracts returned to us within seven days after you receive it, we are
required to refund the full amount of your contribution. Please note that you
will forfeit the credit by exercising this right of cancellation.
We may require that you wait six months before you may apply for a contract
with us again if:
o you cancel your contract during the free look period; or
o you change your mind before you receive your contract whether we have
received your contribution or not.
Please see "Tax information" later in this Prospectus for possible consequences
of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA contract, you may
cancel your Roth Conversion IRA contract and return to a Rollover IRA contract.
Our processing office or your financial professional can provide you with the
cancellation instructions.
32 Contract features and benefits
2. Determining your contract's value
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total value of the values you have in: (i) the
variable investment options; (ii) the guaranteed interest account; (iii) market
adjusted amounts in the fixed maturity options; and (iv) the loan reserve
account (applies for Rollover TSA contracts only).
Your contract also has a "cash value." At any time before annuity payments
begin, your contract's cash value is equal to the account value less: (i) the
total amount or a pro rata portion of the annual administrative charge, as well
as optional benefit charges; (ii) any applicable withdrawal charge; and (iii)
the amount of any outstanding loan plus accrued interest (applicable to
Rollover TSA contracts only). Please see "Surrendering your contract to receive
its cash value" in "Accessing your money" later in this Prospectus.
YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS
Each variable investment option invests in shares of a corresponding portfolio.
Your value in each variable investment option is measured by "units." The value
of your units will increase or decrease as though you had invested it in the
corresponding portfolio's shares directly. Your value, however will be reduced
by the amount of the fees and charges that we deduct under the contract.
The unit value for each variable investment option depends on the investment
performance of that option, less daily charges for:
(i) mortality and expense risks;
(ii) administrative, and
(iii) distribution charges.
On any day, your value in any variable investment option equals the number of
units credited to that option, adjusted for any units purchased for or deducted
from your contract under that option, multiplied by that day's value for one
unit. The number of your contract units in any variable investment option does
not change unless they are:
(i) increased to reflect additional contributions plus the credit;
(ii) decreased to reflect a withdrawal (plus applicable withdrawal charges);
(iii) increased to reflect transfer into, or decreased to reflect transfer out
of a variable investment option; or
(iv) increased or decreased to reflect a transfer of your loan amount from or
to the loan reserve account under a Rollover TSA contract.
In addition, when we deduct the enhanced death benefit, Living Benefit and/or
Protection Plus(SM) benefit charges, the number of units credited to your
contract will be reduced. Your units are also reduced when we deduct the annual
administrative charge. A description of how unit values are calculated is found
in the SAI.
YOUR CONTRACT'S VALUE IN THE GUARANTEED
INTEREST ACCOUNT
Your value in the guaranteed interest account at any time will equal: your
contributions and transfers to that option, plus interest, minus withdrawals
out of the option, and charges we deduct.
YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS
Your value in each fixed maturity option at any time before the maturity date
is the market adjusted amount in each option. This is equivalent to your fixed
maturity amount increased or decreased by the market value adjustment. Your
value, therefore, may be higher or lower than your contributions (less
withdrawals) accumulated at the rate to maturity. At the maturity date, your
value in the fixed maturity option will equal its maturity value, provided
there have been no withdrawals or transfers.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose all of your rights under your contract and any
applicable guaranteed benefits.
Determining your contract's value 33
3. Transferring your money among investment options
- --------------------------------------------------------------------------------
TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer
some or all of your account value among the variable investment options,
subject to the following:
o You may not transfer to a fixed maturity option that has a rate to maturity
of 3% or less.
o If the annuitant is age 76-80, you must limit your transfers to fixed
maturity options with maturities of seven years or less. If the annuitant
is age 81 or older, you must limit your transfers to fixed maturity options
of five years or less. As of February 15, 2005, maturities of less than
eight years were not available. Also, the maturity dates may be no later
than the date annuity payments are to begin.
o If you make transfers out of a fixed maturity option other than at its
maturity date, the transfer may cause a market value adjustment.
o During the first contract year, transfers into the guaranteed interest
option are not permitted.
o After the first contract year, a transfer into the guaranteed interest
option will not be permitted if such transfer would result in more than 25%
of the annuity account value being allocated to the guaranteed interest
option, based on the annuity account value as of the previous business day.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency or dollar amount of transfers.
The maximum amount that may be transferred from the guaranteed interest option
to any investment option (including amounts transferred pursuant to the
fixed-dollar option and interest sweep option dollar cost averaging programs
described under "Allocating your contributions" in "Contract features and
benefits" earlier in this Prospectus) in any contract year is the greatest of:
(a) 25% of the amount you have in the guaranteed interest option on the last
day of the prior contract year; or,
(b) the total of all amounts transferred at your request from the guaranteed
interest option to any of the Investment options in the prior contract
year; or,
(c) 25% of amounts transferred or allocated to the guaranteed interest option
during the current contract year.
From time to time, we may remove the restrictions regarding transferring
amounts out of the guaranteed interest option. If we do so, we will tell you.
We will also tell you at least 45 days in advance of the day we intend to
reimpose the transfer restrictions. When we reimpose the transfer restrictions,
if any dollar cost averaging transfer out of the guaranteed interest option
causes a violation of the 25% outbound restriction, that dollar cost averaging
program will be terminated for the current contract year. A new dollar cost
averaging program can be started in the next or subsequent contract years.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value to be
transferred, and
(3) the investment options to and from which you are transferring.
We will confirm all transfers in writing.
DISRUPTIVE TRANSFER ACTIVITY
You should note that the contract is not designed for professional "market
timing" organizations, or other organizations or individuals engaging in a
market timing strategy. The contract is not designed for programmed transfers,
frequent transfers or transfers that are large in relation to the total assets
of the underlying portfolio.
Frequent transfers, including market timing and other program trading or
short-term trading strategies, may be disruptive to the underlying portfolios
in which the variable investment options invest. Disruptive transfer activity
may adversely affect performance and the interests of long-term investors by
requiring a portfolio to maintain larger amounts of cash or to liquidate
portfolio holdings at a disadvantageous time or price. For example, when market
timing occurs, a portfolio may have to sell its holdings to have the cash
necessary to redeem the market timer's investment. This can happen when it is
not advantageous to sell any securities, so the portfolio's performance may be
hurt. When large dollar amounts are involved, market timing can also make it
difficult to use long-term investment strategies because a portfolio cannot
predict how much cash it will have to invest. In addition, disruptive transfers
or purchases and redemptions of portfolio investments may impede efficient
portfolio management and impose increased transaction costs, such as brokerage
costs, by requiring the portfolio manager to effect more frequent purchases and
sales of portfolio securities. Similarly, a portfolio may bear increased
administrative costs as a result of the asset level and investment volatility
that accompanies patterns of excessive or short-term trading. Portfolios that
invest a significant portion of their assets in foreign securities or the
securities of small- and mid-capitalization companies tend to be subject to the
risks associated with market timing and short-term trading strategies to a
greater extent than portfolios that do not. Securities trading in overseas
markets present time zone arbitrage opportunities when events affecting
portfolio securities values occur after the close of the overseas market but
prior to the close of the U.S. markets. Securities of small- and
mid-capitalization companies present arbitrage opportunities because the market
for such securities may be less liquid than the market for securities of larger
companies,
34 Transferring your money among investment options
which could result in pricing inefficiencies. Please see the prospectuses for
the underlying portfolios for more information on how portfolio shares are
priced.
We currently use the procedures described below to discourage disruptive
transfer activity. You should understand, however, that these procedures are
subject to the following limitations: (1) they primarily rely on the policies
and procedures implemented by the underlying portfolios; (2) they do not
eliminate the possibility that disruptive transfer activity, including market
timing, will occur or that portfolio performance will be affected by such
activity; and (3) the design of market timing procedures involves inherently
subjective judgments, which we seek to make in a fair and reasonable manner
consistent with the interests of all policy and contract owners.
The AXA Premier VIP Trust and EQ Advisors Trust (the "affiliated trusts") have
adopted policies and procedures designed to discourage disruptive transfers by
contract owners investing in the portfolios of the affiliated trusts. The
affiliated trusts discourage frequent purchases and redemptions of portfolio
shares and will not make special arrangements to accommodate such transactions.
As a general matter, the affiliated trusts reserve the right to refuse or limit
any purchase or exchange order by a particular investor (or group of related
investors) if the transaction is deemed harmful to the portfolio's other
investors or would disrupt the management of the portfolio. The affiliated
trusts monitor aggregate inflows and outflows for each portfolio on a daily
basis. On any day when a portfolio's net inflows or outflows exceed an
established monitoring threshold, the affiliated trust obtains from us contract
owner trading activity. The affiliated trusts currently consider transfers into
and out of (or vice versa) the same variable investment option within a five
business day period as potentially disruptive transfer activity. When a
contract owner is identified as having engaged in a potentially disruptive
transfer for the first time, a letter is sent to the contract owner explaining
that there is a policy against disruptive transfer activity and that if such
activity continues certain transfer privileges may be eliminated. If and when
the contract owner is identified a second time as engaged in potentially
disruptive transfer activity, we currently prohibit the use of voice, fax and
automated transaction services. We currently apply such action for the
remaining life of each affected contract. We or the affiliated trusts may
change the definition of potentially disruptive transfer activity, the
monitoring procedures and thresholds, any notification procedures, and the
procedures to restrict this activity. Any new or revised policies and
procedures will apply to all contract owners uniformly. We do not permit
exceptions to our policies restricting disruptive transfer activity.
We may also offer investment options with underlying portfolios that are not
part of the AXA Premier VIP Trust or EQ Advisors Trust (the "unaffiliated
trusts"). Each unaffiliated trust may have its own policies and procedures
regarding disruptive transfer activity, which may be different than those
applied by the affiliated trusts. In most cases, the unaffiliated trust
reserves the right to reject a transfer that it believes, in its sole
discretion, is disruptive (or potentially disruptive) to the management of one
of its portfolios. Please see the prospectus for the underlying trust for
information regarding the policies and procedures, if any, employed by that
trust and any associated risks of investing in that trust. If an unaffiliated
trust advises us that there may be disruptive transfer activity from our
contract owners, we will work with the unaffiliated trust to review contract
owner trading activity. If the underlying trust determines that the trading
activity of a particular contract owner is disruptive, we will take action to
limit the disruptive trading activity of that contract owner as discussed
above.
Contract owners should note that it is not always possible for us and the
underlying trusts to identify and prevent disruptive transfer activity. Our
ability to monitor potentially disruptive transfer activity is limited in
particular with respect to certain group contracts. Group annuity contracts may
be owned by retirement plans on whose behalf we provide transfer instructions
on an omnibus (aggregate) basis, which may mask the disruptive transfer
activity of individual plan participants, and/or interfere with our ability to
restrict communication services. In addition, because we do not monitor for all
frequent trading at the separate account level, contract owners may engage in
frequent trading which may not be detected, for example, due to low net inflows
or outflows on the particular day(s). Therefore, no assurance can be given that
we or the trusts will successfully impose restrictions on all disruptive
transfers. Because there is no guarantee that disruptive trading will be
stopped, some contract owners/ participants may be treated differently than
others, resulting in the risk that some contract owners/participants may be
able to engage in frequent transfer activity while others will bear the effect
of that frequent transfer activity. The potential affects of frequent transfer
activity are discussed above.
REBALANCING YOUR ACCOUNT VALUE
We currently offer a rebalancing program that you can use to automatically
reallocate your account value among the variable investment options. You must
tell us:
(a) the percentage you want invested in each variable investment option (whole
percentages only), and
(b) how often you want the rebalancing to occur (quarterly, semiannually, or
annually on a contract year basis)
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options so that the percentage of your account value that
you specify is invested in each option at the end of each rebalancing date.
Your entire account value must be included in the rebalancing program.
- --------------------------------------------------------------------------------
Rebalancing does not assure a profit or protect against loss. You should
periodically review your allocation percentages as your needs change. You may
want to discuss the rebalancing program with your financial professional before
electing the program.
- --------------------------------------------------------------------------------
You may elect the rebalancing program at any time. You may also change your
allocation instructions or cancel the program at any time. If you request a
transfer while the rebalancing program is in effect, we will process the
transfer as requested; your rebalancing allocations will
Transferring your money among investment options 35
not be changed, and the rebalancing program will remain in effect unless you
request that it be canceled in writing. There is no charge for the rebalancing
feature.
You may not elect the rebalancing program if you are participating in any
dollar cost averaging program. Rebalancing is not available for amounts you
have allocated to the guaranteed interest option or the fixed maturity options.
36 Transferring your money among investment options
4. Accessing your money
- --------------------------------------------------------------------------------
WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your account value before annuity payments
begin. The table below shows the methods available under each type of contract.
More information follows the table. If you withdraw more than 90% of a
contract's current cash value, we will treat it as a request to surrender the
contract for its cash value. See "Surrendering your contract to receive its
cash value" below. For the tax consequences of withdrawals, see "Tax
information" later in this Prospectus.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus and "How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death benefit" below for more information
on how withdrawals affect your guaranteed benefits and could potentially cause
your contract to terminate.
- --------------------------------------------------------------------------------
Method of withdrawal
-----------------------------------------------------------------
Lifetime
required
Substantially minimum
Contract Lump sum Systematic equal distribution
- --------------------------------------------------------------------------------
NQ Yes Yes No No
- --------------------------------------------------------------------------------
Rollover IRA Yes Yes Yes Yes
- --------------------------------------------------------------------------------
Roth Con-
version IRA Yes Yes Yes No
- --------------------------------------------------------------------------------
Rollover
TSA* Yes Yes No Yes
- --------------------------------------------------------------------------------
QP Yes No No Yes
- --------------------------------------------------------------------------------
* For some Rollover TSA contracts, your ability to take withdrawals, loans or
surrender your contract may be limited. You must provide withdrawal
restriction information when you apply for a contract. See "Tax Sheltered
Annuity Contracts (TSAs)" in "Tax information" later in this Prospectus.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time.
(Rollover TSA contracts may have restrictions). The minimum amount you may
withdraw is $300.
Lump sum withdrawals will be subject to a withdrawal charge if they exceed the
15% free withdrawal amount (see "15% free withdrawal amount" in "Charges and
expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is
outstanding, you may only take lump sum withdrawals as long as the cash value
remaining after any withdrawal equals at least 10% of the outstanding loan plus
accrued interest.
SYSTEMATIC WITHDRAWALS
(All contracts except QP)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value. (Rollover TSA contracts may have
restrictions).
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 1.2% monthly, 3.6% quarterly and 15% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would
be less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
We will make the withdrawals on any day of the month that you select as long as
it is not later than the 28th day of the month. If you do not select a date, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59-1/2 and 70-1/2.
You may change the payment frequency, or the amount or percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
lump sum withdrawal. You can cancel the systematic withdrawal option at any
time.
Systematic withdrawals are not subject to a withdrawal charge, except to the
extent that, when added to a lump sum withdrawal previously taken in the same
contract year, the systematic withdrawal exceeds the 15% free withdrawal
amount.
SUBSTANTIALLY EQUAL WITHDRAWALS
(Rollover IRA and Roth Conversion IRA contracts only)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus. We use one of the
IRS-approved methods for doing this; this is not the exclusive method of
meeting this exception. After consultation with your tax adviser, you may
decide to use another method which would require you to compute amounts
yourself and request lump sum withdrawals. In such a case, a withdrawal charge
may apply. Once you begin to take substantially equal withdrawals, you should
not stop them or change the pattern of your withdrawals until after the later
of age 59-1/2 or five full years after the first withdrawal. If you stop or
change the withdrawals or take a lump sum withdrawal, you may be liable for the
10% federal tax penalty that would have otherwise been due on prior withdrawals
made under this option and for any interest on the delayed payment of the
penalty.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may change, without penalty, from one of the
IRS-approved methods of calculating fixed payments to another IRS-approved
method (similar to the required minimum distribution rules) of calculating
payments which vary each year.
Accessing your money 37
You may elect to take substantially equal withdrawals at any time before age
59-1/2. We will make the withdrawal on any day of the month that you select as
long as it is not later than the 28th day of the month. You may not elect to
receive the first payment in the same contract year in which you took a lump
sum withdrawal. We will calculate the amount of your substantially equal
withdrawals using the IRS-approved method we offer. The payments will be made
monthly, quarterly or annually as you select. These payments will continue
until we receive written notice from you to cancel this option or you take a
lump sum withdrawal. You may elect to start receiving substantially equal
withdrawals again, but the payments may not restart in the same contract year
in which you took a lump sum withdrawal. We will calculate the new withdrawal
amount.
Substantially equal withdrawals are not subject to a withdrawal charge.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA and Rollover TSA and QP contracts only -- See "Tax information"
later in this Prospectus).
We offer our "automatic required minimum distribution (RMD) service" to help
you meet lifetime required minimum distributions under federal income tax
rules. This is not the exclusive way for you to meet these rules. After
consultation with your tax adviser, you may decide to compute required minimum
distributions yourself and request lump sum withdrawals. In such a case, a
withdrawal charge may apply. Before electing this account based withdrawal
option, you should consider whether annuitization might be better in your
situation. If you have elected certain additional benefits, such as the
Guaranteed minimum death benefit, amounts withdrawn from the contract to meet
RMDs will reduce the benefit base and may limit the utility of the benefit.
Also, please refer to "Tax information" later in this Prospectus for
considerations on annuity contracts funding qualified plans, TSAs, and IRAs.
You may elect this service in the year in which you reach age 70-1/2 or in any
later year. The minimum amount we will pay out is $250. Currently, minimum
distribution withdrawal payments will be made annually. See "Required minimum
distributions" in "Tax information" later in this Prospectus for your specific
type of retirement arrangement.
Currently, we do not impose a withdrawal charge on minimum distribution
withdrawals if you are enrolled in our "automatic required minimum distribution
(RMD) service" except if, when added to a lump sum withdrawal previously taken
in the same contract year, the minimum distribution withdrawal exceeds the 15%
free withdrawal amount.
Under Rollover TSA contracts, you may not elect minimum distribution
withdrawals if a loan is outstanding.
- --------------------------------------------------------------------------------
For Rollover IRA and Rollover TSA contracts, we will send a form outlining the
distribution options available in the year you reach age 70-1/2 (if you have not
begun your annuity payments before that time).
- --------------------------------------------------------------------------------
HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your value in the variable investment options and the guaranteed
interest account. If there is insufficient value or no value in the variable
investment options and the guaranteed interest account, any additional amount
of the withdrawal required or the total amount of the withdrawal will be
withdrawn from the fixed maturity options in order of the earliest maturity
date(s) first. A market value adjustment may apply to withdrawals from the
fixed maturity options.
HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED
MINIMUM DEATH BENEFIT
Withdrawals will reduce your guaranteed benefits on either a dollar-for-dollar
basis or on a pro rata basis as explained below:
INCOME BENEFIT AND DEATH BENEFIT
Your applicable benefit base will be reduced on a dollar-for-dollar basis as
long as the sum of your withdrawals in a contract year is 6% or less of the
applicable benefit base on the most recent contract date anniversary. Any
portion of a withdrawal that causes the sum of your withdrawals in a contract
year to exceed 6% of the applicable benefit base on the most recent contract
date anniversary and any subsequent withdrawals in that same contract year will
reduce your applicable benefit base on a pro rata basis. Additional
contributions made during the contract year do not affect the amount of
withdrawals that can be taken on a dollar-for-dollar basis in that contract
year.
The timing of your withdrawals and whether they exceed the 6% threshold
described above can have a significant impact on your guaranteed minimum income
benefit or guaranteed minimum death benefit.
Reduction on a dollar-for-dollar basis means that your current benefit will be
reduced by the dollar amount of the withdrawal. Reduction on a pro rata basis
means that we calculate the percentage of your current account value that is
being withdrawn and we reduce your current benefit by that same percentage. For
example, if your account value is $30,000 and you withdraw $12,000, you have
withdrawn 40% of your account value. If your guaranteed minimum death benefit
was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 x
..40) and your new guaranteed minimum death benefit after the withdrawal would
be $24,000 ($40,000 - $16,000.) This pro rata example assumes that the annual
6% threshold described above has already been exceeded.
LOANS UNDER ROLLOVER TSA CONTRACTS
You may take loans from a Rollover TSA unless restricted by the employer who
provided the Rollover TSA funds. If you cannot take a loan, or cannot take a
loan without approval from the employer who provided the funds, we will have
this information in our records based on what you and the employer who provided
the funds told us when you purchased your contract. The employer must also tell
us whether special employer plan rules of the Employee Retirement Income
Security Act of 1974 ("ERISA") apply. We will not permit you to take a loan
while you are enrolled in our "automatic required minimum distribution (RMD)
service."
You should read the terms and conditions on our loan request form carefully
before taking out a loan. Under Rollover TSA contracts sub-
38 Accessing your money
jected to ERISA, you may only take a loan with the written consent of your
spouse. Your contract contains further details of the loan provision. Also, see
"Tax information" later in this Prospectus, for general rules applicable to
loans.
We will permit you to have only one loan outstanding at a time. The minimum
loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your
account value, subject to any limits under the federal income tax rules. The
term of the loan is five years. However, if you use the loan to acquire your
primary residence, the term is 10 years. The term may not extend beyond the
earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
(3) the date a death benefit is paid (the outstanding loan will be deducted
from the death benefit amounts).
A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the properly completed
loan request form is received. Interest will accrue daily on your outstanding
loan at a rate we set. The loan interest rate will be equal to the Moody's
Corporate Bond Yield Averages for Baa bonds for the calendar month ending two
months before the first day of the calendar quarter in which the rate is
determined.
LOAN RESERVE ACCOUNT
On the date your loan is processed, we will transfer the amount of your loan to
the loan reserve account. Unless you specify otherwise, we will subtract your
loan on a pro rata basis from your value in the variable investment options and
the guaranteed interest option. If these amounts are insufficient, any
additional amount of the loan will be subtracted from the fixed maturity
options in the order of the earliest maturity date(s) first. A market value
adjustment may apply.
We will credit interest to the amount in the loan reserve account at a rate of
2% lower than the loan interest rate that applies for the time your loan is
outstanding. On each contract date anniversary after the date the loan is
processed, we will transfer the amount of interest earned in the loan reserve
account to the variable investment options on a pro rata basis. When you make a
loan repayment, unless you specify otherwise, we will transfer the dollar
amount of the loan repaid from the loan reserve account to the investment
options according to the allocation percentages we have on our records. Loan
repayments are not considered contributions and therefore are not eligible for
additional credits.
SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time while the
annuitant is living and before you begin to receive annuity payments. (Rollover
TSA contracts may have restrictions). For a surrender to be effective, we must
receive your written request and your contract at our processing office. We
will determine your cash value on the date we receive the required information.
All benefits under the contract will terminate as of that date.
You may receive your cash value in a single sum payment or apply it to one or
more of the annuity payout options. See "Your annuity payout options" below.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments out of the variable investment
options within seven calendar days after the date of the transaction to which
the request relates. These transactions may include applying proceeds to a
variable annuity, payment of a death benefit, payment of any amount you
withdraw (less any withdrawal charge) and, upon surrender, payment of the cash
value. We may postpone such payments or applying proceeds for any period during
which:
(1) the New York Stock Exchange is closed or restricts trading,
(2) sales of securities or determination of the fair value of a variable
investment option's assets is not reasonably practicable because of an
emergency, or
(3) the SEC, by order, permits us to defer payment to protect people remaining
in the variable investment options.
We can defer payment of any portion of your value in the guaranteed interest
account and fixed maturity options (other than for death benefits) for up to
six months while you are living. We also may defer payments for a reasonable
amount of time (not to exceed 10 days) while we are waiting for a contribution
check to clear.
All payments are made by check and are mailed to you (or the payee named in a
tax-free exchange) by U.S. mail, unless you request that we use an express
delivery service at your expense.
YOUR ANNUITY PAYOUT OPTIONS
Accumulator(R) Plus(SM) offers you several choices of annuity payout options.
Some enable you to receive fixed annuity payments which can be either level or
increasing, and others enable you to receive variable annuity payments.
You can choose from among the annuity payout options listed below. Restrictions
may apply, depending on the type of contract you own or the annuitant's age
when the contract was issued. In addition, if you are exercising your
guaranteed minimum income benefit under the Living Benefit, your choice of
payout options are those that are available under the Living Benefit (see "Our
Living Benefit option" in "Contract features and benefits" earlier in this
Prospectus).
- --------------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period
certain
Life annuity with refund
certain
Period certain annuity
- --------------------------------------------------------------------------
Variable Immediate Annuity Life annuity (not available
payout options in New York)
Life annuity with period
certain
- --------------------------------------------------------------------------
Income Manager(R) payout Life annuity with period
options (available for annuitants certain
age 83 or less at contract issue) Period certain annuity
- --------------------------------------------------------------------------
Accessing your money 39
o Life annuity: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment before the
annuitant's death. Because there is no continuation of benefits following
the annuitant's death with this payout option, it provides the highest
monthly payment of any of the life annuity options, so long as the
annuitant is living.
o Life annuity with period certain: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the end of a
selected period of time ("period certain"), payments continue to the
beneficiary for the balance of the period certain. The period certain
cannot extend beyond the annuitant's life expectancy. A life annuity with a
period certain is the form of annuity under the contracts that you will
receive if you do not elect a different payout option. In this case, the
period certain will be based on the annuitant's age and will not exceed 10
years.
o Life annuity with refund certain: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the amount
applied to purchase the annuity option has been recovered, payments to the
beneficiary will continue until that amount has been recovered. This payout
option is available only as a fixed annuity.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15, or 20 years. This guaranteed period may
not exceed the annuitant's life expectancy. This option does not guarantee
payments for the rest of the annuitant's life. It does not permit any
repayment of the unpaid principal, so you cannot elect to receive part of
the payments as a single sum payment with the rest paid in monthly annuity
payments. This payout option is available only as a fixed annuity.
The life annuity, life annuity with period certain, and life annuity with
refund certain payout options are available on a single life or joint and
survivor life basis. The joint and survivor life annuity guarantees payments
for the rest of the annuitant's life and, after the annuitant's death, payments
continue to the survivor. We may offer other payout options not outlined here.
Your financial professional can provide you with details.
FIXED ANNUITY PAYOUT OPTIONS
With fixed annuities, we guarantee fixed annuity payments will be based either
on the tables of guaranteed annuity purchase factors in your contract or on our
then current annuity purchase factors, whichever is more favorable for you.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS
Variable Immediate Annuities are described in a separate prospectus that is
available from your financial professional. Before you select a Variable
Immediate Annuity payout option, you should read the prospectus which contains
important information that you should know.
Variable Immediate Annuities may be funded through your choice of available
variable investment options investing in portfolios of the EQ Advisors Trust
and AXA Premier VIP Trust. The contract also offers a fixed income annuity
payout option that can be elected in combination with the variable annuity
payout option. The amount of each variable income annuity payment will
fluctuate, depending upon the performance of the variable investment options,
and whether the actual rate of investment return is higher or lower than an
assumed base rate.
INCOME MANAGER(R) PAYOUT OPTIONS
The Income Manager(R) payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts may provide higher or
lower income levels, but do not have all the features of the Income Manager(R)
payout annuity contract. You may request an illustration of the Income
Manager(R) payout annuity contract from your financial professional. Income
Manager(R) payout options are described in a separate prospectus that is
available from your financial professional. Before you select an Income
Manager(R) payout option, you should read the prospectus which contains
important information that you should know.
Both NQ and IRA Income Manager(R) payout options provide guaranteed level
payments. The Income Manager(R) (life annuity with period certain) also
provides guaranteed increasing payments (NQ contracts only). You may not elect
an Income Manager(R) payout option without life contingencies unless withdrawal
charges are no longer in effect under your Accumulator(R) Plus(SM).
For QP and Rollover TSA contracts, if you want to elect an Income Manager(R)
payout option, we will first roll over amounts in such contract to a Rollover
IRA contract with the plan participant as owner. You must be eligible for a
distribution under the QP or Rollover TSA contract.
You may choose to apply your account value of your Accumulator(R) Plus(SM)
contract to an Income Manager(R) payout annuity. In this case, we will consider
any amounts applied as a withdrawal from your Accumulator(R) Plus(SM). For the
tax consequences of withdrawals, see "Tax information" later in this
Prospectus.
Depending upon your circumstances, an Income Manager(R) contract may be
purchased on a tax-free basis. Please consult your tax adviser. The Income
Manager(R) payout options are not available in all states.
If you purchase an Income Manager(R) contract in connection with the exercise
of the Living Benefit option, different payout options may apply as well as
other various differences. See "Our Living Benefit Option" in "Contract
features and benefits" earlier in this Prospectus as well as the Income
Manager(R) prospectus.
THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION
The amount applied to purchase an annuity payout option varies, depending on
the payout option that you choose, and the timing of your purchase as it
relates to any withdrawal charges.
For the fixed annuity payout options and Variable Immediate Annuity payout
options, no withdrawal charge is imposed if you select a life annuity, life
annuity with period certain or life annuity with refund certain.
For the fixed annuity payout option, the withdrawal charge applicable under
your Accumulator(R) Plus(SM) is imposed if you select a period certain. If the
period certain is more than 5 years, then the withdrawal charge deducted will
not exceed 5% of the account value.
40 Accessing your money
For the Income Manager(R) payout life contingent options, no withdrawal charge
is imposed under the Accumulator(R) Plus(SM). If the withdrawal charge that
otherwise would have been applied to your account value under your
Accumulator(R) Plus(SM) is greater than 2% of the contributions that remain in
your contract at the time you purchase your payout option, the withdrawal
charges under the Income Manager(R) will apply. The year in which your account
value is applied to the payout option will be "contract year 1."
SELECTING AN ANNUITY PAYOUT OPTION
When you select a payout option, we will issue you a separate written agreement
confirming your right to receive annuity payments. We require you to return
your contract before annuity payments begin. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
five years from the Accumulator(R) Plus(SM) contract date. Except with respect
to Income Manager(R) annuity payout options, where payments are made on the 15th
day of each month, you can change the date your annuity payments are to begin
anytime before that date as long as you do not choose a date later than the 28th
day of any month. Also, that date may not be later than the annuity maturity
date described below.
If you elect to start receiving annuity payments within three years of making
an additional contribution, we will recover the amount of any credit that
applies to that contribution.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier.
In no event will you ever receive payments under a fixed option or an initial
payment under a variable option of less than the minimum amounts guaranteed by
the contract.
If, at the time you elect a payout option, the amount to be applied is less
than $2,000 or the initial payment under the form elected is less than $20
monthly, we reserve the right to pay the account value in a single sum rather
than as payments under the payout option chosen.
ANNUITY MATURITY DATE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 95th birthday. For
contracts issued in New York, the maturity date is the contract date that
follows the annuitant's 90th birthday.
For contracts issued in Pennsylvania, the maturity date is related to the
contract issue date, as follows:
- ------------------------------------------
Maximum
Issue age annuitization age
- ------------------------------------------
0-75 85
76 86
77 87
78-80 88
- ------------------------------------------
Before the last day by which your annuity payments must begin, we will notify
you by letter. Once you have selected an annuity payout option and payments
have begun, no change can be made other than: (i) transfers (if permitted in
the future) among the variable investment options if a Variable Immediate
Annuity payout option is selected; and (ii) withdrawals or contract surrender
(subject to a market value adjustment) if an Income Manager(R) annuity payout
option is chosen.
Accessing your money 41
5. Charges and expenses
- --------------------------------------------------------------------------------
CHARGES THAT AXA EQUITABLE DEDUCTS
We deduct the following charges each day from the net assets of each variable
investment option. These charges are reflected in the unit values of each
variable investment option:
o A mortality and expense risks charge
o An administrative charge
o A distribution charge
We deduct the following charges from your account value. When we deduct these
charges from your variable investment options, we reduce the number of units
credited to your contract:
o On each contract date anniversary -- an annual administrative charge, if
applicable.
o At the time you make certain withdrawals or surrender your contract -- a
withdrawal charge.
o On each contract date anniversary -- a charge if you elect a death benefit
(other than the Standard death benefit).
o On each contract date anniversary -- a charge for the Living Benefit, if
you elect this optional benefit.
o At the time annuity payments are to begin -- charges designed to
approximate certain taxes that may be imposed on us, such as premium taxes
in your state. An annuity administrative fee may also apply.
o On each contract date anniversary -- a charge for Protection Plus(SM), if
you elect this optional benefit.
More information about these charges appears below. We will not increase these
charges for the life of your contract, except as noted. We may reduce certain
charges under group or sponsored arrangements. See "Group or sponsored
arrangements" later in this section.
To help with your retirement planning, we may offer other annuities with
different charges, benefits, and features. Please contact your financial
professional for more information.
MORTALITY AND EXPENSE RISKS CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for mortality and expense risks, including the Standard death
benefit. The daily charge is equivalent to an annual rate of 0.90% of the net
assets in each variable investment option.
The mortality risk we assume is the risk that annuitants as a group will live
for a longer time than our actuarial tables predict. If that happens, we would
be paying more in annuity income than we planned. We also assume a risk that
the mortality assumptions reflected in our guaranteed annuity payment tables,
shown in each contract, will differ from actual mortality experience. Lastly,
we assume a mortality risk to the extent that at the time of death, the
guaranteed minimum death benefit exceeds the cash value of the contract. The
expense risk we assume is the risk that it will cost us more to issue and
administer the contracts than we expect. A portion of this charge also
compensates us for the contract credit. For a discussion of the credit, see
"Credits" in "Contract features and benefits" earlier in this Prospectus. We
expect to make a profit from this charge.
ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for administrative expenses under the contracts. The daily
charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
DISTRIBUTION CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for a portion of our sales expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on each contract
date anniversary. We deduct the charge if your account value on the last
business day of the contract year is less than $50,000. If your account value
on such date is $50,000 or more, we do not deduct the charge. During the first
two contract years, the charge is equal to $30 or, if less, 2% of your account
value. The charge is $30 for contract years three and later.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (if permitted in your state) on a pro rata
basis. If those amounts are insufficient, we will deduct all or a portion of
the charge from the fixed maturity options in order of the earliest maturity
date(s) first. A market value adjustment may apply. If you surrender your
contract during the contract year, we will deduct a pro rata portion of the
charge.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
WITHDRAWAL CHARGE
A withdrawal charge applies in two circumstances: (1) if you make one or more
withdrawals during a contract year that, in total, exceed the 15% free
withdrawal amount, described below, or (2) if you surrender your contract to
receive its cash value or apply your cash value to a non life contingent
annuity payout option. A portion of this charge also compensates us for the
contract credit. For a discussion of the credit, see "Credits" in "Contract
features and benefits" earlier in this Prospectus. We expect to make a profit
from this charge.
42 Charges and expenses
The withdrawal charge equals a percentage of the contributions withdrawn. We do
not consider credits to be contributions. Therefore, there is no withdrawal
charge associated with a credit.
The percentage of the withdrawal charge that applies to each contribution
depends on how long each contribution has been invested in the contract. We
determine the withdrawal charge separately for each contribution according to
the following table:
- --------------------------------------------------------------------------------
Contract year
- --------------------------------------------------------------------------------
1 2 3 4 5 6 7 8 9+
- --------------------------------------------------------------------------------
Percentage of
contribution 8% 8% 7% 7% 6% 5% 4% 3% 0%
- --------------------------------------------------------------------------------
For purposes of calculating the withdrawal charge, we treat the contract year
in which we receive a contribution as "contract year 1." Amounts withdrawn up
to the free withdrawal amount are not considered withdrawals of any
contribution. We also treat contributions that have been invested the longest
as being withdrawn first. We treat contributions as withdrawn before earnings
for purposes of calculating the withdrawal charge. However, federal income tax
rules treat earnings under your contract as withdrawn first. See "Tax
information" later in this Prospectus.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and the withdrawal charge from your account
value. Any amount deducted to pay withdrawal charges is also subject to the
same withdrawal charge percentage. We deduct the charge in proportion to the
amount of the withdrawal subtracted from each variable investment option. The
withdrawal charge helps cover our sales expenses.
The withdrawal charge does not apply in the circumstances described below.
15% FREE WITHDRAWAL AMOUNT. Each contract year you can withdraw up to 15% of
your account value without paying a withdrawal charge. The 15% free withdrawal
amount is determined using your account value at the beginning of each contract
year, or in the case of the first contract year, your initial contribution,
minus any other withdrawals made during the contract year. Additional
contributions during the contract year do not increase your 15% free withdrawal
amount. The 15% free withdrawal amount does not apply if you surrender your
contract except where required by law.
DISABILITY, TERMINAL ILLNESS, OR CONFINEMENT TO NURSING HOME. The withdrawal
charge does not apply if:
(i) The annuitant has qualified to receive Social Security disability
benefits as certified by the Social Security Administration; or
(ii) We receive proof satisfactory to us (including certification by a
licensed physician) that the annuitant's life expectancy is six months
or less; or
(iii) The annuitant has been confined to a nursing home for more than 90
days (or such other period, as required in your state) as verified by
a licensed physician. A nursing home for this purpose means one that
is (a) approved by Medicare as a provider of skilled nursing care
service, or (b) licensed as a skilled nursing home by the state or
territory in which it is located (it must be within the United States,
Puerto Rico, or U.S. Virgin Islands) and meets all of the following:
-- its main function is to provide skilled, intermediate, or
custodial nursing care;
-- it provides continuous room and board to three or more persons;
-- it is supervised by a registered nurse or licensed practical
nurse;
-- it keeps daily medical records of each patient;
-- it controls and records all medications dispensed; and
-- its primary service is other than to provide housing for
residents.
We reserve the right to impose a withdrawal charge, in accordance with your
contract and applicable state law, if the conditions as described in (i), (ii)
or (iii) above existed at the time a contribution was remitted or if the
condition began within 12 months of the period following remittance. Some
states may not permit us to waive the withdrawal charge in the above
circumstances, or may limit the circumstances for which the withdrawal charge
may be waived. Your financial professional can provide more information or you
may contact our processing office.
GUARANTEED MINIMUM DEATH BENEFIT CHARGE
ANNUAL RATCHET TO AGE 85. If you elected the Annual ratchet to age 85 enhanced
death benefit, we deduct a charge annually from your account value on each
contract date anniversary for which it is in effect. The charge is equal to
0.30% of the Annual ratchet to age 85 benefit base.
6% ROLL UP TO AGE 85. If you elected the 6% Roll up to age 85 enhanced death
benefit, we deduct a charge annually from your account value on each contract
date anniversary for which it is in effect. The charge is equal to 0.45% of the
6% Roll up to age 85 benefit base.
GREATER OF 6% ROLL UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elected
this enhanced death benefit, we deduct a charge annually from your account
value on each contract date anniversary for which it is in effect. The charge
is equal to 0.60% of the greater of the 6% Roll up to age 85 or the Annual
ratchet to age 85 benefit base.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro-rata basis. If those amount are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in order of the earliest maturity date(s) first. A market
value adjustment may apply.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
STANDARD DEATH BENEFIT. There is no additional charge for the Standard death
benefit.
Charges and expenses 43
LIVING BENEFIT CHARGE
If you elected the Living Benefit, we deduct a charge annually from your
account value on each contract date anniversary until such time as you exercise
the guaranteed minimum income benefit, elect another annuity payout option or
the contract date anniversary after the annuitant reaches age 85, whichever
occurs first. The charge is equal to 0.60% of the applicable benefit base in
effect on the contract date anniversary.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in order of the earliest maturity date(s) first. A market
value adjustment may apply.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
PROTECTION PLUS(SM)
If you elected Protection Plus(SM), we deduct a charge annually from your
account value on each contract date anniversary for which it is in effect. The
charge is equal to 0.35% of the account value on each contract date anniversary.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in the order of the earliest maturity date(s) first. A market
value adjustment may apply.
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state. Generally, we deduct the charge from
the amount applied to provide an annuity payout option. The current tax charge
that might be imposed varies by jurisdiction and ranges from 0% to 3.5%.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $350 from the amount to be applied to the Variable Immediate
annuity payout option.
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
o Management fees ranging from 0.10% to 1.50%.
o 12b-1 fees of either 0.25% or 0.35%.
o Operating expenses, such as trustees' fees, independent public accounting
firms' fees, legal counsel fees, administrative service fees, custodian
fees and liability insurance.
o Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of each Trust are purchased at their net asset value, these fees and
expenses are, in effect, passed on to the variable investment options and are
reflected in their unit values. For more information about these charges,
please refer to the prospectuses for the Trusts.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the withdrawal
charge or the mortality and expense risks charge or change the minimum initial
contribution requirements. We also may change the guaranteed minimum death
benefit or offer variable investment options that invest in shares of the
Trusts that are not subject to the 12b-1 fee. If permitted under the terms of
our exemptive order regarding Accumulator Plus(SM) bonus feature, we may also
change the crediting percentage that applies to contributions. Group
arrangements include those in which a trustee or an employer, for example,
purchases contracts covering a group of individuals on a group basis. Group
arrangements are not available for Rollover IRA and Roth Conversion IRA
contracts. Sponsored arrangements include those in which an employer allows us
to sell contracts to its employees or retirees on an individual basis.
Our costs for sales, administration and mortality generally vary with the size
and stability of the group or sponsoring organization, among other factors. We
take all these factors into account when reducing charges. To qualify for
reduced charges, a group or sponsored arrangement must meet certain
requirements, such as requirements for size and number of years in existence.
Group or sponsored arrangements that have been set up solely to buy contracts
or that have been in existence less than six months will not qualify for
reduced charges.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these rules from time to
time. Any variation will reflect differences in costs or services and will not
be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules,
ERISA or both. We make no representations with regard to the impact of these
and other applicable laws on such programs. We recommend that employers,
trustees, and others purchasing or making contracts available for purchase
under such programs seek the advice of their own legal and benefits advisers.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that results
in savings of sales and administrative expenses, such as sales through persons
who are compensated by clients for recommending investments and who receive no
commission or reduced commissions in connection with the sale of the contracts.
We will not permit a reduction or elimination of charges where it would be
unfairly discriminatory.
44 Charges and expenses
6. Payment of death benefit
- --------------------------------------------------------------------------------
YOUR BENEFICIARY AND PAYMENT OF BENEFIT
You designated your beneficiary when you applied for your contract. You may
change your beneficiary at any time. The change will be effective on the date
the written request for the change is received in our processing office. We are
not responsible for any beneficiary change request that we do not receive. We
will send you written confirmation when we receive your request.
Under jointly owned contracts, the surviving owner is considered the
beneficiary, and will take the place of any other beneficiary. You may be
limited as to the beneficiary you can designate in a Rollover TSA contract. In
a QP contract, the beneficiary must be the trustee. Where an NQ contract is
owned by a minor pursuant to the Uniform Gift to Minors Act or the Uniform
Transfers to Minors Act, the beneficiary must be the estate of the annuitant.
Where an IRA contract is owned in a custodial individual retirement account,
the custodian must be the beneficiary so that the custodian can reinvest or
distribute the death benefit as the beneficiary of the account desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
applicable guaranteed minimum death benefit. We determine the amount of the
death benefit (other than the applicable guaranteed minimum death benefit) and
any amount applicable under the Protection Plus(SM) feature, as of the date we
receive satisfactory proof of the annuitant's death, any required instructions
for the method of payment, information and forms necessary to effect payment.
The amount of the applicable guaranteed minimum death benefit will be such
guaranteed minimum death benefit as of the date of the annuitant's death,
adjusted for any subsequent withdrawals. The death benefit will be less a
deduction for any outstanding loan plus accrued interest on the date that the
death benefit is made (applies to Rollover TSA only).
EFFECT OF THE ANNUITANT'S DEATH
If the annuitant dies before the annuity payments begin, we will pay the death
benefit to your beneficiary.
Generally, the death of the annuitant terminates the contract. However, a
surviving spouse of the deceased owner/annuitant can choose to be treated as
the successor owner/annuitant and continue the contract. Only a spouse who is
the sole primary beneficiary can be a successor owner/annuitant. The successor
owner/annuitant feature is only available under NQ and individually-owned IRA
contracts.
For NQ and all types of IRA contracts, a beneficiary may be able to have
limited ownership as discussed under "Beneficiary continuation option" below.
WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT
Under certain conditions the owner changes after the original owner's death for
purposes of receiving federal tax law required distributions from the contract.
When the owner is not the annuitant under an NQ contract and the owner dies
before annuity payments begin, unless you specify otherwise, the beneficiary
named to receive the death benefit upon the annuitant's death will become the
successor owner. If you do not want this beneficiary to be the successor owner,
you should name a specific successor owner. You may name a successor owner at
any time during your life by sending satisfactory notice to our processing
office. If the contract is jointly owned and the first owner to die is not the
annuitant, the surviving owner becomes the sole contract owner. This person
will be considered the successor owner for purposes of the distribution rules
described in this section. The surviving owner automatically takes the place of
any other beneficiary designation.
You should carefully consider the following if you have elected the Living
Benefit and you are the owner, but not the annuitant. Because the payments
under the Living Benefit are based on the life of the annuitant, and the
federal tax law required distributions described below are based on the life of
the successor owner, a successor owner who is not also the annuitant may not be
able to exercise the Living Benefit option, if you die before annuity payments
begin. Therefore, one year before you become eligible to exercise the Living
Benefit option, you should consider the effect of your beneficiary designations
on potential payments after your death. For more information, see "Exercise of
guaranteed minimum income benefit" under "Our Living Benefit option," in
"Contract features and benefits" earlier in this Prospectus.
Unless the surviving spouse of the owner who has died (or in the case of a
joint ownership situation, the surviving spouse of the first owner to die) is
the successor owner for this purpose, the entire interest in the contract must
be distributed under the following rules:
o The cash value of the contract must be fully paid to the successor owner
(new owner) within five years after your death (or in a joint ownership
situation, the death of the first owner to die).
o The successor owner may instead elect to receive the cash value as a life
annuity (or payments for a period certain of not longer than the new
owner's life expectancy). Payments must begin within one year after the
non-annuitant owner's death. Unless this alternative is elected, we will
pay any cash five years after your death (or the death of the first owner
to die).
o A successor owner should name a new beneficiary.
If the surviving spouse is the successor owner or joint owner, the spouse may
elect to continue the contract. No distributions are required as long as the
surviving spouse and annuitant are living. An eligible successor owner,
including a surviving joint owner after the first owner dies, may elect the
beneficiary continuation option for NQ contracts discussed later under
"Beneficiary continuation option" below.
HOW DEATH BENEFIT PAYMENT IS MADE
We will pay the death benefit to the beneficiary in the form of the annuity
payout option you have chosen. If you have not chosen an
Payment of death benefit 45
annuity payout option as of the time of the annuitant's death, the beneficiary
will receive the death benefit in a single sum. However, subject to any
exceptions in the contract, our rules and any applicable requirements under
federal income tax rules, the beneficiary may elect to apply the death benefit
to one or more annuity payout options we offer at the time. See "Your annuity
payout options" in "Accessing your money" earlier in this Prospectus. Please
note that any annuity payout option chosen may not extend beyond the life
expectancy of the beneficiary.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may elect to
receive the death benefit or continue the contract as successor
owner/annuitant.
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required instructions and
information, and forms necessary to effect the successor owner/annuitant
feature, we will increase the account value to equal your elected guaranteed
minimum death benefit as of the date of your death if such death benefit is
greater than your account value, plus any amount applicable under the
Protection Plus(SM) feature, and adjusted for any subsequent withdrawals. The
increase in the account value will be allocated to the investment options
according to the allocation percentages we have on file for your contract.
Thereafter, withdrawal charges will no longer apply to contributions made
before your death. Withdrawal charges will apply if additional contributions
are made. These additional contributions will be considered to be withdrawn
only after all other amounts have been withdrawn. In determining whether your
applicable guaranteed minimum death benefit option will continue to grow, we
will use your surviving spouse's age (as of the date we receive satisfactory
proof of your death, any required instructions and the information and forms
necessary to effect the successor owner/annuitant feature).
Where an NQ contract is owned by a Living Trust, as defined in the contract,
and at the time of the annuitant's death the annuitant's spouse is the sole
beneficiary of the Living Trust, the Trustee, as owner of the contract, may
request that the spouse be substituted as annuitant as of the date of the
annuitant's death. No further change of annuitant will be permitted.
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole beneficiary of the account, the custodian may
request that the spouse be substituted as annuitant after your death.
BENEFICIARY CONTINUATION OPTION
This feature permits a designated individual, on the contract owner's death, to
maintain a contract in the deceased contract owner's name and receive
distributions under the contract, instead of receiving the death benefit in a
single sum. We make this option available to beneficiaries under traditional
IRA, Roth IRA and NQ contracts, subject to state availability. Please speak
with your financial professional for further information.
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. The beneficiary continuation option must be elected by September 30th of
the year following the calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this option. If the election is made, then, as of the
date we receive satisfactory proof of death, any required instructions,
information and forms necessary to effect the beneficiary continuation option
feature, we will increase the account value to equal the applicable death
benefit if such death benefit is greater than such account value, plus any
amount applicable under the Protection Plus(SM) feature, and adjusted for any
subsequent withdrawals. Where an IRA contract is owned in a custodial
individual retirement account, the custodian may reinvest the death benefit in
an individual retirement annuity contract, using the account beneficiary as the
annuitant. Please speak with your financial professional for further
information.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy (determined in the calendar year after your death
and determined on a term certain basis). These payments must begin no later
than December 31st of the calendar year after the year of your death. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70-1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed later in this Prospectus in
"Tax information" under "Individual retirement arrangements (IRAs)," the
beneficiary may choose the "5-year rule" option instead of annual payments over
life expectancy. The 5-year rule is always available to beneficiaries under
Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may
take withdrawals as desired, but the entire account value must be fully
withdrawn by December 31st of the calendar year which contains the fifth
anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA contracts:
o The contract continues in your name for the benefit of your beneficiary.
o This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals
for this purpose.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's own
life expectancy, if payments over life expectancy are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the guaranteed minimum income benefit or an optional
enhanced death benefit under the contract, they will no longer be in effect
and charges for such benefits will stop. Also, any minimum death benefit
feature will no longer be in effect.
o The beneficiary may choose at any time to withdraw all or a portion of the
account value and no withdrawal charges, if any, will apply.
46 Payment of death benefit
o Any partial withdrawal must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking required minimum distributions based
on the remaining life expectancy of the deceased beneficiary or to receive
any remaining interest in the contract in a lump sum. The option elected
will be processed when we receive satisfactory proof of death, any required
instructions for the method of payment and any required information and
forms necessary to effect payment.
BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACT ONLY. This feature, also known
as the Inherited annuity, may only be elected when the NQ contract owner dies
before the annuity commencement date, whether or not the owner and the
annuitant are the same person. If the owner and annuitant are different and the
owner dies before the annuitant, for purposes of this discussion, "beneficiary"
refers to the successor owner. For a discussion of successor owner, see "When
an NQ contract owner dies before the annuitant" earlier in this section. This
feature must be elected within 9 months following the date of your death and
before any inconsistent election is made. Beneficiaries who do not make a
timely election will not be eligible for this option.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy, determined on a term certain basis and in the
year payments start. These payments must begin no later than one year after the
date of your death and are referred to as "scheduled payments." The beneficiary
may choose the "5-year rule" instead of scheduled payments over life
expectancy. If the beneficiary chooses the 5-year rule, there will be no
scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals
as desired, but the entire account value must be fully withdrawn by the fifth
anniversary of your death.
Under the beneficiary continuation option for NQ contracts (regardless of
whether the owner and the annuitant are the same person):
o This feature is only available if the beneficiary is an individual. It is
not available for any entity such as a trust, even if all of the
beneficiaries of the trust are individuals.
o The contract continues in your name for the benefit of your beneficiary.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the respective
beneficiary's own life expectancy, if scheduled payments are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the guaranteed minimum income benefit or an optional
enhanced death benefit under the contract, they will no longer be in effect
and charges for such benefits will stop. Also, any minimum death benefit
feature will no longer be in effect.
o If the beneficiary chooses the "5-year rule," withdrawals may be made at
any time. If the beneficiary instead chooses scheduled payments, the
beneficiary must also choose between two potential withdrawal options at
the time of election. If the beneficiary chooses "Withdrawal Option 1", the
beneficiary cannot later withdraw funds in addition to the scheduled
payments the beneficiary is receiving; "Withdrawal Option 1" permits total
surrender only. "Withdrawal Option 2" permits the beneficiary to take
withdrawals, in addition to scheduled payments, at any time. However, the
scheduled payments under "Withdrawal Option 1" are afforded favorable tax
treatment as "annuity payments." See "Taxation of nonqualified annuities"
in "Tax Information" later in this Prospectus.
o Any partial withdrawals must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract on the beneficiary's death.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking scheduled payments based on the
remaining life expectancy of the deceased beneficiary (if scheduled
payments were chosen) or to receive any remaining interest in the contract
in a lump sum. We will pay any remaining interest in the contract in a lump
sum if your beneficiary elects the 5-year rule. The option elected will be
processed when we receive satisfactory proof of death, any required
instructions for the method of payment and any required information and
forms necessary to effect payment.
If you are both the owner and annuitant:
o As of the date we receive satisfactory proof of death, any required
instructions, information and forms necessary to effect the beneficiary
continuation option feature, we will increase the annuity account value to
equal the applicable death benefit if such death benefit is greater than
such account value, plus any amount applicable under the Protection
Plus(SM) feature, and adjusted for any subsequent withdrawals.
o No withdrawal charges, if any, will apply to any withdrawals by the
beneficiary.
If the owner and annuitant are not the same person:
o If the beneficiary continuation option is elected, the beneficiary
automatically becomes the new annuitant of the contract, replacing the
existing annuitant.
o The annuity account value will not be reset to the death benefit amount.
o The contract's withdrawal charge schedule will continue to be applied to
any withdrawal or surrender other than scheduled payments; the contract's
free corridor amount will continue to apply to withdrawals but does not
apply to surrenders.
o We do not impose a withdrawal charge on scheduled payments except if, when
added to any withdrawals previously taken in the same contract year,
including for this purpose a contract surrender, the total amount of
withdrawals and scheduled payments exceed the free corridor amount. See the
"Withdrawal charges" in "Charges and expenses" earlier in this Prospectus.
Payment of death benefit 47
If a contract is jointly owned:
o The surviving owner supersedes any other named beneficiary and may elect
the beneficiary continuation option.
o If the deceased joint owner was also the annuitant, see "If you are both
the owner and annuitant" earlier in this section.
o If the deceased joint owner was not the annuitant, see "If the owner and
annuitant are not the same person" earlier in this section.
48 Payment of death benefit
7. Tax information
- --------------------------------------------------------------------------------
OVERVIEW
In this part of the prospectus, we discuss the current federal income tax rules
that generally apply to Accumulator(R) Plus(SM) contracts owned by United States
individual taxpayers. The tax rules can differ, depending on the type of
contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. Therefore, we
discuss the tax aspects of each type of contract separately.
Federal income tax rules include the United States laws in the Internal Revenue
Code, and Treasury Department Regulations and Internal Revenue Service ("IRS")
interpretations of the Internal Revenue Code. These tax rules may change
without notice. We cannot predict whether, when, or how these rules could
change. Any change could affect contracts purchased before the change. Congress
may also consider proposals in the future to comprehensively reform or overhaul
the United States tax and retirement systems, which if enacted, could affect
the tax benefits of a contract.
We cannot provide detailed information on all tax aspects of the contracts.
Moreover, the tax aspects that apply to a particular person's contract may vary
depending on the facts applicable to that person. We do not discuss state
income and other state taxes, federal income tax and withholding rules for
non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the
contract, rights or values under the contract, or payments under the contract,
for example, amounts due to beneficiaries, may be subject to federal or state
gift, estate, or inheritance taxes. You should not rely only on this document,
but should consult your tax adviser before your purchase.
President Bush signed the Economic Growth and Tax Relief Reconciliation Act of
2001 ("EGTRRA") on June 7, 2001. Many of the provisions of EGTRRA became
effective on January 1, 2002 and are phased in during the first decade of the
twenty-first century. In the absence of future legislation, all of the
amendments made by EGTRRA will no longer apply after December 31, 2010, and the
law in effect in 2001 will apply again. In general, EGTRRA liberalizes
contributions that can be made to all types of tax-favored retirement plans. In
addition to increasing amounts that can be contributed and permitting
individuals over age 50 to make additional contributions, EGTRRA also permits
rollover contributions to be made between different types of tax-favored
retirement plans. Please discuss with your tax adviser how EGTRRA affects your
personal financial situation.
CONTRACTS THAT FUND A RETIREMENT ARRANGEMENT
Generally, there are two types of funding vehicles that are available for
Individual Retirement Arrangements ("IRAs") and Code Section 403(b)
Arrangements ("TSAs"), respectively: an IRA or 403(b) annuity contract such as
this one, or an IRA or 403(b)(7) custodial or other qualified account. Annuity
contracts can also be purchased in connection with retirement plans qualified
under Code section 401 ("QP contracts"). How these arrangements work, including
special rules applicable to each, are described in the specific sections for
each type of arrangement, below. You should be aware that the funding vehicle
for a qualified arrangement does not provide any tax deferral benefit beyond
that already provided by the Code for all permissible funding vehicles.
Therefore, you should consider the annuity's features and benefits, such as
Accumulator(R) Plus(SM), extra credit on each contribution, choice of death
benefits, the living benefit guaranteed minimum income benefit guaranteed
interest option, selection of investment funds and its choices of pay-out
options that are available in Accumulator(R) Plus(SM), as well as the features
and benefits of other permissible funding vehicles and the relative costs of
annuities and other arrangements. You should be aware that cost may vary
depending on the features and benefits made available and the charges and
expenses of the investment options or funds that you elect.
Beginning in 2006, certain provisions of the Treasury Regulations on required
minimum distributions concerning the actuarial present value of additional
contract benefits could increase the amount required to be distributed from
annuity contracts funding qualified plans, TSAs and IRAs. You should consider
the potential implication of these Regulations before you purchase additional
features under this annuity contract. See also Appendix II at the end of this
Prospectus for a discussion of QP contracts.
TRANSFERS AMONG VARIABLE INVESTMENT OPTIONS
You can make transfers among variable investment options inside the contract
without triggering taxable income.
TAXATION OF NONQUALIFIED ANNUITIES
CONTRIBUTIONS
You may not deduct the amount of your contributions to a nonqualified annuity
contract.
CONTRACT EARNINGS
Generally, you are not taxed on contract earnings until you receive a
distribution from your contract, whether as a withdrawal or as an annuity
payment. However, earnings are taxable, even without a distribution:
o if a contract fails investment diversification requirements as specified in
federal income tax rules (these rules are based on or are similar to those
specified for mutual funds under the securities laws);
o if you transfer a contract, for example, as a gift to someone other than
your spouse (or former spouse);
o if you use a contract as security for a loan (in this case, the amount
pledged will be treated as a distribution); and
o if the owner is other than an individual (such as a corporation,
partnership, trust, or other non-natural person).
Tax information 49
All nonqualified deferred annuity contracts that AXA Equitable and its
affiliates issue to you during the same calendar year are linked together and
treated as one contract for calculating the taxable amount of any distribution
from any of those contracts.
ANNUITY PAYMENTS
Once annuity payments begin, a portion of each payment is taxable as ordinary
income. You get back the remaining portion without paying taxes on it. This is
your "investment in the contract." Generally, your investment in the contract
equals the contributions you made, less any amounts you previously withdrew
that were not taxable.
For fixed annuity payments, the tax-free portion of each payment is determined
by (1) dividing your investment in the contract by the total amount you are
expected to receive out of the contract, and (2) multiplying the result by the
amount of the payment. For variable annuity payments, your tax-free portion of
each payment is your investment in the contract divided by the number of
expected payments.
Once you have received the amount of your investment in the contract, all
payments after that are fully taxable. If payments under a life annuity stop
because the annuitant dies, there is an income tax deduction for any
unrecovered investment in the contract.
PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN
If you make withdrawals before annuity payments begin under your contract, they
are taxable to you as ordinary income if there are earnings in the contract.
Generally, earnings are your account value less your investment in the
contract. If you withdraw an amount which is more than the earnings in the
contract as of the date of the withdrawal, the balance of the distribution is
treated as a return of your investment in the contract and is not taxable.
PROTECTION PLUS(SM) FEATURE
In order to enhance the amount of the death benefit to be paid at the
Annuitant's death, you may have purchased a Protection Plus(SM) rider for your
NQ contract. Although we regard this benefit as an investment protection feature
which should have no adverse tax effect, it is possible that the IRS could take
a contrary position or assert that the Protection Plus(SM) rider is not part of
the contract. In such a case, the charges for the Protection Plus(SM) rider
could be treated for federal income tax purposes as a partial withdrawal from
the contract. If this were so, such a deemed withdrawal could be taxable, and
for contract owners under age 59-1/2, also subject to a tax penalty. Were the
IRS to take this position, AXA Equitable would take all reasonable steps to
attempt to avoid this result which could include amending the contract (with
appropriate notice to you).
CONTRACTS PURCHASED THROUGH EXCHANGES
The following information applies if you purchased your NQ contract through an
exchange of another contract. Normally, exchanges of contracts are taxable
events. The exchange was not taxable under Section 1035 of the Internal Revenue
Code if:
o the contract that was the source of the funds you used to purchase the NQ
contract was another nonqualified deferred annuity contract or life
insurance or endowment contract.
o the owner and the annuitant were the same under the source contract and the
Accumulator(R) Plus(SM) NQ contract. If you used a life insurance or
endowment contract, the owner and the insured must have been the same on
both sides of the exchange transaction.
The tax basis, also referred to as your investment in the contract, of the
source contract carried over to the Accumulator(R) Plus(SM) NQ contract.
An owner may direct the proceeds of a partial withdrawal from one nonqualified
deferred annuity contract to a different insurer to purchase a new nonqualified
deferred annuity contract on a tax-deferred basis. Special forms, agreement
between the carriers, and provision of cost basis information may be required
to process this type of exchange.
SURRENDERS
If you surrender or cancel the contract, the distribution is taxable as
ordinary income (not capital gain) to the extent it exceeds your investment in
the contract.
DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH
For the rules applicable to death benefits, see "Payment of death benefit"
earlier in this Prospectus. The tax treatment of a death benefit taken as a
single sum is generally the same as the tax treatment of a withdrawal from or
surrender of your contract. The tax treatment of a death benefit taken as
annuity payments is generally the same as the tax treatment of annuity payments
under your contract.
BENEFICIARY CONTINUATION OPTION
We have received a private letter ruling from the IRS regarding certain tax
consequences of scheduled payments under the beneficiary continuation option
for NQ contracts. See the discussion "Beneficiary continuation option for NQ
contracts only" in "Payment of death benefit" earlier in this Prospectus. Among
other things, the IRS rules that:
o scheduled payments under the beneficiary continuation option for NQ
contracts satisfy the death of owner rules of Section 72(s)(2) of the Code,
regardless of whether the beneficiary elects Withdrawal Option 1 or
Withdrawal Option 2;
o scheduled payments, any additional withdrawals under Withdrawal Option 2,
or contract surrenders under Withdrawal Option 1 will only be taxable to
the beneficiary when amounts are actually paid, regardless of the
Withdrawal Option selected by the beneficiary;
o a beneficiary who irrevocably elects scheduled payments with Withdrawal
Option 1 will receive "excludable amount" tax treatment on scheduled
payments. See "Annuity payments" earlier in this section. If the
beneficiary elects to surrender the contract before all scheduled payments
are paid, the amount received upon surrender is a non-annuity payment
taxable to the extend it exceeds any remaining investment in the contract.
The ruling specifically does not address the taxation of any payments received
by a beneficiary electing Withdrawal Option 2 (whether scheduled payments or
any withdrawal that might be taken). Before electing the beneficiary
continuation option feature, the individuals you designate as beneficiary or
successor owner should discuss with their tax advisers the consequences of such
elections.
50 Tax information
The tax treatment of a withdrawal after the death of the owner taken as a
single sum or taken as withdrawals under the 5-year rule is generally the same
as the tax treatment of a withdrawal from or surrender of your contract.
EARLY DISTRIBUTION PENALTY TAX
If you take distributions before you are age 59-1/2 a penalty tax of 10% of the
taxable portion of your distribution applies in addition to the income tax.
Some of the available exceptions to the pre-age 59-1/2 penalty tax include
distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o in the form of substantially equal periodic annuity payments for your life
(or life expectancy), or the joint lives (or joint life expectancy) of you
and a beneficiary, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If
you were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. The IRS has said that the owners of variable annuities will
not be treated as owning the separate account assets provided the underlying
portfolios are restricted to variable life and annuity assets. The variable
annuity owners must have the right only to choose among the portfolios, and
must have no right to direct the particular investment decisions within the
portfolios.
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some
issues that remain unclear. For example, the IRS has not issued any guidance as
to whether having a larger number of portfolios available, or an unlimited
right to transfer among them, could cause you to be treated as the owner. We do
not know whether the IRS will ever provide such guidance or whether such
guidance, if unfavorable, would apply retroactively to your contract.
Furthermore, the IRS could reverse its current guidance at any time. We reserve
the right to modify your contract as necessary to prevent you from being
treated as the owner of the assets of Separate Accounts 45 and 49.
SPECIAL RULES FOR NQ CONTRACTS ISSUED IN PUERTO RICO
Income from NQ contracts we issue is U.S. source. A Puerto Rico resident is
subject to U.S. taxation on such U.S. source income. Only Puerto Rico source
income of Puerto Rico residents is excludable from U.S. taxation. Income from
NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable
portion of amounts distributed from a contract may differ in the two
jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax
returns, showing different amounts of income from the contract for each tax
return. Puerto Rico generally provides a credit against Puerto Rico tax for
U.S. tax paid. Depending on your personal situation and the timing of the
different tax liabilities, you may not be able to take full advantage of this
credit.
INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS)
GENERAL
"IRA" stands for individual retirement arrangement. There are two basic types
of such arrangements, individual retirement accounts and individual retirement
annuities. In an individual retirement account, a trustee or custodian holds
the assets funding the account for the benefit of the IRA owner. The assets
typically can include mutual funds and/or individual stocks and/or securities
in a custodial account, and bank certificates of deposit in a trusteed account.
In an individual retirement annuity, an insurance company issues an annuity
contract that serves as the IRA.
There are two basic types of IRAs, as follows:
o Traditional IRAs, typically funded on a pre-tax basis,including SEP-IRAs
and SIMPLE IRAs issued and funded in connection with employer-sponsored
retirement plans; and
o Roth IRAs funded on an after-tax basis.
Regardless of the type of IRA, your ownership interest in the IRA cannot be
forfeited. You or your beneficiaries who survive you are the only ones who can
receive the IRA's benefits or payments. All types of IRAs qualify for tax
deferral, regardless of the funding vehicle selected.
You can hold your IRA assets in as many different accounts and annuities as you
would like, as long as you meet the rules for setting up and making
contributions to IRAs. However, if you own multiple IRAs, you may be required
to combine IRA values or contributions for tax purposes. For further
information about individual retirement arrangements, you can read Internal
Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)").
This publication is usually updated annually, and can be obtained from any IRS
district office or the IRS website (www.irs.gov).
AXA Equitable designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may have
purchased the contract as either a traditional IRA ("Rollover IRA") or Roth IRA
("Roth Conversion IRA"). The first part of this section covers some of the
special tax rules that apply to traditional IRAs. The next part of this section
covers Roth IRAs. The disclosure generally assumes direct ownership of the
individual retirement annuity contract. For contracts owned in a custodial
individual retirement account, the disclosure will apply only if you terminate
your account or transfer ownership of the contract to yourself.
We have received an opinion letter from the IRS approving the respective forms
of the Accumulator(R) traditional and Roth IRA contracts, as amended to reflect
recent tax law changes, for use as a traditional IRA and a Roth IRA,
respectively. This IRS approval is a determination only as to the form of the
annuity. It does not represent a determination of the merits of the annuity as
an investment. The contracts submitted for IRS approval do not include every
feature possibly available under the Accumulator(R) traditional and Roth IRA
contracts.
Tax information 51
PROTECTION PLUS(SM) FEATURE
The Protection Plus(SM) feature was offered for IRA contracts, subject to state
and contract availability. We have received IRS opinion letters that the
contract with a Protection Plus(SM) feature qualifies as to form for use as a
traditional IRA and Roth IRA, respectively. This IRS approval is a
determination only as to the form of the annuity. It does not represent a
determination of the merits of the annuity as an investment. The contracts
submitted for IRS approval do not include every feature possibly available
under the Accumulator(R) traditional and Roth IRA contracts. You should consult
with your tax adviser for further information,
Your right to cancel within a certain number of days
This is provided for informational purposes only. Since this contract is no
longer available to new purchasers, this cancellation provision is no longer
applicable.
You can cancel any version of the Accumulator(R) Plus(SM) IRA contract
(traditional IRA or Roth IRA) by following the directions in "Your right to
cancel within a certain number of days" under "Contract features and benefits"
earlier in this Prospectus. If you cancel a traditional IRA or Roth IRA
contract, we may have to withhold tax, and we must report the transaction to
the IRS. A contract cancellation could have an unfavorable tax impact
Traditional individual retirement annuities (traditional IRAs)
Contributions to traditional IRAs. Individuals may make three different types
of contributions to a traditional IRA:
o regular contributions out of earned income or compensation;
o tax-free "rollover" contributions; or
o direct custodian-to-custodian transfers from other traditional IRAs
("direct transfers").
Regular contributions to traditional IRAs
Limits on contributions. The "maximum regular contribution amount" for any
taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $4,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for each of the taxable years 2005
and 2006. When your earnings are below $4,000, your earned income or
compensation for the year is the most you can contribute. This limit does not
apply to rollover contributions or direct custodian-to-custodian transfers into
a traditional IRA. You cannot make regular traditional IRA contributions for
the tax year in which you reach age 70-1/2 or any tax year after that.
If you reach age 50 before the close of the taxable year for which you are
making a regular contribution to your IRA, you may be eligible to make an
additional "catch up contribution" of up to $500 to your traditional IRA for
2005. This amount increases to $1,000 for the taxable year 2006.
Special rules for spouses. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to traditional IRAs
(and Roth IRAs discussed below). Even if one spouse has no compensation or
compensation under $4,000, married individuals filing jointly can contribute up
to $8,000 for each of the taxable years 2005 and 2006 to any combination of
traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the
ability to contribute to traditional IRAs and vice versa. The maximum amount
may be less if earned income is less and the other spouse has made IRA
contributions. No more than a combined total of $4,000 can be contributed
annually to either spouse's traditional and Roth IRAs. Each spouse owns his or
her traditional IRAs and Roth IRAs even if the other spouse funded the
contributions. A working spouse age 70-1/2 or over can contribute up to the
lesser of $4,000 or 100% of "earned income" to a traditional IRA for a
nonworking spouse until the year in which the nonworking spouse reaches age
70-1/2. Catch-up contributions may be made as described above for spouses who
are at least age 50 but under age 70-1/2 at any time during the taxable year
for which the contribution is made.
Deductibility of contributions. The amount of traditional IRA contributions
that you can deduct for a taxable year depends on whether you are covered by an
employer-sponsored tax-favored retirement plan, as defined under special
federal income tax rules. Your Form W-2 will indicate whether or not you are
covered by such a retirement plan.
If you are not covered by a retirement plan during any part of the year, you
can make fully deductible contributions to your traditional IRAs for the
taxable year up to the maximum amount discussed earlier in this section under
"Limits on contributions". That is, for each of the taxable years 2005 and
2006, your fully deductible contribution can be up to $4,000, or if less, your
earned income. The dollar limit is $4,500 for people eligible to make age
50 - 70-1/2 catch-up contributions for 2005 and $5,000 for 2006, respectively.
If you are covered by a retirement plan during any part of the year, and your
adjusted gross income (AGI) is below the lower dollar figure in a phase-out
range, you can make fully deductible contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls within a phase-out range, you can make partially deductible
contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls above the higher figure in the phase-out range, you may not deduct
any of your regular contributions to your traditional IRAs.
If you are single and covered by a retirement plan during any part of the
taxable year, the deduction for traditional IRA contributions phases out with
AGI between $50,000 and $60,000 in 2005 and later years.
If you are married and file a joint return, and you are covered by a retirement
plan during any part of the taxable year, the deduction for traditional IRA
contributions phases out with AGI between $70,000 and $80,000 in 2005 and AGI
between $75,000 and $85,000 in 2006. In 2007, the deduction will phase out for
AGI between $80,000 and $100,000.
52 Tax information
Married individuals filing separately and living apart at all times are not
considered married for purposes of this deductible contribution calculation.
Generally, the active participation in an employer-sponsored retirement plan of
an individual is determined independently for each spouse. Where spouses have
"married filing jointly" status, however, the maximum deductible traditional
IRA contribution for an individual who is not an active participant (but whose
spouse is an active participant) is phased out for taxpayers with an AGI
between $150,000 and $160,000.
To determine the deductible amount of the contribution for 2005, for example,
you determine AGI and subtract $50,000 if you are single, or $70,000 if you are
married and file a joint return with your spouse. The resulting amount is your
excess AGI. You then determine the limit on the deduction for traditional IRA
contributions using the following formula:
($10,000-excess AGI) times the maximum Equals the adjusted
-------------------- x regular = deductible
divided by $10,000 contribution contribution
for the year limit
Additional "Saver's Credit" for contributions to a
traditional IRA or Roth IRA
You may be eligible for a nonrefundable income tax credit for contributions you
make to a traditional IRA or Roth IRA. The final year this credit is available
is 2006. If you qualify, you may take this credit even though your traditional
IRA contribution is already fully or partially deductible. To take advantage of
this "saver's credit" you must be 18 or over before the end of the taxable year
for which the contribution is made. You cannot be a full-time student or
claimed as a dependent on another's tax return, and your adjusted gross income
cannot exceed $50,000. The amount of the tax credit you can get varies from 10%
of your contribution to 50% of your contribution and depends on your income tax
filing status and your adjusted gross income. The maximum annual contribution
eligible for the saver's credit is $2,000. If you and your spouse file a joint
return, and each of you qualifies, each is eligible for a maximum annual
contribution of $2,000. Your saver's credit may also be reduced if you take or
have taken a taxable distribution from any plan eligible for a saver's credit
contribution -- even if you make a contribution to one plan and take the
distribution from another plan -- during the "testing period." The "testing
period" begins two years before the year for which you make the contribution
and ends when your tax return is due for the year for which you make the
contribution. Saver's-credit-eligible contributions may be made to a 401(k)
plan, 403(b) TSA, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA,
as well as a traditional IRA or Roth IRA.
Nondeductible regular contributions. If you are not eligible to deduct part or
all of the traditional IRA contribution, you may still make nondeductible
contributions on which earnings will accumulate on a tax-deferred basis. The
combined deductible and nondeductible contributions to your traditional IRA (or
the nonworking spouse's traditional IRA) may not, however, exceed the maximum
dollar per person limit for the applicable taxable year ($4,000 for 2005 and
2006). The dollar limit is $4,500 in 2005 and $5,000 in 2006 for people
eligible to make ages 50 - 70-1/2 catch-up contributions. See "Excess
contributions" later in this section. You must keep your own records of
deductible and nondeductible contributions in order to prevent double taxation
on the distribution of previously taxed amounts. See "Withdrawals, payments and
transfers of funds out of traditional IRAs" later in this section.
If you are making nondeductible contributions in any taxable year, or you have
made nondeductible contributions to a traditional IRA in prior years and are
receiving distributions from any traditional IRA, you must file the required
information with the IRS. Moreover, if you are making nondeductible traditional
IRA contributions, you must retain all income tax returns and records
pertaining to such contributions until interests in all traditional IRAs are
fully distributed.
When you can make regular contributions. If you file your tax returns on a
calendar year basis like most taxpayers, you have until the April 15 return
filing deadline (without extensions) of the following calendar year to make
your regular traditional IRA contributions for a tax year.
Rollover and transfer contributions to traditional IRAs
Rollover contributions may be made to a traditional IRA from these "eligible
retirement plans":
o qualified plans;
o governmental employer 457(b) plans;
o TSAs (including Internal Revenue Code Section 403(b)(7) custo
dial accounts); and
o other traditional IRAs.
Direct transfer contributions may only be made from one traditional IRA to
another. Any amount contributed to a traditional IRA after you reach age 70-1/2
must be net of your required minimum distribution for the year in which the
rollover or direct transfer contribution is made.
Rollovers from "eligible retirement plans" other than
traditional IRAs
Your plan administrator will tell you whether or not your distribution is
eligible to be rolled over. Spousal beneficiaries and spousal alternate payees
under qualified domestic relations orders may roll over funds on the same basis
as the plan participant.
There are two ways to do rollovers:
o Do it yourself:
You actually receive a distribution that can be rolled over and you roll it
over to a traditional IRA within 60 days after the date you receive the
funds. The distribution from your eligible retirement plan will be net of
20% mandatory federal income tax withholding. If you want, you can replace
the withheld funds yourself and roll over the full amount.
o Direct rollover:
You tell the trustee or custodian of the eligible retirement plan to send
the distribution directly to your traditional IRA issuer. Direct rollovers
are not subject to mandatory federal income tax withholding.
Tax information 53
All distributions from a TSA, qualified plan or governmental employer 457(b)
plan are eligible rollover distributions, unless the distributions are:
o "required minimum distributions" after age 70-1/2 or retirement
from service with the employer; or
o substantially equal periodic payments made at least annually for
your life (or life expectancy) or the joint lives (or joint life
expectancies) of you and your designated beneficiary; or
o substantially equal periodic payments made for a specified period
of 10 years or more; or
o hardship withdrawals; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o death benefit payments to a beneficiary who is not your surviving
spouse; or
o qualified domestic relations order distributions to a beneficiary
who is not your current spouse or former spouse.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental employer 457(b) plan are not subject to the
additional 10% federal income tax penalty for premature distributions, but they
may become subject to this penalty if you roll the funds to a different type of
eligible retirement plan such as a traditional IRA, and subsequently take a
premature distribution.
Rollovers of after-tax contributions from eligible retirement plans other than
traditional IRAs
Any after-tax contributions you have made to a qualified plan or TSA (but not a
governmental employer 457(b) plan) may be rolled over to a traditional IRA
(either in a direct rollover or a rollover you do yourself). When the recipient
plan is a traditional IRA, you are responsible for recordkeeping and
calculating the taxable amount of any distributions you take from that
traditional IRA. See "Taxation of Payments" later in this section under
"Withdrawals, payments and transfers of funds out of traditional IRAs."
After-tax contributions in a traditional IRA cannot be rolled over from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan.
Rollovers from traditional IRAs to traditional IRAs
You may roll over amounts from one traditional IRA to one or more of your other
traditional IRAs if you complete the transaction within 60 days after you
receive the funds. You may make such a rollover only once in every 12-month
period for the same funds. Trustee-to-trustee or custodian-to-custodian direct
transfers are not rollover transactions. You can make these more frequently
than once in every 12-month period.
SPOUSAL ROLLOVERS AND DIVORCE-RELATED DIRECT TRANSFERS
The surviving spouse beneficiary of a deceased individual can roll over funds
from, or directly transfer funds from, an inherited traditional IRA to one or
more other traditional IRAs. Also, in some cases, traditional IRAs can be
transferred on a tax-free basis between spouses or former spouses as a result
of a court-ordered divorce or separation decree.
Excess contributions
Excess contributions to IRAs are subject to a 6% excise tax for the year in
which made and for each year after until withdrawn. The following are excess
contributions to IRAs:
o regular contributions of more than the maximum regular contri
bution amount for the applicable taxable year; or
o regular contributions to a traditional IRA made after you reach
age 70-1/2; or
o rollover contributions of amounts, which are not eligible to be
rolled over, for example, minimum distributions required to be made after
age 70-1/2.
You can avoid the excise tax by withdrawing an excess contribution (rollover or
regular) before the due date (including extensions) for filing your federal
income tax return for the year. If it is an excess regular traditional IRA
contribution, you cannot take a tax deduction for the amount withdrawn. You do
not have to include the excess contribution withdrawn as part of your income.
It is also not subject to the 10% additional penalty tax on early
distributions, discussed later in this section under "Early distribution
penalty tax." You do have to withdraw any earnings that are attributed to the
excess contribution. The withdrawn earnings would be included in your gross
income and could be subject to the 10% penalty tax.
Even after the due date for filing your return, you may withdraw an excess
rollover contribution, without income inclusion or 10% penalty, if:
(1) the rollover was from an eligible retirement plan to a traditional IRA;
(2) the excess contribution was due to incorrect information that the plan
provided; and
(3) you took no tax deduction for the excess contribution.
Recharacterizations
Amounts that have been contributed as traditional IRA funds may subsequently be
treated as Roth IRA funds. Special federal income tax rules allow you to change
your mind again and have amounts that are subsequently treated as Roth IRA
funds, once again treated as traditional IRA funds. You do this by using the
forms we prescribe. This is referred to as having "recharacterized" your
contribution.
Withdrawals, payments and transfers of funds out of
traditional IRAs
No federal income tax law restrictions on withdrawals. You can withdraw any or
all of your funds from a traditional IRA at any time. You do not need to wait
for a special event like retirement.
Taxation of payments. Earnings in traditional IRAs are not subject to federal
income tax until you or your beneficiary receive them. Tax-
54 Tax information
able payments or distributions include withdrawals from your contract,
surrender of your contract and annuity payments from your contract. Death
benefits are also taxable.
Except as discussed below, the total amount of any distribution from a
traditional IRA must be included in your gross income as ordinary income. We
report all payments from traditional IRA contracts on IRS Form 1099R as fully
taxable.
If you have ever made nondeductible IRA contributions to any traditional IRA
(it does not have to be to this particular traditional IRA contract), those
contributions are recovered tax free when you get distributions from any
traditional IRA. It is your responsibility to keep permanent tax records of all
of your nondeductible contributions to traditional IRAs so that you can
correctly report the taxable amount of any distribution on your own tax return.
At the end of any year in which you have received a distribution from any
traditional IRA, you calculate the ratio of your total nondeductible
traditional IRA contributions (less any amounts previously withdrawn tax free)
to the total account balances of all traditional IRAs you own at the end of the
year plus all traditional IRA distributions made during the year. Multiply this
by all distributions from the traditional IRA during the year to determine the
nontaxable portion of each distribution.
A distribution from a traditional IRA is not taxable if:
o the amount received is a withdrawal of excess contributions, as
described under "Excess contributions" earlier in this section; or
o the entire amount received is rolled over to another traditional
IRA or other eligible retirement plan which agrees to accept the funds.
(See "Rollovers from eligible retirement plans other than traditional
IRAs" under "Rollovers and transfer contributions to traditional IRAs"
earlier in this section.)
The following are eligible to receive rollovers of distributions from a
traditional IRA: a qualified plan, a TSA or a governmental employer 457(b)
plan. After-tax contributions in a traditional IRA cannot be rolled from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan. Before you decide to roll over a distribution from a
traditional IRA to another eligible retirement plan, you should check with the
administrator of that plan about whether the plan accepts rollovers and, if so,
the types it accepts. You should also check with the administrator of the
receiving plan about any documents required to be completed before it will
accept a rollover.
Distributions from a traditional IRA are not eligible for favorable ten-year
averaging or long-term capital gain treatment available under limited
circumstances for certain distributions from qualified plans. If you might be
eligible for such tax treatment from your qualified plan, you may be able to
preserve such tax treatment even though an eligible rollover from a qualified
plan is temporarily rolled into a "conduit IRA" before being rolled back into a
qualified plan. See your tax adviser.
Required minimum distributions
Background on Regulations -- Required Minimum Distri-butions. Distributions
must be made from traditional IRAs according to the rules contained in the Code
and Treasury Regulations. Certain provisions of the Treasury Regulations will
require, beginning in 2006, that the actuarial present value of additional
annuity contract benefits be added to the dollar amount credited for purposes
of calculating certain types of required minimum distributions from individual
retirement annuity contracts. This could increase the amount required to be
distributed from these contracts if you take annual withdrawals instead of
annuitizing. Please consult your tax adviser concerning applicability of these
complex rules to your situation.
Lifetime required minimum distributions. You must start taking annual
distributions from your traditional IRAs for the year in which you turn 70-1/2.
When you have to take the first lifetime required minimum distribution. The
first required minimum distribution is for the calendar year in which you turn
age 70-1/2. You have the choice to take this first required minimum
distribution during the calendar year you actually reach age 70-1/2, or to
delay taking it until the first three-month period in the next calendar year
(January 1 - April 1). Distributions must start no later than your "Required
Beginning Date," which is April 1st of the calendar year after the calendar
year in which you turn age 70-1/2. If you choose to delay taking the first
annual minimum distribution, then you will have to take two minimum
distributions in that year -- the delayed one for the first year and the one
actually for that year. Once minimum distributions begin, they must be made at
some time each year.
How you can calculate required minimum distributions.
There are two approaches to taking required minimum distributions --
"account-based" or "annuity-based."
ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the
value of your traditional IRA as of December 31st of the past calendar year by
a number corresponding to your age from an IRS table. This gives you the
required minimum distribution amount for that particular IRA for that year. If
your spouse is your sole beneficiary and more than 10 years younger than you,
the dividing number you use may be from another IRS table and may produce a
smaller lifetime required minimum distribution amount. Regardless of the table
used, the required minimum distribution amount will vary each year as the
account value and the divisor change. If you initially choose an account-based
method, you may later apply your traditional IRA funds to a life annuity-based
payout with any certain period not exceeding remaining life expectancy,
determined in accordance with IRS tables.
ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to
do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a designated beneficiary or for a
period certain not extending beyond applicable life expectancies, determined in
accordance with IRS tables
Do you have to pick the same method to calculate your required minimum
distributions for all of your traditional IRAs and other retirement plans? No.
If you want, you can choose a different method for each of your traditional
IRAs and other retirement plans. For example, you can choose an annuity payout
from one IRA, a different annuity payout from a qualified plan and an
account-based annual withdrawal from another IRA.
Tax information 55
Will we pay you the annual amount every year from your traditional IRA based on
the method you choose? We will only pay you automatically if you affirmatively
select an annuity payout option or an account-based withdrawal option such as
our "automatic required minimum distribution (RMD) service." Even if you do not
enroll in our service, we will calculate the amount of the required minimum
distribution withdrawal for you, if you so request in writing. However, in that
case you will be responsible for asking us to pay the required minimum
distribution withdrawals to you.
Also, the IRS will let you calculate the required minimum distribution for each
traditional IRA that you maintain, using the method that you picked for that
particular IRA. You can add these required minimum distribution amount
calculations together. As long as the total amount you take out every year
satisfies your overall traditional IRA required minimum distribution amount,
you may choose to take your annual required minimum distribution from any one
or more traditional IRAs that you own.
What if you take more than you need to for any year? The required minimum
distribution amount for your traditional IRAs is calculated on a year-by-year
basis. There are no carry-back or carry-forward provisions. Also, you cannot
apply required minimum distribution amounts you take from your qualified plans
to the amounts you have to take from your traditional IRAs and vice versa.
What if you take less than you need to for any year? Your IRA could be
disqualified, and you could have to pay tax on the entire value. Even if your
IRA is not disqualified, you could have to pay a 50% penalty tax on the
shortfall (required amount for traditional IRAs less amount actually taken). It
is your responsibility to meet the required minimum distribution rules. We will
remind you when our records show that you are within the age group which must
take lifetime required minimum distributions. If you do not select a method
with us, we will assume you are taking your required minimum distribution from
another traditional IRA that you own.
What are the required minimum distribution payments after you die? These could
vary depending on whether you die before or after your Required Beginning Date
for lifetime required minimum distribution payments, and the status of your
beneficiary. The following assumes that you have not yet elected an
annuity-based payout at the time of your death. If you elect an annuity-based
payout, payments (if any) after your death must be made at least as rapidly as
when you were alive.
Individual beneficiary. Regardless of whether your death occurs before or after
your Required Beginning Date, an individual death beneficiary calculates annual
post-death required minimum distribution payments based on the beneficiary's
life expectancy using the "term certain method." That is, he or she determines
his or her life expectancy using the IRS-provided life expectancy tables as of
the calendar year after the owner's death and reduces that number by one each
subsequent year.
If you die before your Required Beginning Date, the rules permit any individual
beneficiary, including a spousal beneficiary, to elect instead to apply the
"5-year rule." Under this rule, instead of annual payments having to be made
beginning with the first in the year following the owner's death, the entire
account must be distributed by the end of the calendar year which contains the
fifth anniversary of the owner's death. No distribution is required before that
fifth year.
Spousal beneficiary. If you die after your Required Beginning Date, and your
death beneficiary is your surviving spouse, your spouse has a number of
choices. The revised proposed rules permit Post-death distributions may be made
over your spouse's single life expectancy. Any amounts distributed after that
surviving spouse's death are made over the spouse's life expectancy calculated
in the year of his/her death, reduced by one for each subsequent year. In some
circumstances, your surviving spouse may elect to become the owner of the
traditional IRA and halt distributions until he or she reaches age 70-1/2, or
roll over amounts from your traditional IRA into his/her own traditional IRA or
other eligible retirement plan.
If you die before your Required Beginning Date, and the death beneficiary is
your surviving spouse, the rules permit the spouse to delay starting payments
over his/her life expectancy until the year in which you would have attained
age 70-1/2.
Non-individual beneficiary. If you die after your Required Beginning Date, and
your death beneficiary is a non-individual such as the estate, the rules permit
the beneficiary to calculate post-death required minimum distribution amounts
based on the owner's life expectancy in the year of death. However, note that
we need an individual annuitant to keep an annuity contract in force. If the
beneficiary is not an individual, we must distribute amounts remaining in the
annuity contract after the death of the annuitant.
If you die before your Required Beginning Date for lifetime required minimum
distribution payments, and the death beneficiary is a non-individual such as
the estate, the rules continue to apply the 5-year rule discussed earlier under
"Individual beneficiary." Please note that we need an individual annuitant to
keep an annuity contract in force. If the beneficiary is not an individual, we
must distribute amounts remaining in the annuity contract after the death of
the annuitant.
Successor owner and annuitant
If your spouse is the sole primary beneficiary and elects to become the
successor owner and annuitant, no death benefit is payable until your surviving
spouse's death.
Payments to a beneficiary after your death
IRA death benefits are taxed the same as IRA distributions.
Borrowing and loans are prohibited transactions
You cannot get loans from a traditional IRA. You cannot use a traditional IRA
as collateral for a loan or other obligation. If you borrow against your IRA or
use it as collateral, its tax-favored status will be lost as of the first day
of the tax year in which this prohibited event occurs. If this happens, you
must include the value of the traditional
56 Tax information
IRA in your federal gross income. Also, the early distribution penalty tax of
10% may apply if you have not reached age 59-1/2 before the first day of that
tax year.
Early distribution penalty tax
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a traditional IRA made before you reach age 59-1/2 . Some of
the available exceptions to the pre-age 59-1/2 penalty tax include
distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition);
or
o used to pay certain extraordinary medical expenses (special fed
eral income tax definition); or
o used to pay medical insurance premiums for unemployed indi
viduals (special federal income tax definition); or
o used to pay certain first-time home buyer expenses (special fed
eral income tax definition); or
o used to pay certain higher education expenses (special federal
income tax definition); or
o in the form of substantially equal periodic payments made at
least annually over your life (or your life expectancy) or over the joint
lives of you and your beneficiary (or your joint life expectancies) using
an IRS-approved distribution method.
To meet this last exception, you could elect to apply your contract value to an
Income Manager(R) (life annuity with a period certain) payout annuity contract
(level payments version). You could also elect the substantially equal
withdrawals option. We will calculate the substantially equal annual payments
using your choice of IRS-approved methods we offer. Although substantially
equal withdrawals and Income Manager(R) payments are not subject to the 10%
penalty tax, they are taxable as discussed in "Withdrawals, payments and
transfers of funds out of traditional IRAs" earlier in this section. Once
substantially equal withdrawals or Income Manager(R) annuity payments begin,
the distributions should not be stopped or changed until after the later of
your reaching age 59-1/2 or five years after the date of the first distribution
or the penalty tax, including an interest charge for the prior penalty
avoidance, may apply to all prior distributions under either option. Also, it
is possible that the IRS could view any additional withdrawal or payment you
take from your contract as changing your pattern of substantially equal
withdrawals or Income Manager(R) payments for purposes of determining whether
the penalty applies.
Roth individual retirement annuities (Roth IRAs)
This section of the Prospectus covers some of the special tax rules that apply
to Roth IRAs. If the rules are the same as those that apply to the traditional
IRA, we will refer you to the same topic under "traditional IRAs."
The Accumulator(R) Plus(SM) Roth Conversion IRA contract is designed to qualify
as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of
the Internal Revenue Code.
Contributions to Roth IRAs
Individuals may make four different types of contributions to a Roth IRA:
o regular after-tax contributions out of earnings; or
o taxable rollover contributions from traditional IRAs ("conversion
contributions); or
o tax-free rollover contributions from other Roth IRAs; or
o tax-free direct custodian-to-custodian transfers from other Roth
IRAs ("direct transfers").
Regular after-tax, direct transfer and rollover contributions may be made to a
Roth Conversion IRA contract. See "Rollovers and direct transfers" later in
this section. If you use the forms we require, we will also accept traditional
IRA funds which are subsequently recharacterized as Roth IRA funds following
special federal income tax rules.
Regular contributions to Roth IRAs
Limits on regular contributions. The "maximum regular contribution amount" for
any taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $4,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for each of the taxable years 2005
and 2006. This limit does not apply to rollover contributions or direct
custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth
IRAs reduce your ability to contribute to traditional IRAs and vice versa. When
your earnings are below $4,000, your earned income or compensation for the year
is the most you can contribute. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to Roth IRAs and
traditional IRAs. See the discussion earlier in this section under traditional
IRAs. If you or your spouse are at least age 50 at any time during the taxable
year for which you are making a regular contribution, additional catch-up
contributions totaling up to $500 can be made for the taxable year 2005. This
amount increases to $1,000 for the taxable year 2006.
With a Roth IRA, you can make regular contributions when you reach age 70-1/2,
as long as you have sufficient earnings. But, you cannot make contributions,
regardless of your age, for any year that:
o your federal income tax filing status is "married filing jointly" and
your modified adjusted gross income is over $160,000; or
o your federal income tax filing status is "single" and your modified
adjusted gross income is over $110,000.
However, you can make regular Roth IRA contributions in reduced amounts when:
o your federal income tax filing status is "married filing jointly" and
your modified adjusted gross income is between $150,000 and $160,000; or
Tax information 57
o your federal income tax filing status is "single" and your modified o
adjusted gross income is between $95,000 and $110,000.
If you are married and filing separately and your modified adjusted gross
income is between $0 and $10,000 the amount of regular contributions you are
permitted to make is phased out. If your modified adjusted gross income is more
than $10,000 you cannot make regular Roth IRA contributions.
When you can make contributions. Same as traditional IRAs.
Deductibility of contributions. Roth IRA contributions are not tax deductible.
Rollovers and direct transfers
What is the difference between rollover and direct transfer transactions? You
may make rollover contributions to a Roth IRA from only two sources:
o another Roth IRA ("tax-free rollover contribution"); or
o another traditional IRA, including a SEP-IRA or SIMPLE IRA (after
a two-year rollover limitation period for SIMPLE IRA funds), in a taxable
conversion rollover ("conversion contribution").
You may not make contributions to a Roth IRA from a qualified plan under
Section 401(a) of the Internal Revenue Code, a TSA under Section 403(b) of the
Internal Revenue Code or any other eligible retirement plan. You may make
direct transfer contributions to a Roth IRA only from another Roth IRA.
The difference between a rollover transaction and a direct transfer transaction
is the following: in a rollover transaction you actually take possession of the
funds rolled over or are considered to have received them under tax law in the
case of a change from one type of plan to another. In a direct transfer
transaction, you never take possession of the funds, but direct the first Roth
IRA custodian, trustee or issuer to transfer the first Roth IRA funds directly
to the recipient Roth IRA custodian, trustee or issuer. You can make direct
transfer transactions only between identical plan types (for example, Roth IRA
to Roth IRA). You can also make rollover transactions between identical plan
types. However, you can only use rollover transactions between different plan
types (for example, traditional IRA to Roth IRA).
You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to
Roth IRA direct transfer transactions. This can be accomplished on a completely
tax-free basis. However, you may make Roth IRA to Roth IRA rollover
transactions only once in any 12-month period for the same funds.
Trustee-to-trustee or custodian-to-custodian direct transfers can be made more
frequently than once a year. Also, if you send us the rollover contribution to
apply it to a Roth IRA, you must do so within 60 days after you receive the
proceeds from the original IRA to get rollover treatment.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some
cases, Roth IRAs can be transferred on a tax-free basis between spouses or
former spouses as a result of a court-ordered divorce or separation decree.
Conversion contributions to Roth IRAs
In a conversion rollover transaction, you withdraw (or are considered to have
withdrawn) all or a portion of funds from a traditional IRA you maintain and
convert it to a Roth IRA within 60 days after you receive (or are considered to
have received) the traditional IRA proceeds. Unlike a rollover from a
traditional IRA to another traditional IRA, the conversion rollover transaction
is not tax free. Instead, the distribution from the traditional IRA is
generally fully taxable. For this reason, we are required to withhold 10%
federal income tax from the amount converted unless you elect out of such
withholding. If you have ever made nondeductible regular contributions to any
traditional IRA -- whether or not it is the traditional IRA you are converting
- -- a pro rata portion of the distribution is tax free.
There is, however, no early distribution penalty tax on the traditional IRA
withdrawal that you are converting to a Roth IRA, even if you are under age
59-1/2.
You cannot make conversion contributions to a Roth IRA for any taxable year in
which your modified adjusted gross income exceeds $100,000. (For this purpose,
your modified adjusted gross income is calculated without the gross income
stemming from the traditional IRA conversion. Beginning in 2005, modified
adjusted gross income for this purpose will also exclude any lifetime required
minimum distribution from a traditional IRA.) You also cannot make conversion
contributions to a Roth IRA for any taxable year in which your federal income
tax filing status is "married filing separately."
You cannot make conversion contributions to a Roth IRA to the extent that the
funds in your traditional IRA are subject to the annual required minimum
distribution rule applicable to traditional IRAs beginning at age 70-1/2.
You cannot convert and reconvert an amount during the same taxable year, or if
later, during the 30-day period following a recharacterization. If you
reconvert during either of these periods, it will be a failed Roth IRA
conversion.
Recharacterizations
You may be able to treat a contribution made to one type of IRA as having been
made to a different type of IRA. This is called recharacterizing the
contribution.
How to recharacterize. To recharacterize a contribution, you generally must
have the contribution transferred from the first IRA (the one to which it was
made) to the second IRA in a deemed trustee-to-trustee transfer. If the
transfer is made by the due date (including extensions) for your tax return for
the year during which the contribution was made, you can elect to treat the
contribution as having been originally made to the second IRA instead of to the
first IRA. It will be treated as having been made to the second IRA on the date
that it was actually made to the first IRA. You must report the
recharacterization and must treat the contribution as having been made to the
second IRA, instead of the first IRA, on your tax return for the year during
which the contribution was made.
58 Tax information
The condition will not be treated as having been made to the second IRA unless
the transfer includes any net income allocable to the contribution. You can
take into account any loss on the contribution while it was in the IRA when
calculating the amount that must be transferred. If there was a loss, the net
income you must transfer may be a negative amount.
No deduction is allowed for the contribution to the first IRA and any net
income transferred with the recharacterized contribution is treated as earned
in the second IRA. The contribution will not be treated as having been made to
the second IRA to the extent any deduction was allowed with respect to the
contribution to the first IRA.
For recharacterization purposes, a distribution from a traditional IRA that is
received in one tax year and rolled over into a Roth IRA in the next year, but
still within 60 days of the distribution from the traditional IRA, is treated
as a contribution to the Roth IRA in the year of the distribution from the
traditional IRA.
Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be
recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or
SIMPLE-IRA).
To recharacterize a contribution, you must use our forms.
The recharacterization of a contribution is not treated as a rollover for
purposes of the 12-month period described above. This rule applies even if the
contribution would have been treated as a rollover contribution by the second
IRA if it had been made directly to the second IRA rather than as a result of a
recharacterization of a contribution to the first IRA.
Withdrawals, payments and transfers of funds out of Roth IRAs
No federal income tax law restrictions on withdrawals. You can withdraw any or
all of your funds from a Roth IRA at any time; you do not need to wait for a
special event like retirement.
Distributions from Roth IRAs
Distributions include withdrawals from your contract, surrender of your
contract and annuity payments from your contract. Death benefits are also
distributions.
You must keep your own records of regular and conversion contributions to all
Roth IRAs to assure appropriate taxation. You may have to file information on
your contributions to and distributions from any Roth IRA on your tax return.
You may have to retain all income tax returns and records pertaining to such
contributions and distributions until your interests in all Roth IRAs are
distributed.
Like traditional IRAs, taxable distributions from a Roth IRA are not entitled
to the special favorable ten-year averaging and long-term capital gain
treatment available in limited cases to certain distributions from qualified
plans.
The following distributions from Roth IRAs are free of income tax:
o rollovers from a Roth IRA to another Roth IRA;
o direct transfers from a Roth IRA to another Roth IRA;
o qualified distributions from a Roth IRA; and
o return of excess contributions or amounts recharacterized to a
traditional IRA.
Qualified distributions from Roth IRAs. Qualified distributions from Roth IRAs
made because of one of the following four qualifying events or reasons are not
includable in income:
o you are age 59-1/2 or older; or
o you die; or
o you become disabled (special federal income tax definition); or
o your distribution is a "qualified first-time home buyer distribu
tion" (special federal income tax definition; $10,000 lifetime total limit
for these distributions from all of your traditional and Roth IRAs).
You also have to meet a five-year aging period. A qualified distribution is any
distribution made after the five-taxable-year period beginning with the first
taxable year for which you made any contribution to any Roth IRA (whether or
not the one from which the distribution is being made).
Nonqualified distributions from Roth IRAs. Nonqualified distributions from Roth
IRAs are distributions that do not meet both the qualifying event and five-year
aging period tests described above. If you receive such a distribution, part of
it may be taxable. For purposes of determining the correct tax treatment of
distributions (other than the withdrawal of excess contributions and the
earnings on them) there is a set order in which contributions (including
conversion contributions) and earnings are considered to be distributed from
your Roth IRA. The order of distributions is as follows:
(1) Regular contributions.
(2) Conversion contributions, on a first-in-first-out basis (generally, total
conversions from the earliest year first). These conversion contributions
are taken into account as follows:
(a) Taxable portion (the amount required to be included in gross income
because of conversion) first, and then the
(b) Nontaxable portion.
(3) Earnings on contributions.
Rollover contributions from other Roth IRAs are disregarded for this purpose.
To determine the taxable amount distributed, distributions and contributions
are aggregated or grouped together as follows:
(1) All distributions made during the year from all Roth IRAs you maintain --
with any custodian or issuer -- are added together.
(2) All regular contributions made during and for the year (contribu tions made
after the close of the year, but before the due date of your return) are
added together. This total is added to the total undistributed regular
contributions made in prior years.
(3) All conversion contributions made during the year are added together. For
purposes of the ordering rules, in the case of any
Tax information 59
conversion in which the conversion distribution is made in 2005 and the
conversion contribution is made in 2006, the conversion contribution is
treated as contributed prior to other conversion contributions made in
2006.
Any recharacterized contributions that end up in a Roth IRA are added to the
appropriate contribution group for the year that the original contribution
would have been taken into account if it had been made directly to the Roth
IRA.
Any recharacterized contribution that ends up in an IRA other than a Roth IRA
is disregarded for the purpose of grouping both contributions and
distributions. Any amount withdrawn to correct an excess contribution
(including the earnings withdrawn) is also disregarded for this purpose.
Required minimum distributions during life
Lifetime required minimum distributions do not apply.
Required minimum distributions at death
Same as traditional IRA under "What are the required minimum distribution
payments after you die?"
Payments to a beneficiary after your death
Distributions to a beneficiary generally receive the same tax treatment as if
the distribution had been made to you.
Borrowing and loans are prohibited transactions
Same as traditional IRA.
Excess contributions
Generally the same as traditional IRA, except that regular contributions made
after age 70-1/2 are not excess contributions.
Excess rollover contributions to Roth IRAs are contributions not eligible to be
rolled over (for example, conversion contributions from a traditional IRA if
your modified adjusted gross income is in excess of $100,000 in the conversion
year).
You can withdraw or recharacterize any contribution to a Roth IRA before the
due date (including extensions) for filing your federal income tax return for
the tax year. If you do this, you must also withdraw or recharacterize any
earnings attributable to the contribution.
Early distribution penalty tax
Same as traditional IRA.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
General
This section of the Prospectus covers some of the special tax rules that apply
to TSA contracts under Section 403(b) of the Internal Revenue Code (TSAs). If
the rules are the same as those that apply to another kind of contract, for
example, traditional IRAs, we will refer you to the same topic under
"traditional IRAs."
PLEASE NOTE: The following discussion reflects our understanding of some of the
current federal income tax rules applicable to Section 403(b) of the Code. The
IRS and Treasury have recently issued Proposed Regulations on Section 403(b) of
the Code. If finalized in their current form, these Proposed Regulations would
affect the establishment and operation of plans and arrangements under Section
403(b) of the Code, and the contracts issued to fund such plans. Please consult
your tax adviser concerning how these Proposed Regulations could affect you.
Generally, there are two types of funding vehicles available for 403(b)
arrangements--an annuity contract under Section 403(b)(1) of the Internal
Revenue Code or a custodial account that invests only in mutual funds and which
is treated as an annuity contract under Section 403(b)(7) of the Code. Both
types of 403(b) arrangements qualify for tax deferral.
Protection Plus(SM) feature
The Protection Plus(SM) feature was offered for Rollover TSA contracts, subject
to state and contract availability. There is no assurance that the contract with
the Protection Plus(SM) feature meets the IRS qualification requirements for
TSAs. There is a limit to the amount of life insurance benefits that TSAs may
offer. Although we view the optional Protection Plus(SM) benefit as an
investment protection feature which should have no adverse tax effect and not as
a life insurance benefit, it is possible that the IRS could take a contrary
position regarding tax qualification or assert that the Protection Plus(SM)
rider is not a permissible part of a TSA contract. If the IRS were to take the
position that the optional Protection Plus(SM) benefit is not part of the
contract, in such a case, the charges for the Protection Plus(SM) rider could be
treated for federal income tax purposes as a partial withdrawal from the
contract. If this were so, such a deemed withdrawal could affect the tax
qualification of the TSA and could be taxable. Were the IRS to take any adverse
position, AXA Equitable would take all reasonable steps to attempt to avoid any
adverse result, which would include amending the contract (with appropriate
notice to you). You should consult with your tax adviser for further
information.
Contributions to TSAs
There were two ways you might have contributed to establish your Accumulator(R)
Plus(SM) Rollover TSA contract:
o a full or partial direct transfer of assets ("direct transfer") from
another contract or arrangement that met the requirements of Section
403(b) of the Internal Revenue Code by means of IRS Revenue Ruling 90-24;
and
o a rollover from another 403(b) arrangement.
If you made a direct transfer, you filled out our transfer form.
We do not accept after-tax contribution rollovers to the Accumulator(R) Plus(SM)
Rollover TSA.
Employer-remitted contributions. The Rollover TSA contract does not accept
employer-remitted contributions. However, we provide the following discussion
as part of our description of restrictions on the distribution of funds
directly transferred, which include employer-remitted contributions to other
TSAs.
Employer-remitted contributions to TSAs made through the employer's payroll are
subject to annual limits. (Tax-free direct transfer contributions from another
403(b) arrangement and rollover contributions from another eligible retirement
plan are not subject to these annual
60 Tax information
contribution limits.) Commonly, some or all of the contributions made to a TSA
are made under a salary reduction agreement between the employee and the
employer. These contributions are called "salary reduction" or "elective
deferral" contributions. However, a TSA can also be wholly or partially funded
through non-elective employer contributions or after-tax employee
contributions. Amounts attributable to salary reduction contributions to TSAs
are generally subject to withdrawal restrictions. Also, all amounts
attributable to investments in a 403(b)(7) custodial account are subject to
withdrawal restrictions discussed below.
Rollover or direct transfer contributions. Once you establish your Rollover TSA
contract with 403(b)-source funds, you may make subsequent rollover
contributions to your Rollover TSA contract from these sources: qualified
plans, governmental employer 457(b) plans and traditional IRAs, as well as
other TSAs and 403(b) arrangements. All rollover contributions must be pre-tax
funds only with appropriate documentation satisfactory to us.
Generally, you may make a rollover contribution to your TSA when you have a
distributable event from an existing TSA or other eligible retirement plan as a
result of your:
o termination of employment with the employer who provided the
funds for the plan; or
o reaching age 59-1/2 even if you are still employed; or
o disability (special federal income tax definition).
You can roll over pre-tax funds from traditional IRA to a TSA at any time.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental employer 457(b) plan are not subject to the
additional 10% federal income tax penalty for premature distributions, but they
may become subject to this penalty if you roll the funds to a different type of
eligible retirement plan and subsequently take a premature distribution.
If the recipient plan separately accounts for funds rolled-over from another
eligible retirement plan, the IRS has ruled that an exception is available in
certain situations to withdrawal restrictions that would otherwise apply to the
rollover contribution funds in the recipient plan. We do not currently
separately account for rollover contributions from other eligible retirement
plans.
A transfer occurs when changing the funding vehicle, even if there is no
distributable event. Under a direct transfer, you do not receive a
distribution. We accept direct transfers of TSA funds under Revenue Ruling
90-24 only if:
o you give us acceptable written documentation as to the source of
the funds, and
o the Accumulator(R) Plus(SM) contract receiving the funds has provi
sions at least as restrictive as the source contract.
Before you transfer funds to a Rollover TSA contract, you may have to obtain
your employer's authorization or demonstrate that you do not need employer
authorization. For example, the transferring TSA may be subject to Title I of
ERISA if the employer makes matching contributions to salary reduction
contributions made by employees. In that case, the employer must continue to
approve distributions from the plan or contract.
Your contribution to the Rollover TSA must be net of the required minimum
distribution for the tax year in which we issue the contract if:
o you are or will be at least age 70-1/2 in the current calendar year,
and
o you have retired from service with the employer who provided the
funds to purchase the TSA you are transferring or rolling over to the
Rollover TSA.
This rule applies regardless of whether the source of funds is a:
o rollover by check of the proceeds from another TSA or eligible
retirement plan; or
o direct rollover from another TSA or eligible retirement plan; or
o direct transfer under Revenue Ruling 90-24 from another TSA.
Distributions from TSAs
General. Depending on the terms of the employer plan and your employment
status, you may have to get your employer's consent to take a loan or
withdrawal. Your employer will tell us this when you establish the TSA through
a direct transfer.
Withdrawal restrictions. If this is a Revenue Ruling 90-24 direct transfer, we
will treat all amounts transferred to this contract and any future earnings on
the amount transferred as not eligible for withdrawal until one of the
following events happens:
o you are severed from employment with the employer who pro
vided the funds to purchase the TSA you are transferring to the Rollover
TSA; or
o you reach age 59-1/2 ; or
o you die; or
o you become disabled (special federal income tax definition); or
o you take a hardship withdrawal (special federal income tax
definition).
If any portion of the funds directly transferred to your TSA contract is
attributable to the amounts that you invested in a 403(b)(7) custodial account,
such amounts, including earnings, are subject to withdrawal restrictions. With
respect to the portion of the funds that were never invested in a 403(b)(7)
custodial account, these restrictions apply to the salary reduction (elective
deferral) contributions to a TSA annuity contract you made and any earnings on
them. These restrictions do not apply to the amount directly transferred to
your TSA contract that represents your December 31, 1988, account balance
attributable to salary reduction contributions to a TSA annuity contract and
earnings. To take advantage of this grandfathering, you must properly notify us
in writing at our processing office of your December 31, 1988, account balance
if you have qualifying amounts transferred to your TSA contract.
Tax information 61
This paragraph applies only to participants in a Texas Optional Retirement
Program. Texas Law permits withdrawals only after one of the following
distributable events occurs:
(1) the requirements for minimum distribution (discussed under "Required
minimum distributions" later in this section) are met; or
(2) death; or
(3) retirement; or
(4) termination of employment in all Texas public institutions of higher
education.
For you to make a withdrawal, we must receive a properly completed written
acknowledgment from the employer. If a distributable event occurs before you
are vested, we will refund to the employer any amounts provided by an
employer's first-year matching contributions. We reserve the right to change
these provisions without your consent, but only to the extent necessary to
maintain compliance with applicable law. Loans are not permitted under Texas
Optional Retirement Programs.
Tax treatment of distributions. Amounts held under TSAs are generally not
subject to federal income tax until benefits are distributed. Distributions
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSAs are includable in
gross income as ordinary income. Distributions from TSAs may be subject to 20%
federal income tax withholding. See "Federal and state income tax withholding
and information reporting" later in this section. In addition, TSA
distributions may be subject to additional tax penalties.
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since we currently do not accept
after-tax funds, we do not track your investment in the contract, if any. We
will report all distributions from this Rollover TSA as fully taxable. It is
your responsibility to determine how much of the distribution is taxable.
Distributions before annuity payments begin. On a total surrender, the amount
received in excess of the investment in the contract is taxable. The amount of
any partial distribution from a TSA prior to the annuity starting date is
generally taxable, except to the extent that the distribution is treated as a
withdrawal of after-tax contributions. Distributions are normally treated as
pro rata withdrawals of any after-tax contributions and earnings on those
contributions.
Annuity payments. If you elect an annuity payout option, you will recover any
investment in the contract as each payment is received by dividing the
investment in the contract by an expected return determined under an IRS table
prescribed for qualified annuities. The amount of each payment not excluded
from income under this exclusion ratio is fully taxable. The full amount of the
payments received after your investment in the contract is recovered is fully
taxable. If you (and your beneficiary under a joint and survivor annuity) die
before recovering the full investment in the contract, a deduction is allowed
on your (or your beneficiary's) final tax return.
Payments to a beneficiary after your death. Death benefit distributions from a
TSA generally receive the same tax treatment as distribution during your
lifetime. In some instances, distributions from a TSA made to your surviving
spouse may be rolled over to a traditional IRA or other eligible retirement
plan.
Loans from TSAs. You may take loans from a TSA unless restricted by the
employer (for example, under an employer plan subject to ERISA). If you cannot
take a loan, or cannot take a loan without approval from the employer who
provided the funds, we will have this information in our records based on what
you and the employer who provided the TSA funds told us when you purchased your
contract.
Loans are generally not treated as a taxable distribution. If the amount of the
loan when made exceeds permissible limits under federal income tax rules, the
amount of the excess is treated (solely for tax purposes) as a taxable
distribution. Additionally, if the loan is not repaid at least quarterly,
amortizing (paying down) interest and principal, the amount not repaid when due
will be treated as a taxable distribution. The entire unpaid balance of the
loan is includable in income in the year of the default.
TSA loans are subject to federal income tax limits and may also be subject to
limits of the plan from which the funds came. Federal income tax rule
requirements apply even if the plan is not subject to ERISA. For example, loans
offered by TSAs are subject to the following conditions:
o The amount of a loan to a participant, when combined with all
other loans to the participant from all qualified plans of the employer,
cannot exceed the lesser of:
(1) the greater of $10,000 or 50% of the participant's nonforfeit able
accrued benefits; and
(2) $50,000 reduced by the excess (if any) of the highest out standing
loan balance over the previous twelve months over the outstanding loan
balance of plan loans on the date the loan was made.
o In general, the term of the loan cannot exceed five years unless
the loan is used to acquire the participant's primary residence. Rollover
TSA contracts have a term limit of 10 years for loans used to acquire the
participant's primary residence.
o All principal and interest must be amortized in substantially level
payments over the term of the loan, with payments being made at least
quarterly. In very limited circumstances, the repayment obligation may be
temporarily suspended during a leave of absence.
The amount borrowed and not repaid may be treated as a distribution if:
62 Tax information
o the loan does not qualify under the conditions above; o
o the participant fails to repay the interest or principal when due; or
o in some instances, the participant separates from service with the employer
who provided the funds or the plan is terminated.
In this case, the participant may have to include the unpaid amount due as
ordinary income. In addition, the 10% early distribution penalty tax may apply.
The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as
a distribution.
Tax-deferred rollovers and direct transfers. You may roll over an "eligible
rollover distribution" from a TSA into another eligible retirement plan which
agrees to accept the rollover. The rollover may be a direct rollover or one you
do yourself within 60 days after you receive the distribution. To the extent
rolled over, a distribution remains tax-deferred.
You may roll over a distribution from a TSA to any of the following: a
qualified plan, a governmental employer 457(b) plan (separate accounting
required) or a traditional IRA. A spousal beneficiary may also roll over death
benefits as above.
The taxable portion of most distributions will be eligible for rollover except
as specifically excluded under federal income tax rules. Distributions that you
cannot roll over generally include periodic payments for life or for a period
of 10 years or more, hardship withdrawals and required minimum distributions
under federal income tax rules.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling
90-24 are not distributions.
Required minimum distributions
Generally the same as traditional IRA with these differences:
When you have to take the first required minimum distribution. The minimum
distribution rules force TSA participants to start calculating and taking
annual distribution from their TSAs by a required date. Generally you must take
the first required minimum distribution for the calendar year in which you turn
age 70-1/2. You may be able to delay the start of required minimum
distributions for all or part of your account balance until after age 70-1/2,
as follows:
o For TSA participants who have not retired from service with the
employer who provided the funds for the TSA by the calendar year the
participant turns age 70-1/2, the required beginning date for minimum
distribution is extended to April 1 following the calendar year of
retirement.
o TSA plan participants may also delay the start of required mini
mum distribution to age 75 of the portion of their account value
attributable to their December 31, 1986, TSA account balance, even if
retired at age 70-1/2. We will know whether or not you qualify for this
exception because it will only apply to people who establish their
Rollover TSA by direct Revenue Ruling 90-24 transfers. If you do not give
us the amount of your December 31, 1986, account balance that is being
transferred to the Rollover TSA on the form used to establish the TSA, you
do not qualify.
Spousal consent rules
This only applies to you if you established your Accumulator(R) Plus(SM)
Rollover TSA by direct Revenue Ruling 90-24 transfer. Your employer will tell us
on the form used to establish the TSA whether or not you need to get spousal
consent for loans, withdrawals or other distributions. If you do, you will need
such consent if you are married when you request a withdrawal under the TSA
contract. In addition, unless you elect otherwise with the written consent of
your spouse, the retirement benefits payable under the plan must be paid in the
form of a qualified joint and survivor annuity. A qualified joint and survivor
annuity is payable for the life of the annuitant with a survivor annuity for the
life of the spouse in an amount not less than one-half of the amount payable to
the annuitant during his or her lifetime. In addition, if you are married, the
beneficiary must be your spouse, unless your spouse consents in writing to the
designation of another beneficiary.
If you are married and you die before annuity payments have begun, payments
will be made to your surviving spouse in the form of a life annuity unless at
the time of your death a contrary election was in effect. However, your
surviving spouse may elect, before payments begin, to receive payments in any
form permitted under the terms of the TSA contract and the plan of the employer
who provided the funds for the TSA.
Early distribution penalty tax
A penalty tax of 10% of the taxable portion of a distribution applies to
distribution from a TSA before you reach age 59-1/2. This is in addition to any
income tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax
include distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition);
or
o to pay for certain extraordinary medical expenses (special federal
income tax definition); or
o in any form of payout after you have separated from service (only
if the separation during or after the calendar year you reach age 55); or
o in a payout in the form of substantially equal periodic payments
made at least annually over your life (or your life expectancy), or over
the joint lives of you and your beneficiary (or your joint life
expectancies) using an IRS-approved distribution method (only after you
have separated from service at any age).
FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING
We must withhold federal income tax from distributions from annuity contracts.
You may be able to elect out of this income tax withholding in some cases.
Generally, we do not have to withhold if your distributions are not taxable.
The rate of withholding will depend on the type of distribution and, in certain
cases, the amount of your distribution.
Tax information 63
Any income tax withheld is a credit against your income tax liability. If you
do not have sufficient income tax withheld or do not make sufficient estimated
income tax payments, you may incur penalties under the estimated income tax
rules.
You must file your request not to withhold in writing before the payment or
distribution is made. Our processing office will provide forms for this
purpose. You cannot elect out of withholding unless you provide us with your
correct Taxpayer Identification Number and a United States residence address.
You cannot elect out of withholding if we are sending the payment out of the
United States.
You should note the following special situations:
o We might have to withhold and/or report on amounts we pay
under a free look or cancellation.
o We are generally required to withhold on conversion rollovers of
traditional IRAs to Roth IRAs, as it is considered a withdrawal from the
traditional IRA and is taxable.
o We are required to withhold on the gross amount of a distribu
tion from a Roth IRA to the extent it is reasonable for us to believe that
a distribution is includable in your gross income. This may result in tax
being withheld even though the Roth IRA distribution is ultimately not
taxable. You can elect out of withholding, as described below.
Special withholding rules apply to foreign recipients and United States
citizens residing outside the United States. We do not discuss these rules here
in detail. However, we may require additional documentation in the case of
payments made to non United States persons and United States persons living
abroad prior to processing any requested transaction.
Certain states have indicated that state income tax withholding will also apply
to payments from the contracts made to residents. In some states, you may elect
out of state withholding, even if federal withholding applies. Generally, an
election out of federal withholding will also be considered an election out of
state withholding. If you need more information concerning a particular state
or any required forms, call our processing office at the toll-free number.
Federal income tax withholding on periodic annuity
payments
We withhold differently on "periodic" and "non-periodic" payments. For a
periodic annuity payment, for example, unless you specify a different number of
withholding exemptions, we withhold assuming that you are married and claiming
three withholding exemptions. If you do not give us your correct Taxpayer
Identification Number, we withhold as if you are single with no exemptions.
Based on the assumption that you are married and claiming three withholding
exemptions, if you receive less than $17,760 in periodic annuity payments in
2005, your payments will generally be exempt from federal income tax
withholding. You could specify a different choice of withholding exemption or
request that tax be withheld. Your withholding election remains effective
unless and until you revoke it. You may revoke or change your withholding
election at any time.
Federal income tax withholding on non-periodic annuity
payments (withdrawals)
For a non-periodic distribution (total surrender or partial withdrawal), we
generally withhold at a flat 10% rate. We apply that rate to the taxable amount
in the case of nonqualified contracts, and to the payment amount in the case of
traditional IRAs and Roth IRAs where it is reasonable to assume an amount is
includable in gross income.
You cannot elect out of withholding if the payment is an eligible rollover
distribution from a qualified plan or TSA. If a non-periodic distribution from
a qualified plan or TSA is not an eligible rollover distribution then the 10%
withholding rate applies.
Mandatory withholding from TSA and qualified plan
distributions
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans and TSAs are subject to mandatory 20%
withholding. The plan administrator is responsible for withholding from
qualified plan distributions. An eligible rollover distribution from a TSA or a
qualified plan can be rolled over to another eligible retirement plan. All
distributions from a TSA or qualified plan are eligible rollover distributions
unless they are on the following list of exceptions:
o any distributions which are required minimum distributions after
age 70-1/2 or retirement from service with the employer; or
o substantially equal periodic payments made at least annually for
your life (or life expectancy) or the joint lives (or joint life
expectancies) of you and your designated beneficiary; or
o substantially equal periodic payments made for a specified period
of 10 years or more; or
o hardship withdrawals; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviv
ing spouse; or
o a qualified domestic relations order distribution to a beneficiary
who is not your current spouse or former spouse.
A death benefit payment to your surviving spouse, or a qualified domestic
relations order distribution to your current or former spouse, may be a
distribution subject to mandatory 20% withholding.
SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS
For QP contracts, your plan administrator or trustee notifies you as to tax
consequences. See Appendix II at the end of this Prospectus.
IMPACT OF TAXES TO AXA EQUITABLE
The contracts provide that we may charge Separate Account No. 49 for taxes. We
do not now, but may in the future set up reserves for such taxes.
64 Tax information
8. More information
- --------------------------------------------------------------------------------
ABOUT SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 49. We
established Separate Account No. 49 in 1996 under special provisions of the New
York Insurance Law. These provisions prevent creditors from any other business
we conduct from reaching the assets we hold in our variable investment options
for owners of our variable annuity contracts. We are the legal owner of all of
the assets in Separate Account No. 49 and may withdraw any amounts that exceed
our reserves and other liabilities with respect to variable investment options
under our contracts. The results of the Separate Account's operations are
accounted for without regard to AXA Equitable's other operations.
The Separate Account is registered under the Investment Company Act of 1940 and
is classified by that act as a "unit investment trust." The SEC, however, does
not manage or supervise AXA Equitable or the Separate Account.
Each subaccount (variable investment option) within the Separate Account
invests solely in class IB/B shares issued by the corresponding portfolio of
its Trusts.
We reserve the right subject to compliance with laws that apply:
(1) to add variable investment options to, or to remove variable investment
options from the Separate Account, or to add other separate accounts;
(2) to combine any two or more variable investment options;
(3) to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment option
to another variable investment option;
(4) to operate the Separate Account or any variable investment option as a
management investment company under the Investment Company Act of 1940 (in
which case, charges and expenses that otherwise would be assessed against
an underlying mutual fund would be assessed against the Separate Account or
a variable investment option directly);
(5) to deregister the Separate Account under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to the Separate Account; and
(7) to cause one or more variable investment options to invest some or all of
their assets in one or more other trusts or investment companies.
ABOUT THE TRUSTS
The Trusts are registered under the Investment Company Act of 1940. They are
classified as "open-end management investment companies," more commonly called
mutual funds. Each Trust issues different shares relating to each portfolio.
The Trusts do not impose sales charges or "loads" for buying and selling their
shares. All dividends and other distributions on the Trusts' shares are
reinvested in full. The Board of Trustees of each Trust may establish
additional portfolios or eliminate existing portfolios at any time. More
detailed information about each Trust, its portfolio investment objectives,
policies, restrictions, risks, expenses, its Rule 12b-1 Plan, and other aspects
of its operations, appears in the Prospectuses for each Trust, which are
generally attached at the end of this Prospectus, or in their respective SAIs
which are available upon request.
ABOUT OUR FIXED MATURITY OPTIONS
RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE
We can determine the amount required to be allocated to one or more fixed
maturity options in order to produce specified maturity values. For example, we
can tell you how much you need to allocate per $100 of maturity value.
FMO rates are determined daily. The rates in the table below are illustrative
only and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
The rates to maturity for new allocations as of February 15, 2005 and the
related price per $100 of maturity value were as shown below.
- -------------------------------------------------------------
Fixed Maturity
Options with
February 15th Rate to Price
Maturity Date of Maturity as of Per $100 of
Maturity Year February 15, 2005 Maturity Value
- -------------------------------------------------------------
2006 3.00%* $ 97.09
2007 3.00%* $ 94.26
2008 3.00%* $ 91.51
2009 3.00%* $ 88.84
2010 3.00%* $ 86.25
2011 3.00%* $ 83.74
2012 3.00%* $ 81.30
2013 3.08% $ 78.44
2014 3.22% $ 75.17
2015 3.32% $ 72.12
- -------------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated
to these options.
HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT
We use the following procedure to calculate the market value adjustment (up or
down) we make if you withdraw any of your value from a fixed maturity option
before its maturity date.
(1) We determine the market adjusted amount on the date of the withdrawal as
follows:
(a) We determine the fixed maturity amount that would be payable on the
maturity date, using the rate to maturity for the fixed maturity
option.
More information 65
(b) We determine the period remaining in your fixed maturity option (based
on the withdrawal date) and convert it to fractional years based on a
365-day year. For example, three years and 12 days becomes 3.0329.
(c) We determine the current rate to maturity for your FMO based on the
rate for a new FMO issued on the same date and having the same
maturity date as your FMO; if the same maturity date is not available
for new FMOs, we determine a rate that is between the rates for new
FMO maturities that immediately precede and immediately follow your
FMOs maturity date.
(d) We determine the present value of the fixed maturity amount payable at
the maturity date, using the period determined in (b) and the rate
determined in (c).
(2) We determine the fixed maturity amount as of the current date.
(3) We subtract (2) from the result in (1)(d). The result is the market value
adjustment applicable to such fixed maturity option, which may be positive
or negative.
If you withdraw only a portion of the amount in a fixed maturity option, the
market value adjustment will be a percentage of the market value adjustment
that would have applied if you had withdrawn the entire value in that fixed
maturity option. This percentage is equal to the percentage of the value in the
fixed maturity option that you are withdrawing. Any withdrawal charges that are
deducted from a fixed maturity option will result in a market value adjustment
calculated in the same way. See Appendix III at the end of this Prospectus for
an example.
For purposes of calculating the rate to maturity for new allocations to a fixed
maturity option (see (1)(c) above), we use the rate we have in effect for new
allocations to that fixed maturity option. We use this rate even if new
allocations to that option would not be accepted at that time. This rate will
not be less than 3%. If we do not have a rate to maturity in effect for a fixed
maturity option to which the "current rate to maturity" in (1)(c) would apply,
we will use the rate at the next closest maturity date. If we are no longer
offering new fixed maturity options, the "current rate to maturity" will be
determined by using a widely-published Index. We reserve the right to add up to
0.25% to the current rate in (1)(c) above for purposes of calculating the
market value adjustment only.
INVESTMENTS UNDER THE FIXED MATURITY OPTIONS
Amounts allocated to the fixed maturity options are held in a "nonunitized"
separate account we have established under the New York Insurance Law. This
separate account provides an additional measure of assurance that we will make
full payment of amounts due under the fixed maturity options. Under New York
Insurance Law, the portion of the separate account's assets equal to the
reserves and other contract liabilities relating to the contracts are not
chargeable with liabilities from any other business we may conduct. We own the
assets of the separate account, as well as any favorable investment performance
on those assets. You do not participate in the performance of the assets held
in this separate account. We may, subject to state law that applies, transfer
all assets allocated to the separate account to our general account. We
guarantee all benefits relating to your value in the fixed maturity options,
regardless of whether assets supporting fixed maturity options are held in a
separate account or our general account.
We expect the rates to maturity for the fixed maturity options to be influenced
by, but not necessarily correspond to, among other things, the yields that we
can expect to realize on the separate account's investments from time to time.
Our current plans are to invest in fixed-income obligations, including
corporate bonds, mortgage-backed and asset-backed securities, and government
and agency issues having durations in the aggregate consistent with those of
the fixed maturity options.
Although the above generally describes our plans for investing the assets
supporting our obligations under the fixed maturity options under the
contracts, we are not obligated to invest those assets according to any
particular plan except as we may be required to by state insurance laws. We
will not determine the rates to maturity we establish by the performance of the
nonunitized separate account.
ABOUT THE GENERAL ACCOUNT
Our general account supports all of our policy and contract guarantees,
guaranteed interest option and fixed maturity options as well as our general
obligations. Credits allocated to your account value are funded from our
general account.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations
of all jurisdictions where we are authorized to do business. Because of
exemptions and exclusionary provisions that apply, interests in the general
account have not been registered under the Securities Act of 1933, nor is the
general account an investment company under the Investment Company Act of 1940.
We have been advised that the staff of the SEC has not reviewed the portions of
this Prospectus that relate to the general account. The disclosure with regard
to the general account, however, may be subject to certain provisions of the
federal securities laws relating to the accuracy and completeness of statements
made in prospectuses.
ABOUT OTHER METHODS OF PAYMENT
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept subsequent contributions sent by wire to our processing office by
agreement with certain broker-dealers. Such transmittals must be accompanied by
information we require to allocate your contribution. Wire orders not
accompanied by complete information may be retained as described under "How you
can make your contributions" under "Contract features and benefits" earlier in
this Prospectus.
Even if we accepted the wire order and essential information, a contract
generally was not issued until we received and accepted a properly completed
application. In certain cases, we may have issued a contract based on
information provided through certain broker-dealers with whom we have
established electronic facilities. In any such case, you must have signed our
Acknowledgement of Receipt form.
66 More information
Where we required a signed application, the above procedures did not apply and
no financial transactions were permitted until we received the signed
application and issued the contract. Where we issued a contract based on
information provided through electronic facilities, we required an
Acknowledgement of Receipt form. Financial transactions were only permitted if
you requested them in writing, signed the request and had it signature
guaranteed, until we received the signed Acknowledgement of Receipt form. After
a contract is issued, additional contributions are allowed by wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY
You may use our automatic investment program, or "AIP," to have a specified
amount automatically deducted from a checking account, money market account, or
credit union checking account and contributed as an additional contribution
into an NQ contract on a monthly or quarterly basis. AIP is not available for
Rollover IRA, Roth Conversion IRA, QP contracts or Rollover TSA contracts.
The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP
additional contributions may be allocated to any of the variable investment
options and available fixed maturity options. You choose the day of the month
you wish to have your account debited. However, you may not choose a date later
than the 28th day of the month.
You may cancel AIP at any time by notifying our processing office. We are not
responsible for any debits made to your account before the time written notice
of cancellation is received at our processing office.
DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this Prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our business day, generally, is any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions. Our business day generally ends at 4:00 p.m. Eastern Time for
purposes of determining the date when contributions are applied and any other
transaction requests are processed. Contributions will be applied and any other
transaction requests will be processed when they are received along with all
the required information unless another date applies as indicated below.
o If your contribution, transfer, or any other transaction request,
containing all the required information, reaches us on a non-business day
or after 4:00 p.m. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then
the transaction will occur on the 1st day of the next month.
o When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
o If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your
contribution will be considered received at the time your broker-dealer
receives your contribution and all information needed to process your
application, along with any required documents, and transmits your order to
us in accordance with our processing procedures. Such arrangements may
apply to initial contributions, subsequent contributions, or both, and may
be commenced or terminated at any time without prior notice. If required by
law, the "closing time" for such orders will be earlier than 4 p.m.,
Eastern Time.
CONTRIBUTIONS, CREDITS, AND TRANSFERS
o Contributions and credits allocated to the variable investment options are
invested at the value next determined after the close of the business day.
o Contributions and credits allocated to the guaranteed interest option will
receive the crediting rate in effect on that business day for the specified
time period.
o Contributions and credits allocated to a fixed maturity option will receive
the rate to maturity in effect for that fixed maturity option on that
business day (unless a rate lock-in is applicable).
o Transfers to or from variable investment options will be made at the value
next determined after the close of the business day.
o Transfers to a fixed maturity option will be based on the rate to maturity
in effect for that fixed maturity option on the business day of the
transfer.
o Transfers to the guaranteed interest option will receive the crediting rate
in effect on that business day for the specified time period.
o For the interest sweep option, the first monthly transfer will occur on the
last business day of the month following the month that we receive your
election form at our processing center.
ABOUT YOUR VOTING RIGHTS
As the owner of the shares of the Trusts we have the right to vote on certain
matters involving the portfolios, such as:
o the election of trustees;
More information 67
o the formal approval of independent public accounting firms selected for
each Trust; or
o any other matters described in the prospectus for each Trust or requiring a
shareholders' vote under the Investment Company Act of 1940.
We will give contract owners the opportunity to instruct us how to vote the
number of shares attributable to their contracts if a shareholder vote is
taken. If we do not receive instructions in time from all contract owners, we
will vote the shares of a portfolio for which no instructions have been
received in the same proportion as we vote shares of that portfolio for which
we have received instructions. We will also vote any shares that we are
entitled to vote directly because of amounts we have in a portfolio in the same
proportions that contract owners vote.
VOTING RIGHTS OF OTHERS
Currently, we control the Trusts. Their shares are sold to our separate
accounts and an affiliated qualified plan trust. In addition, shares of the
Trusts are held by separate accounts of insurance companies both affiliated and
unaffiliated with us. Shares held by these separate accounts will probably be
voted according to the instructions of the owners of insurance policies and
contracts issued by those insurance companies. While this will dilute the
effect of the voting instructions of the contract owners, we currently do not
foresee any disadvantages because of this. The Board of Trustees of each Trust
intends to monitor events in order to identify any material irreconcilable
conflicts that may arise and to determine what action, if any, should be taken
in response. If we believe that a response to any of those events
insufficiently protects our contract owners, we will see to it that appropriate
action is taken.
SEPARATE ACCOUNT NO. 49 VOTING RIGHTS
If actions relating to the Separate Account require contract owner approval,
contract owners will be entitled to one vote for each unit they have in the
variable investment options. Each contract owner who has elected a variable
annuity payout option may cast the number of votes equal to the dollar amount
of reserves we are holding for that annuity in a variable investment option
divided by the annuity unit value for that option. We will cast votes
attributable to any amounts we have in the variable investment options in the
same proportion as votes cast by contract owners.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this Prospectus are created under applicable
federal securities laws. To the extent that those laws or the regulations
published under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
ABOUT LEGAL PROCEEDINGS
AXA Equitable and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings would be considered material with respect
to a contract owner's interest in Separate Account No. 49, nor would any of
these proceedings be likely to have a material adverse effect upon the Separate
Account, our ability to meet our obligations under the contracts, or the
distribution of the contracts.
ABOUT OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The consolidated financial statements of AXA Equitable at December 31, 2004 and
2003, and for the three years ended December 31, 2004 incorporated in this
Prospectus by reference to the 2004 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent registered
public accounting firm, given on the authority of said firm as experts in
auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 49, as well as consolidated
financial statements of AXA Equitable, are in the SAI. The SAI is available
free of charge. You may request one by writing to our processing office or
calling 1-800-789-7771.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING
You can transfer ownership of an NQ contract at any time before annuity
payments begin. We will continue to treat you as the owner until we receive
written notification of any change at our processing office. You cannot assign
your NQ contract as collateral or security for a loan. Loans are also not
available under your NQ contract. In some cases, an assignment or change of
ownership may have adverse tax consequences. See "Tax information" earlier in
this Prospectus.
You cannot assign or transfer ownership of a Rollover IRA, Roth Conversion IRA,
QP or Rollover TSA contract except by surrender to us. If your individual
retirement annuity contract is held in your custodial individual retirement
account, you may only assign or transfer ownership of such an IRA contract to
yourself. Loans are not available and you cannot assign Rollover IRA, Roth
Conversion IRA and QP contracts as security for a loan or other obligation. If
the employer that provided the funds does not restrict them, loans are
available under a Rollover TSA contract.
For limited transfers of ownership after the owner's death see "Beneficiary
continuation option" in "Payment of death benefit" earlier in this Prospectus.
You may direct the transfer of the values under your Rollover IRA, Roth
Conversion IRA, QP or Rollover TSA contract to another similar arrangement
under federal income tax rules. In the case of such a transfer, we will impose
a withdrawal charge, if one applies.
DISTRIBUTION OF THE CONTRACTS
The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and
AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The
Distributors serve as principal underwriters of Separate Account No. 49. The
offering of the contracts is intended to be continuous.
68 More information
AXA Advisors (the successor to EQ Financial Consultants, Inc.), an affiliate of
AXA Equitable, and AXA Distributors, an indirect wholly owned subsidiary of AXA
Equitable, are registered with the SEC as broker-dealers and are members of the
National Association of Securities Dealers, Inc. ("NASD"). Their principal
business address is 1290 Avenue of the Americas, New York, NY 10104. Both
broker-dealers also act as distributors for other AXA Equitable annuity
products. AXA Distributors is a successor by merger to all of the functions,
rights and obligations of Equitable Distributors, Inc. ("EDI"). Like AXA
Distributors, EDI was owned by Equitable Holdings, LLC.
The contracts are sold by financial professionals of AXA Advisors and its
affiliates and by financial professionals of both affiliated and unaffiliated
broker-dealers that have entered into selling agreements with the Distributors
("Selling broker-dealers"). Affiliated broker-dealers include MONY Securities
Corporation ("MSC")* and Advest, Inc. The Distributors, MSC and Advest are all
under the common control of AXA Financial, Inc.
AXA Equitable pays sales compensation to both Distributors. In general,
broker-dealers receiving sales compensation will pay all or a portion of it to
its individual financial representatives (or to its Selling broker-dealers) as
commissions related to the sale of contracts.
Sales compensation paid to AXA Advisors will generally not exceed 8.5% of the
total contributions made under the contracts. AXA Advisors, in turn, may pay
its financial professionals (or Selling broker-dealers) either a portion of the
contribution-based compensation or a reduced portion of the contribution-based
compensation in combination with ongoing annual compensation ("asset-based
compensation") up to 0.60% of the account value of the contract sold, based on
the financial professional's choice. Contribution-based compensation, when
combined with asset-based compensation, could exceed 8.5% of the total
contributions made under the contracts.
Sales compensation paid to AXA Distributors will generally not exceed 6.75% of
the total contributions made under the contracts. AXA Distributors passes all
sales compensation it receives through to the Selling broker-dealer. The
Selling broker-dealer may elect to receive reduced contribution-based
compensation in combination with asset-based compensation of up to 1.25% of the
account value of all or a portion of the contracts sold through the
broker-dealer. Contribution-based compensation, when combined with asset-based
compensation, could exceed 6.75% of the total contributions made under the
contracts. The sales compensation we pay varies among broker-dealers. AXA
Distributors may also receive compensation and reimbursement for its marketing
services under the terms of its distribution agreement with AXA Equitable.
The Distributors may also pay certain affiliated and/or unaffiliated
broker-dealers and other financial intermediaries additional compensation for
certain services and/or in recognition of certain expenses that may be incurred
by them or on their behalf (commonly referred to as "marketing allowances").
Services for which such payments are made may include, but are not limited to,
the preferred placement of AXA Equitable and/or Accumulator(R) Plus(SM) on a
company and/or prod- uct list; sales personnel training; due diligence and
related costs; marketing and related services; conferences; and/or other support
services, including some that may benefit the contract owner. Payments may be
based on the amount of assets or purchase payments attributable to contracts
sold through a broker-dealer. We may also make fixed payments to broker-dealers
in connection with the initiation of a new relationship or the introduction of a
new product. These payments may serve as an incentive for Selling broker-dealers
to promote the sale of our products. Additionally, as an incentive for financial
professionals of Selling broker-dealers to promote the sale of our products, we
may increase the sales compensation paid to the Selling broker-dealer for a
period of time (commonly referred to as "compensation enhancements"). These
types of payments are made out of the Distributors' assets. Not all Selling
broker-dealers receive additional compensation. For more information about any
such arrangements, ask your financial professional.
The Distributors will receive 12b-1 fees from certain portfolios for providing
certain distribution and/or shareholder support services. In connection with
portfolios offered through unaffiliated insurance trusts, the Distributors may
also receive other payments from the portfolio advisers and/or their affiliates
for administrative costs, as well as payments for sales meetings and/or seminar
sponsorships.
In an effort to promote the sale of our products, AXA Advisors may provide its
financial professionals and managerial personnel with a higher percentage of
sales commissions and/or compensation for the sale of an affiliated variable
product than it would the sale of an unaffiliated product. Such practice is
known as providing "differential compensation." Other forms of compensation
financial professionals may receive include health and retirement benefits. In
addition, managerial personnel may receive expense reimbursements, marketing
allowances and commission-based payments known as "overrides." For tax reasons,
AXA Advisors financial professionals qualify for health and retirement benefits
based solely on their sales of our affiliated products.
These payments and differential compensation (together, the "payments") can
vary in amount based on the applicable product and/or entity or individual
involved. As with any incentive, such payments may cause the financial
professional to show preference in recommending the purchase or sale of our
products. However, under applicable rules of the NASD, AXA Advisors may only
recommend to you products that they reasonably believe are suitable for you
based on facts that you have disclosed as to your other security holdings,
financial situation and needs. In making any recommendation, financial
professionals may nonetheless face conflicts of interest because of the
differences in compensation from one product category to another, and because
of differences in compensation between products in the same category.
In addition, AXA Advisors financial professionals who meet specified production
levels for the sale of both affiliated and unaffiliated products may qualify,
under sales incentive programs, to receive non-cash compensation such as stock
options awards and/or stock appreciation rights, expense-paid trips,
expense-paid educational seminars and merchandise.
- ----------------------
* On or about June 6, 2005, MSC financial professionals are expected to
become financial professionals of AXA Advisors. From that date forward,
former MSC financial professionals will be compensated by AXA Advisors, and
the Distributors will replace MSC as the principal underwriters of its
affiliated products.
More information 69
Although AXA Equitable takes all of its costs into account in establishing the
level of fees and expenses in our products, any compensation paid will not
result in any separate charge to you under your contract. All payments made
will be in compliance with all applicable NASD rules and other laws and
regulations.
70 More information
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
AXA Equitable's Annual Report on Form 10-K for the year ended December 31, 2004
is considered to be a part of this prospectus because it is incorporated by
reference.
After the date of this prospectus and before we terminate the offering of the
securities under this prospectus, all documents or reports we file with the SEC
under the Securities Exchange Act of 1934 ("Exchange Act"), will be considered
to become part of this prospectus because they are incorporated by reference.
Any statement contained in a document that is, or becomes part of this
prospectus, will be considered changed or replaced for purposes of this
prospectus if a statement contained in this prospectus changes or is replaced.
Any statement that is considered to be a part of this prospectus because of its
incorporation will be considered changed or replaced for the purpose of this
prospectus if a statement contained in any other subsequently filed document
that is considered to be part of this prospectus changes or replaces that
statement. After that, only the statement that is changed or replaced will be
considered to be part of this prospectus.
We file our Exchange Act documents and reports, including our Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR
under CIK No. 0000727920. The SEC maintains a website that contains reports,
proxy and information statements, and other information regarding registrants
that file electronically with the SEC. The address of the website is
www.sec.gov.
Upon written or oral request, we will provide, free of charge, to each person
to whom this prospectus is delivered, a copy of any or all of the documents
considered to be part of this prospectus because they are incorporated herein.
This does not include exhibits not specifically incorporated by reference into
the text of such documents. Requests for documents should be directed to AXA
Equitable Life Insurance Company,1290 Avenue of the Americas, New York, New
York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234).
Incorporation of certain documents by reference 71
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account No. 49 with the same daily asset charges of
1.40%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004
- --------------------------------------------------------------------------------
For the year ending
December 31,
-------------------------------
2004 2003 2002
- --------------------------------------------------------------------------------
AXA Aggressive Allocation
- --------------------------------------------------------------------------------
Unit value $ 10.61 -- --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,088 -- --
- --------------------------------------------------------------------------------
AXA Conservative Allocation
- --------------------------------------------------------------------------------
Unit value $ 10.29 -- --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 801 -- --
- --------------------------------------------------------------------------------
AXA Conservative-Plus Allocation
- --------------------------------------------------------------------------------
Unit value $ 10.39 -- --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,570 -- --
- --------------------------------------------------------------------------------
AXA Moderate Allocation
- --------------------------------------------------------------------------------
Unit value $ 43.82 $ 40.88 $ 34.80
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 7,909 6,360 1,307
- --------------------------------------------------------------------------------
AXA Moderate-Plus Allocation
- --------------------------------------------------------------------------------
Unit value $ 10.63 -- --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 5,246 -- --
- --------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- --------------------------------------------------------------------------------
Unit value $ 53.37 $ 48.29 $ 35.61
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 391 352 65
- --------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- --------------------------------------------------------------------------------
Unit value $ 11.18 $ 10.91 $ 10.67
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 20,725 21,868 7,979
- --------------------------------------------------------------------------------
AXA Premier VIP Health Care
- --------------------------------------------------------------------------------
Unit value $ 11.03 $ 9.97 $ 7.89
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 5,832 5,004 1,289
- --------------------------------------------------------------------------------
AXA Premier VIP High Yield
- --------------------------------------------------------------------------------
Unit value $ 29.19 $ 27.25 $ 22.55
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 7,606 7,467 1,128
- --------------------------------------------------------------------------------
AXA Premier VIP International Equity
- --------------------------------------------------------------------------------
Unit value $ 12.01 $ 10.33 $ 7.80
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 6,557 5,137 1,360
- --------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- --------------------------------------------------------------------------------
Unit value $ 10.44 $ 9.65 $ 7.64
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 5,046 4,778 1,529
- --------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 9.19 $ 8.74 $ 6.78
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 10,463 9,505 2,593
- --------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- --------------------------------------------------------------------------------
Unit value $ 11.53 $ 10.22 $ 7.90
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 9,747 8,731 2,676
- --------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 9.44 $ 8.57 $ 6.20
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 12,924 12,264 3,087
- --------------------------------------------------------------------------------
A-1 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- --------------------------------------------------------------------------------
For the year ending
December 31,
-------------------------------
2004 2003 2002
- --------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- --------------------------------------------------------------------------------
Unit value $ 11.60 $ 10.21 $ 7.37
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 10,507 9,465 2,371
- --------------------------------------------------------------------------------
AXA Premier VIP Technology
- --------------------------------------------------------------------------------
Unit value $ 9.11 $ 8.90 $ 5.66
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 7,471 3,799 1,127
- --------------------------------------------------------------------------------
EQ/Alliance Common Stock
- --------------------------------------------------------------------------------
Unit value $ 234.29 $ 208.22 $ 141.20
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 942 814 112
- --------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- --------------------------------------------------------------------------------
Unit value $ 28.12 $ 25.38 $ 19.73
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 7,405 6,681 1,786
- --------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- --------------------------------------------------------------------------------
Unit value $ 18.52 $ 18.42 $ 18.29
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 5,829 6,022 2,463
- --------------------------------------------------------------------------------
EQ/Alliance International
- --------------------------------------------------------------------------------
Unit value $ 13.23 $ 11.35 $ 8.52
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 7,600 6,792 1,026
- --------------------------------------------------------------------------------
EQ/Alliance Large Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 6.27 $ 5.86 $ 4.83
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 8,590 8,430 2,607
- --------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- --------------------------------------------------------------------------------
Unit value $ 15.80 $ 15.45 $ 15.13
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 7,011 7,296 2,167
- --------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 15.30 $ 13.61 $ 9.80
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 5,878 5,936 1,577
- --------------------------------------------------------------------------------
EQ/Bear Stearns Small Company Growth
- --------------------------------------------------------------------------------
Unit value $ 7.60 -- --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 67 -- --
- --------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- --------------------------------------------------------------------------------
Unit value $ 14.36 $ 12.84 $ 10.11
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 23,412 21,328 5,924
- --------------------------------------------------------------------------------
EQ/Boston Advisors Equity Income
- --------------------------------------------------------------------------------
Unit value $ 5.64 -- --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 780 -- --
- --------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- --------------------------------------------------------------------------------
Unit value $ 8.10 $ 7.93 $ 6.28
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,019 964 208
- --------------------------------------------------------------------------------
EQ/Capital Guardian Growth
- --------------------------------------------------------------------------------
Unit value $ 11.89 $ 11.43 $ 9.35
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,253 2,284 762
- --------------------------------------------------------------------------------
EQ/Capital Guardian International
- --------------------------------------------------------------------------------
Unit value $ 10.65 $ 9.51 $ 7.27
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 10,189 8,648 1,957
- --------------------------------------------------------------------------------
EQ/Capital Guardian Research
- --------------------------------------------------------------------------------
Unit value $ 11.27 $ 10.30 $ 7.95
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 8,947 8,367 2,246
- --------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- --------------------------------------------------------------------------------
Unit value $ 11.06 $ 10.26 $ 7.63
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 16,717 15,286 3,232
- --------------------------------------------------------------------------------
Appendix I: Condensed financial information A-2
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- --------------------------------------------------------------------------------
For the year ending
December 31,
-------------------------------
2004 2003 2002
- --------------------------------------------------------------------------------
EQ/Equity 500 Index
- --------------------------------------------------------------------------------
Unit value $ 25.49 $ 23.45 $ 18.61
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 13,022 12,430 3,667
- --------------------------------------------------------------------------------
EQ/Evergreen Omega
- --------------------------------------------------------------------------------
Unit value $ 8.30 $ 7.87 $ 5.77
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 4,201 3,589 625
- --------------------------------------------------------------------------------
EQ/FI Mid Cap
- --------------------------------------------------------------------------------
Unit value $ 11.11 $ 9.71 $ 6.86
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 17,707 16,254 3,145
- --------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- --------------------------------------------------------------------------------
Unit value $ 14.35 $ 12.35 $ 9.40
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 12,978 12,257 4,007
- --------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- --------------------------------------------------------------------------------
Unit value $ 13.79 $ 13.44 $ 13.19
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 17,843 18,211 5,930
- --------------------------------------------------------------------------------
EQ/JP Morgan Value Opportunities
- --------------------------------------------------------------------------------
Unit value $ 13.15 $ 12.02 $ 9.62
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 4,753 4,353 1,383
- --------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 6.01 $ 5.44 $ 4.38
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 7,699 7,279 2,586
- --------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- --------------------------------------------------------------------------------
Unit value $ 16.57 $ 14.35 $ 10.59
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 12,065 10,965 3,006
- --------------------------------------------------------------------------------
EQ/Marsico Focus
- --------------------------------------------------------------------------------
Unit value $ 13.93 $ 12.78 $ 9.89
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 21,440 20,675 4,362
- --------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- --------------------------------------------------------------------------------
Unit value $ 19.88 $ 18.24 $ 14.10
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 9,113 8,213 2,399
- --------------------------------------------------------------------------------
EQ/Mercury International Equity
- --------------------------------------------------------------------------------
Unit value $ 16.83 $ 14.03 $ 11.11
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 6,084 5,257 1,712
- --------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- --------------------------------------------------------------------------------
Unit value $ 13.14 $ 11.84 $ 9.28
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,192 2,043 538
- --------------------------------------------------------------------------------
EQ/MFS Investors Trust
- --------------------------------------------------------------------------------
Unit value $ 8.95 $ 8.15 $ 6.77
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 4,946 4,865 1,329
- --------------------------------------------------------------------------------
EQ/Money Market
- --------------------------------------------------------------------------------
Unit value $ 27.84 $ 28.02 $ 28.26
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,473 4,639 4,457
- --------------------------------------------------------------------------------
EQ/Montag & Caldwell Growth
- --------------------------------------------------------------------------------
Unit value $ 4.42 -- --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 46 -- --
- --------------------------------------------------------------------------------
EQ/Small Company Index
- --------------------------------------------------------------------------------
Unit value $ 14.30 $ 12.32 $ 8.57
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 6,730 6,188 1,437
- --------------------------------------------------------------------------------
EQ/Small Company Value
- --------------------------------------------------------------------------------
Unit value $ 22.60 -- --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 173 -- --
- --------------------------------------------------------------------------------
A-3 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- --------------------------------------------------------------------------------
For the year ending
December 31,
-------------------------------
2004 2003 2002
- --------------------------------------------------------------------------------
EQ/TCW Equity
- --------------------------------------------------------------------------------
Unit value $ 16.85 -- --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 37 -- --
- --------------------------------------------------------------------------------
EQ/UBS Growth and Income
- --------------------------------------------------------------------------------
Unit value $ 5.15 -- --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 41 -- --
- --------------------------------------------------------------------------------
EQ/Van Kampen Emerging Markets Equity
- --------------------------------------------------------------------------------
Unit value $ 10.60 $ 8.69 $ 5.66
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 7,052 5,307 1,261
- --------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity
- --------------------------------------------------------------------------------
Unit value $ 10.14 -- --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 774 -- --
- --------------------------------------------------------------------------------
U.S. Real Estate -- Class II
- --------------------------------------------------------------------------------
Unit value $ 12.71 -- --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,062 -- --
- --------------------------------------------------------------------------------
Appendix I: Condensed financial information A-4
Appendix II: Purchase considerations for QP contracts
- --------------------------------------------------------------------------------
Trustees who are considering the purchase of an Accumulator(R) Plus(SM) QP
contract should discuss with their tax advisers whether this is an appropriate
investment vehicle for the employer's plan. Trustees should consider whether
the plan provisions permit the investment of plan assets in the QP contract,
the distribution of such an annuity and the payment of death benefits in
accordance with the requirements of the federal income tax rules. The QP
contract and this prospectus should be reviewed in full, and the following
factors, among others, should be noted. Assuming continued plan qualification
and operation, earnings on qualified plan assets will accumulate value on a
tax-deferred basis even if the plan is not funded by the Accumulator(R) Plus(SM)
QP contract or another annuity. Therefore, you should purchase an
Accumulator(R) Plus(SM) QP contract to fund a plan for the contract's features
and benefits other than tax deferral, after considering the relative costs and
benefits of annuity contracts and other types of arrangements and funding
vehicles. This QP contract accepts transfer contributions only and not regular,
ongoing payroll contributions. For 401(k) plans under defined contribution
plans, no employee after-tax contributions are accepted.
We will not accept defined benefit plans. For defined contribution plans, we
will only accept transfers from another defined contribution plan or a change
of investment vehicles in the plan. Only one additional transfer contribution
may be made per contract year. If overfunding of a plan occurs or amounts
attributable to an excess contribution must be withdrawn, withdrawals from the
QP contract may be required. A withdrawal charge and/or market value adjustment
may apply.
AXA Equitable will not perform or provide any plan recordkeeping services with
respect to the QP contracts. The plan's administrator will be solely
responsible for performing or providing for all such services. There is no loan
feature offered under the QP contracts, so if the plan provides for loans and a
participant/employee takes a loan from the plan, other plan assets must be used
as the source of the loan and any loan repayments must be credited to other
investment vehicles and/or accounts available under the plan.
Given that required minimum distributions must generally commence from the plan
for annuitants after age 70-1/2, trustees should consider that:
o the QP contract may not be an appropriate purchase for annuitants
approaching or over age 70-1/2;
o provisions in the Treasury Regulations on required minimum distributions
will require, beginning in 2006, that the actuarial present value of
additional annuity contract benefits be added to the dollar amount credited
for purposes of calculating required minimum distributions. This could
increase the amounts required to be distributed from the contract; and
o the guaranteed minimum income benefit under the Living Benefit may not be
an appropriate feature for annuitants who are older than 60-1/2 when the
contract is issued.
Finally, because the method of purchasing the QP contract, including the large
initial contribution and the features of the QP contract may appeal more to
plan participants/employees who are older and tend to be highly paid, and
because certain features of the QP contract are available only to plan
participants/employees who meet certain minimum and/or maximum age
requirements, plan trustees should discuss with their advisers whether the
purchase of the QP contract would cause the plan to engage in prohibited
discrimination in contributions, benefits or otherwise.
B-1 Appendix II: Purchase considerations for QP contracts
Appendix III: Market value adjustment example
- --------------------------------------------------------------------------------
The example below shows how the market value adjustment would be determined and
how it would be applied to a withdrawal, assuming that $100,000 was allocated
on February 15, 2005 to a fixed maturity option with a maturity date of
February 15, 2014 (nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value of $183,914 on the maturity date. We
further assume that a withdrawal of $50,000 is made four years later on
February 15, 2009.
- --------------------------------------------------------------------------------------------------------
Hypothetical Assumed rate to maturity on
February 15, 2009
----------------------------------------
5.00% 9.00%
- --------------------------------------------------------------------------------------------------------
As of February 15, 2009 (before withdrawal)
- --------------------------------------------------------------------------------------------------------
(1) Market adjusted amount $144,082 $ 119,503
- --------------------------------------------------------------------------------------------------------
(2) Fixed maturity amount $131,104 $ 131,104
- --------------------------------------------------------------------------------------------------------
(3) Market value adjustment:
(1) - (2) $ 12,978 $ (11,601)
On February 15, 2009 (after withdrawal)
- --------------------------------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with
withdrawal:
(3) x [$50,000/(1)] $ 4,504 $ (4,854)
- --------------------------------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount: [$50,000 - (4)] $ 45,496 $ 54,854
- --------------------------------------------------------------------------------------------------------
(6) Fixed maturity amount: (2) - (5) $ 85,608 $ 76,250
- --------------------------------------------------------------------------------------------------------
(7) Maturity value $120,091 $ 106,965
- --------------------------------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,082 $ 69,503
- --------------------------------------------------------------------------------------------------------
You should note that under this example if a withdrawal is made when rates have
increased from 7.00% to 9.00% (right column), a portion of a negative market
value adjustment is realized. On the other hand, if a withdrawal is made when
rates have decreased from 7.00% to 5.00% (left column), a portion of a positive
market value adjustment is realized. The market value is computed differently
if you withdraw amounts on a date other than the anniversary of the
establishment of the fixed maturity option.
Appendix III: Market value adjustment example C-1
Appendix IV: Guaranteed enhanced death benefit example
- --------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the enhanced death benefit.
The following illustrates the enhanced death benefit calculation. Assuming
$100,000 (plus the applicable 4% credit) is allocated to the variable
investment options (with no allocation to the EQ/Alliance Intermediate
Government Securities, EQ/Money Market, EQ/PIMCO Real Return, EQ/Short Duration
Bond, the guaranteed interest option or the fixed maturity options), no
additional contributions, no transfers, no withdrawals and no loans under a
Rollover TSA contract, the enhanced death benefit for an annuitant age 45 would
be calculated as follows:
- ----------------------------------------------------------------------------------------------------
6% roll up to age 85 Annual ratchet to age 85
End of Contract Year Account Value enhanced death benefit enhanced death benefit
- ----------------------------------------------------------------------------------------------------
1 109,200 110,240 109,200
- ----------------------------------------------------------------------------------------------------
2 120,120 116,854 120,120
- ----------------------------------------------------------------------------------------------------
3 134,534 123,866 134,534
- ----------------------------------------------------------------------------------------------------
4 107,628 131,298 134,534
- ----------------------------------------------------------------------------------------------------
5 118,390 139,175 134,534
- ----------------------------------------------------------------------------------------------------
6 132,597 147,526 134,534
- ----------------------------------------------------------------------------------------------------
7 132,597 156,378 134,534
- ----------------------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%.
We are using these rates solely to illustrate how the benefit is determined.
The return rates bear no relationship to past or future investment results.
6% ROLL-UP TO AGE 85
(1) At the end of contract year 1, and again at the end of contract years 4
through 7, the death benefit will be the enhanced death benefit.
(2) At the end of contract years 2 and 3, the death benefit will be the current
account value since it is higher than the current enhanced death benefit.
ANNUAL RATCHET TO AGE 85
(3) At the end of contract years 1 through 3, the enhanced death benefit is the
current account value.
(4) At the end of contract years 4 through 7, the enhanced death benefit is the
enhanced death benefit at the end of the prior year since it is equal to or
higher than the current account value.
GREATER OF 6% ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85
The enhanced death benefit under this option for each year shown would be the
greater of the amounts shown under the 6% roll-up to age 85 or the Annual
ratchet to age 85.
D-1 Appendix IV: Guaranteed enhanced death benefit example
Appendix V: Hypothetical illustrations
- --------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM
BENEFITS
The following tables illustrate the changes in account value, cash value and
the values of the "greater of 6% Roll up to Age 85 or the Annual Ratchet to Age
85" guaranteed minimum death benefit, the Protection Plus(SM) benefit and the
Guaranteed minimum income benefit under certain hypothetical circumstances for
an Accumulator(R) Plus(SM) contract. The table illustrates the operation of a
contract based on a male, issue age 60, who makes a single$10,00 contribution
and takes no withdrawals. The amounts shown are for the beginning of each
contract year and assume that all of the account value is invested in
portfolios that achieve investment returns at constant gross annual rates of 0%
and 6% (i.e., before any investment management fees, 12b-1 fees or other
expenses are deducted from the underlying portfolio assets). After the
deduction of the arithmetic average of the investment management fees, 12b-1
fees and other expenses of all of the underlying Portfolios (as described
below), the corresponding net annual rates of return would be (2.73)%, 3.27%
for the Accumulator(R) Plus(SM) Contract, at the 0% and 6% gross annual rates,
respectively. These net annual rates of return reflect the trust and separate
account level charges but they do not reflect the charges we deduct from your
account value annually for the Guaranteed minimum death benefit, Protection
Plus(SM) benefit and the Guaranteed minimum income benefit features, as well as
the annual administrative charge. If the net annual rates of return did reflect
these charges, the net annual rates of return would be lower; however, the
values shown in the following tables reflect all contract charges. The values
shown under "Lifetime Annual Guaranteed Minimum Income Benefit" reflect the
lifetime income that would be guaranteed if the Guaranteed minimum income
benefit is selected at that contract anniversary. An "N/A" in these columns
indicates that the benefit is not exercisable in that year. A "0" under any of
the Death Benefit and/or "Lifetime Annual Guaranteed Minimum Income Benefit"
columns indicates that the contract has terminated due to insufficient account
value and, consequently, the guaranteed benefit has no value.
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in all tables reflect (1) investment management
fees equivalent to an effective annual rate of 0.69%, and (2) an assumed
average asset charge for all other expenses of the underlying portfolios
equivalent to an effective annual rate of 0.39% and (3) 12b-1 fees equivalent
to an effective annual rate of 0.25%. These rates are the arithmetic average
for all portfolios that are available as investment options. In other words,
they are based on the hypothetical assumption that account values are allocated
equally among the variable investment options. The actual rates associated with
any contract will vary depending upon the actual allocation of contract values
among the investment options. These rates do not reflect expense limitation
arrangements in effect with respect to certain of the underlying portfolios as
described in the footnotes to the fee table for the underlying portfolios in
"Fee Table" earlier in this prospectus. With these arrangements, the charges
shown above would be lower. This would result in higher values than those shown
in the following tables.
Because your circumstances will no doubt differ from those in the illustrations
that follow, values under your contract will differ, in most cases
substantially. Upon request, we will furnish you with a personalized
illustration.
Appendix V: Hypothetical illustrations E-1
Variable deferred annuity
Accumulator Plus
$100,000 Single contribution and no withdrawals
Male, issue age 60
Benefits:
Greater of 6% Roll up to age 85 or the Annual Ratchet to age 85 Guaranteed
minimum death benefit
Protection Plus(SM)
Guaranteed minimum income benefit
Greater of 6% Roll
up
to age 85 or the
Annual
Ratchet to age 85
Guaranteed
Minimum Death
Account Value Cash Value Benefit
------------------- ------------------ -------------------
Age Contract Year 0% 6% 0% 6% 0% 6%
- ----- -------------- --------- --------- -------- --------- --------- ---------
60 1 104,000 104,000 96,000 96,000 104,000 104,000
61 2 99,484 105,702 91,484 97,702 110,240 110,240
62 3 95,027 107,374 88,027 100,374 116,854 116,854
63 4 90,623 109,011 83,623 102,011 123,866 123,866
64 5 86,265 110,606 80,265 104,606 131,298 131,298
65 6 81,946 112,153 76,946 107,153 139,175 139,175
66 7 77,660 113,645 73,660 109,645 147,526 147,526
67 8 73,399 115,073 70,399 112,073 156,378 156,378
68 9 69,156 116,431 69,156 116,431 165,760 165,760
69 10 64,924 117,709 64,924 117,709 175,706 175,706
74 15 43,629 122,544 43,629 122,544 235,134 235,134
79 20 21,275 123,622 21,275 123,622 314,662 314,662
84 25 0 118,843 0 118,843 0 421,089
89 30 0 119,965 0 119,965 0 446,355
94 35 0 124,263 0 124,263 0 446,355
95 36 0 125,200 0 125,200 0 446,355
Lifetime Annual
Guaranteed Minimum Income Benefit
Total Death Benefit ------------------------------------
with Protection Guaranteed Hypothetical
Plus Income Income
------------------- ------------------ -----------------
Age 0% 6% 0% 6% 0% 6%
- ----- --------- --------- --------- -------- --------- -------
60 104,000 104,000 N/A N/A N/A N/A
61 114,336 114,336 N/A N/A N/A N/A
62 123,596 123,596 N/A N/A N/A N/A
63 133,412 133,412 N/A N/A N/A N/A
64 143,817 143,817 N/A N/A N/A N/A
65 154,846 154,846 N/A N/A N/A N/A
66 166,536 166,536 N/A N/A N/A N/A
67 178,929 178,929 N/A N/A N/A N/A
68 192,064 192,064 N/A N/A N/A N/A
69 205,988 205,988 N/A N/A N/A N/A
74 289,188 289,188 14,837 14,837 14,837 14,837
79 400,527 400,527 21,208 21,208 21,208 21,208
84 0 514,506 0 36,214 0 36,214
89 0 539,771 N/A N/A N/A N/A
94 0 539,771 N/A N/A N/A N/A
95 0 539,771 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for
individual contract years. We can make no representation that these
hypothetical investment results can be achieved for any one year or continued
over any period of time. In fact, for any given period of time, the investment
results could be negative.
E-2 Appendix V: Hypothetical illustrations
Appendix VI: Contract variations
- --------------------------------------------------------------------------------
The contract described in this Prospectus is no longer sold. You should note
that your contract features and charges may vary from what is described in this
Prospectus depending on the date on which you purchased your contract. You may
not change your contract or its features after issue. This Appendix reflects
contract variations that differ from what is described in this Prospectus but
may have been in effect at the time you purchased your contract.
In addition, options and/or features may vary among states in light of
applicable regulations or state approvals. Any such state variations are
generally not included here. For more information about state variations
applicable to you, as well as particular features, charges and options available
under your contract based upon when you purchased it, please contact your
financial professional and/or refer to your contract.
- -----------------------------------------------------------------------------------------------------------------------------------
Approximate Time Period Feature/Benefit Variation
- -----------------------------------------------------------------------------------------------------------------------------------
April 2002 - July 2003 Guaranteed interest option No limitations regarding allocations or transfers into the guaranteed
interest account.
- -----------------------------------------------------------------------------------------------------------------------------------
April 2002 - February 2003 Fee table Guaranteed minimum death benefit charge:
Annual Ratchet to age 85: 0.20%
6% Roll up to age 85: 0.35%
The Greater of the 6% Roll up to age 85 or the
Annual Ratchet to age 85: 0.45%
Guaranteed minimum income benefit: 0.45%
- -----------------------------------------------------------------------------------------------------------------------------------
Appendix VI: Contract variations F-1
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Unit Values 2
Custodian and Independent Registered Public Accounting Firm 2
Distribution of the Contracts 2
Financial Statements 2
How to obtain an Accumulator(R) Plus(SM) Statement of Additional Information for
Separate Account No. 49
Send this request form to:
Accumulator(R) Plus(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me an Accumulator(R) Plus(SM) SAI for Separate Account No. 49 dated
May 1, 2005.
- --------------------------------------------------------------------------------
Name
- --------------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
City State Zip
(SAI 10AMLF(05/03))
X01010/Plus '02 ML and '04 Series
Accumulator(R) Plus(SM)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2005
Please read and keep this Prospectus for future reference. It contains
important information that you should know before taking any action under your
contract. You should read the prospectuses for each Trust, which contain
important information about the portfolios.
- --------------------------------------------------------------------------------
WHAT IS THE ACCUMULATOR(R) Plus(SM)?
Accumulator(R) Plus(SM) is a deferred annuity contract issued by AXA Equitable
Life Insurance Company. It provides for the accumulation of retirement savings
and for income. The contract offers death benefit protection and a number of
payout options. You invest to accumulate value on a tax-deferred basis in one
or more of our variable investment options, the guaranteed interest option or
fixed maturity options ("investment options"). Certain features and benefits
described in this Prospectus may vary in your state; all features and benefits
may not be available in all contracts or all states. Please contact your
financial professional and/or review your contract for state variations that
may apply to you.
- --------------------------------------------------------------------------------
Variable investment options
- --------------------------------------------------------------------------------
o AXA Aggressive Allocation(1) o EQ/Equity 500 Index
o AXA Conservative Allocation(1) o EQ/Evergreen Omega
o AXA Conservative-Plus Allocation(1) o EQ/FI Mid Cap
o AXA Moderate Allocation(1) o EQ/FI Small/Mid Cap Value
o AXA Moderate-Plus Allocation(1) o EQ/International Growth(3)
o AXA Premier VIP Aggressive Equity o EQ/J.P. Morgan Core Bond
o AXA Premier VIP Core Bond o EQ/JP Morgan Value Opportunities
o AXA Premier VIP Health Care o EQ/Janus Large Cap Growth
o AXA Premier VIP High Yield o EQ/Lazard Small Cap Value
o AXA Premier VIP International Equity o EQ/Long Term Bond(3)
o AXA Premier VIP Large Cap Core o EQ/Lord Abbett Growth and Income(3)
Equity o EQ/Lord Abbett Large Cap Core(3)
o AXA Premier VIP Large Cap Growth o EQ/Lord Abbett Mid Cap Value(3)
o AXA Premier VIP Large Cap Value o EQ/Marsico Focus
o AXA Premier VIP Small/Mid Cap o EQ/Mercury Basic Value Equity
Growth o EQ/Mercury International Value
o AXA Premier VIP Small/Mid Cap Value o EQ/Mergers and Acquisitions(3)
o AXA Premier VIP Technology o EQ/MFS Emerging Growth Companies
o EQ/Alliance Common Stock o EQ/MFS Investors Trust
o EQ/Alliance Growth and Income o EQ/Money Market
o EQ/Alliance Intermediate Government o EQ/Montag & Caldwell Growth(2)
Securities o EQ/PIMCO Real Return(3)
o EQ/Alliance International o EQ/Short Duration Bond(3)
o EQ/Alliance Large Cap Growth(2) o EQ/Small Company Index
o EQ/Alliance Quality Bond o EQ/Small Company Value(2)
o EQ/Alliance Small Cap Growth o EQ/TCW Equity(2)
o EQ/Bear Stearns Small Company o EQ/UBS Growth and Income(2)
Growth(2) o EQ/Van Kampen Comstock(3)
o EQ/Bernstein Diversified Value o EQ/Van Kampen Emerging Markets Equity(2)
o EQ/Boston Advisors Equity Income(2) o EQ/Van Kampen Mid Cap Growth(3)
o EQ/Calvert Socially Responsible o EQ/Wells Fargo Montgomery Small Cap(3)
o EQ/Capital Guardian Growth o Laudus Rosenberg VIT Value Long/
o EQ/Capital Guardian International Short Equity
o EQ/Capital Guardian Research o U.S. Real Estate -- Class II
o EQ/Capital Guardian U.S. Equity
o EQ/Caywood-Scholl High Yield Bond(3)
(1) The "AXA Allocation" portfolios.
(2) This is the option's new name, effective on or about May 9, 2005, subject
to regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former
name.
(3) Available on or about May 9, 2005, subject to regulatory approval. Please
see "Portfolios of the Trusts" in "Contract features and benefits" later in
this Prospectus for more information on the new investment option.
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of Separate Account No. 49. Each
variable investment option, in turn, invests in a corresponding securities
portfolio ("portfolio") of EQ Advisors Trust, AXA Premier VIP Trust, The
Universal Institutional Funds, Inc. or Laudus Variable Insurance Trust (The
"Trusts"). Your investment results in a variable investment option will depend
on the investment performance of the related portfolio.
You may also allocate amounts to the guaranteed interest option and the fixed
maturity options, which are discussed later in this Prospectus.
TYPES OF CONTRACTS. Contracts were offered for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only.
o An individual retirement annuity ("IRA"), either traditional IRA ("Rollover
IRA") or Roth IRA ("Roth Conversion IRA").
o An annuity that is an investment vehicle for a qualified defined
contribution plan ("QP").
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") --
("Rollover TSA").
A contribution of at least $10,000 was required to purchase a contract. We add
an amount ("credit") to your contract with each contribution you make. Expenses
for this contract may be higher than for a comparable contract without a
credit. Over time, the amount of the credit may be more than offset by fees and
charges associated with the credit.
A registration statement relating to this offering has been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2005, is part of the registration statement.
The SAI is available free of charge. You may request one by writing to our
processing office or calling 1-800-789-7771. The SAI has been incorporated by
reference into this Prospectus. This Prospectus and the SAI can also be
obtained from the SEC's website at www.sec.gov. The table of contents for the
SAI appears at the back of this Prospectus.
The SEC has not approved or disapproved these securities or determined if this
Prospectus is accurate or complete. Any representation to the contrary is a
criminal offense. The contracts are not insured by the FDIC or any other
agency. They are not deposits or other obligations of any bank and are not bank
guaranteed. They are subject to investment risks and possible loss of
principal.
This contract is no longer available for new purchasers. This contract is no
longer being sold. This Prospectus is designed for current contract owners. In
addition to the possible state variations noted above, you should note that
your contract features and charges may vary depending on the date on which you
purchased your contract. For more information about the particular features,
charges and options applicable to you, please contact your financial
professional or refer to your contract, as well as review Appendix VI later in
this Prospectus for contract variation information and timing. You may not
change your contract or its features as issued.
X01067/PLUS/ML 02 Series
Contents of this Prospectus
- --------------------------------------------------------------------
ACCUMULATOR(R) Plus(SM)
- --------------------------------------------------------------------------------
Index of key words and phrases 4
Who is AXA Equitable? 5
How to reach us 6
Accumulator(R) Plus(SM) at a glance -- key features 8
- --------------------------------------------------------------------------------
FEE TABLE 11
- --------------------------------------------------------------------------------
Example 14
Condensed financial information 17
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 18
- --------------------------------------------------------------------------------
How you can contribute to your contract 18
Owner and annuitant requirements 20
How you can make your contributions 20
What are your investment options under the contract? 20
Portfolios of the Trusts 21
Allocating your contributions 26
Credits 27
Your benefit base 28
Annuity purchase factors 28
Our Living Benefit option 29
Guaranteed minimum death benefit 30
Your right to cancel within a certain number of days 31
- --------------------------------------------------------------------------------
2. DETERMINING YOUR CONTRACT'S VALUE 33
- --------------------------------------------------------------------------------
Your account value and cash value 33
Your contract's value in the variable investment options 33
Your contract's value in the guaranteed interest account 33
Your contract's value in the fixed maturity options 33
Termination of your contract 33
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG THE INVESTMENT OPTIONS 34
- --------------------------------------------------------------------------------
Transferring your account value 34
Disruptive transfer activity 34
Rebalancing your account value 35
- ----------------------
"We," "our," and "us" refer to AXA Equitable.
When we address the reader of this prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the contract owner.
When we use the word "contract"
it also includes certificates that are issued under group contracts in some
states.
2 Contents of this Prospectus
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 37
- --------------------------------------------------------------------------------
Withdrawing your account value 37
How withdrawals are taken from your account value 38
How withdrawals affect your guaranteed
minimum income benefit and guaranteed
minimum death benefit 38
Loans under rollover TSA contracts 38
Surrendering your contract to receive its cash value 39
When to expect payments 39
Your annuity payout options 39
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 42
- --------------------------------------------------------------------------------
Charges that AXA Equitable deducts 42
Charges that the Trusts deduct 44
Group or sponsored arrangements 44
Other distribution arrangements 44
- --------------------------------------------------------------------------------
6. PAYMENT OF DEATH BENEFIT 45
- --------------------------------------------------------------------------------
Your beneficiary and payment of benefit 45
How death benefit payment is made 45
Beneficiary continuation option 46
- --------------------------------------------------------------------------------
7. TAX INFORMATION 49
- --------------------------------------------------------------------------------
Overview 49
Contracts that fund a retirement arrangement 49
Transfers among variable investment options 49
Taxation of nonqualified annuities 49
Individual retirement arrangements (IRAs) 51
Tax-Sheltered Annuity contracts (TSAs) 60
Federal and state income tax withholding and information
reporting 63
Special rules for contracts funding qualified plans 64
Impact of taxes to AXA Equitable 64
- --------------------------------------------------------------------------------
8. MORE INFORMATION 65
- --------------------------------------------------------------------------------
About Separate Account No. 49 65
About the Trusts 65
About our fixed maturity options 65
About the general account 66
About other methods of payment 66
Dates and prices at which contract events occur 67
About your voting rights 67
About legal proceedings 68
About our independent registered public accounting firm 68
Financial statements 68
Transfers of ownership, collateral assignments, loans
and borrowing 68
Distribution of the contracts 68
- --------------------------------------------------------------------------------
9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 70
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed financial information A-1
II -- Purchase considerations for QP contracts B-1
III -- Market value adjustment example C-1
IV -- Guaranteed enhanced death benefit example D-1
V -- Hypothetical illustrations E-1
VI -- Contract variations F-1
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Contents of this Prospectus 3
Index of key words and phrases
- --------------------------------------------------------------------------------
This index should help you locate more information on the terms used in this
Prospectus.
Page
6% Roll up to age 85 enhanced death benefit 28
account value 33
administrative charge 42
annual administrative charge 42
Annual ratchet to age 85 enhanced death benefit 28
annuitant 18
annuity maturity date 41
annuity payout options 39
annuity purchase factors 28
automatic investment program 67
beneficiary 45
Beneficiary continuation option ("BCO") 46
benefit base 28
business day 67
cash value 33
charges for state premium and other applicable taxes 44
contract date 9
contract date anniversary 9
contract year 9
contributions to traditional IRAs 52
regular contributions 52
rollovers and transfers 53
credit 27
disability, terminal illness or confinement to nursing home 43
disruptive transfer activity 34
distribution charge 42
EQAccess 6
ERISA 38
Fixed-dollar option 26
fixed maturity options 25
free look 31
free withdrawal amount 43
general account 66
General dollar cost averaging 26
guaranteed interest option 25
guaranteed minimum death benefit 30
guaranteed minimum death benefit charge 43
guaranteed minimum income benefit 29
IRA cover
IRS 49
investment simplifier 26
lifetime required minimum distribution withdrawals 38
Page
Limits on contributions 52
Living Benefit option 29
Living Benefit charge 44
loan reserve account 39
loans under Rollover TSA contracts 38
lump sum withdrawals 37
market adjusted amount 25
market value adjustment 25
market timing 34
maturity dates 25
maturity value 25
Mortality and expense risks charge 42
NQ cover
participant 20
portfolio cover
principal assurance allocation 26
processing office 6
Protection Plus(SM) 31
Protection Plus(SM) charge 44
QP cover
rate to maturity 25
Rebalancing 35
Rollover IRA cover
Rollover TSA cover
Roth Conversion IRA cover
Roth IRA cover
SAI cover
SEC cover
self-directed allocation 26
Separate Account No. 49 65
Standard death benefit 28
substantially equal withdrawals 37
Successor owner and annuitant 46
systematic withdrawals 37
TOPS 6
TSA cover
traditional IRA cover
Trusts 65
unit 33
variable investment options 20
wire transmittals and electronic applications 66
Withdrawal charge 42
To make this Prospectus easier to read, we sometimes use different words than
in the contract or supplemental materials. This is illustrated below. Although
we use different words, they have the same meaning in this Prospectus as in the
contract or supplemental materials. Your financial professional can provide
further explanation about your contract or supplemental materials.
- --------------------------------------------------------------------------------------
Prospectus Contract or Supplemental Materials
- --------------------------------------------------------------------------------------
fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts
in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
Living Benefit Guaranteed Minimum Income Benefit
Guaranteed Interest Option Guaranteed Interest Account
- --------------------------------------------------------------------------------------
4 Index of key words and phrases
Who is AXA Equitable?
- --------------------------------------------------------------------------------
We are AXA Equitable Life Insurance Company ("AXA Equitable") (previously, The
Equitable Life Assurance Society of the United States), a New York stock life
insurance corporation. We have been doing business since 1859. AXA Equitable is
a subsidiary of AXA Financial, Inc. AXA, a French holding company for an
international group of insurance and related financial services companies, is
the sole shareholder of AXA Financial, Inc. As the sole shareholder, and under
its other arrangements with AXA Equitable and AXA Equitable's parent, AXA
exercises significant influence over the operations and capital structure of
AXA Equitable and its parent. No company other than AXA Equitable, however, has
any legal responsibility to pay amounts that AXA Equitable owes under the
contract.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$598 billion in assets as of December 31, 2004. For over 100 years AXA
Equitable has been among the largest insurance companies in the United States.
We are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office
is located at 1290 Avenue of the Americas, New York, N.Y. 10104.
Who is AXA Equitable? 5
HOW TO REACH US
You may communicate with our processing office as listed below for the purposes
described. Certain methods of contacting us, such as by telephone or
electronically, may be unavailable or delayed (for example our facsimile
service may not be available at all times and/or we may be unavailable due to
emergency closing). In addition, the level and type of service available may be
restricted based on criteria established by us.
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Accumulator(R) Plus(SM)
P.O. Box 13014
Newark, NJ 07188-0014
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Accumulator(R) Plus(SM)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Accumulator(R) Plus(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Accumulator(R) Plus(SM)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year and
any calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract
year, including notification of eligibility to exercise the guaranteed
minimum income benefit, if applicable.
- --------------------------------------------------------------------------------
TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS:
- --------------------------------------------------------------------------------
TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQAccess is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for the fixed maturity options;
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
available through TOPS).
You can also:
o change your allocation percentages and/or transfer among the variable
investment options;
o elect to receive certain contract statements electronically;
o change your address (not available through TOPS);
o change your TOPS personal identification number ("PIN") (through TOPS only)
and your EQAccess password (through EQAccess only); and
o access Frequently Asked Questions and Service Forms (not available through
TOPS).
TOPS and EQAccess are normally available seven days a week, 24 hours a day. You
may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our website at www.axaonline.com and
logging in to access your account. All other clients may access EQ Access by
visiting our website at www.axa-equitable.com. Of course, for reasons beyond
our control, these services may sometimes be unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or Internet are genuine. For example, we will require
certain personal identification information before we will act on telephone or
Internet instructions and we will provide written confirmation of your
transfers. If we do not employ reasonable procedures to confirm the genuineness
of telephone or Internet instructions, we may be liable for any losses arising
out of any act or omission that constitutes negligence, lack of good faith, or
willful misconduct. In light of our procedures, we will not be liable for
following telephone or Internet instructions we reasonably believe to be
genuine.
We reserve the right to limit access to these services if we determine that you
engaged in a disruptive transfer activity, such as "market timing" (see
"Disruptive transfer activity" in "Transferring your money among investment
options" later in this Prospectus).
- --------------------------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVE:
- --------------------------------------------------------------------------------
You may also use our toll-free number (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
6 Who is AXA Equitable?
(2) conversion of a traditional IRA to a Roth Conversion IRA contract;
(3) election of the automatic investment program;
(4) election of the rebalancing program;
(5) requests for loans under Rollover TSA contracts;
(6) spousal consent for loans under Rollover TSA contracts;
(7) requests for withdrawals or surrenders from Rollover TSA contracts;
(8) tax withholding elections;
(9) election of the beneficiary continuation option;
(10) IRA contribution recharacterizations;
(11) certain Section 1035 exchanges;
(12) direct transfers;
(13) exercise of the Guaranteed minimum income benefit; and
(14) death claims.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between variable investment options;
(4) contract surrender and withdrawal requests; and
(5) general dollar cost averaging (including the fixed dollar and interest
sweep options).
TO CANCEL OR CHANGE ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) automatic investment program;
(2) dollar cost averaging (including the fixed dollar amount and interest sweep
options);
(3) rebalancing;
(4) substantially equal withdrawals;
(5) systematic withdrawals; and
(6) the date annuity payments are to begin.
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us to
take.
SIGNATURES:
The proper person to sign forms, notices and requests would normally be the
owner. If there are joint owners all must sign.
Who is AXA Equitable? 7
Accumulator(R) Plus(SM) at a glance -- key features
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Professional investment Accumulator(R) Plus(SM) variable investment options invest in different portfolios managed by
management professional investment advisers.
- ------------------------------------------------------------------------------------------------------------------------------------
Fixed maturity options o Fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years
(subject to availability).
o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to
maturity.
--------------------------------------------------------------------------------------------------------
If you make withdrawals or transfers from a fixed maturity option before maturity, there will be
a market value
adjustment due to differences in interest rates. If you withdraw or transfer only a portion of a
fixed maturity
amount, this may increase or decrease any value that you have left in that fixed maturity
option. If you surrender
your contract, a market value adjustment also applies.
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed interest o Principal and interest guarantees.
option
o Interest rates set periodically.
- ------------------------------------------------------------------------------------------------------------------------------------
Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or
receive annuity payments.
o No tax on transfers among variable investment options inside the contract.
--------------------------------------------------------------------------------------------------------
Annuity contracts that were purchased as an Individual Retirement Annuity (IRA) or Tax Sheltered
Annuity (TSA), or to fund an employer retirement plan (QP or Qualified Plan), do not provide tax
deferral benefits beyond those already provided by the Internal Revenue Code. Before you purchased
your contract, you should have considered its features and benefits beyond tax deferral -- as well as
its features, benefits and costs relative to any other investment that you may have chosen in
connection with your retirement plan or arrangement -- to determine whether it would meet your needs
and goals. Depending on your personal situation, the contract's guaranteed benefits may have limited
usefulness because of required minimum distributions ("RMDs").
- ------------------------------------------------------------------------------------------------------------------------------------
Living Benefit protection The Living Benefit provides a guaranteed minimum income benefit. The guaranteed minimum income
benefit provides income protection for you during the annuitant's life once you elect to annuitize the
contract.
- ------------------------------------------------------------------------------------------------------------------------------------
Contribution amounts o Initial minimum: $10,000
o Additional minimum: $500 (NQ, QP and Rollover TSA contracts)
$100 monthly and $300 quarterly under our automatic investment program
(NQ contracts)
$50 (IRA contracts)
--------------------------------------------------------------------------------------------------------
Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million.
- ------------------------------------------------------------------------------------------------------------------------------------
Credit We allocate your contributions to your account value. We allocate a credit to your account value
at the same time that we allocate your contributions. The amount of credit may be up to 5% of each
contribution, depending on certain factors. The credit is subject to recovery by us in certain limited
circumstances.
- ------------------------------------------------------------------------------------------------------------------------------------
Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Loans under Rollover TSA contracts
o Contract surrender
You may incur a withdrawal charge for certain withdrawals or if you surrender your contract.
You may also incur income tax and a tax penalty.
- ------------------------------------------------------------------------------------------------------------------------------------
Payout options o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout options
- ------------------------------------------------------------------------------------------------------------------------------------
8 Accumulator(R) Plus(SM) at a glance -- key features
- ------------------------------------------------------------------------------------------------------------------------------------
Additional features o Guaranteed minimum death benefit options
o Dollar cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually, and annually)
o Free transfers
o Waiver of withdrawal charge for disability, terminal illness, or confinement to a nursing home
o Protection Plus(SM), an optional death benefit available under certain contracts (subject to state
availability)
- ------------------------------------------------------------------------------------------------------------------------------------
Fees and charges o Daily charges on amounts invested in the variable investment options for mortality and expense
risks, administrative, and distribution charges at an annual rate of 1.40%.
o The charges for the guaranteed minimum death benefits range from 0.0% to 0.60%, annually, of
the applicable benefit base. The benefit base is described under "Your benefit base" in
"Contract features and benefits" later in this Prospectus.
o An annual charge of 0.35% of the account value for the Protection Plus(SM) optional death
benefit.
o An annual charge of 0.60% of the applicable benefit base charge for the optional Living Benefit
until you exercise your guaranteed minimum income benefit, elect another annuity payout or the
contract date anniversary after the annuitant reaches age 85, whichever occurs first. The
benefit base is described under "Your benefit base" in "Contract features and benefits" later
in this Prospectus.
o If your account value at the end of the contract year is less than $50,000, we deduct an annual
administrative charge equal to $30, or during the first two contract years, 2% of your account
value, if less. If your account value, on the contract date anniversary, is $50,000 or more, we
will not deduct the charge.
o No sales charge deducted at the time you make contributions.
o During the first eight contract years following a contribution, a charge will be deducted from
amounts that you withdraw that exceed 15% of your account value. We use the account value at
the beginning of each contract year to calculate the 15% amount available. The charge is 8% in
each of the first two contract years following a contribution; the charge is 7% in the third
and fourth contract years following a contribution; thereafter, it declines by 1% each year in
the fifth to eighth contract year following a contribution. There is no withdrawal charge in
the ninth and later contract years following a contribution. Certain other exemptions apply.
--------------------------------------------------------------------------------------------------------
The "contract date" is the effective date of a contract. This usually is the business day we
received the properly completed and signed application, along with any other required
documents, and your initial contribution. Your contract date appears in your contract. The
12-month period beginning on your contract date and each 12-month period after that date is a
"contract year." The end of each 12-month period is your "contract date anniversary." For
example, if your contract date is May 1, your contract date anniversary is April 30.
--------------------------------------------------------------------------------------------------------
o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as
premium taxes in your state. This charge is generally deducted from the amount applied to an
annuity payout option.
o We deduct a $350 annuity administrative fee from amounts applied to the Variable Immediate
Annuity payout options.
o Annual expenses of the Trusts' portfolios are calculated as a percentage of the average daily
net assets invested in each portfolio. These expenses include management fees ranging from
0.10% to 1.50% annually, 12b-1 fees of either 0.25% or 0.35% annually and other expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant issue ages NQ: 0-80
Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-80
QP: 20-70
- ------------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the
contract. In some cases, restrictions or exceptions apply. Also, all features
of the contract are not necessarily available in your state or at certain ages.
For more detailed information, we urge you to read the contents of this
Prospectus, as well as your contract. Please feel free to speak with your
financial professional, or call us, if you have any questions.
OTHER CONTRACTS
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, credits, fees and/or charges that are
different from those in the contracts offered by this Prospectus. Not every
contract is offered through the same distributor. The level of credits, fees,
Accumulator(R) Plus(SM) at a glance -- key features 9
charges and features may vary depending (among other things) on the
distribution costs associated with your particular distributor. Upon request,
your financial professional can show you information regarding other AXA
Equitable annuity contracts that he or she distributes. You can also contact us
to find out more about any of the AXA Equitable annuity contracts.
10 Accumulator(R) Plus(SM) at a glance -- key features
Fee table
- --------------------------------------------------------------------------------
The following tables describe the fees and expenses that you pay when owning
and surrendering the contract. Each of the charges and expenses is more fully
described in "Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay at the time you
surrender the contract or if you make certain withdrawals or apply your cash
value to certain payout options or if you purchase a Variable Immediate
Annuity. Charges designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state, may also apply. Charges for certain
features shown in the fee table are mutually exclusive.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value at the time you request certai transactions
- ------------------------------------------------------------------------------------------------------------------------------------
Maximum withdrawal charge as a percentage of contributions with-
drawn* (deducted if you surrender your contract, make certain
withdrawals, or apply your cash value to certain payout options).(1) 8.00%
Charge if you elect a Variable Immediate Annuity payout option $ 350
- ------------------------------------------------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not
including the underly- ing trust portfolio fees and expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Mortality and expense risks 0.90%*
Administrative 0.25%
Distribution 0.25%
-----
Total annual expenses 1.40%
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value on each contract date anniversary
- ------------------------------------------------------------------------------------------------------------------------------------
Maximum annual administrative charge
If your account value on a contract date anniversary is less than
$50,000(2) $ 30
If your account value on a contract date anniversary is $50,000
or more $ 0
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value each year if you elect the optional benefit
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum death benefit charge (calculated as a
percentage of the applicable benefit base. Deducted annually on each
contract date anniversary for which the benefit is in effect.)
Standard death benefit 0.00 %
Annual Ratchet to age 85 0.30% of the Annual Ratchet to age 85 benefit base
6% Roll-up to age 85 0.45% of the 6% roll-up to age 85 benefit base
Greater of 6% Roll-up to age 85 or Annual Ratchet to age 85 0.60% of the greater of the 6% roll-up to age 85
benefit base or the Annual Ratchet to age 85 benefit
base, as applicable
- ------------------------------------------------------------------------------------------------------------------------------------
Living Benefit charge (calculated as a percentage of the applicable
benefit base. Deducted annually on each contract date anniversary for
which the benefit is in effect.) 0.60 %
- ------------------------------------------------------------------------------------------------------------------------------------
Protection Plus(SM) benefit charge (calculated as a percentage of
the account value. Deducted annually on each contract date anniver-
sary for which the benefit is in effect.) 0.35 %
- ------------------------------------------------------------------------------------------------------------------------------------
* These charges compensate us for certain risks we assume and expenses we
incur under the contract. They also compensate us for the expense associated
with the credit. We expect to make a profit from these charges.
Fee table 11
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net
asset value each day. Therefore, they reduce the investment return of the
Portfolio and the related variable investment option. Actual fees and expenses
are likely to fluctuate from year to year. More detail concerning each
Portfolio's fees and expenses is contained in the Trust prospectus for the
Portfolio.
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2004 (expenses that are deducted Lowest Highest
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or
other expenses)(3) 0.55% 7.61%
- ------------------------------------------------------------------------------------------------------------------------------------
This table shows the fees and expenses for 2004 as an annual percentage of each
Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waivers Annual
Underlying Expenses and/or Expenses
Portfolio (Before Expense After
Manage- 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name ment Fees(4) Fees(5) Expenses(6) Expenses(7) Limitation) ments(8) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 0.29% 0.99% 1.63% (0.29)% 1.34%
AXA Conservative Allocation 0.10% 0.25% 0.41% 0.75% 1.51% (0.41)% 1.10%
AXA Conservative-Plus Allocation 0.10% 0.25% 0.30% 0.80% 1.45% (0.30)% 1.15%
AXA Moderate Allocation 0.10% 0.25% 0.16% 0.83% 1.34% (0.16)% 1.18%
AXA Moderate-Plus Allocation 0.10% 0.25% 0.20% 1.02% 1.57% (0.20)% 1.37%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.18% -- 1.05% -- 1.05%
AXA Premier VIP Core Bond 0.60% 0.25% 0.20% -- 1.05% (0.10)% 0.95%
AXA Premier VIP Health Care 1.20% 0.25% 0.40% -- 1.85% 0.00% 1.85%
AXA Premier VIP High Yield 0.58% 0.25% 0.18% -- 1.01% -- 1.01%
AXA Premier VIP International Equity 1.05% 0.25% 0.50% -- 1.80% 0.00% 1.80%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.32% -- 1.47% (0.12)% 1.35%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.26% -- 1.41% (0.06)% 1.35%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.25% -- 1.40% (0.05)% 1.35%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.25% -- 1.60% 0.00% 1.60%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.25% -- 1.60% 0.00% 1.60%
AXA Premier VIP Technology 1.20% 0.25% 0.40% -- 1.85% 0.00% 1.85%
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.47% 0.25% 0.05% -- 0.77% -- 0.77%
EQ/Alliance Growth and Income 0.56% 0.25% 0.05% -- 0.86% -- 0.86%
EQ/Alliance Intermediate
Government Securities 0.50% 0.25% 0.06% -- 0.81% -- 0.81%
EQ/Alliance International 0.73% 0.25% 0.12% -- 1.10% 0.00% 1.10%
EQ/Alliance Large Cap Growth* 0.90% 0.25% 0.05% -- 1.20% (0.10)% 1.10%
EQ/Alliance Quality Bond 0.50% 0.25% 0.06% -- 0.81% -- 0.81%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.06% -- 1.06% -- 1.06%
EQ/Bear Stearns Small Company Growth* 1.00% 0.25% 0.18% -- 1.43% (0.13)% 1.30%
EQ/Bernstein Diversified Value 0.63% 0.25% 0.07% -- 0.95% 0.00% 0.95%
EQ/Boston Advisors Equity Income* 0.75% 0.25% 0.21% -- 1.21% (0.16)% 1.05%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.29% -- 1.19% (0.14)% 1.05%
EQ/Capital Guardian Growth 0.65% 0.25% 0.09% -- 0.99% (0.04)% 0.95%
EQ/Capital Guardian International 0.85% 0.25% 0.17% -- 1.27% (0.07)% 1.20%
EQ/Capital Guardian Research 0.65% 0.25% 0.05% -- 0.95% 0.00% 0.95%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.05% -- 0.95% 0.00% 0.95%
EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.12% -- 0.97% (0.12)% 0.85%
EQ/Equity 500 Index 0.25% 0.25% 0.05% -- 0.55% -- 0.55%
EQ/Evergreen Omega 0.65% 0.25% 0.11% -- 1.01% (0.06)% 0.95%
EQ/FI Mid Cap 0.70% 0.25% 0.06% -- 1.01% (0.01)% 1.00%
EQ/FI Small/Mid Cap Value 0.74% 0.25% 0.08% -- 1.07% 0.00% 1.07%
EQ/International Growth 0.85% 0.25% 0.22% -- 1.32% 0.00% 1.32%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.06% -- 0.75% 0.00% 0.75%
EQ/JP Morgan Value Opportunities 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.08% -- 1.23% (0.08)% 1.15%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.05% -- 1.05% 0.00% 1.05%
EQ/Long Term Bond 0.50% 0.25% 0.25% -- 1.00% 0.00% 1.00%
- ------------------------------------------------------------------------------------------------------------------------------------
12 Fee table
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waivers Annual
Underlying Expenses and/or Expenses
Portfolio (Before Expense After
Manage- 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name ment Fees(4) Fees(5) Expenses(6) Expenses(7) Limitation) ments(8) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.19% -- 1.14% (0.09)% 1.05%
EQ/Marsico Focus 0.88% 0.25% 0.06% -- 1.19% (0.04)% 1.15%
EQ/Mercury Basic Value Equity 0.58% 0.25% 0.05% -- 0.88% 0.00% 0.88%
EQ/Mercury International Value 0.85% 0.25% 0.15% -- 1.25% 0.00% 1.25%
EQ/Mergers and Acquisitions 0.90% 0.25% 1.21% -- 2.36% (0.91)% 1.45%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.06% -- 0.96% -- 0.96%
EQ/MFS Investors Trust 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Money Market 0.34% 0.25% 0.05% -- 0.64% -- 0.64%
EQ/Montag & Caldwell Growth* 0.75% 0.25% 0.12% -- 1.12% 0.00% 1.12%
EQ/PIMCO Real Return 0.55% 0.25% 0.20% -- 1.00% (0.35)% 0.65%
EQ/Short Duration Bond 0.45% 0.25% 0.52% -- 1.22% (0.57)% 0.65%
EQ/Small Company Index 0.25% 0.25% 0.13% -- 0.63% 0.00% 0.63%
EQ/Small Company Value* 0.80% 0.25% 0.12% -- 1.17% 0.00% 1.17%
EQ/TCW Equity* 0.80% 0.25% 0.12% -- 1.17% (0.02)% 1.15%
EQ/UBS Growth and Income* 0.75% 0.25% 0.16% -- 1.16% (0.11)% 1.05%
EQ/Van Kampen Comstock 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Van Kampen Emerging Markets Equity* 1.15% 0.25% 0.40% -- 1.80% 0.00% 1.80%
EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.19% -- 1.14% (0.09)% 1.05%
EQ/Wells Fargo Montgomery Small Cap 0.85% 0.25% 6.51% -- 7.61% (6.33)% 1.28%
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity 1.50% 0.25% 2.35% -- 4.10% (0.96)% 3.14%
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate-- Class II** 0.76% 0.35% 0.26% -- 1.37% (0.10)% 1.27%
- ------------------------------------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject
to regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former
name.
** Expense information has been restored to reflect current fees in effect as
of November 1, 2004.
Notes:
(1) Deducted upon a withdrawal of amounts in excess of the 15% free withdrawal
amount, if applicable.
The withdrawal charge percentage we use is determined by the contract year in which you
make the withdrawal or surrender your contract. For each contribution, we consider the
contract year in which we receive that contribution to be "contract year 1") Contract
Year
1 ........................ 8.00%
2 ........................ 8.00%
3 ........................ 7.00%
4 ........................ 7.00%
5 ........................ 6.00%
6 ........................ 5.00%
7 ........................ 4.00%
8 ........................ 3.00%
9+ ....................... 0.00%
(2) During the first two contract years this charge, if it applies, is equal to
the lesser of $30 or 2% of your account value. Thereafter, the charge is
$30 for each contract year.
(3) "Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2004 and for the
underlying portfolios.
(4) The management fees for each Portfolio cannot be increased without a vote
of that Portfolio's shareholders. See footnote (8) for any expense
limitation agreement information.
(5) Portfolio shares are all subject to fees imposed under the distribution
plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1
under the Investment Company Act of 1940. The 12b-1 fee will not be
increased for the life of the contracts.
(6) Other expenses shown are those incurred in 2004. The amounts shown as
"Other Expenses" will fluctuate from year to year depending on actual
expenses. See footnote (8) for any expense limitation agreement
information.
(7) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and AXA
Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolio's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocations
as of 12/31/04. A "--" indicates that the listed portfolio does not invest
in underlying portfolios, i.e., it is not an allocation portfolio.
(8) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A "--" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver or reimbursement. AXA Equitable,
the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has
entered into Expense Limitation Agreements with respect to certain
Portfolios, which are effective through April 30, 2006. Under these
agreements AXA Equitable has agreed to waive or limit its fees and assume
other expenses of certain Portfolios, if necessary, in an amount that
limits each affected Portfolio's Total Annual Expenses (exclu-
Fee table 13
sive of interest, taxes, brokerage commissions, capitalized expenditures
and extraordinary expenses) to not more than specified amounts. Each
Portfolio may at a later date make a reimbursement to AXA Equitable for any
of the management fees waived or limited and other expenses assumed and
paid by AXA Equitable pursuant to the expense limitation agreement provided
that the Portfolio's current annual operating expenses do not exceed the
operating expense limit determined for such Portfolio. Morgan Stanley
Investment Management Inc., which does business in certain instances as
"Van Kampen," is the manager of The Universal Institutional Funds, Inc. --
U.S. Real Estate Portfolio -- Class II, and has voluntarily agreed to
reduce its management fee and/or reimburse the Portfolio so that total
annual operating expenses of the Portfolio (exclusive of investment related
expenses, such as foreign country tax expense and interest expense on
amounts borrowed) are not more than specified amounts. Additionally, the
distributor of The Universal Institutional Funds, Inc. has agreed to waive
a portion of the 12b-1 fee for Class II shares. Van Kampen and/or the
fund's distributor reserves the right to terminate any waiver and/or
reimbursement at any time without notice. Charles Schwab Investment
Management, Inc., the manager of the Laudus Variable Insurance Trust --
Laudus Rosenberg VIT Value Long/Short Equity Portfolio has voluntarily
agreed to reimburse expenses in excess of specified amounts. See the
Prospectus for each applicable underlying Trust for more information about
the arrangements. In addition, a portion of the brokerage commissions of
certain Portfolios of EQ Advisors Trust Portfolio and each AXA Premier VIP
Trust Portfolio is used to reduce the applicable Portfolio's expenses. If
the above table reflected both the expense limitation arrangements plus the
portion of the brokerage commissions used to reduce portfolio expenses, the
net expenses would be as shown in the table below:
---------------------------------------------------------------------------
Portfolio Name
---------------------------------------------------------------------------
AXA Moderate Allocation 1.17%
AXA Premier VIP Aggressive Equity 0.93%
AXA Premier VIP Health Care 1.81%
AXA Premier VIP International Equity 1.75%
AXA Premier VIP Large Cap Core Equity 1.32%
AXA Premier VIP Large Cap Growth 1.30%
AXA Premier VIP Large Cap Value 1.21%
AXA Premier VIP Small/Mid Cap Growth 1.50%
AXA Premier VIP Small/Mid Cap Value 1.54%
AXA Premier VIP Technology 1.75%
EQ/Alliance Common Stock 0.68%
EQ/Alliance Growth and Income 0.80%
EQ/Alliance International 1.08%
EQ/Alliance Large Cap Growth 1.04%
EQ/Alliance Small Cap Growth 0.98%
EQ/Calvert Socially Responsible 1.00%
EQ/Capital Guardian Growth 0.67%
EQ/Capital Guardian International 1.17%
EQ/Capital Guardian Research 0.90%
EQ/Capital Guardian U.S. Equity 0.93%
EQ/Evergreen Omega 0.57%
EQ/FI Mid Cap 0.96%
EQ/FI Small/Mid Cap Value 1.05%
EQ/JP Morgan Value Opportunities 0.76%
EQ/Lazard Small Cap Value 0.86%
EQ/Marsico Focus 1.12%
EQ/Mercury Basic Value Equity 0.86%
EQ/Mercury International Value 1.18%
EQ/MFS Emerging Growth Companies 0.91%
EQ/MFS Investors Trust 0.91%
EQ/Small Company Value 1.16%
EQ/TCW Equity 1.14%
EQ/Van Kampen Emerging Markets Equity 1.75%
EQ/Wells Fargo Montgomery Small Cap 1.26%
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses).
The example below shows the expenses that a hypothetical contract owner (who
has elected the Living Benefit with the enhanced death benefit that provides
for the greater of the 6% Roll-up or the Annual Ratchet to age 85 and
Protection Plus(SM)) would pay in the situations illustrated. The annual
administrative charge is based on the charges that apply to a mix of estimated
contract sizes, resulting in an estimated administrative charge for the purpose
of these examples of $1.10 per $10,000.
The fixed maturity options and guaranteed interest option are not covered by
the examples. However, the annual administrative charge, the withdrawal charge,
the charge for any optional benefits and the charge if you elect a Variable
Immediate Annuity payout option do apply to the fixed maturity options and
guaranteed interest option. A market value adjustment (up or down) may apply as
a result of a withdrawal, transfer, or surrender of amounts from a fixed
maturity option.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes that your investment has a 5%
return each year. This example should not be considered a representation of
past or future expenses for each option. Actual expenses may be greater or less
than those shown. Similarly, the annual rate of return assumed in the example
is not an estimate or guarantee of future investment performance.
Although your actual costs may be higher or lower, based on these assumptions,
your costs would be:
14 Fee table
- ----------------------------------------------------------------------------------------------------------------------------------
If you surrender your contract at the end of the
applicable time period
---------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ----------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,297.46 $ 2,217.87 $ 3,173.64 $ 5,379.51
AXA Conservative Allocation $ 1,284.35 $ 2,179.85 $ 3,112.52 $ 5,269.64
AXA Conservative-Plus Allocation $ 1,277.80 $ 2,160.80 $ 3,081.84 $ 5,214.17
AXA Moderate Allocation $ 1,265.57 $ 2,125.17 $ 3,024.35 $ 5,109.68
AXA Moderate-Plus Allocation $ 1,290.91 $ 2,198.87 $ 3,143.12 $ 5,324.75
AXA Premier VIP Aggressive Equity $ 1,234.28 $ 2,033.31 $ 2,875.34 $ 4,835.34
AXA Premier VIP Core Bond $ 1,234.28 $ 2,033.31 $ 2,875.34 $ 4,835.34
AXA Premier VIP Health Care $ 1,321.48 $ 2,287.33 $ 3,284.86 $ 5,577.33
AXA Premier VIP High Yield $ 1,229.97 $ 2,020.54 $ 2,854.52 $ 4,796.59
AXA Premier VIP International Equity $ 1,316.02 $ 2,271.57 $ 3,259.68 $ 5,532.78
AXA Premier VIP Large Cap Core Equity $ 1,279.99 $ 2,167.15 $ 3,092.08 $ 5,232.70
AXA Premier VIP Large Cap Growth $ 1,273.44 $ 2,148.08 $ 3,061.34 $ 5,177.00
AXA Premier VIP Large Cap Value $ 1,272.34 $ 2,144.90 $ 3,056.21 $ 5,167.68
AXA Premier VIP Small/Mid Cap Growth $ 1,294.18 $ 2,208.37 $ 3,158.39 $ 5,352.18
AXA Premier VIP Small/Mid Cap Value $ 1,294.18 $ 2,208.37 $ 3,158.39 $ 5,352.18
AXA Premier VIP Technology $ 1,321.48 $ 2,287.33 $ 3,284.86 $ 5,577.33
- ----------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 1,204.08 $ 1,943.67 $ 2,728.84 $ 4,560.65
EQ/Alliance Growth and Income $ 1,213.79 $ 1,972.54 $ 2,776.12 $ 4,649.83
EQ/Alliance Intermediate Government Securities $ 1,208.39 $ 1,956.51 $ 2,749.88 $ 4,600.39
EQ/Alliance International $ 1,239.68 $ 2,049.27 $ 2,901.31 $ 4,883.54
EQ/Alliance Large Cap Growth* $ 1,250.51 $ 2,081.16 $ 2,953.12 $ 4,979.22
EQ/Alliance Quality Bond $ 1,208.39 $ 1,956.51 $ 2,749.88 $ 4,600.39
EQ/Alliance Small Cap Growth $ 1,235.36 $ 2,036.51 $ 2,880.54 $ 4,845.00
EQ/Bear Stearns Small Company Growth* $ 1,275.62 $ 2,154.44 $ 3,071.59 $ 5,195.61
EQ/Bernstein Diversified Value $ 1,223.50 $ 2,001.36 $ 2,823.22 $ 4,738.16
EQ/Boston Advisors Equity Income* $ 1,251.60 $ 2,084.35 $ 2,958.29 $ 4,988.74
EQ/Calvert Socially Responsible $ 1,249.41 $ 2,077.96 $ 2,947.94 $ 4,969.69
EQ/Capital Guardian Growth $ 1,227.81 $ 2,014.15 $ 2,844.10 $ 4,777.16
EQ/Capital Guardian International $ 1,258.15 $ 2,103.50 $ 2,989.30 $ 5,045.63
EQ/Capital Guardian Research $ 1,223.50 $ 2,001.36 $ 2,823.22 $ 4,738.16
EQ/Capital Guardian U.S. Equity $ 1,223.50 $ 2,001.36 $ 2,823.22 $ 4,738.16
EQ/Caywood-Scholl High Yield Bond $ 1,225.65 $ 2,007.75 $ 2,833.66 $ 4,757.68
EQ/Equity 500 Index $ 1,180.35 $ 1,872.85 $ 2,612.47 $ 4,339.09
EQ/Evergreen Omega $ 1,229.97 $ 2,020.54 $ 2,854.52 $ 4,796.59
EQ/FI Mid Cap $ 1,229.97 $ 2,020.54 $ 2,854.52 $ 4,796.59
EQ/FI Small/Mid Cap Value $ 1,236.44 $ 2,039.70 $ 2,885.73 $ 4,854.65
EQ/International Growth $ 1,263.61 $ 2,119.44 $ 3,015.08 $ 5,092.77
EQ/J.P. Morgan Core Bond $ 1,201.92 $ 1,937.24 $ 2,718.31 $ 4,540.72
EQ/JP Morgan Value Opportunities $ 1,223.50 $ 2,001.36 $ 2,823.22 $ 4,738.16
EQ/Janus Large Cap Growth $ 1,253.78 $ 2,090.74 $ 2,968.64 $ 5,007.74
EQ/Lazard Small Cap Value $ 1,234.28 $ 2,033.31 $ 2,875.34 $ 4,835.34
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
If you annuitize at the end of the applicable time period
---------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ----------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 847.46 $ 1,867.87 $ 2,923.64 $ 5,729.51
AXA Conservative Allocation $ 834.35 $ 1,829.85 $ 2,862.52 $ 5,619.64
AXA Conservative-Plus Allocation $ 827.80 $ 1,810.80 $ 2,831.84 $ 5,564.17
AXA Moderate Allocation $ 815.57 $ 1,775.17 $ 2,774.35 $ 5,459.68
AXA Moderate-Plus Allocation $ 840.91 $ 1,848.87 $ 2,893.12 $ 5,674.75
AXA Premier VIP Aggressive Equity $ 784.28 $ 1,683.31 $ 2,625.34 $ 5,185.34
AXA Premier VIP Core Bond $ 784.28 $ 1,683.31 $ 2,625.34 $ 5,185.34
AXA Premier VIP Health Care $ 871.48 $ 1,937.33 $ 3,034.86 $ 5,927.33
AXA Premier VIP High Yield $ 779.97 $ 1,670.54 $ 2,604.52 $ 5,146.59
AXA Premier VIP International Equity $ 866.02 $ 1,921.57 $ 3,009.68 $ 5,882.78
AXA Premier VIP Large Cap Core Equity $ 829.99 $ 1,817.15 $ 2,842.08 $ 5,582.70
AXA Premier VIP Large Cap Growth $ 823.44 $ 1,798.08 $ 2,811.34 $ 5,527.00
AXA Premier VIP Large Cap Value $ 822.34 $ 1,794.90 $ 2,806.21 $ 5,517.68
AXA Premier VIP Small/Mid Cap Growth $ 844.18 $ 1,858.37 $ 2,908.39 $ 5,702.18
AXA Premier VIP Small/Mid Cap Value $ 844.18 $ 1,858.37 $ 2,908.39 $ 5,702.18
AXA Premier VIP Technology $ 871.48 $ 1,937.33 $ 3,034.86 $ 5,927.33
- ----------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 754.08 $ 1,593.67 $ 2,478.84 $ 4,910.65
EQ/Alliance Growth and Income $ 763.79 $ 1,622.54 $ 2,526.12 $ 4,999.83
EQ/Alliance Intermediate Government Securities $ 758.39 $ 1,606.51 $ 2,499.88 $ 4,950.39
EQ/Alliance International $ 789.68 $ 1,699.27 $ 2,651.31 $ 5,233.54
EQ/Alliance Large Cap Growth* $ 800.51 $ 1,731.16 $ 2,703.12 $ 5,329.22
EQ/Alliance Quality Bond $ 758.39 $ 1,606.51 $ 2,499.88 $ 4,950.39
EQ/Alliance Small Cap Growth $ 785.36 $ 1,686.51 $ 2,630.54 $ 5,195.00
EQ/Bear Stearns Small Company Growth* $ 825.62 $ 1,804.44 $ 2,821.59 $ 5,545.61
EQ/Bernstein Diversified Value $ 773.50 $ 1,651.36 $ 2,573.22 $ 5,088.16
EQ/Boston Advisors Equity Income* $ 801.60 $ 1,734.35 $ 2,708.29 $ 5,338.74
EQ/Calvert Socially Responsible $ 799.41 $ 1,727.96 $ 2,697.94 $ 5,319.69
EQ/Capital Guardian Growth $ 777.81 $ 1,664.15 $ 2,594.10 $ 5,127.16
EQ/Capital Guardian International $ 808.15 $ 1,753.50 $ 2,739.30 $ 5,395.63
EQ/Capital Guardian Research $ 773.50 $ 1,651.36 $ 2,573.22 $ 5,088.16
EQ/Capital Guardian U.S. Equity $ 773.50 $ 1,651.36 $ 2,573.22 $ 5,088.16
EQ/Caywood-Scholl High Yield Bond $ 775.65 $ 1,657.75 $ 2,583.66 $ 5,107.68
EQ/Equity 500 Index $ 730.35 $ 1,522.85 $ 2,362.47 $ 4,689.09
EQ/Evergreen Omega $ 779.97 $ 1,670.54 $ 2,604.52 $ 5,146.59
EQ/FI Mid Cap $ 779.97 $ 1,670.54 $ 2,604.52 $ 5,146.59
EQ/FI Small/Mid Cap Value $ 786.44 $ 1,689.70 $ 2,635.73 $ 5,204.65
EQ/International Growth $ 813.61 $ 1,769.44 $ 2,765.08 $ 5,442.77
EQ/J.P. Morgan Core Bond $ 751.92 $ 1,587.24 $ 2,468.31 $ 4,890.72
EQ/JP Morgan Value Opportunities $ 773.50 $ 1,651.36 $ 2,573.22 $ 5,088.16
EQ/Janus Large Cap Growth $ 803.78 $ 1,740.74 $ 2,718.64 $ 5,357.74
EQ/Lazard Small Cap Value $ 784.28 $ 1,683.31 $ 2,625.34 $ 5,185.34
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end of the
applicable time period
---------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ----------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 497.46 $ 1,517.87 $ 2,573.64 $ 5,379.51
AXA Conservative Allocation $ 484.35 $ 1,479.85 $ 2,512.52 $ 5,269.64
AXA Conservative-Plus Allocation $ 477.80 $ 1,460.80 $ 2,481.84 $ 5,214.17
AXA Moderate Allocation $ 465.57 $ 1,425.17 $ 2,424.35 $ 5,109.68
AXA Moderate-Plus Allocation $ 490.91 $ 1,498.87 $ 2,543.12 $ 5,324.75
AXA Premier VIP Aggressive Equity $ 434.28 $ 1,333.31 $ 2,275.34 $ 4,835.34
AXA Premier VIP Core Bond $ 434.28 $ 1,333.31 $ 2,275.34 $ 4,835.34
AXA Premier VIP Health Care $ 521.48 $ 1,587.33 $ 2,684.86 $ 5,577.33
AXA Premier VIP High Yield $ 429.97 $ 1,320.54 $ 2,254.52 $ 4,796.59
AXA Premier VIP International Equity $ 516.02 $ 1,571.57 $ 2,659.68 $ 5,532.78
AXA Premier VIP Large Cap Core Equity $ 479.99 $ 1,467.15 $ 2,492.08 $ 5,232.70
AXA Premier VIP Large Cap Growth $ 473.44 $ 1,448.08 $ 2,461.34 $ 5,177.00
AXA Premier VIP Large Cap Value $ 472.34 $ 1,444.90 $ 2,456.21 $ 5,167.68
AXA Premier VIP Small/Mid Cap Growth $ 494.18 $ 1,508.37 $ 2,558.39 $ 5,352.18
AXA Premier VIP Small/Mid Cap Value $ 494.18 $ 1,508.37 $ 2,558.39 $ 5,352.18
AXA Premier VIP Technology $ 521.48 $ 1,587.33 $ 2,684.86 $ 5,577.33
- ----------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 404.08 $ 1,243.67 $ 2,128.84 $ 4,560.65
EQ/Alliance Growth and Income $ 413.79 $ 1,272.54 $ 2,176.12 $ 4,649.83
EQ/Alliance Intermediate Government Securities $ 408.39 $ 1,256.51 $ 2,149.88 $ 4,600.39
EQ/Alliance International $ 439.68 $ 1,349.27 $ 2,301.31 $ 4,883.54
EQ/Alliance Large Cap Growth* $ 450.51 $ 1,381.16 $ 2,353.12 $ 4,979.22
EQ/Alliance Quality Bond $ 408.39 $ 1,256.51 $ 2,149.88 $ 4,600.39
EQ/Alliance Small Cap Growth $ 435.36 $ 1,336.51 $ 2,280.54 $ 4,845.00
EQ/Bear Stearns Small Company Growth* $ 475.62 $ 1,454.44 $ 2,471.59 $ 5,195.61
EQ/Bernstein Diversified Value $ 423.50 $ 1,301.36 $ 2,223.22 $ 4,738.16
EQ/Boston Advisors Equity Income* $ 451.60 $ 1,384.35 $ 2,358.29 $ 4,988.74
EQ/Calvert Socially Responsible $ 449.41 $ 1,377.96 $ 2,347.94 $ 4,969.69
EQ/Capital Guardian Growth $ 427.81 $ 1,314.15 $ 2,244.10 $ 4,777.16
EQ/Capital Guardian International $ 458.15 $ 1,403.50 $ 2,389.30 $ 5,045.63
EQ/Capital Guardian Research $ 423.50 $ 1,301.36 $ 2,223.22 $ 4,738.16
EQ/Capital Guardian U.S. Equity $ 423.50 $ 1,301.36 $ 2,223.22 $ 4,738.16
EQ/Caywood-Scholl High Yield Bond $ 425.65 $ 1,307.75 $ 2,233.66 $ 4,757.68
EQ/Equity 500 Index $ 380.35 $ 1,172.85 $ 2,012.47 $ 4,339.09
EQ/Evergreen Omega $ 429.97 $ 1,320.54 $ 2,254.52 $ 4,796.59
EQ/FI Mid Cap $ 429.97 $ 1,320.54 $ 2,254.52 $ 4,796.59
EQ/FI Small/Mid Cap Value $ 436.44 $ 1,339.70 $ 2,285.73 $ 4,854.65
EQ/International Growth $ 463.61 $ 1,419.44 $ 2,415.08 $ 5,092.77
EQ/J.P. Morgan Core Bond $ 401.92 $ 1,237.24 $ 2,118.31 $ 4,540.72
EQ/JP Morgan Value Opportunities $ 423.50 $ 1,301.36 $ 2,223.22 $ 4,738.16
EQ/Janus Large Cap Growth $ 453.78 $ 1,390.74 $ 2,368.64 $ 5,007.74
EQ/Lazard Small Cap Value $ 434.28 $ 1,333.31 $ 2,275.34 $ 4,835.34
- ----------------------------------------------------------------------------------------------------------------------------------
Fee table 15
- ----------------------------------------------------------------------------------------------------------------------------------
If you surrender your contract at the end of the
applicable time period
---------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 1,228.89 $ 2,017.34 $ 2,849.31 $ 4,786.88
EQ/Lord Abbett Growth and Income $ 1,238.60 $ 2,046.08 $ 2,896.12 $ 4,873.92
EQ/Lord Abbett Large Cap Core $ 1,238.60 $ 2,046.08 $ 2,896.12 $ 4,873.92
EQ/Lord Abbett Mid Cap Value $ 1,243.99 $ 2,062.02 $ 2,922.04 $ 4,921.92
EQ/Marsico Focus $ 1,249.41 $ 2,077.96 $ 2,947.94 $ 4,969.69
EQ/Mercury Basic Value Equity $ 1,215.95 $ 1,978.95 $ 2,786.61 $ 4,669.53
EQ/Mercury International Value $ 1,255.97 $ 2,097.12 $ 2,978.97 $ 5,026.71
EQ/Mergers and Acquisitions $ 1,377.16 $ 2,447.08 $ 3,538.54 $ 6,018.31
EQ/MFS Emerging Growth Companies $ 1,224.58 $ 2,004.56 $ 2,828.44 $ 4,747.93
EQ/MFS Investors Trust $ 1,223.50 $ 2,001.36 $ 2,823.22 $ 4,738.16
EQ/Money Market $ 1,190.05 $ 1,901.86 $ 2,660.21 $ 4,430.34
EQ/Montag & Caldwell Growth* $ 1,241.84 $ 2,055.64 $ 2,911.68 $ 4,902.75
EQ/PIMCO Real Return $ 1,228.89 $ 2,017.34 $ 2,849.31 $ 4,786.88
EQ/Short Duration Bond $ 1,252.69 $ 2,087.54 $ 2,963.47 $ 4,998.24
EQ/Small Company Index $ 1,188.98 $ 1,898.64 $ 2,654.92 $ 4,420.25
EQ/Small Company Value* $ 1,247.23 $ 2,071.57 $ 2,937.57 $ 4,950.60
EQ/TCW Equity* $ 1,247.23 $ 2,071.57 $ 2,937.57 $ 4,950.60
EQ/UBS Growth and Income* $ 1,246.15 $ 2,068.39 $ 2,932.40 $ 4,941.05
EQ/Van Kampen Comstock $ 1,238.60 $ 2,046.08 $ 2,896.12 $ 4,873.92
EQ/Van Kampen Emerging Markets Equity* $ 1,316.02 $ 2,271.57 $ 3,259.68 $ 5,532.78
EQ/Van Kampen Mid Cap Growth $ 1,243.99 $ 2,062.02 $ 2,922.04 $ 4,921.92
EQ/Wells Fargo Montgomery Small Cap $ 1,950.40 $ 3,990.74 $ 5,834.56 $ 9,356.42
- ----------------------------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ----------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,567.15 $ 2,978.89 $ 4,361.64 $ 7,350.86
- ----------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II $ 1,269.07 $ 2,135.36 $ 3,040.80 $ 5,139.67
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
If you annuitize at the end of the applicable time period
---------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 778.89 $ 1,667.34 $ 2,599.31 $ 5,136.88
EQ/Lord Abbett Growth and Income $ 788.60 $ 1,696.08 $ 2,646.12 $ 5,223.92
EQ/Lord Abbett Large Cap Core $ 788.60 $ 1,696.08 $ 2,646.12 $ 5,223.92
EQ/Lord Abbett Mid Cap Value $ 793.99 $ 1,712.02 $ 2,672.04 $ 5,271.92
EQ/Marsico Focus $ 799.41 $ 1,727.96 $ 2,697.94 $ 5,319.69
EQ/Mercury Basic Value Equity $ 765.95 $ 1,628.95 $ 2,536.61 $ 5,019.53
EQ/Mercury International Value $ 805.97 $ 1,747.12 $ 2,728.97 $ 5,376.71
EQ/Mergers and Acquisitions $ 927.16 $ 2,097.08 $ 3,288.54 $ 6,368.31
EQ/MFS Emerging Growth Companies $ 774.58 $ 1,654.56 $ 2,578.44 $ 5,097.93
EQ/MFS Investors Trust $ 773.50 $ 1,651.36 $ 2,573.22 $ 5,088.16
EQ/Money Market $ 740.05 $ 1,551.86 $ 2,410.21 $ 4,780.34
EQ/Montag & Caldwell Growth* $ 791.84 $ 1,705.64 $ 2,661.68 $ 5,252.75
EQ/PIMCO Real Return $ 778.89 $ 1,667.34 $ 2,599.31 $ 5,136.88
EQ/Short Duration Bond $ 802.69 $ 1,737.54 $ 2,713.47 $ 5,348.24
EQ/Small Company Index $ 738.98 $ 1,548.64 $ 2,404.92 $ 4,770.25
EQ/Small Company Value* $ 797.23 $ 1,721.57 $ 2,687.57 $ 5,300.60
EQ/TCW Equity* $ 797.23 $ 1,721.57 $ 2,687.57 $ 5,300.60
EQ/UBS Growth and Income* $ 796.15 $ 1,718.39 $ 2,682.40 $ 5,291.05
EQ/Van Kampen Comstock $ 788.60 $ 1,696.08 $ 2,646.12 $ 5,223.92
EQ/Van Kampen Emerging Markets Equity* $ 866.02 $ 1,921.57 $ 3,009.68 $ 5,882.78
EQ/Van Kampen Mid Cap Growth $ 793.99 $ 1,712.02 $ 2,672.04 $ 5,271.92
EQ/Wells Fargo Montgomery Small Cap $ 1,500.40 $ 3,640.74 $ 5,584.56 $ 9,706.42
- ----------------------------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ----------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,117.15 $ 2,628.89 $ 4,111.64 $ 7,700.86
- ----------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II $ 819.07 $ 1,785.36 $ 2,790.80 $ 5,489.67
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end of the
applicable time period
---------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 428.89 $ 1,317.34 $ 2,249.31 $ 4,786.88
EQ/Lord Abbett Growth and Income $ 438.60 $ 1,346.08 $ 2,296.12 $ 4,873.92
EQ/Lord Abbett Large Cap Core $ 438.60 $ 1,346.08 $ 2,296.12 $ 4,873.92
EQ/Lord Abbett Mid Cap Value $ 443.99 $ 1,362.02 $ 2,322.04 $ 4,921.92
EQ/Marsico Focus $ 449.41 $ 1,377.96 $ 2,347.94 $ 4,969.69
EQ/Mercury Basic Value Equity $ 415.95 $ 1,278.95 $ 2,186.61 $ 4,669.53
EQ/Mercury International Value $ 455.97 $ 1,397.12 $ 2,378.97 $ 5,026.71
EQ/Mergers and Acquisitions $ 577.16 $ 1,747.08 $ 2,938.54 $ 6,018.31
EQ/MFS Emerging Growth Companies $ 424.58 $ 1,304.56 $ 2,228.44 $ 4,747.93
EQ/MFS Investors Trust $ 423.50 $ 1,301.36 $ 2,223.22 $ 4,738.16
EQ/Money Market $ 390.05 $ 1,201.86 $ 2,060.21 $ 4,430.34
EQ/Montag & Caldwell Growth* $ 441.84 $ 1,355.64 $ 2,311.68 $ 4,902.75
EQ/PIMCO Real Return $ 428.89 $ 1,317.34 $ 2,249.31 $ 4,786.88
EQ/Short Duration Bond $ 452.69 $ 1,387.54 $ 2,363.47 $ 4,998.24
EQ/Small Company Index $ 388.98 $ 1,198.64 $ 2,054.92 $ 4,420.25
EQ/Small Company Value* $ 447.23 $ 1,371.57 $ 2,337.57 $ 4,950.60
EQ/TCW Equity* $ 447.23 $ 1,371.57 $ 2,337.57 $ 4,950.60
EQ/UBS Growth and Income* $ 446.15 $ 1,368.39 $ 2,332.40 $ 4,941.05
EQ/Van Kampen Comstock $ 438.60 $ 1,346.08 $ 2,296.12 $ 4,873.92
EQ/Van Kampen Emerging Markets Equity* $ 516.02 $ 1,571.57 $ 2,659.68 $ 5,532.78
EQ/Van Kampen Mid Cap Growth $ 443.99 $ 1,362.02 $ 2,322.04 $ 4,921.92
EQ/Wells Fargo Montgomery Small Cap $ 1,150.40 $ 3,290.74 $ 5,234.56 $ 9,356.42
- ----------------------------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ----------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 767.15 $ 2,278.89 $ 3,761.64 $ 7,350.86
- ----------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II $ 469.07 $ 1,435.36 $ 2,440.80 $ 5,139.67
- ----------------------------------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject
to regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former
name.
16 Fee table
CONDENSED FINANCIAL INFORMATION
Please see Appendix I at the end of this Prospectus for the unit values and the
number of units outstanding as of the end of the periods shown for each of the
variable investment options available as of December 31, 2004.
Fee table 17
1. Contract features and benefits
- --------------------------------------------------------------------------------
HOW YOU CAN CONTRIBUTE TO YOUR CONTRACT
You may make additional contributions of at least $500 each for NQ, QP and
Rollover TSA contracts and $50 each for IRA contracts, subject to limitations
noted below. The following table summarizes our rules regarding contributions
to your contract. All ages in the table refer to the age of the annuitant named
in the contract. Initial contribution amounts are provided for informational
purposes only. This contract is no longer available to new purchasers.
We may refuse to accept any contribution if the sum of all contributions under
all Accumulator(R) series contracts with the same annuitant would then total
more than $1,500,000. We reserve the right to limit aggregate contributions
made after the first contract year to 150% of first-year contributions. We may
also refuse to accept any contribution if the sum of all contributions under
all AXA Equitable annuity accumulation contracts that you own would then total
more than $2,500,000.
- --------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining
contract benefits. The annuitant is not necessarily the contract owner.
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant Limitations on
Contract type issue ages Source of contributions contributions
- ------------------------------------------------------------------------------------------------------------------------------------
NQ 0 through 80 o After-tax money. o No additional contributions after attainment
of age 81 or, if later, the first contract
o Paid to us by check or transfer of contract anniversary.
value in a tax-deferred exchange under
Section 1035 of the Internal Revenue
Code.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover IRA 20 through 80 o Eligible rollover distributions from TSA o No contributions after attainment of age 81
contracts or other 403(b) arrangements, or, if later, the first contract anniversary.
qualified plans, and governmental
employer 457(b) plans. o Contributions after age 70-1/2 must be net of
required minimum distributions.
o Rollovers from another traditional indi-
vidual retirement arrangement. o Although we accept regular IRA contribu-
tions (limited to $4,000 for 2005; same for
o Direct custodian-to-custodian transfers 2006) under Rollover IRA contracts, we
from another traditional individual retire- intend that this contract be used primarily
ment arrangement. for rollover and direct transfer contributions.
o Regular IRA contributions. o Additional catch-up contributions of up to
$500 can be made for the calendar year
o Additional "catch-up" contributions. 2005 ($1,000 for 2006) where the owner is
at least age 50 but under age 70-1/2 at any
time during the calendar year for which the
contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
18 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant Limitations on
Contract type issue ages Source of contributions contributions
- ------------------------------------------------------------------------------------------------------------------------------------
Roth Conversion 20 through 80 o Rollovers from another Roth IRA. o No additional rollover or direct transfer
IRA contributions after attainment of age 81 or,
o Conversion rollovers from a traditional if later, the first contract anniversary.
IRA.
o Conversion rollovers after age 70-1/2 must be
o Direct transfers from another Roth IRA. net of required minimum distributions for
the traditional IRA you are rolling over.
o Regular Roth IRA contributions.
o Additional catch-up contributions. o You cannot roll over funds from a traditional
IRA if your adjusted gross income is
$100,000 or more.
o Although we accept regular Roth IRA con-
tributions (limited to $4,000 for 2005; same
for 2006) under the Roth IRA contracts, we
intend that this contract be used primarily
for rollover and direct transfer contributions.
o Additional catch-up contributions of up to
$500 can be made for the calendar year
2005 ($1,000 for 2006) where the owner is
at least age 50 at any time during the cal-
endar year for which the contribution is
made.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover TSA 20 through 80 o Direct transfers of pre-tax funds from o Additional rollover or direct transfer contri-
another contract or arrangement under butions may be made up to attainment of
Section 403(b) of the Internal Revenue age 81 or, if later, the first contract
Code, complying with IRS Revenue Ruling anniversary.
90-24.
o Rollover or direct transfer contributions after
o Eligible rollover distributions of pre-tax age 70-1/2 must be net of any required mini-
funds from other 403(b) plans. Subse- mum distributions.
quent contributions may also be rollovers
from qualified plans, governmental o We do not accept employer-remitted
employer 457(b) plans and traditional contributions.
IRAs.
- ------------------------------------------------------------------------------------------------------------------------------------
QP 20 through 70 o Only transfer contributions from an exist- o We do not accept regular ongoing payroll
ing defined contribution qualified plan contributions.
trust.
o Only one additional transfer contribution
o The plan must be qualified under Section may be made during a contract year.
401(a) of the Internal Revenue Code.
o No additional transfer contributions after
o For 401(k) plans, transferred contributions attainment of age 71 or, if later, the first
may only include employee pre-tax contract anniversary.
contributions.
o A separate QP contract must be established
for each plan participant.
o We do not accept employer-remitted
contributions.
o We do not accept contributions from
defined benefit plans.
See Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts.
- ------------------------------------------------------------------------------------------------------------------------------------
See "Tax information" later in this Prospectus for a more detailed discussion
of sources of contributions and certain contribution limitations. For
information on when contributions are credited under your contract see "Dates
and prices at which contract events occur" in "More information" later in this
Prospectus.
Contract features and benefits 19
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from the owner. A joint
owner may also be named. Only natural persons can be joint owners. This means
that an entity such as a corporation cannot be a joint owner. In general we
will not permit a contract to be owned by a minor unless it is pursuant to the
Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act in your
state.
Under all IRA and Rollover TSA contracts, the owner and annuitant must be the
same person. In some cases, an IRA contract may be held in a custodial
individual retirement account for the benefit of the individual annuitant. This
option may not be available under your contract.
Under QP contracts, the owner must be the trustee of the qualified plan and the
annuitant must be the plan participant/employee. See Appendix II at the end of
this Prospectus for more information on QP contracts.
- --------------------------------------------------------------------------------
A participant is an individual who is currently, or was formerly, participating
in an eligible employer's qualified plan or TSA plan.
- --------------------------------------------------------------------------------
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be by check drawn on a U.S. bank, in
U.S. dollars, and made payable to AXA Equitable. We may also apply
contributions made pursuant to a Section 1035 tax-free exchange or a direct
transfer. We do not accept third-party checks endorsed to us except for
rollover contributions, tax-free exchanges or trustee checks that involve no
refund. All checks are subject to our ability to collect the funds. We reserve
the right to reject a payment if it is received in an unacceptable form.
For your convenience, we will accept contributions by wire transmittal from
certain broker-dealers who have agreements with us for this purpose, including
circumstances under which such contributions are considered received by us when
your order is taken by such broker-dealers. Additional contributions may also
be made under our automatic investment program. These methods of payment are
discussed in detail in "More information" later in this Prospectus.
- --------------------------------------------------------------------------------
Our "business day" is generally any day the New York Stock Exchange is open for
trading and generally ends at 4:00 p.m. Eastern Time. A business day does not
include a day we choose not to open due to emergency conditions. We may also
close early due to emergency conditions.
- --------------------------------------------------------------------------------
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
Your investment options are the variable investment options, the guaranteed
interest option and the fixed maturity options.
VARIABLE INVESTMENT OPTIONS
Your investment results in any one of the variable investment options will
depend on the investment performance of the underlying portfolios. You can lose
your principal when investing in the variable investment options. In periods of
poor market performance, the net return, after charges and expenses, may result
in negative yields, including for the EQ/Money Market variable investment
option. Listed below are the currently available portfolios, their investment
objectives and their advisers.
- --------------------------------------------------------------------------------
You can choose from among the variable investment options, the guaranteed
interest option and the fixed maturity options.
- --------------------------------------------------------------------------------
20 Contract features and benefits
PORTFOLIOS OF THE TRUSTS
You should note that some portfolios have objectives and strategies that are
substantially similar to those of certain funds that are purchased directly
rather than under a variable insurance product such as the Accumulator(R)
Plus(SM) contract. These portfolios may even have the same manager(s) and/or a
similar name. However, there are numerous factors that can contribute to
differences in performance between two investments, particularly over short
periods of time. Such factors include the timing of stock purchases and sales;
differences in fund cash flows; and specific strategies employed by the
portfolio manager.
AXA Equitable serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. As such, AXA Equitable oversees
the activities of the investment advisers with respect to the Trusts and is
responsible for retaining or discontinuing the services of those advisers. The
advisers for these Portfolios, listed in the chart below, are those who make the
investment decisions for each Portfolio. The chart also indicates the investment
manager for each of the other Portfolios.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o AXA Equitable
ALLOCATION greater emphasis on current income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o AXA Equitable
ALLOCATION with a greater emphasis on capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management
EQUITY L.P.
o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of risk.
o Pacific Investment Management
Company LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o AIM Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company,
LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of current o Alliance Capital Management L.P.
income and capital appreciation. o Pacific Investment Management
Company LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P.,
INTERNATIONAL EQUITY through its Bernstein Investment
Research and Management Unit
o J.P. Morgan Investment Management
Inc.
o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.,
CORE EQUITY through its Bernstein Investment
Research and Management Unit
o Janus Capital Management LLC
o Thornburg Investment Management,
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH o RCM Capital Management LLC
o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 21
Portfolios of the Trusts (continued)
- -----------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- -----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE o Institutional Capital Corporation
o MFS Investment Management
- -----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management
CAP VALUE LLC
o TCW Investment Management Company
o Wellington Management Company, LLP
- -----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- -----------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
GOVERNMENT SECURITIES relative stability of principal.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE LARGE CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH(1)
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
moderate risk to capital.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/BEAR STEARNS Seeks to achieve capital appreciation. o Bear Stearns Asset Management Inc.
SMALL COMPANY GROWTH(7)
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment
Research and Management Unit
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/BOSTON ADVISORS EQUITY Seeks a combination of growth and income to achieve o Boston Advisors, Inc.
INCOME(4) an above-average and consistent total return.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company,
RESPONSIBLE Inc. and Brown Capital Management,
Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN GROWTH Seeks long-term growth of capital. o Capital Guardian Trust Company
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- -----------------------------------------------------------------------------------------------------------------------------------
22 Contract features and benefits
Portfolios of the Trusts (continued)
- -----------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. o Caywood-Scholl Capital Management
YIELD BOND
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that o Alliance Capital Management L.P.
approximates the total return performance of
the S&P 500 Index, including reinvestment of
dividends, at a risk level consistent with
that of the S&P 500 Index.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA Seeks long-term capital growth. o Evergreen Investment Management
Company, LLC
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research
Company
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research
Company
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o SSgA Funds Management, Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent o J.P. Morgan Investment Management
with moderate risk to capital and maintenance Inc.
of liquidity.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/JP MORGAN VALUE Long-term capital appreciation. o J.P. Morgan Investment Management
OPPORTUNITIES Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management LLC
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/LONG TERM BOND Seeks to maximize income and capital appreciation o Boston Advisors, Inc.
through investment in long-maturity debt
obligations.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT GROWTH AND Capital appreciation and growth of income without o Lord, Abbett & Co. LLC
INCOME excessive fluctuation in market value.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT LARGE CAP Capital appreciation and growth of income with o Lord, Abbett & Co. LLC
CORE reasonable risk.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT MID CAP VALUE Capital appreciation. o Lord, Abbett & Co, LLC
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers
VALUE International Limited
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MERGERS AND ACQUISITIONS Seeks to achieve capital appreciation. o GAMCO Investors, Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary o MFS Investment Management
objective to seek reasonable current income.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, o Alliance Capital Management L.P.
preserve its assets and maintain liquidity.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. o Montag & Caldwell, Inc.
GROWTH(5)
- -----------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 23
Portfolios of the Trusts (continued)
- ----------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/PIMCO REAL RETURN Seeks maximum real return consistent with o Pacific Investment Management
preservation of real capital and prudent Company, LLC
investment management.
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/SHORT DURATION BOND Seeks current income with reduced volatility of o Boston Advisors, Inc.
principal.
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o Alliance Capital Management L. P.
deduction of portfolio expenses) the total return of
the Russell 2000 Index.
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY VALUE(8) Seeks to maximize capital appreciation. o GAMCO Investors, Inc.
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/TCW EQUITY(3) Seeks to achieve long-term capital appreciation. o TCW Investment Management Company
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/UBS GROWTH AND INCOME(6) Seeks to achieve total return through capital o UBS Global Asset Management
appreciation with income as a secondary (Americas) Inc.
consideration.
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN COMSTOCK Capital growth and income. o Morgan Stanley Investment
Management Inc.
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN EMERGING Seeks long-term capital appreciation. o Morgan Stanley Investment
MARKETS EQUITY(2) Management Inc.
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN MID CAP Capital growth. o Morgan Stanley Investment
GROWTH Management Inc.
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/WELLS FARGO MONTGOMERY Seeks long-term capital appreciation. o Wells Capital Management Inc.
SMALL CAP
- ----------------------------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE
INSURANCE TRUST
PORTFOLIO NAME Objective Investment Manager/Adviser
- ----------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG VIT VALUE Seeks to increase the value of your investment in o Charles Schwab Investment
LONG/SHORT EQUITY bull markets and bear markets through strategies that are Management, Inc.
designed to have limited exposure to general equity o AXA Rosenberg Investment
market risk. Management LLC
- ----------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL
FUNDS, INC.
PORTFOLIO NAME Objective Investment Manager
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. REAL ESTATE -- CLASS II Seeks to provide above average current income and o Van Kampen (is the name under which
long-term capital appreciation by investing primarily in Morgan Stanley Investment
equity securities of companies in the U.S. real estate Management Inc. does business in
industry, including real estate investment trusts. certain situations)
- ----------------------------------------------------------------------------------------------------------------------------------
* This portfolio information reflects the portfolio's name change effective
on or about May 9, 2005, subject to regulatory approval. The table below
reflects the portfolio name in effect until on or about May 9, 2005. The
number in the "FN" column corresponds with the number contained in the
chart above.
- --------------------------------------------------------------------------------
FN Portfolio Name until May 9, 2005
- --------------------------------------------------------------------------------
(1) EQ/Alliance Premier Growth
(2) EQ/Emerging Markets Equity
(3) EQ/Enterprise Equity
(4) EQ/Enterprise Equity Income
(5) EQ/Enterprise Growth
(6) EQ/Enterprise Growth and Income
(7) EQ/Enterprise Small Company Growth
(8) EQ/Enterprise Small Company Value
- --------------------------------------------------------------------------------
You should consider the investment objectives, risks and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may
call one of our customer service representatives at 1-800-789-7771.
24 Contract features and benefits
GUARANTEED INTEREST OPTION
The guaranteed interest option is part of our general account and pays interest
at guaranteed rates. We discuss our general account under "More information"
later in this Prospectus.
We assign an interest rate to each amount allocated to the guaranteed interest
option. This rate is guaranteed for a specified period. Therefore, different
interest rates may apply to different amounts in the guaranteed interest
option.
We credit interest daily to amounts in the guaranteed interest option. There
are three levels of interest in effect at the same time in the guaranteed
interest option:
(1) the minimum interest rate guaranteed over the life of the contract,
(2) the yearly guaranteed interest rate for the calendar year, and
(3) the current interest rate.
We set current interest rates periodically, according to our procedures that we
have in effect at the time. We reserve the right to change these procedures.
All interest rates are effective annual rates, but before deduction of annual
administrative charges (if permitted in your state) or any withdrawal charges
and any optional benefit charges.
The minimum yearly guaranteed interest rate is 3% for 2005. The minimum yearly
rates we set will never be less than the minimum guaranteed interest rate of 3%
for the life of the contract. Current interest rates will never be less than
the yearly guaranteed interest rate.
See "Transferring your money among the investment options" later in this
Prospectus for restrictions on transfers from the Guaranteed interest option.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied the rate to maturity is 3%. This
means that at points in time there may be no fixed maturity options available.
You can allocate your contributions to one or more of these fixed maturity
options, however, you may not have more than 12 different maturities running
during any contract year. This limit includes any maturities that have had any
allocation or transfers even if the entire amount is withdrawn or transferred
during the contract year. These amounts become part of a non-unitized separate
account. They will accumulate interest at the "rate to maturity" for each fixed
maturity option. The total amount you allocate to and accumulate in each fixed
maturity option is called the "fixed maturity amount." The fixed maturity
options are not available in all states. Check with your financial professional
to see if fixed maturity options are available in your state.
- --------------------------------------------------------------------------------
Fixed maturity options generally range from one to ten years to maturity.
- --------------------------------------------------------------------------------
The rate to maturity you will receive for each fixed maturity option is the
rate to maturity in effect for new contributions allocated to that fixed
maturity option on the date we apply your contribution.
On the maturity date of a fixed maturity option your fixed maturity amount,
assuming you have not made any withdrawals or transfers, will equal your
contribution to that fixed maturity option plus interest, at the rate to
maturity for that contribution, to the date of the calculation. This is the
fixed maturity option's "maturity value." Before maturity, the current value we
will report for your fixed maturity amounts will reflect a market value
adjustment. Your current value will reflect the market value adjustment that we
would make if you were to withdraw all of your fixed maturity amounts on the
date of the report. We call this your "market adjusted amount."
FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with
maturity dates ranging from one to ten years. Not all of these fixed maturity
options will be available for annuitant ages 76 and older. See "Allocating your
contributions" below.
Each new contribution is applied to a new fixed maturity option. When you
applied for an Accumulator(R) Plus(SM) contract, a 60-day rate lock-in was
applied from the date the application was signed. Any contributions received
and designated for a fixed maturity option during that period received the then
current fixed maturity option rate or the rate that was in effect on the date
that the application was signed, whichever had been greater. There is no rate
lock available for subsequent contributions to the contract after 60 days,
transfers from the variable investment options or the guaranteed interest
option into a fixed maturity option, or transfers from one fixed maturity
option to another.
YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days
before each of your fixed maturity options is scheduled to mature. At that
time, you may choose to have one of the following take place on the maturity
date, as long as none of the restrictive conditions listed in "Allocating your
contributions," below would apply:
(a) transfer the maturity value into another available fixed maturity option,
any of the variable investment options or the guaranteed interest option;
or
(b) withdraw the maturity value (there may be a withdrawal charge).
If we do not receive your choice on or before the fixed maturity option's
maturity date, we will automatically transfer your maturity value into the
shortest available maturity option beginning on that date. As of February 15,
2005, the next available maturity date was February 15, 2013. If no fixed
maturity options are available, we will transfer your maturity value to the
EQ/Money Market option.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender of your contract, or when we make deductions for charges) from a
fixed maturity option before it matures, we will make a market value
adjustment, which will increase or decrease any fixed maturity amount you have
in that fixed maturity option. The amount of the adjustment will depend on two
factors:
(a) the difference between the rate to maturity that applies to the amount
being withdrawn and the rate we have in effect at that time for new fixed
maturity options (adjusted to reflect a similar maturity date), and
(b) the length of time remaining until the maturity date.
In general, if interest rates rise from the time that you originally allocate
an amount to a fixed maturity option to the time that you take a
Contract features and benefits 25
withdrawal, the market value adjustment will be negative. Likewise, if interest
rates drop at the end of that time, the market value adjustment will be
positive. Also, the amount of the market value adjustment, either up or down,
will be greater the longer the time remaining until the fixed maturity option's
maturity date. Therefore, it is possible that the market value adjustment could
greatly reduce your value in the fixed maturity options, particularly in the
fixed maturity options with later maturity dates.
We provide an illustration of the market adjusted amount of specified maturity
values, an explanation of how we calculate the market value adjustment, and
information concerning our general account and investments purchased with
amounts allocated to the fixed maturity options, in "More information" later in
this Prospectus. Appendix III at the end of this Prospectus provides an example
of how the market value adjustment is calculated.
ALLOCATING YOUR CONTRIBUTIONS
You may choose from among three ways to allocate your contributions under your
contract: self-directed, principal assurance (at contract issue only), or
dollar cost averaging. We allocate subsequent contributions according to
instructions on file unless you provide new instructions.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options, guaranteed interest option and fixed maturity options.
Allocations must be in whole percentages and you may change your allocations at
any time. No more than 25% of any contribution may be allocated to the
guaranteed interest option. The total of your allocations into all available
investment options must equal 100%. If the annuitant is age 76-80, you may
allocate contributions to fixed maturity options with maturities of seven years
or less. If the annuitant is age 81 or older, you may allocate contributions to
fixed maturity options with maturities of five years or less. Also you may not
allocate amounts to fixed maturity options with maturity dates that are later
than the date annuity payments are to begin.
PRINCIPAL ASSURANCE ALLOCATION
Principal assurance allocation is only available at contract issue. If you
chose this allocation program, you selected a fixed maturity option. We
specified a portion of your initial contribution and allocated it to that fixed
maturity option in an amount that will cause the maturity value to equal the
amount of your entire initial contribution (plus any applicable credit) on the
fixed maturity option's maturity date. The maturity date you selected generally
could not be later than 10 years, or earlier than 7 years from your contract
date. If you were to make any withdrawals or transfers from the fixed maturity
option before the option's maturity date, the amount in the fixed maturity
option will be adjusted and may no longer grow to equal your initial
contribution under the principal insurance allocation. Principal assurance was
not available if none of those maturity dates were available at the time your
contract was issued. You allocated the remainder of your initial contribution
to the investment options and guaranteed interest option however you chose.
For example, if your initial contribution was $10,000, and on February 15, 2005
you chose the fixed maturity option with a maturity date of February 15, 2015
since the rate to maturity was 3.32% on February 15, 2005, we would have
allocated $7,501 to that fixed maturity option and the balance to your choice
of variable investment options. On the maturity date your value in the fixed
maturity option would be $10,400.
The principal assurance allocation was only available for annuitants ages 80 or
younger when the contract was issued. Had the annuitant been age 76-80, your
principal assurance allocation was limited to the seven year fixed maturity
option only. If you anticipated taking required minimum distributions, you
should have considered whether your values in the variable investment options
and guaranteed interest option would be sufficient to meet your required
minimum distributions. See "Tax information" later in this Prospectus.
DOLLAR COST AVERAGING
We offer a variety of dollar cost averaging programs. You may only participate
in one program at a time. Each program allows you to gradually allocate amounts
to the variable investment options by periodically transferring approximately
the same dollar amount to the variable investment options you select. This will
cause you to purchase more units if the unit's value is low and fewer units if
the unit's value is high. Therefore, you may get a lower average cost per unit
over the long term. This plan of investing, however, does not guarantee that
you will earn a profit or be protected against losses. You may not make
transfers to the fixed maturity options.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market
option is at least $5,000, you may choose, at any time, to have a specified
dollar amount or percentage of your value transferred from that option to the
other variable investment options. You can select to have transfers made on a
monthly, quarterly or annual basis. The transfer date will be the same calendar
day of the month as the contract date, but not later than the 28th day of the
month. You can also specify the number of transfers or instruct us to continue
making the transfers until all amounts in the EQ/Money Market option have been
transferred out.
The minimum amount that we will transfer each time is $250. The maximum amount
we will transfer is equal to your value in the EQ/Money Market option at the
time the program is elected, divided by the number of transfers scheduled to be
made.
If, on any transfer date, your value in the EQ/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The dollar cost averaging program will then end. You may
change the transfer amount once each contract year or cancel this program at
any time.
INVESTMENT SIMPLIFIER
Fixed-dollar option. Under this option, you may elect to have a fixed-dollar
amount transferred out of the guaranteed interest option and into the variable
investment options of your choice. Transfers may
26 Contract features and benefits
be made on a monthly, quarterly or annual basis. You can specify the number of
transfers or instruct us to continue to make transfers until all available
amounts in the guaranteed interest option have been transferred out.
In order to elect the fixed-dollar option, you must have a minimum of $5,000 in
the guaranteed interest option on the date we receive your election form at our
processing office. The transfer date will be the same calendar day of the month
as the contract date but not later than the 28th day of the month. The minimum
transfer amount is $50. The fixed-dollar option is subject to the guaranteed
interest option transfer limitations described under "Transferring your account
value" in "Transferring your money among investment options" later in this
Prospectus. While the program is running, any transfer that exceeds those
limitations will cause the program to end for that contract year. You will be
notified. You must send in a request form to resume the program in the next or
subsequent contract years.
If, on any transfer date, your value in the guaranteed interest option is equal
to or less than the amount you have elected to have transferred, the entire
amount will be transferred, and the program will end. You may change the
transfer amount once each contract year or cancel this program at any time.
Interest sweep option. Under this option, you may elect to have monthly
transfers from amounts in the guaranteed interest option into the variable
investment options of your choice. The transfer date will be the last business
day of the month. The amount we will transfer will be the interest credited to
amounts you have in the guaranteed interest option from the last business day
of the prior month to the last business day of the current month. You must have
at least $7,500 in the guaranteed interest option on the date we receive your
election and on the last business day of each month thereafter to participate
in the interest sweep option. We will automatically cancel the interest sweep
program if the amount in the guaranteed interest option is less than $7,500 on
the last day of the month for two months in a row. For the interest sweep
option, the first monthly transfer will occur on the last business day of the
month following the month that we receive your election form at our processing
office.
----------------
You may not participate in any dollar cost averaging program if you are
participating in the rebalancing program. See "Transferring your money among
investment options" later in this Prospectus.
CREDITS
A credit will also be allocated to your account value at the same time that we
allocate your contribution. Credits are allocated to the same investment
options based on the same percentages used to allocate your contributions.
The amount of the credit will be 4%, 4.5% or 5% of each contribution based on
the following breakpoints and rules:
- --------------------------------------------------------------------------------
Credit percentage
First year total contributions* applied to
Breakpoints contributions
- --------------------------------------------------------------------------------
Less than $500,000 4%
$500,000-$999,999.99 4.5%
$1 million or more 5%
- --------------------------------------------------------------------------------
- ----------
* First year total contributions means your total contributions made in the
first contract year.
The percentage of the credit is based on your first year total contributions.
This credit percentage will be credited to each contribution made in the first
year (after adjustment as described below), as well as the second and later
contract years. Although the credit, as adjusted at the end of the first
contract year, will be based upon first year total contributions, the following
rules affect the percentage with which contributions made in the first contract
year are credited during the first contract year:
o Indication of intent: If you indicated in the application at the time you
purchased your contract an intention to make additional contributions to
meet one of the breakpoints (the "Expected First Year Contribution Amount")
and your initial contribution was at least 50% of the Expected First Year
Contribution Amount, your credit percentage is as follows:
o For any contributions resulting in total contributions to date less
than or equal to your Expected First Year Contribution Amount, the
credit percentage is the percentage that applies to the Expected First
Year Contribution Amount based on the table above.
o For any subsequent contribution that results in your total
contributions to date exceeding your Expected First Year Contribution
Amount, such that the credit percentage should have been higher, we
increased the credit percentage applied to that contribution, as well
as any prior or subsequent contributions made in the first contract
year, accordingly.
o For contracts issued in New York, the "Indication of intent" approach
to first year contributions is not available.
o No indication of intent:
o For your initial contribution, we applied the credit percentage based
upon the above table.
o For any subsequent contribution that results in a higher applicable
credit percentage (based on total contributions to date), we increased
the credit percentage applied to that contribution, as well as any
prior or subsequent contributions made in the first contract year,
accordingly.
We may recover all of the credit or a portion of the credit in the following
situations:
o If you exercise your right to cancel the contract, we will recover the
entire credit made to your contract (see "Your right to cancel within a
certain number of days" later in this Prospectus)(1)
- ---------
(1) The amount we return to you upon exercise of this right to cancel will not
include any credit or the amount of charges deducted prior to cancellation
but will reflect, except in states where we are required to return the
amount of your contributions, any investment gain or loss in the variable
investment options associated with your contributions and with the full
amount of the credit.
Contract features and benefits 27
o If you start receiving annuity payments within three years of making any
contribution, we will recover the credit that applies to any contribution
made within the prior three years.
o If at the end of the first contract year your year total contributions were
lower than your Expected First Year Contribution Amount such that the
credit applied should have been lower, we will recover any Excess Credit.
The Excess Credit is equal to the difference between the credit that was
actually applied based on your Expected First Year Contribution Amount (as
applicable) and the credit that should have been applied based on first
year total contributions.
We will recover any credit on a pro rata basis from the value in your variable
investment options and guaranteed interest option. If there is insufficient
value or no value in the variable investment options and guaranteed interest
option, any additional amount of the withdrawal required or the total amount of
the withdrawal will be withdrawn from the fixed maturity options in order of
the earliest maturing date(s). A market value adjustment may apply to
withdrawals from the fixed maturity options.
We do not consider credits to be contributions for purposes of any discussion
in this Prospectus. Credits are also not considered to be part of your
investment in the contract for tax purposes.
We use a portion of the mortality and expense risks charge and withdrawal
charge to help recover our cost of providing the credit. See "Charges and
expenses" later in this Prospectus. The charge associated with the credit may,
over time, exceed the sum of the credit and any related earnings. You should
consider this possibility before purchasing the contract.
YOUR BENEFIT BASE
A benefit base is used to calculate the guaranteed minimum income benefit and
any death benefit, as described in this section. Your benefit base is not an
account value or a cash value. See also "Our Living Benefit option" and
"Guaranteed minimum death benefit" below.
STANDARD DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
o any applicable credit; less
o a deduction that reflects any withdrawals you make. (See "How withdrawals
affect your guaranteed minimum income benefit and guaranteed minimum death
benefit" in "Accessing your money" later in this Prospectus.)
6% ROLL UP TO AGE 85 ENHANCED DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
o any applicable credit; plus
o daily interest; less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money" later in this Prospectus.)
The effective annual interest rate credited to this benefit base is:
o 6% (4% in Washington for the enhanced death benefit only) with respect to
the variable investment options (other than EQ/Alliance Intermediate
Government Securities, EQ/Money Market, EQ/PIMCO Real Return, and EQ/Short
Duration Bond); and
o 3% with respect to the EQ/Alliance Intermediate Government Securities,
EQ/Money Market, EQ/PIMCO Real Return and EQ/Short Duration Bond, the fixed
maturity options, the guaranteed interest option and the loan reserve
account under Rollover TSA (if applicable).
No interest is credited to the benefit base after the contract anniversary
following the annuitant's 85th birthday.
ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT OPTION. Your benefit base is
equal to the greater of either:
o your initial contribution to the contract and any additional contributions;
plus
o any applicable credit;
or
o your highest account value on any contract anniversary up to the contract
anniversary following the annuitant's 85th birthday, plus any contribution
(and any applicable credit) made since the most recent contract
anniversary;
less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money" later in this Prospectus).
GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED
DEATH BENEFIT AND THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is
equal to the greater of the benefit base computed for the 6% Roll up to age 85
or the benefit base computed for the Annual ratchet to age 85, as described
immediately above, on each contract anniversary. For the guaranteed minimum
income benefit, the benefit base is reduced by any applicable withdrawal charge
remaining when the option is exercised.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the guaranteed minimum income benefit and annuity payout
options. The guaranteed minimum income benefit is discussed under "Our Living
Benefit option" below and annuity payout options are discussed under "Your
annuity payout options" in "Accessing your money" later in this Prospectus. The
guaranteed annuity purchase factors are those factors specified in your
contract. The current annuity purchase factors are those factors that are in
effect at any given time. Annuity purchase factors are based on interest rates,
mortality tables, frequency of payments, the form of annuity benefit, and the
annuitant's (and any joint annuitant's) age and sex in certain instances.
28 Contract features and benefits
OUR LIVING BENEFIT OPTION
The following section provides information about the Living Benefit option,
which was only available at the time you purchased your contract, if the
annuitant was age 20 through 75. The Living Benefit option is a guaranteed
minimum income benefit. If you elected the Living Benefit option at purchase,
you pay an additional charge that is described under "Living Benefit charge" in
"Charges and expenses" or in Appendix VI, depending on when the contract was
issued, later in this Prospectus. The Living Benefit may not have been
available in your state at the time of your purchase. If you purchased your
contract to fund a Charitable Remainder Trust, the guaranteed minimum income
benefit was, generally, not available to you. Subject to our rules, the
guaranteed minimum income benefit might have been available for certain
split-funded Charitable Remainder Trusts.
The guaranteed minimum income benefit guarantees you a minimum amount of fixed
income under your choice of a life annuity fixed payout option or an Income
Manager(R) level payment life with a period certain payout option subject to
state availability. You choose which of these payout options you want and
whether you want the option to be paid on a single or joint life basis at the
time you exercise your guaranteed minimum income benefit. The maximum period
certain available under the Income Manager(R) payout option is 10 years. This
period may be shorter, depending on the annuitant's age as follows:
- --------------------------------------------
Level payments
- --------------------------------------------
Period certain
years
----------------------
Annuitant's age at
exercise IRAs NQ
- -------------------- ------------ ---------
60 to 75 10 10
76 9 10
77 8 10
78 7 10
79 7 10
80 7 10
81 7 9
82 7 8
83 7 7
84 6 6
85 5 5
- --------------------------------------------
We may also make other forms of payout options available. For a description of
payout options, see "Your annuity payout options" in "Accessing your money"
later in this Prospectus.
- --------------------------------------------------------------------------------
The guaranteed minimum income benefit, which is also known as a living benefit,
should be regarded as a safety net only. It provides income protection if you
elect an income payout while the annuitant is alive.
- --------------------------------------------------------------------------------
When you exercise the guaranteed minimum income benefit, the annual lifetime
income that you will receive will be the greater of (i) your guaranteed minimum
income benefit which is calculated by applying your guaranteed minimum income
benefit base, less any applicable withdrawal charge remaining, at guaranteed
annuity purchase factors, or (ii) the income provided by applying your account
value at our then current annuity purchase factors. For Rollover TSA only, we
will subtract from the benefit base or account value any outstanding loan,
including interest accrued but not paid. You may also elect to receive monthly
or quarterly payments as an alternative. The payments will be less than 1/12 or
1/4 of the annual payments, respectively, due to the effect of interest
compounding. The benefit base is applied only to the Living Benefit guaranteed
annuity purchase factors in your contract and not to any other guaranteed or
current annuity purchase rates. The amount of income you receive will be
determined when we receive your request to exercise the benefit.
When you elect to receive annual lifetime income, your contract will terminate
and you will receive a new contract for the annuity payout option. For a
discussion of when your payments will begin and end, see "Exercise of
guaranteed minimum income benefit" below.
The guaranteed minimum income benefit provides a form of insurance and is based
on conservative actuarial factors. The guaranteed annuity purchase factors we
use to determine your Income Manager(R) benefit under the Living Benefit are
more conservative than the guaranteed annuity purchase factors we use for the
Income Manager(R) payout annuity option. This means that, assuming the same
amount is applied to purchase the benefit and that we use guaranteed annuity
purchase factors to compute the benefit, each periodic payment under the Living
Benefit Income Manager(R) will be smaller than each periodic payment under the
Income Manager(R) payout annuity option. Therefore, even if your account value
is less than your benefit base, you may generate more income by applying your
account value to current annuity purchase factors. We will make this comparison
for you when the need arises.
ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll up to
age 85 benefit base, the table below illustrates the guaranteed minimum income
benefit amounts per $100,000 of initial contribution, for a male annuitant age
60 (at issue) on the contract date anniversaries indicated, who has elected the
life annuity fixed payout option, using the guaranteed annuity purchase factors
as of the date of this Prospectus, assuming no additional contributions,
withdrawals or loans under Rollover TSA contracts, and assuming there were no
allocations to the EQ/Alliance Intermediate Government Securities, EQ/Money
Market, EQ/PIMCO Real Return, EQ/Short Duration Bond, the guaranteed interest
option, the fixed maturity options or the loan reserve account under Rollover
TSA contracts.
- ------------------------------------------------------
guaranteed minimum
Contract date income benefit -- annual
anniversary at exercise income payable for life
- ------------------------------------------------------
10 $11,891
15 $18,597
- ------------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date
anniversary that you are eligible to exercise the guaranteed minimum income
benefit, we will send you an eligibility notice illustrating how much income
could be provided as of the contract date anniversary. You must notify us
within 30 days following the contract date anniversary if you want to exercise
the guaranteed minimum income benefit. You must return your contract to us
along with any required information within 30 days following your contract date
anniversary, in order to exercise this benefit. You will begin receiving annual
pay-
Contract features and benefits 29
ments one year after the annuity payout contract is issued. If you choose
monthly or quarterly payments, you will receive your payment one month or one
quarter after the annuity payout contract is issued. Payments are always made
on the 15th of the month and generally begin one payment mode from issue. You
may choose to take a withdrawal prior to exercising the guaranteed minimum
income benefit, which will reduce your payments. You may not partially exercise
this benefit. See "Accessing your money" under "Withdrawing your account value"
later in this Prospectus. Payments end with the last payment before the
annuitant's (or joint annuitant's, if applicable) death, or if later, the end
of the period certain (where the payout option chosen includes a period
certain).
You will be eligible to exercise the guaranteed minimum income benefit during
your life and the annuitant's life, as follows:
o If the annuitant was at least age 20 and no older than age 44 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 15th contract date anniversary.
o If the annuitant was at least age 45 and no older than age 49 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
after the annuitant is age 60.
o If the annuitant was at least age 50 and no older than age 75 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 10th contract date anniversary.
Please note:
(i) the latest date you may exercise the guaranteed minimum income benefit is
the contract date anniversary following the annuitant's 85th birthday;
(ii) if the annuitant was age 75 when the contract was issued, the only time
you may exercise the guaranteed minimum income benefit is within 30 days
following the first contract date anniversary that it becomes available;
(iii) If the annuitant was older than age 60 at the time an IRA, QP or Rollover
TSA contract was issued, the Living Benefit option may not be an
appropriate feature because the minimum distributions required by tax law
generally must begin before the guaranteed minimum income benefit can be
exercised;
(iv) for Accumulator(R) Plus(SM) QP contracts, the Plan participant can
exercise the Living Benefit option only if he or she elects to take a
distribution from the Plan and, in connection with this distribution, the
Plan's trustee changes the ownership of the contract to the participant.
This effects a rollover of the Accumulator(R) Plus(SM) QP contract into
an Accumulator(R) Plus(SM) Rollover IRA. This process must be completed
within the 30-day timeframe following the contract date anniversary in
order for the Plan participant to be eligible to exercise;
(v) for Accumulator(R) Plus(SM) Rollover TSA contracts, you may exercise the
Living Benefit option only if you effect a rollover of the TSA contract
to an Accumulator(R) Plus(SM) Rollover IRA. This may only occur when you
are eligible for a distribution from the TSA. This process must be
completed within the 30-day timeframe following the contract date
anniversary in order for you to be eligible to exercise;
(vi) for a successor owner/annuitant, the earliest exercise date is based on
the original contract issue date and the age of the successor
owner/annuitant as of the Processing Date successor owner/annuitant takes
effect; and
(vii) if you are the owner but not the annuitant and you die prior to exercise,
then the following applies:
o A successor owner who is not the annuitant may not be able to
exercise the Living Benefit option without causing a tax problem.
You should consider naming the annuitant as successor owner, or if
you do not name a successor owner, as the sole primary
beneficiary. You should carefully review your successor owner
and/or beneficiary designations at least one year prior to the
first contract anniversary on which you could exercise the
benefit.
o If the successor owner is the annuitant, the Living Benefit option
continues only if the benefit could be exercised under the rules
described above on a contract anniversary that is within one year
following the owner's death. This would be the only opportunity
for the successor owner to exercise. If the Living Benefit option
cannot be exercised within this timeframe, the benefit will
terminate and the charge for it will no longer apply as of the
date we receive proof of your death and any required information.
o If you designate your surviving spouse as successor owner, the
Living Benefit option continues and your surviving spouse may
exercise the benefit according to the rules described above even
if your spouse is not the annuitant and even if the benefit is
exercised more than one year after your death. If your surviving
spouse dies prior to exercise, the rule described in the previous
bullet applies.
o A successor owner or beneficiary that is a trust or other non-
natural person may not exercise the benefit; in this case, the
benefit will terminate and the charge for it will no longer apply
as of the date we receive proof of your death and any required
information.
See "When an NQ contract owner dies before the annuitant" under "Payment of
death benefit" later in this Prospectus for more information.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
GUARANTEED MINIMUM DEATH BENEFIT
Your contract provides a death benefit. If you did not elect one of the
enhanced death benefits described below, the death benefit is equal to your
account value (without adjustment for any otherwise appli-
30 Contract features and benefits
cable negative market value adjustment) as of the date we receive satisfactory
proof of death, any required instructions for the method of payment,
information and forms necessary to effect payment OR the standard death
benefit, whichever provides the highest amount. The standard death benefit is
equal to your total contributions, plus any applicable credit (adjusted for any
withdrawals and any withdrawal charges, and any taxes that apply). The standard
death benefit was the only death benefit available for annuitants who were age
85 at issue.
If you elected one of the guaranteed death benefits, the death benefit is equal
to your account value as of the date we receive satisfactory proof of the
annuitant's death, any required instructions for the method of payment,
information and forms necessary to effect payment OR your elected guaranteed
death benefit on the date of the annuitant's death (adjusted for any subsequent
withdrawals, withdrawal charges and taxes that apply) whichever provides the
highest amount.
OPTIONAL ENHANCED DEATH BENEFITS APPLICABLE FOR ANNUITANTS WHO WERE AGES 0
THROUGH 80 AT ISSUE OF NQ CONTRACTS; 20 THROUGH 80 AT ISSUE OF ROLLOVER IRA,
ROTH CONVERSION IRA AND ROLLOVER TSA CONTRACTS; AND 20 THROUGH 70 AT ISSUE OF
QP CONTRACTS.
Subject to state availability, you may have elected one of the following
enhanced death benefits:
6% ROLL UP TO AGE 85.
ANNUAL RATCHET TO AGE 85.
THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85.
Each enhanced death benefit is equal to its corresponding benefit base
described earlier in "Your benefit base." Your enhanced death benefit election
may not be changed.
----------
In New York only the standard death benefit and the Annual ratchet to age 85
enhanced death benefit were available.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
See Appendix IV at the end of this Prospectus for an example of how we
calculate an enhanced minimum death benefit.
PROTECTION Plus(SM)
The following section provides information about the Protection Plus(SM) option,
which was only available at the time you purchased your contract. If Protection
Plus(SM) was not elected when the contract was first issued, neither the owner
nor the successor owner/annuitant can add it subsequently. Protection Plus(SM)
is an additional death benefit as described below. See the appropriate part of
"Tax information" later in this Prospectus for the potential tax consequences of
having purchased the Protection Plus(SM) feature in an NQ, IRA or Rollover TSA
contract.
If the annuitant was 70 or younger when we issued your contract (or if the
successor owner/annuitant is 70 or younger when he or she becomes the successor
owner/annuitant), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit less total net contributions, multiplied by 40%
For purposes of calculating your Protection Plus(SM) benefit, the following
applies: (i) "Net contributions" are the total contributions made (or, if
applicable, the total amount that would otherwise have been paid as a death
benefit had the successor owner/annuitant election not been made plus any
subsequent contributions) reduced on a pro rata basis to reflect withdrawals
(including surrender charges and loans). Credit amounts are not included in
"net contributions." Reduction on a pro rata basis means that we calculate the
percentage of the current account value that is being withdrawn and we reduce
net contributions by that percentage. For example, if the account value is
$30,000 and you withdraw $12,000, you have withdrawn 40% of your account value.
If contributions aggregated $40,000 before the withdrawal, it would be reduced
by $16,000 ($40,000 x .40) and net contributions after the withdrawal would be
$24,000 ($40,000-$16,000); (ii) "Death benefit" is equal to the greater of the
account value as of the date we receive satisfactory proof of death or any
applicable guaranteed minimum death benefit as of the date of death.
If the annuitant was age 71 through 79 when we issued your contract (or if the
successor owner/annuitant is between the ages of 71 and 79 when he or she
becomes the successor owner/annuitant under a contract where Protection Plus(SM)
had been elected at issue), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit (as described above) less total net contributions,
multiplied by 25%
The value of the Protection Plus(SM) death benefit is frozen on the first
contract date anniversary after the annuitant turns age 80, except that the
benefit will be reduced for withdrawals on a pro rata basis. This feature is
not available in every state.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
This is provided for informational purposes only. Since this contract is no
longer available to new purchasers, this cancellation provision is no longer
applicable.
If for any reason you are not satisfied with your contract, you may return it
to us for a refund. To exercise this cancellation right you must mail the
contract, with a signed letter of instruction electing this right, to our
processing office within 10 days after you receive it. If state law requires,
this "free look" period may be longer.
Generally, your refund will equal your account value (less loan reserve
account) under the contract on the day we receive notification to cancel the
contract and will reflect (i) any investment gain or loss in the variable
investment options (less the daily charges we deduct), (ii) any
Contract features and benefits 31
guaranteed interest in the guaranteed interest option, and (iii) any positive
or negative market value adjustments in the fixed maturity options through the
date we receive your contract. Some states require that we refund the full
amount of your contribution (not reflecting (i), (ii) or (iii) above). For any
IRA contracts returned to us within seven days after you receive it, we are
required to refund the full amount of your contribution. Please note that you
will forfeit the credit by exercising this right of cancellation.
We may require that you wait six months before you may apply for a contract
with us again if:
o you cancel your contract during the free look period; or
o you change your mind before you receive your contract whether we have
received your contribution or not.
Please see "Tax information" later in this Prospectus for possible consequences
of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA contract, you may
cancel your Roth Conversion IRA contract and return to a Rollover IRA contract.
Our processing office or your financial professional can provide you with the
cancellation instructions.
32 Contract features and benefits
2. Determining your contract's value
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total value of the values you have in: (i) the
variable investment options; (ii) the guaranteed interest account; (iii) market
adjusted amounts in the fixed maturity options; and (iv) the loan reserve
account (applies for Rollover TSA contracts only).
Your contract also has a "cash value." At any time before annuity payments
begin, your contract's cash value is equal to the account value less: (i) the
total amount or a pro rata portion of the annual administrative charge, as well
as optional benefit charges; (ii) any applicable withdrawal charge; and (iii)
the amount of any outstanding loan plus accrued interest (applicable to
Rollover TSA contracts only). Please see "Surrendering your contract to receive
its cash value" in "Accessing your money" later in this Prospectus.
YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS
Each variable investment option invests in shares of a corresponding portfolio.
Your value in each variable investment option is measured by "units." The value
of your units will increase or decrease as though you had invested it in the
corresponding portfolio's shares directly. Your value, however will be reduced
by the amount of the fees and charges that we deduct under the contract.
The unit value for each variable investment option depends on the investment
performance of that option, less daily charges for:
(i) mortality and expense risks;
(ii) administrative, and
(iii) distribution charges.
On any day, your value in any variable investment option equals the number of
units credited to that option, adjusted for any units purchased for or deducted
from your contract under that option, multiplied by that day's value for one
unit. The number of your contract units in any variable investment option does
not change unless they are:
(i) increased to reflect additional contributions plus the credit;
(ii) decreased to reflect a withdrawal (plus applicable withdrawal charges);
(iii) increased to reflect transfer into, or decreased to reflect transfer out
of a variable investment option; or
(iv) increased or decreased to reflect a transfer of your loan amount from or
to the loan reserve account under a Rollover TSA contract.
In addition, when we deduct the enhanced death benefit, Living Benefit and/or
Protection Plus(SM) benefit charges, the number of units credited to your
contract will be reduced. Your units are also reduced when we deduct the annual
administrative charge. A description of how unit values are calculated is found
in the SAI.
YOUR CONTRACT'S VALUE IN THE GUARANTEED
INTEREST ACCOUNT
Your value in the guaranteed interest account at any time will equal: your
contributions and transfers to that option, plus interest, minus withdrawals
out of the option, and charges we deduct.
YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS
Your value in each fixed maturity option at any time before the maturity date
is the market adjusted amount in each option. This is equivalent to your fixed
maturity amount increased or decreased by the market value adjustment. Your
value, therefore, may be higher or lower than your contributions (less
withdrawals) accumulated at the rate to maturity. At the maturity date, your
value in the fixed maturity option will equal its maturity value, provided
there have been no withdrawals or transfers.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose all of your rights under your contract and any
applicable guaranteed benefits.
Determining your contract's value 33
3. Transferring your money among investment options
- --------------------------------------------------------------------------------
TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer
some or all of your account value among the variable investment options,
subject to the following:
o You may not transfer to a fixed maturity option that has a rate to maturity
of 3% or less.
o If the annuitant is age 76-80, you must limit your transfers to fixed
maturity options with maturities of seven years or less. If the annuitant
is age 81 or older, you must limit your transfers to fixed maturity options
of five years or less. As of February 15, 2005, maturities of less than
eight years were not available. Also, the maturity dates may be no later
than the date annuity payments are to begin.
o If you make transfers out of a fixed maturity option other than at its
maturity date, the transfer may cause a market value adjustment.
o During the first contract year, transfers into the guaranteed interest
option are not permitted.
o After the first contract year, a transfer into the guaranteed interest
option will not be permitted if such transfer would result in more than 25%
of the annuity account value being allocated to the guaranteed interest
option, based on the annuity account value as of the previous business day.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency or dollar amount of transfers.
The maximum amount that may be transferred from the guaranteed interest option
to any investment option (including amounts transferred pursuant to the
fixed-dollar option and interest sweep option dollar cost averaging programs
described under "Allocating your contributions" in "Contract features and
benefits" earlier in this Prospectus) in any contract year is the greatest of:
(a) 25% of the amount you have in the guaranteed interest option on the last
day of the prior contract year; or,
(b) the total of all amounts transferred at your request from the guaranteed
interest option to any of the Investment options in the prior contract
year; or,
(c) 25% of amounts transferred or allocated to the guaranteed interest option
during the current contract year.
From time to time, we may remove the restrictions regarding transferring
amounts out of the guaranteed interest option. If we do so, we will tell you.
We will also tell you at least 45 days in advance of the day we intend to
reimpose the transfer restrictions. When we reimpose the transfer restrictions,
if any dollar cost averaging transfer out of the guaranteed interest option
causes a violation of the 25% outbound restriction, that dollar cost averaging
program will be terminated for the current contract year. A new dollar cost
averaging program can be started in the next or subsequent contract years.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value to be
transferred, and
(3) the investment options to and from which you are transferring.
We will confirm all transfers in writing.
DISRUPTIVE TRANSFER ACTIVITY
You should note that the contract is not designed for professional "market
timing" organizations, or other organizations or individuals engaging in a
market timing strategy. The contract is not designed for programmed transfers,
frequent transfers or transfers that are large in relation to the total assets
of the underlying portfolio.
Frequent transfers, including market timing and other program trading or
short-term trading strategies, may be disruptive to the underlying portfolios
in which the variable investment options invest. Disruptive transfer activity
may adversely affect performance and the interests of long-term investors by
requiring a portfolio to maintain larger amounts of cash or to liquidate
portfolio holdings at a disadvantageous time or price. For example, when market
timing occurs, a portfolio may have to sell its holdings to have the cash
necessary to redeem the market timer's investment. This can happen when it is
not advantageous to sell any securities, so the portfolio's performance may be
hurt. When large dollar amounts are involved, market timing can also make it
difficult to use long-term investment strategies because a portfolio cannot
predict how much cash it will have to invest. In addition, disruptive transfers
or purchases and redemptions of portfolio investments may impede efficient
portfolio management and impose increased transaction costs, such as brokerage
costs, by requiring the portfolio manager to effect more frequent purchases and
sales of portfolio securities. Similarly, a portfolio may bear increased
administrative costs as a result of the asset level and investment volatility
that accompanies patterns of excessive or short-term trading. Portfolios that
invest a significant portion of their assets in foreign securities or the
securities of small- and mid-capitalization companies tend to be subject to the
risks associated with market timing and short-term trading strategies to a
greater extent than portfolios that do not. Securities trading in overseas
markets present time zone arbitrage opportunities when events affecting
portfolio securities values occur after the close of the overseas market but
prior to the close of the U.S. markets. Securities of small- and
mid-capitalization companies present arbitrage opportunities because the market
for such securities may be less liquid than the market for securities of larger
companies,
34 Transferring your money among investment options
which could result in pricing inefficiencies. Please see the prospectuses for
the underlying portfolios for more information on how portfolio shares are
priced.
We currently use the procedures described below to discourage disruptive
transfer activity. You should understand, however, that these procedures are
subject to the following limitations: (1) they primarily rely on the policies
and procedures implemented by the underlying portfolios; (2) they do not
eliminate the possibility that disruptive transfer activity, including market
timing, will occur or that portfolio performance will be affected by such
activity; and (3) the design of market timing procedures involves inherently
subjective judgments, which we seek to make in a fair and reasonable manner
consistent with the interests of all policy and contract owners.
The AXA Premier VIP Trust and EQ Advisors Trust (the "affiliated trusts") have
adopted policies and procedures designed to discourage disruptive transfers by
contract owners investing in the portfolios of the affiliated trusts. The
affiliated trusts discourage frequent purchases and redemptions of portfolio
shares and will not make special arrangements to accommodate such transactions.
As a general matter, the affiliated trusts reserve the right to refuse or limit
any purchase or exchange order by a particular investor (or group of related
investors) if the transaction is deemed harmful to the portfolio's other
investors or would disrupt the management of the portfolio. The affiliated
trusts monitor aggregate inflows and outflows for each portfolio on a daily
basis. On any day when a portfolio's net inflows or outflows exceed an
established monitoring threshold, the affiliated trust obtains from us contract
owner trading activity. The affiliated trusts currently consider transfers into
and out of (or vice versa) the same variable investment option within a five
business day period as potentially disruptive transfer activity. When a
contract owner is identified as having engaged in a potentially disruptive
transfer for the first time, a letter is sent to the contract owner explaining
that there is a policy against disruptive transfer activity and that if such
activity continues certain transfer privileges may be eliminated. If and when
the contract owner is identified a second time as engaged in potentially
disruptive transfer activity, we currently prohibit the use of voice, fax and
automated transaction services. We currently apply such action for the
remaining life of each affected contract. We or the affiliated trusts may
change the definition of potentially disruptive transfer activity, the
monitoring procedures and thresholds, any notification procedures, and the
procedures to restrict this activity. Any new or revised policies and
procedures will apply to all contract owners uniformly. We do not permit
exceptions to our policies restricting disruptive transfer activity.
We may also offer investment options with underlying portfolios that are not
part of the AXA Premier VIP Trust or EQ Advisors Trust (the "unaffiliated
trusts"). Each unaffiliated trust may have its own policies and procedures
regarding disruptive transfer activity, which may be different than those
applied by the affiliated trusts. In most cases, the unaffiliated trust
reserves the right to reject a transfer that it believes, in its sole
discretion, is disruptive (or potentially disruptive) to the management of one
of its portfolios. Please see the prospectus for the underlying trust for
information regarding the policies and procedures, if any, employed by that
trust and any associated risks of investing in that trust. If an unaffiliated
trust advises us that there may be disruptive transfer activity from our
contract owners, we will work with the unaffiliated trust to review contract
owner trading activity. If the underlying trust determines that the trading
activity of a particular contract owner is disruptive, we will take action to
limit the disruptive trading activity of that contract owner as discussed
above.
Contract owners should note that it is not always possible for us and the
underlying trusts to identify and prevent disruptive transfer activity. Our
ability to monitor potentially disruptive transfer activity is limited in
particular with respect to certain group contracts. Group annuity contracts may
be owned by retirement plans on whose behalf we provide transfer instructions
on an omnibus (aggregate) basis, which may mask the disruptive transfer
activity of individual plan participants, and/or interfere with our ability to
restrict communication services. In addition, because we do not monitor for all
frequent trading at the separate account level, contract owners may engage in
frequent trading which may not be detected, for example, due to low net inflows
or outflows on the particular day(s). Therefore, no assurance can be given that
we or the trusts will successfully impose restrictions on all disruptive
transfers. Because there is no guarantee that disruptive trading will be
stopped, some contract owners/ participants may be treated differently than
others, resulting in the risk that some contract owners/participants may be
able to engage in frequent transfer activity while others will bear the effect
of that frequent transfer activity. The potential affects of frequent transfer
activity are discussed above.
REBALANCING YOUR ACCOUNT VALUE
We currently offer a rebalancing program that you can use to automatically
reallocate your account value among the variable investment options. You must
tell us:
(a) the percentage you want invested in each variable investment option (whole
percentages only), and
(b) how often you want the rebalancing to occur (quarterly, semiannually, or
annually on a contract year basis)
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options so that the percentage of your account value that
you specify is invested in each option at the end of each rebalancing date.
Your entire account value must be included in the rebalancing program.
- --------------------------------------------------------------------------------
Rebalancing does not assure a profit or protect against loss. You should
periodically review your allocation percentages as your needs change. You may
want to discuss the rebalancing program with your financial professional before
electing the program.
- --------------------------------------------------------------------------------
You may elect the rebalancing program at any time. You may also change your
allocation instructions or cancel the program at any time. If you request a
transfer while the rebalancing program is in effect, we will process the
transfer as requested; your rebalancing allocations will
Transferring your money among investment options 35
not be changed, and the rebalancing program will remain in effect unless you
request that it be canceled in writing. There is no charge for the rebalancing
feature.
You may not elect the rebalancing program if you are participating in any
dollar cost averaging program. Rebalancing is not available for amounts you
have allocated to the guaranteed interest option or the fixed maturity options.
36 Transferring your money among investment options
4. Accessing your money
- --------------------------------------------------------------------------------
WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your account value before annuity payments
begin. The table below shows the methods available under each type of contract.
More information follows the table. If you withdraw more than 90% of a
contract's current cash value, we will treat it as a request to surrender the
contract for its cash value. See "Surrendering your contract to receive its
cash value" below. For the tax consequences of withdrawals, see "Tax
information" later in this Prospectus.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus and "How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death benefit" below for more information
on how withdrawals affect your guaranteed benefits and could potentially cause
your contract to terminate.
- --------------------------------------------------------------------------------
Method of withdrawal
----------------------------------------------------------------
Lifetime
required
Substantially minimum
Contract Lump sum Systematic equal distribution
- --------------------------------------------------------------------------------
NQ Yes Yes No No
Rollover IRA Yes Yes Yes Yes
Roth Con-
version IRA Yes Yes Yes No
Rollover
TSA* Yes Yes No Yes
QP Yes No No Yes
* For some Rollover TSA contracts, your ability to take withdrawals, loans or
surrender your contract may be limited. You must provide withdrawal
restriction information when you apply for a contract. See "Tax Sheltered
Annuity Contracts (TSAs)" in "Tax information" later in this Prospectus.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time.
(Rollover TSA contracts may have restrictions). The minimum amount you may
withdraw is $300.
Lump sum withdrawals will be subject to a withdrawal charge if they exceed the
15% free withdrawal amount (see "15% free withdrawal amount" in "Charges and
expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is
outstanding, you may only take lump sum withdrawals as long as the cash value
remaining after any withdrawal equals at least 10% of the outstanding loan plus
accrued interest.
SYSTEMATIC WITHDRAWALS
(All contracts except QP)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value. (Rollover TSA contracts may have
restrictions).
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 1.2% monthly, 3.6% quarterly and 15% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would
be less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
We will make the withdrawals on any day of the month that you select as long as
it is not later than the 28th day of the month. If you do not select a date, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59-1/2 and 70-1/2.
You may change the payment frequency, or the amount or percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
lump sum withdrawal. You can cancel the systematic withdrawal option at any
time.
Systematic withdrawals are not subject to a withdrawal charge, except to the
extent that, when added to a lump sum withdrawal previously taken in the same
contract year, the systematic withdrawal exceeds the 15% free withdrawal
amount.
SUBSTANTIALLY EQUAL WITHDRAWALS
(Rollover IRA and Roth Conversion IRA contracts only)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus. We use one of the
IRS-approved methods for doing this; this is not the exclusive method of
meeting this exception. After consultation with your tax adviser, you may
decide to use another method which would require you to compute amounts
yourself and request lump sum withdrawals. In such a case, a withdrawal charge
may apply. Once you begin to take substantially equal withdrawals, you should
not stop them or change the pattern of your withdrawals until after the later
of age 59-1/2 or five full years after the first withdrawal. If you stop or
change the withdrawals or take a lump sum withdrawal, you may be liable for the
10% federal tax penalty that would have otherwise been due on prior withdrawals
made under this option and for any interest on the delayed payment of the
penalty.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may change, without penalty, from one of the
IRS-approved methods of calculating fixed payments to another IRS-approved
method (similar to the required minimum distribution rules) of calculating
payments which vary each year.
Accessing your money 37
You may elect to take substantially equal withdrawals at any time before age
59-1/2. We will make the withdrawal on any day of the month that you select as
long as it is not later than the 28th day of the month. You may not elect to
receive the first payment in the same contract year in which you took a lump
sum withdrawal. We will calculate the amount of your substantially equal
withdrawals using the IRS-approved method we offer. The payments will be made
monthly, quarterly or annually as you select. These payments will continue
until we receive written notice from you to cancel this option or you take a
lump sum withdrawal. You may elect to start receiving substantially equal
withdrawals again, but the payments may not restart in the same contract year
in which you took a lump sum withdrawal. We will calculate the new withdrawal
amount.
Substantially equal withdrawals are not subject to a withdrawal charge.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA and Rollover TSA and QP contracts only -- See "Tax information"
later in this Prospectus).
We offer our "automatic required minimum distribution (RMD) service" to help
you meet lifetime required minimum distributions under federal income tax
rules. This is not the exclusive way for you to meet these rules. After
consultation with your tax adviser, you may decide to compute required minimum
distributions yourself and request lump sum withdrawals. In such a case, a
withdrawal charge may apply. Before electing this account based withdrawal
option, you should consider whether annuitization might be better in your
situation. If you have elected certain additional benefits, such as the
Guaranteed minimum death benefit, amounts withdrawn from the contract to meet
RMDs will reduce the benefit base and may limit the utility of the benefit.
Also, please refer to "Tax information" later in this Prospectus for
considerations on annuity contracts funding qualified plans, TSAs, and IRAs.
You may elect this service in the year in which you reach age 70-1/2 or in any
later year. The minimum amount we will pay out is $250. Currently, minimum
distribution withdrawal payments will be made annually. See "Required minimum
distributions" in "Tax information" later in this Prospectus for your specific
type of retirement arrangement.
Currently, we do not impose a withdrawal charge on minimum distribution
withdrawals if you are enrolled in our "automatic required minimum distribution
(RMD) service" except if, when added to a lump sum withdrawal previously taken
in the same contract year, the minimum distribution withdrawal exceeds the 15%
free withdrawal amount.
Under Rollover TSA contracts, you may not elect minimum distribution
withdrawals if a loan is outstanding.
- --------------------------------------------------------------------------------
For Rollover IRA and Rollover TSA contracts, we will send a form outlining the
distribution options available in the year you reach age 70-1/2 (if you have not
begun your annuity payments before that time).
- --------------------------------------------------------------------------------
HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your value in the variable investment options and the guaranteed
interest account. If there is insufficient value or no value in the variable
investment options and the guaranteed interest account, any additional amount
of the withdrawal required or the total amount of the withdrawal will be
withdrawn from the fixed maturity options in order of the earliest maturity
date(s) first. A market value adjustment may apply to withdrawals from the
fixed maturity options.
HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED
MINIMUM DEATH BENEFIT
Withdrawals will reduce your guaranteed benefits on either a dollar-for-dollar
basis or on a pro rata basis as explained below:
INCOME BENEFIT AND DEATH BENEFIT
Your applicable benefit base will be reduced on a dollar-for-dollar basis as
long as the sum of your withdrawals in a contract year is 6% or less of the
applicable benefit base on the most recent contract date anniversary. Any
portion of a withdrawal that causes the sum of your withdrawals in a contract
year to exceed 6% of the applicable benefit base on the most recent contract
date anniversary and any subsequent withdrawals in that same contract year will
reduce your applicable benefit base on a pro rata basis. Additional
contributions made during the contract year do not affect the amount of
withdrawals that can be taken on a dollar-for-dollar basis in that contract
year.
The timing of your withdrawals and whether they exceed the 6% threshold
described above can have a significant impact on your guaranteed minimum income
benefit or guaranteed minimum death benefit.
Reduction on a dollar-for-dollar basis means that your current benefit will be
reduced by the dollar amount of the withdrawal. Reduction on a pro rata basis
means that we calculate the percentage of your current account value that is
being withdrawn and we reduce your current benefit by that same percentage. For
example, if your account value is $30,000 and you withdraw $12,000, you have
withdrawn 40% of your account value. If your guaranteed minimum death benefit
was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 x
..40) and your new guaranteed minimum death benefit after the withdrawal would
be $24,000 ($40,000 - $16,000.) This pro rata example assumes that the annual
6% threshold described above has already been exceeded.
LOANS UNDER ROLLOVER TSA CONTRACTS
You may take loans from a Rollover TSA unless restricted by the employer who
provided the Rollover TSA funds. If you cannot take a loan, or cannot take a
loan without approval from the employer who provided the funds, we will have
this information in our records based on what you and the employer who provided
the funds told us when you purchased your contract. The employer must also tell
us whether special employer plan rules of the Employee Retirement Income
Security Act of 1974 ("ERISA") apply. We will not permit you to take a loan
while you are enrolled in our "automatic required minimum distribution (RMD)
service."
You should read the terms and conditions on our loan request form carefully
before taking out a loan. Under Rollover TSA contracts sub-
38 Accessing your money
jected to ERISA, you may only take a loan with the written consent of your
spouse. Your contract contains further details of the loan provision. Also, see
"Tax information" later in this Prospectus, for general rules applicable to
loans.
We will permit you to have only one loan outstanding at a time. The minimum
loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your
account value, subject to any limits under the federal income tax rules. The
term of the loan is five years. However, if you use the loan to acquire your
primary residence, the term is 10 years. The term may not extend beyond the
earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
(3) the date a death benefit is paid (the outstanding loan will be deducted
from the death benefit amounts).
A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the properly completed
loan request form is received. Interest will accrue daily on your outstanding
loan at a rate we set. The loan interest rate will be equal to the Moody's
Corporate Bond Yield Averages for Baa bonds for the calendar month ending two
months before the first day of the calendar quarter in which the rate is
determined.
LOAN RESERVE ACCOUNT
On the date your loan is processed, we will transfer the amount of your loan to
the loan reserve account. Unless you specify otherwise, we will subtract your
loan on a pro rata basis from your value in the variable investment options and
the guaranteed interest option. If these amounts are insufficient, any
additional amount of the loan will be subtracted from the fixed maturity
options in the order of the earliest maturity date(s) first. A market value
adjustment may apply.
We will credit interest to the amount in the loan reserve account at a rate of
2% lower than the loan interest rate that applies for the time your loan is
outstanding. On each contract date anniversary after the date the loan is
processed, we will transfer the amount of interest earned in the loan reserve
account to the variable investment options on a pro rata basis. When you make a
loan repayment, unless you specify otherwise, we will transfer the dollar
amount of the loan repaid from the loan reserve account to the investment
options according to the allocation percentages we have on our records. Loan
repayments are not considered contributions and therefore are not eligible for
additional credits.
SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time while the
annuitant is living and before you begin to receive annuity payments. (Rollover
TSA contracts may have restrictions). For a surrender to be effective, we must
receive your written request and your contract at our processing office. We
will determine your cash value on the date we receive the required information.
All benefits under the contract will terminate as of that date.
You may receive your cash value in a single sum payment or apply it to one or
more of the annuity payout options. See "Your annuity payout options" below.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments out of the variable investment
options within seven calendar days after the date of the transaction to which
the request relates. These transactions may include applying proceeds to a
variable annuity, payment of a death benefit, payment of any amount you
withdraw (less any withdrawal charge) and, upon surrender, payment of the cash
value. We may postpone such payments or applying proceeds for any period during
which:
(1) the New York Stock Exchange is closed or restricts trading,
(2) sales of securities or determination of the fair value of a variable
investment option's assets is not reasonably practicable because of an
emergency, or
(3) the SEC, by order, permits us to defer payment to protect people remaining
in the variable investment options.
We can defer payment of any portion of your value in the guaranteed interest
account and fixed maturity options (other than for death benefits) for up to
six months while you are living. We also may defer payments for a reasonable
amount of time (not to exceed 10 days) while we are waiting for a contribution
check to clear.
All payments are made by check and are mailed to you (or the payee named in a
tax-free exchange) by U.S. mail, unless you request that we use an express
delivery service at your expense.
YOUR ANNUITY PAYOUT OPTIONS
Accumulator(R) Plus(SM) offers you several choices of annuity payout options.
Some enable you to receive fixed annuity payments which can be either level or
increasing, and others enable you to receive variable annuity payments.
You can choose from among the annuity payout options listed below. Restrictions
may apply, depending on the type of contract you own or the annuitant's age
when the contract was issued. In addition, if you are exercising your
guaranteed minimum income benefit under the Living Benefit, your choice of
payout options are those that are available under the Living Benefit (see "Our
Living Benefit option" in "Contract features and benefits" earlier in this
Prospectus).
- --------------------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period
certain
Life annuity with refund
certain
Period certain annuity
- --------------------------------------------------------------------------------
Variable Immediate Annuity Life annuity (not available
payout options in New York)
Life annuity with period
certain
- --------------------------------------------------------------------------------
Income Manager(R) payout Life annuity with period
options (available for annuitants certain
age 83 or less at contract issue) Period certain annuity
- --------------------------------------------------------------------------------
Accessing your money 39
o Life annuity: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment before the
annuitant's death. Because there is no continuation of benefits following
the annuitant's death with this payout option, it provides the highest
monthly payment of any of the life annuity options, so long as the
annuitant is living.
o Life annuity with period certain: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the end of a
selected period of time ("period certain"), payments continue to the
beneficiary for the balance of the period certain. The period certain
cannot extend beyond the annuitant's life expectancy. A life annuity with a
period certain is the form of annuity under the contracts that you will
receive if you do not elect a different payout option. In this case, the
period certain will be based on the annuitant's age and will not exceed 10
years.
o Life annuity with refund certain: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the amount
applied to purchase the annuity option has been recovered, payments to the
beneficiary will continue until that amount has been recovered. This payout
option is available only as a fixed annuity.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15, or 20 years. This guaranteed period may
not exceed the annuitant's life expectancy. This option does not guarantee
payments for the rest of the annuitant's life. It does not permit any
repayment of the unpaid principal, so you cannot elect to receive part of
the payments as a single sum payment with the rest paid in monthly annuity
payments. This payout option is available only as a fixed annuity.
The life annuity, life annuity with period certain, and life annuity with
refund certain payout options are available on a single life or joint and
survivor life basis. The joint and survivor life annuity guarantees payments
for the rest of the annuitant's life and, after the annuitant's death, payments
continue to the survivor. We may offer other payout options not outlined here.
Your financial professional can provide you with details.
FIXED ANNUITY PAYOUT OPTIONS
With fixed annuities, we guarantee fixed annuity payments will be based either
on the tables of guaranteed annuity purchase factors in your contract or on our
then current annuity purchase factors, whichever is more favorable for you.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS
Variable Immediate Annuities are described in a separate prospectus that is
available from your financial professional. Before you select a Variable
Immediate Annuity payout option, you should read the prospectus which contains
important information that you should know.
Variable Immediate Annuities may be funded through your choice of available
variable investment options investing in portfolios of the EQ Advisors Trust
and AXA Premier VIP Trust. The contract also offers a fixed income annuity
payout option that can be elected in combination with the variable annuity
payout option. The amount of each variable income annuity payment will
fluctuate, depending upon the performance of the variable investment options,
and whether the actual rate of investment return is higher or lower than an
assumed base rate.
INCOME MANAGER(R) PAYOUT OPTIONS
The Income Manager(R) payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts may provide higher or
lower income levels, but do not have all the features of the Income Manager(R)
payout annuity contract. You may request an illustration of the Income
Manager(R) payout annuity contract from your financial professional. Income
Manager(R) payout options are described in a separate prospectus that is
available from your financial professional. Before you select an Income
Manager(R) payout option, you should read the prospectus which contains
important information that you should know.
Both NQ and IRA Income Manager(R) payout options provide guaranteed level
payments. The Income Manager(R) (life annuity with period certain) also
provides guaranteed increasing payments (NQ contracts only). You may not elect
an Income Manager(R) payout option without life contingencies unless withdrawal
charges are no longer in effect under your Accumulator(R) Plus(SM).
For QP and Rollover TSA contracts, if you want to elect an Income Manager(R)
payout option, we will first roll over amounts in such contract to a Rollover
IRA contract with the plan participant as owner. You must be eligible for a
distribution under the QP or Rollover TSA contract.
You may choose to apply your account value of your Accumulator(R) Plus(SM)
contract to an Income Manager(R) payout annuity. In this case, we will consider
any amounts applied as a withdrawal from your Accumulator(R) Plus(SM). For the
tax consequences of withdrawals, see "Tax information" later in this
Prospectus.
Depending upon your circumstances, an Income Manager(R) contract may be
purchased on a tax-free basis. Please consult your tax adviser. The Income
Manager(R) payout options are not available in all states.
If you purchase an Income Manager(R) contract in connection with the exercise
of the Living Benefit option, different payout options may apply as well as
other various differences. See "Our Living Benefit Option" in "Contract
features and benefits" earlier in this Prospectus as well as the Income
Manager(R) prospectus.
THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION
The amount applied to purchase an annuity payout option varies, depending on
the payout option that you choose, and the timing of your purchase as it
relates to any withdrawal charges.
For the fixed annuity payout options and Variable Immediate Annuity payout
options, no withdrawal charge is imposed if you select a life annuity, life
annuity with period certain or life annuity with refund certain.
For the fixed annuity payout option, the withdrawal charge applicable under
your Accumulator(R) Plus(SM) is imposed if you select a period certain. If the
period certain is more than 5 years, then the withdrawal charge deducted will
not exceed 5% of the account value.
40 Accessing your money
For the Income Manager(R) payout life contingent options, no withdrawal charge
is imposed under the Accumulator(R) Plus(SM). If the withdrawal charge that
otherwise would have been applied to your account value under your
Accumulator(R) Plus(SM) is greater than 2% of the contributions that remain in
your contract at the time you purchase your payout option, the withdrawal
charges under the Income Manager(R) will apply. The year in which your account
value is applied to the payout option will be "contract year 1."
SELECTING AN ANNUITY PAYOUT OPTION
When you select a payout option, we will issue you a separate written agreement
confirming your right to receive annuity payments. We require you to return
your contract before annuity payments begin. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
five years from the Accumulator(R) Plus(SM) contract date. Except with respect
to Income Manager(R) annuity payout options, where payments are made on the 15th
day of each month, you can change the date your annuity payments are to begin
anytime before that date as long as you do not choose a date later than the 28th
day of any month. Also, that date may not be later than the annuity maturity
date described below.
If you elect to start receiving annuity payments within three years of making
an additional contribution, we will recover the amount of any credit that
applies to that contribution.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier.
In no event will you ever receive payments under a fixed option or an initial
payment under a variable option of less than the minimum amounts guaranteed by
the contract.
If, at the time you elect a payout option, the amount to be applied is less
than $2,000 or the initial payment under the form elected is less than $20
monthly, we reserve the right to pay the account value in a single sum rather
than as payments under the payout option chosen.
ANNUITY MATURITY DATE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 95th birthday. For
contracts issued in New York, the maturity date is the contract date that
follows the annuitant's 90th birthday.
For contracts issued in Pennsylvania, the maturity date is related to the
contract issue date, as follows:
- ---------------------------------------------
Maximum
Issue age annuitization age
- ---------------------------------------------
0-75 85
76 86
77 87
78-80 88
- ---------------------------------------------
Before the last day by which your annuity payments must begin, we will notify
you by letter. Once you have selected an annuity payout option and payments
have begun, no change can be made other than: (i) transfers (if permitted in
the future) among the variable investment options if a Variable Immediate
Annuity payout option is selected; and (ii) withdrawals or contract surrender
(subject to a market value adjustment) if an Income Manager(R) annuity payout
option is chosen.
Accessing your money 41
5. Charges and expenses
- --------------------------------------------------------------------------------
CHARGES THAT AXA EQUITABLE DEDUCTS
We deduct the following charges each day from the net assets of each variable
investment option. These charges are reflected in the unit values of each
variable investment option:
o A mortality and expense risks charge
o An administrative charge
o A distribution charge
We deduct the following charges from your account value. When we deduct these
charges from your variable investment options, we reduce the number of units
credited to your contract:
o On each contract date anniversary -- an annual administrative charge, if
applicable.
o At the time you make certain withdrawals or surrender your contract -- a
withdrawal charge.
o On each contract date anniversary -- a charge if you elect a death benefit
(other than the Standard death benefit).
o On each contract date anniversary -- a charge for the Living Benefit, if
you elect this optional benefit.
o At the time annuity payments are to begin -- charges designed to
approximate certain taxes that may be imposed on us, such as premium taxes
in your state. An annuity administrative fee may also apply.
o On each contract date anniversary -- a charge for Protection Plus(SM), if
you elect this optional benefit.
More information about these charges appears below. We will not increase these
charges for the life of your contract, except as noted. We may reduce certain
charges under group or sponsored arrangements. See "Group or sponsored
arrangements" later in this section.
To help with your retirement planning, we may offer other annuities with
different charges, benefits, and features. Please contact your financial
professional for more information.
MORTALITY AND EXPENSE RISKS CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for mortality and expense risks, including the Standard death
benefit. The daily charge is equivalent to an annual rate of 0.90% of the net
assets in each variable investment option.
The mortality risk we assume is the risk that annuitants as a group will live
for a longer time than our actuarial tables predict. If that happens, we would
be paying more in annuity income than we planned. We also assume a risk that
the mortality assumptions reflected in our guaranteed annuity payment tables,
shown in each contract, will differ from actual mortality experience. Lastly,
we assume a mortality risk to the extent that at the time of death, the
guaranteed minimum death benefit exceeds the cash value of the contract. The
expense risk we assume is the risk that it will cost us more to issue and
administer the contracts than we expect. A portion of this charge also
compensates us for the contract credit. For a discussion of the credit, see
"Credits" in "Contract features and benefits" earlier in this Prospectus. We
expect to make a profit from this charge.
ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for administrative expenses under the contracts. The daily
charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
DISTRIBUTION CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for a portion of our sales expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on each contract
date anniversary. We deduct the charge if your account value on the last
business day of the contract year is less than $50,000. If your account value
on such date is $50,000 or more, we do not deduct the charge. During the first
two contract years, the charge is equal to $30 or, if less, 2% of your account
value. The charge is $30 for contract years three and later.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (if permitted in your state) on a pro rata
basis. If those amounts are insufficient, we will deduct all or a portion of
the charge from the fixed maturity options in order of the earliest maturity
date(s) first. A market value adjustment may apply. If you surrender your
contract during the contract year, we will deduct a pro rata portion of the
charge.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
WITHDRAWAL CHARGE
A withdrawal charge applies in two circumstances: (1) if you make one or more
withdrawals during a contract year that, in total, exceed the 15% free
withdrawal amount, described below, or (2) if you surrender your contract to
receive its cash value or apply your cash value to a non life contingent
annuity payout option. A portion of this charge also compensates us for the
contract credit. For a discussion of the credit, see "Credits" in "Contract
features and benefits" earlier in this Prospectus. We expect to make a profit
from this charge.
42 Charges and expenses
The withdrawal charge equals a percentage of the contributions withdrawn. We do
not consider credits to be contributions. Therefore, there is no withdrawal
charge associated with a credit.
The percentage of the withdrawal charge that applies to each contribution
depends on how long each contribution has been invested in the contract. We
determine the withdrawal charge separately for each contribution according to
the following table:
- --------------------------------------------------------------------------------
Contract year
- --------------------------------------------------------------------------------
1 2 3 4 5 6 7 8 9+
- --------------------------------------------------------------------------------
Percentage of
contribution 8% 8% 7% 7% 6% 5% 4% 3% 0%
- --------------------------------------------------------------------------------
For purposes of calculating the withdrawal charge, we treat the contract year
in which we receive a contribution as "contract year 1." Amounts withdrawn up
to the free withdrawal amount are not considered withdrawals of any
contribution. We also treat contributions that have been invested the longest
as being withdrawn first. We treat contributions as withdrawn before earnings
for purposes of calculating the withdrawal charge. However, federal income tax
rules treat earnings under your contract as withdrawn first. See "Tax
information" later in this Prospectus.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and the withdrawal charge from your account
value. Any amount deducted to pay withdrawal charges is also subject to the
same withdrawal charge percentage. We deduct the charge in proportion to the
amount of the withdrawal subtracted from each variable investment option. The
withdrawal charge helps cover our sales expenses.
The withdrawal charge does not apply in the circumstances described below.
15% FREE WITHDRAWAL AMOUNT. Each contract year you can withdraw up to 15% of
your account value without paying a withdrawal charge. The 15% free withdrawal
amount is determined using your account value at the beginning of each contract
year, or in the case of the first contract year, your initial contribution,
minus any other withdrawals made during the contract year. Additional
contributions during the contract year do not increase your 15% free withdrawal
amount. The 15% free withdrawal amount does not apply if you surrender your
contract except where required by law.
DISABILITY, TERMINAL ILLNESS, OR CONFINEMENT TO NURSING HOME. The withdrawal
charge does not apply if:
(i) The annuitant has qualified to receive Social Security disability
benefits as certified by the Social Security Administration; or
(ii) We receive proof satisfactory to us (including certification by a
licensed physician) that the annuitant's life expectancy is six months or
less; or
(iii) The annuitant has been confined to a nursing home for more than 90 days
(or such other period, as required in your state) as verified by a
licensed physician. A nursing home for this purpose means one that is (a)
approved by Medicare as a provider of skilled nursing care service, or
(b) licensed as a skilled nursing home by the state or territory in which
it is located (it must be within the United States, Puerto Rico, or U.S.
Virgin Islands) and meets all of the following:
-- its main function is to provide skilled, intermediate, or
custodial nursing care;
-- it provides continuous room and board to three or more persons;
-- it is supervised by a registered nurse or licensed practical
nurse;
-- it keeps daily medical records of each patient;
-- it controls and records all medications dispensed; and
-- its primary service is other than to provide housing for
residents.
We reserve the right to impose a withdrawal charge, in accordance with your
contract and applicable state law, if the conditions as described in (i), (ii)
or (iii) above existed at the time a contribution was remitted or if the
condition began within 12 months of the period following remittance. Some states
may not permit us to waive the withdrawal charge in the above circumstances, or
may limit the circumstances for which the withdrawal charge may be waived. Your
financial professional can provide more information or you may contact our
processing office.
GUARANTEED MINIMUM DEATH BENEFIT CHARGE
ANNUAL RATCHET TO AGE 85. If you elected the Annual ratchet to age 85 enhanced
death benefit, we deduct a charge annually from your account value on each
contract date anniversary for which it is in effect. The charge is equal to
0.30% of the Annual ratchet to age 85 benefit base.
6% ROLL UP TO AGE 85. If you elected the 6% Roll up to age 85 enhanced death
benefit, we deduct a charge annually from your account value on each contract
date anniversary for which it is in effect. The charge is equal to 0.45% of the
6% Roll up to age 85 benefit base.
GREATER OF 6% ROLL UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elected
this enhanced death benefit, we deduct a charge annually from your account
value on each contract date anniversary for which it is in effect. The charge
is equal to 0.60% of the greater of the 6% Roll up to age 85 or the Annual
ratchet to age 85 benefit base.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro-rata basis. If those amount are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in order of the earliest maturity date(s) first. A market
value adjustment may apply.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
STANDARD DEATH BENEFIT. There is no additional charge for the Standard death
benefit.
Charges and expenses 43
LIVING BENEFIT CHARGE
If you elected the Living Benefit, we deduct a charge annually from your
account value on each contract date anniversary until such time as you exercise
the guaranteed minimum income benefit, elect another annuity payout option or
the contract date anniversary after the annuitant reaches age 85, whichever
occurs first. The charge is equal to 0.60% of the applicable benefit base in
effect on the contract date anniversary.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in order of the earliest maturity date(s) first. A market
value adjustment may apply.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
PROTECTION Plus(SM)
If you elected Protection Plus(SM), we deduct a charge annually from your
account value on each contract date anniversary for which it is in effect. The
charge is equal to 0.35% of the account value on each contract date anniversary.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in the order of the earliest maturity date(s) first. A market
value adjustment may apply.
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state. Generally, we deduct the charge from
the amount applied to provide an annuity payout option. The current tax charge
that might be imposed varies by jurisdiction and ranges from 0% to 3.5%.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $350 from the amount to be applied to the Variable Immediate
annuity payout option.
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
o Management fees ranging from 0.10% to 1.50%.
o 12b-1 fees of either 0.25% or 0.35%.
o Operating expenses, such as trustees' fees, independent public accounting
firms' fees, legal counsel fees, administrative service fees, custodian
fees and liability insurance.
o Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of each Trust are purchased at their net asset value, these fees and
expenses are, in effect, passed on to the variable investment options and are
reflected in their unit values. For more information about these charges,
please refer to the prospectuses for the Trusts.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the withdrawal
charge or the mortality and expense risks charge or change the minimum initial
contribution requirements. We also may change the guaranteed minimum death
benefit or offer variable investment options that invest in shares of the
Trusts that are not subject to the 12b-1 fee. If permitted under the terms of
our exemptive order regarding Accumulator Plus(SM) bonus feature, we may also
change the crediting percentage that applies to contributions. Group
arrangements include those in which a trustee or an employer, for example,
purchases contracts covering a group of individuals on a group basis. Group
arrangements are not available for Rollover IRA and Roth Conversion IRA
contracts. Sponsored arrangements include those in which an employer allows us
to sell contracts to its employees or retirees on an individual basis.
Our costs for sales, administration and mortality generally vary with the size
and stability of the group or sponsoring organization, among other factors. We
take all these factors into account when reducing charges. To qualify for
reduced charges, a group or sponsored arrangement must meet certain
requirements, such as requirements for size and number of years in existence.
Group or sponsored arrangements that have been set up solely to buy contracts
or that have been in existence less than six months will not qualify for
reduced charges.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these rules from time to
time. Any variation will reflect differences in costs or services and will not
be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules,
ERISA or both. We make no representations with regard to the impact of these
and other applicable laws on such programs. We recommend that employers,
trustees, and others purchasing or making contracts available for purchase
under such programs seek the advice of their own legal and benefits advisers.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that results
in savings of sales and administrative expenses, such as sales through persons
who are compensated by clients for recommending investments and who receive no
commission or reduced commissions in connection with the sale of the contracts.
We will not permit a reduction or elimination of charges where it would be
unfairly discriminatory.
44 Charges and expenses
6. Payment of death benefit
- --------------------------------------------------------------------------------
YOUR BENEFICIARY AND PAYMENT OF BENEFIT
You designated your beneficiary when you applied for your contract. You may
change your beneficiary at any time. The change will be effective on the date
the written request for the change is received in our processing office. We are
not responsible for any beneficiary change request that we do not receive. We
will send you written confirmation when we receive your request.
Under jointly owned contracts, the surviving owner is considered the
beneficiary, and will take the place of any other beneficiary. You may be
limited as to the beneficiary you can designate in a Rollover TSA contract. In
a QP contract, the beneficiary must be the trustee. Where an NQ contract is
owned by a minor pursuant to the Uniform Gift to Minors Act or the Uniform
Transfers to Minors Act, the beneficiary must be the estate of the annuitant.
Where an IRA contract is owned in a custodial individual retirement account,
the custodian must be the beneficiary so that the custodian can reinvest or
distribute the death benefit as the beneficiary of the account desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
applicable guaranteed minimum death benefit. We determine the amount of the
death benefit (other than the applicable guaranteed minimum death benefit) and
any amount applicable under the Protection Plus(SM) feature, as of the date we
receive satisfactory proof of the annuitant's death, any required instructions
for the method of payment, information and forms necessary to effect payment.
The amount of the applicable guaranteed minimum death benefit will be such
guaranteed minimum death benefit as of the date of the annuitant's death,
adjusted for any subsequent withdrawals. The death benefit will be less a
deduction for any outstanding loan plus accrued interest on the date that the
death benefit is made (applies to Rollover TSA only).
EFFECT OF THE ANNUITANT'S DEATH
If the annuitant dies before the annuity payments begin, we will pay the death
benefit to your beneficiary.
Generally, the death of the annuitant terminates the contract. However, a
surviving spouse of the deceased owner/annuitant can choose to be treated as
the successor owner/annuitant and continue the contract. Only a spouse who is
the sole primary beneficiary can be a successor owner/annuitant. The successor
owner/annuitant feature is only available under NQ and individually-owned IRA
contracts.
For NQ and all types of IRA contracts, a beneficiary may be able to have
limited ownership as discussed under "Beneficiary continuation option" below.
WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT
Under certain conditions the owner changes after the original owner's death for
purposes of receiving federal tax law required distributions from the contract.
When the owner is not the annuitant under an NQ contract and the owner dies
before annuity payments begin, unless you specify otherwise, the beneficiary
named to receive the death benefit upon the annuitant's death will become the
successor owner. If you do not want this beneficiary to be the successor owner,
you should name a specific successor owner. You may name a successor owner at
any time during your life by sending satisfactory notice to our processing
office. If the contract is jointly owned and the first owner to die is not the
annuitant, the surviving owner becomes the sole contract owner. This person
will be considered the successor owner for purposes of the distribution rules
described in this section. The surviving owner automatically takes the place of
any other beneficiary designation.
You should carefully consider the following if you have elected the Living
Benefit and you are the owner, but not the annuitant. Because the payments
under the Living Benefit are based on the life of the annuitant, and the
federal tax law required distributions described below are based on the life of
the successor owner, a successor owner who is not also the annuitant may not be
able to exercise the Living Benefit option, if you die before annuity payments
begin. Therefore, one year before you become eligible to exercise the Living
Benefit option, you should consider the effect of your beneficiary designations
on potential payments after your death. For more information, see "Exercise of
guaranteed minimum income benefit" under "Our Living Benefit option," in
"Contract features and benefits" earlier in this Prospectus.
Unless the surviving spouse of the owner who has died (or in the case of a
joint ownership situation, the surviving spouse of the first owner to die) is
the successor owner for this purpose, the entire interest in the contract must
be distributed under the following rules:
o The cash value of the contract must be fully paid to the successor owner
(new owner) within five years after your death (or in a joint ownership
situation, the death of the first owner to die).
o The successor owner may instead elect to receive the cash value as a life
annuity (or payments for a period certain of not longer than the new
owner's life expectancy). Payments must begin within one year after the
non-annuitant owner's death. Unless this alternative is elected, we will
pay any cash five years after your death (or the death of the first owner
to die).
o A successor owner should name a new beneficiary.
If the surviving spouse is the successor owner or joint owner, the spouse may
elect to continue the contract. No distributions are required as long as the
surviving spouse and annuitant are living. An eligible successor owner,
including a surviving joint owner after the first owner dies, may elect the
beneficiary continuation option for NQ contracts discussed later under
"Beneficiary continuation option" below.
HOW DEATH BENEFIT PAYMENT IS MADE
We will pay the death benefit to the beneficiary in the form of the annuity
payout option you have chosen. If you have not chosen an
Payment of death benefit 45
annuity payout option as of the time of the annuitant's death, the beneficiary
will receive the death benefit in a single sum. However, subject to any
exceptions in the contract, our rules and any applicable requirements under
federal income tax rules, the beneficiary may elect to apply the death benefit
to one or more annuity payout options we offer at the time. See "Your annuity
payout options" in "Accessing your money" earlier in this Prospectus. Please
note that any annuity payout option chosen may not extend beyond the life
expectancy of the beneficiary.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may elect to
receive the death benefit or continue the contract as successor
owner/annuitant.
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required instructions and
information, and forms necessary to effect the successor owner/annuitant
feature, we will increase the account value to equal your elected guaranteed
minimum death benefit as of the date of your death if such death benefit is
greater than your account value, plus any amount applicable under the
Protection Plus(SM) feature, and adjusted for any subsequent withdrawals. The
increase in the account value will be allocated to the investment options
according to the allocation percentages we have on file for your contract.
Thereafter, withdrawal charges will no longer apply to contributions made
before your death. Withdrawal charges will apply if additional contributions
are made. These additional contributions will be considered to be withdrawn
only after all other amounts have been withdrawn. In determining whether your
applicable guaranteed minimum death benefit option will continue to grow, we
will use your surviving spouse's age (as of the date we receive satisfactory
proof of your death, any required instructions and the information and forms
necessary to effect the successor owner/annuitant feature).
Where an NQ contract is owned by a Living Trust, as defined in the contract,
and at the time of the annuitant's death the annuitant's spouse is the sole
beneficiary of the Living Trust, the Trustee, as owner of the contract, may
request that the spouse be substituted as annuitant as of the date of the
annuitant's death. No further change of annuitant will be permitted.
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole beneficiary of the account, the custodian may
request that the spouse be substituted as annuitant after your death.
BENEFICIARY CONTINUATION OPTION
This feature permits a designated individual, on the contract owner's death, to
maintain a contract in the deceased contract owner's name and receive
distributions under the contract, instead of receiving the death benefit in a
single sum. We make this option available to beneficiaries under traditional
IRA, Roth IRA and NQ contracts, subject to state availability. Please speak
with your financial professional for further information.
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. The beneficiary continuation option must be elected by September 30th of
the year following the calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this option. If the election is made, then, as of the
date we receive satisfactory proof of death, any required instructions,
information and forms necessary to effect the beneficiary continuation option
feature, we will increase the account value to equal the applicable death
benefit if such death benefit is greater than such account value, plus any
amount applicable under the Protection Plus(SM) feature, and adjusted for any
subsequent withdrawals. Where an IRA contract is owned in a custodial
individual retirement account, the custodian may reinvest the death benefit in
an individual retirement annuity contract, using the account beneficiary as the
annuitant. Please speak with your financial professional for further
information.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy (determined in the calendar year after your death
and determined on a term certain basis). These payments must begin no later
than December 31st of the calendar year after the year of your death. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70-1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed later in this Prospectus in
"Tax information" under "Individual retirement arrangements (IRAs)," the
beneficiary may choose the "5-year rule" option instead of annual payments over
life expectancy. The 5-year rule is always available to beneficiaries under
Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may
take withdrawals as desired, but the entire account value must be fully
withdrawn by December 31st of the calendar year which contains the fifth
anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA contracts:
o The contract continues in your name for the benefit of your beneficiary.
o This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals
for this purpose.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's own
life expectancy, if payments over life expectancy are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the guaranteed minimum income benefit or an optional
enhanced death benefit under the contract, they will no longer be in effect
and charges for such benefits will stop. Also, any minimum death benefit
feature will no longer be in effect.
o The beneficiary may choose at any time to withdraw all or a portion of the
account value and no withdrawal charges, if any, will apply.
46 Payment of death benefit
o Any partial withdrawal must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking required minimum distributions based
on the remaining life expectancy of the deceased beneficiary or to receive
any remaining interest in the contract in a lump sum. The option elected
will be processed when we receive satisfactory proof of death, any required
instructions for the method of payment and any required information and
forms necessary to effect payment.
BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACT ONLY. This feature, also known
as the Inherited annuity, may only be elected when the NQ contract owner dies
before the annuity commencement date, whether or not the owner and the
annuitant are the same person. If the owner and annuitant are different and the
owner dies before the annuitant, for purposes of this discussion, "beneficiary"
refers to the successor owner. For a discussion of successor owner, see "When
an NQ contract owner dies before the annuitant" earlier in this section. This
feature must be elected within 9 months following the date of your death and
before any inconsistent election is made. Beneficiaries who do not make a
timely election will not be eligible for this option.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy, determined on a term certain basis and in the
year payments start. These payments must begin no later than one year after the
date of your death and are referred to as "scheduled payments." The beneficiary
may choose the "5-year rule" instead of scheduled payments over life
expectancy. If the beneficiary chooses the 5-year rule, there will be no
scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals
as desired, but the entire account value must be fully withdrawn by the fifth
anniversary of your death.
Under the beneficiary continuation option for NQ contracts (regardless of
whether the owner and the annuitant are the same person):
o This feature is only available if the beneficiary is an individual. It is
not available for any entity such as a trust, even if all of the
beneficiaries of the trust are individuals.
o The contract continues in your name for the benefit of your beneficiary.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the respective
beneficiary's own life expectancy, if scheduled payments are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the guaranteed minimum income benefit or an optional
enhanced death benefit under the contract, they will no longer be in effect
and charges for such benefits will stop. Also, any minimum death benefit
feature will no longer be in effect.
o If the beneficiary chooses the "5-year rule," withdrawals may be made at
any time. If the beneficiary instead chooses scheduled payments, the
beneficiary must also choose between two potential withdrawal options at
the time of election. If the beneficiary chooses "Withdrawal Option 1", the
beneficiary cannot later withdraw funds in addition to the scheduled
payments the beneficiary is receiving; "Withdrawal Option 1" permits total
surrender only. "Withdrawal Option 2" permits the beneficiary to take
withdrawals, in addition to scheduled payments, at any time. However, the
scheduled payments under "Withdrawal Option 1" are afforded favorable tax
treatment as "annuity payments." See "Taxation of nonqualified annuities"
in "Tax Information" later in this Prospectus.
o Any partial withdrawals must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract on the beneficiary's death.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking scheduled payments based on the
remaining life expectancy of the deceased beneficiary (if scheduled
payments were chosen) or to receive any remaining interest in the contract
in a lump sum. We will pay any remaining interest in the contract in a lump
sum if your beneficiary elects the 5-year rule. The option elected will be
processed when we receive satisfactory proof of death, any required
instructions for the method of payment and any required information and
forms necessary to effect payment.
If you are both the owner and annuitant:
o As of the date we receive satisfactory proof of death, any required
instructions, information and forms necessary to effect the beneficiary
continuation option feature, we will increase the annuity account value to
equal the applicable death benefit if such death benefit is greater than
such account value, plus any amount applicable under the Protection
Plus(SM) feature, and adjusted for any subsequent withdrawals.
o No withdrawal charges, if any, will apply to any withdrawals by the
beneficiary.
If the owner and annuitant are not the same person:
o If the beneficiary continuation option is elected, the beneficiary
automatically becomes the new annuitant of the contract, replacing the
existing annuitant.
o The annuity account value will not be reset to the death benefit amount.
o The contract's withdrawal charge schedule will continue to be applied to
any withdrawal or surrender other than scheduled payments; the contract's
free corridor amount will continue to apply to withdrawals but does not
apply to surrenders.
o We do not impose a withdrawal charge on scheduled payments except if, when
added to any withdrawals previously taken in the same contract year,
including for this purpose a contract surrender, the total amount of
withdrawals and scheduled payments exceed the free corridor amount. See the
"Withdrawal charges" in "Charges and expenses" earlier in this Prospectus.
Payment of death benefit 47
If a contract is jointly owned:
o The surviving owner supersedes any other named beneficiary and may elect
the beneficiary continuation option.
o If the deceased joint owner was also the annuitant, see "If you are both
the owner and annuitant" earlier in this section.
o If the deceased joint owner was not the annuitant, see "If the owner and
annuitant are not the same person" earlier in this section.
48 Payment of death benefit
7. Tax information
- --------------------------------------------------------------------------------
OVERVIEW
In this part of the prospectus, we discuss the current federal income tax rules
that generally apply to Accumulator(R) Plus(SM) contracts owned by United States
individual taxpayers. The tax rules can differ, depending on the type of
contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. Therefore, we
discuss the tax aspects of each type of contract separately.
Federal income tax rules include the United States laws in the Internal Revenue
Code, and Treasury Department Regulations and Internal Revenue Service ("IRS")
interpretations of the Internal Revenue Code. These tax rules may change
without notice. We cannot predict whether, when, or how these rules could
change. Any change could affect contracts purchased before the change. Congress
may also consider proposals in the future to comprehensively reform or overhaul
the United States tax and retirement systems, which if enacted, could affect
the tax benefits of a contract.
We cannot provide detailed information on all tax aspects of the contracts.
Moreover, the tax aspects that apply to a particular person's contract may vary
depending on the facts applicable to that person. We do not discuss state
income and other state taxes, federal income tax and withholding rules for
non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the
contract, rights or values under the contract, or payments under the contract,
for example, amounts due to beneficiaries, may be subject to federal or state
gift, estate, or inheritance taxes. You should not rely only on this document,
but should consult your tax adviser before your purchase.
President Bush signed the Economic Growth and Tax Relief Reconciliation Act of
2001 ("EGTRRA") on June 7, 2001. Many of the provisions of EGTRRA became
effective on January 1, 2002 and are phased in during the first decade of the
twenty-first century. In the absence of future legislation, all of the
amendments made by EGTRRA will no longer apply after December 31, 2010, and the
law in effect in 2001 will apply again. In general, EGTRRA liberalizes
contributions that can be made to all types of tax-favored retirement plans. In
addition to increasing amounts that can be contributed and permitting
individuals over age 50 to make additional contributions, EGTRRA also permits
rollover contributions to be made between different types of tax-favored
retirement plans. Please discuss with your tax adviser how EGTRRA affects your
personal financial situation.
CONTRACTS THAT FUND A RETIREMENT ARRANGEMENT
Generally, there are two types of funding vehicles that are available for
Individual Retirement Arrangements ("IRAs") and Code Section 403(b)
Arrangements ("TSAs"), respectively: an IRA or 403(b) annuity contract such as
this one, or an IRA or 403(b)(7) custodial or other qualified account. Annuity
contracts can also be purchased in connection with retirement plans qualified
under Code section 401 ("QP contracts"). How these arrangements work, including
special rules applicable to each, are described in the specific sections for
each type of arrangement, below. You should be aware that the funding vehicle
for a qualified arrangement does not provide any tax deferral benefit beyond
that already provided by the Code for all permissible funding vehicles.
Therefore, you should consider the annuity's features and benefits, such as
Accumulator(R) Plus(SM), extra credit on each contribution, choice of death
benefits, the living benefit guaranteed minimum income benefit guaranteed
interest option, selection of investment funds and its choices of pay-out
options that are available in Accumulator(R) Plus(SM), as well as the features
and benefits of other permissible funding vehicles and the relative costs of
annuities and other arrangements. You should be aware that cost may vary
depending on the features and benefits made available and the charges and
expenses of the investment options or funds that you elect.
Beginning in 2006, certain provisions of the Treasury Regulations on required
minimum distributions concerning the actuarial present value of additional
contract benefits could increase the amount required to be distributed from
annuity contracts funding qualified plans, TSAs and IRAs. You should consider
the potential implication of these Regulations before you purchase additional
features under this annuity contract. See also Appendix II at the end of this
Prospectus for a discussion of QP contracts.
TRANSFERS AMONG VARIABLE INVESTMENT OPTIONS
You can make transfers among variable investment options inside the contract
without triggering taxable income.
TAXATION OF NONQUALIFIED ANNUITIES
CONTRIBUTIONS
You may not deduct the amount of your contributions to a nonqualified annuity
contract.
CONTRACT EARNINGS
Generally, you are not taxed on contract earnings until you receive a
distribution from your contract, whether as a withdrawal or as an annuity
payment. However, earnings are taxable, even without a distribution:
o if a contract fails investment diversification requirements as specified in
federal income tax rules (these rules are based on or are similar to those
specified for mutual funds under the securities laws);
o if you transfer a contract, for example, as a gift to someone other than
your spouse (or former spouse);
o if you use a contract as security for a loan (in this case, the amount
pledged will be treated as a distribution); and
o if the owner is other than an individual (such as a corporation,
partnership, trust, or other non-natural person).
Tax information 49
All nonqualified deferred annuity contracts that AXA Equitable and its
affiliates issue to you during the same calendar year are linked together and
treated as one contract for calculating the taxable amount of any distribution
from any of those contracts.
ANNUITY PAYMENTS
Once annuity payments begin, a portion of each payment is taxable as ordinary
income. You get back the remaining portion without paying taxes on it. This is
your "investment in the contract." Generally, your investment in the contract
equals the contributions you made, less any amounts you previously withdrew
that were not taxable.
For fixed annuity payments, the tax-free portion of each payment is determined
by (1) dividing your investment in the contract by the total amount you are
expected to receive out of the contract, and (2) multiplying the result by the
amount of the payment. For variable annuity payments, your tax-free portion of
each payment is your investment in the contract divided by the number of
expected payments.
Once you have received the amount of your investment in the contract, all
payments after that are fully taxable. If payments under a life annuity stop
because the annuitant dies, there is an income tax deduction for any
unrecovered investment in the contract.
PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN
If you make withdrawals before annuity payments begin under your contract, they
are taxable to you as ordinary income if there are earnings in the contract.
Generally, earnings are your account value less your investment in the
contract. If you withdraw an amount which is more than the earnings in the
contract as of the date of the withdrawal, the balance of the distribution is
treated as a return of your investment in the contract and is not taxable.
PROTECTION Plus(SM) FEATURE
In order to enhance the amount of the death benefit to be paid at the
Annuitant's death, you may have purchased a Protection Plus(SM) rider for your
NQ contract. Although we regard this benefit as an investment protection feature
which should have no adverse tax effect, it is possible that the IRS could take
a contrary position or assert that the Protection Plus(SM) rider is not part of
the contract. In such a case, the charges for the Protection Plus(SM) rider
could be treated for federal income tax purposes as a partial withdrawal from
the contract. If this were so, such a deemed withdrawal could be taxable, and
for contract owners under age 591/2, also subject to a tax penalty. Were the IRS
to take this position, AXA Equitable would take all reasonable steps to attempt
to avoid this result which could include amending the contract (with appropriate
notice to you).
CONTRACTS PURCHASED THROUGH EXCHANGES
The following information applies if you purchased your NQ contract through an
exchange of another contract. Normally, exchanges of contracts are taxable
events. The exchange was not taxable under Section 1035 of the Internal Revenue
Code if:
o the contract that was the source of the funds you used to purchase the NQ
contract was another nonqualified deferred annuity contract or life
insurance or endowment contract.
o the owner and the annuitant were the same under the source contract and the
Accumulator(R) Plus(SM) NQ contract. If you used a life insurance or
endowment contract, the owner and the insured must have been the same on
both sides of the exchange transaction.
The tax basis, also referred to as your investment in the contract, of the
source contract carried over to the Accumulator(R) Plus(SM) NQ contract.
An owner may direct the proceeds of a partial withdrawal from one nonqualified
deferred annuity contract to a different insurer to purchase a new nonqualified
deferred annuity contract on a tax-deferred basis. Special forms, agreement
between the carriers, and provision of cost basis information may be required
to process this type of exchange.
SURRENDERS
If you surrender or cancel the contract, the distribution is taxable as
ordinary income (not capital gain) to the extent it exceeds your investment in
the contract.
DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH
For the rules applicable to death benefits, see "Payment of death benefit"
earlier in this Prospectus. The tax treatment of a death benefit taken as a
single sum is generally the same as the tax treatment of a withdrawal from or
surrender of your contract. The tax treatment of a death benefit taken as
annuity payments is generally the same as the tax treatment of annuity payments
under your contract.
Beneficiary continuation option
We have received a private letter ruling from the IRS regarding certain tax
consequences of scheduled payments under the beneficiary continuation option
for NQ contracts. See the discussion "Beneficiary continuation option for NQ
contracts only" in "Payment of death benefit" earlier in this Prospectus. Among
other things, the IRS rules that:
o scheduled payments under the beneficiary continuation option for NQ
contracts satisfy the death of owner rules of Section 72(s)(2) of the Code,
regardless of whether the beneficiary elects Withdrawal Option 1 or
Withdrawal Option 2;
o scheduled payments, any additional withdrawals under Withdrawal Option 2,
or contract surrenders under Withdrawal Option 1 will only be taxable to
the beneficiary when amounts are actually paid, regardless of the
Withdrawal Option selected by the beneficiary;
o a beneficiary who irrevocably elects scheduled payments with Withdrawal
Option 1 will receive "excludable amount" tax treatment on scheduled
payments. See "Annuity payments" earlier in this section. If the
beneficiary elects to surrender the contract before all scheduled payments
are paid, the amount received upon surrender is a non-annuity payment
taxable to the extend it exceeds any remaining investment in the contract.
The ruling specifically does not address the taxation of any payments received
by a beneficiary electing Withdrawal Option 2 (whether scheduled payments or
any withdrawal that might be taken). Before electing the beneficiary
continuation option feature, the individuals you designate as beneficiary or
successor owner should discuss with their tax advisers the consequences of such
elections.
50 Tax information
The tax treatment of a withdrawal after the death of the owner taken as a
single sum or taken as withdrawals under the 5-year rule is generally the same
as the tax treatment of a withdrawal from or surrender of your contract.
EARLY DISTRIBUTION PENALTY TAX
If you take distributions before you are age 59-1/2 a penalty tax of 10% of the
taxable portion of your distribution applies in addition to the income tax.
Some of the available exceptions to the pre-age 59-1/2 penalty tax include
distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o in the form of substantially equal periodic annuity payments for your life
(or life expectancy), or the joint lives (or joint life expectancy) of you
and a beneficiary, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If
you were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. The IRS has said that the owners of variable annuities will
not be treated as owning the separate account assets provided the underlying
portfolios are restricted to variable life and annuity assets. The variable
annuity owners must have the right only to choose among the portfolios, and
must have no right to direct the particular investment decisions within the
portfolios.
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some
issues that remain unclear. For example, the IRS has not issued any guidance as
to whether having a larger number of portfolios available, or an unlimited
right to transfer among them, could cause you to be treated as the owner. We do
not know whether the IRS will ever provide such guidance or whether such
guidance, if unfavorable, would apply retroactively to your contract.
Furthermore, the IRS could reverse its current guidance at any time. We reserve
the right to modify your contract as necessary to prevent you from being
treated as the owner of the assets of Separate Accounts 45 and 49.
SPECIAL RULES FOR NQ CONTRACTS ISSUED IN PUERTO RICO
Income from NQ contracts we issue is U.S. source. A Puerto Rico resident is
subject to U.S. taxation on such U.S. source income. Only Puerto Rico source
income of Puerto Rico residents is excludable from U.S. taxation. Income from
NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable
portion of amounts distributed from a contract may differ in the two
jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax
returns, showing different amounts of income from the contract for each tax
return. Puerto Rico generally provides a credit against Puerto Rico tax for
U.S. tax paid. Depending on your personal situation and the timing of the
different tax liabilities, you may not be able to take full advantage of this
credit.
INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS)
GENERAL
"IRA" stands for individual retirement arrangement. There are two basic types
of such arrangements, individual retirement accounts and individual retirement
annuities. In an individual retirement account, a trustee or custodian holds
the assets funding the account for the benefit of the IRA owner. The assets
typically can include mutual funds and/or individual stocks and/or securities
in a custodial account, and bank certificates of deposit in a trusteed account.
In an individual retirement annuity, an insurance company issues an annuity
contract that serves as the IRA.
There are two basic types of IRAs, as follows:
o Traditional IRAs, typically funded on a pre-tax basis,including SEP-IRAs
and SIMPLE IRAs issued and funded in connection with employer-sponsored
retirement plans; and
o Roth IRAs funded on an after-tax basis.
Regardless of the type of IRA, your ownership interest in the IRA cannot be
forfeited. You or your beneficiaries who survive you are the only ones who can
receive the IRA's benefits or payments. All types of IRAs qualify for tax
deferral, regardless of the funding vehicle selected.
You can hold your IRA assets in as many different accounts and annuities as you
would like, as long as you meet the rules for setting up and making
contributions to IRAs. However, if you own multiple IRAs, you may be required
to combine IRA values or contributions for tax purposes. For further
information about individual retirement arrangements, you can read Internal
Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)").
This publication is usually updated annually, and can be obtained from any IRS
district office or the IRS website (www.irs.gov).
AXA Equitable designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may have
purchased the contract as either a traditional IRA ("Rollover IRA") or Roth IRA
("Roth Conversion IRA"). The first part of this section covers some of the
special tax rules that apply to traditional IRAs. The next part of this section
covers Roth IRAs. The disclosure generally assumes direct ownership of the
individual retirement annuity contract. For contracts owned in a custodial
individual retirement account, the disclosure will apply only if you terminate
your account or transfer ownership of the contract to yourself.
We have received an opinion letter from the IRS approving the respective forms
of the Accumulator(R) traditional and Roth IRA contracts, as amended to reflect
recent tax law changes, for use as a traditional IRA and a Roth IRA,
respectively. This IRS approval is a determination only as to the form of the
annuity. It does not represent a determination of the merits of the annuity as
an investment. The contracts submitted for IRS approval do not include every
feature possibly available under the Accumulator(R) traditional and Roth IRA
contracts.
Tax information 51
PROTECTION Plus(SM) FEATURE
The Protection Plus(SM) feature was offered for IRA contracts, subject to state
and contract availability. We have received IRS opinion letters that the
contract with a Protection Plus(SM) feature qualifies as to form for use as a
traditional IRA and Roth IRA, respectively. This IRS approval is a
determination only as to the form of the annuity. It does not represent a
determination of the merits of the annuity as an investment. The contracts
submitted for IRS approval do not include every feature possibly available
under the Accumulator(R) traditional and Roth IRA contracts. You should consult
with your tax adviser for further information,
Your right to cancel within a certain number of days
This is provided for informational purposes only. Since this contract is no
longer available to new purchasers, this cancellation provision is no longer
applicable.
You can cancel any version of the Accumulator(R) Plus(SM) IRA contract
(traditional IRA or Roth IRA) by following the directions in "Your right to
cancel within a certain number of days" under "Contract features and benefits"
earlier in this Prospectus. If you cancel a traditional IRA or Roth IRA
contract, we may have to withhold tax, and we must report the transaction to
the IRS. A contract cancellation could have an unfavorable tax impact
Traditional individual retirement annuities (traditional IRAs)
Contributions to traditional IRAs. Individuals may make three different types
of contributions to a traditional IRA:
o regular contributions out of earned income or compensation;
o tax-free "rollover" contributions; or
o direct custodian-to-custodian transfers from other traditional IRAs
("direct transfers").
Regular contributions to traditional IRAs
Limits on contributions. The "maximum regular contribution amount" for any
taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $4,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for each of the taxable years 2005
and 2006. When your earnings are below $4,000, your earned income or
compensation for the year is the most you can contribute. This limit does not
apply to rollover contributions or direct custodian-to-custodian transfers into
a traditional IRA. You cannot make regular traditional IRA contributions for
the tax year in which you reach age 70-1/2 or any tax year after that.
If you reach age 50 before the close of the taxable year for which you are
making a regular contribution to your IRA, you may be eligible to make an
additional "catch up contribution" of up to $500 to your traditional IRA for
2005. This amount increases to $1,000 for the taxable year 2006.
Special rules for spouses. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to traditional IRAs
(and Roth IRAs discussed below). Even if one spouse has no compensation or
compensation under $4,000, married individuals filing jointly can contribute up
to $8,000 for each of the taxable years 2005 and 2006 to any combination of
traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the
ability to contribute to traditional IRAs and vice versa. The maximum amount
may be less if earned income is less and the other spouse has made IRA
contributions. No more than a combined total of $4,000 can be contributed
annually to either spouse's traditional and Roth IRAs. Each spouse owns his or
her traditional IRAs and Roth IRAs even if the other spouse funded the
contributions. A working spouse age 70-1/2 or over can contribute up to the
lesser of $4,000 or 100% of "earned income" to a traditional IRA for a
nonworking spouse until the year in which the nonworking spouse reaches age
70-1/2. Catch-up contributions may be made as described above for spouses who
are at least age 50 but under age 70-1/2 at any time during the taxable year
for which the contribution is made.
Deductibility of contributions. The amount of traditional IRA contributions
that you can deduct for a taxable year depends on whether you are covered by an
employer-sponsored tax-favored retirement plan, as defined under special
federal income tax rules. Your Form W-2 will indicate whether or not you are
covered by such a retirement plan.
If you are not covered by a retirement plan during any part of the year, you
can make fully deductible contributions to your traditional IRAs for the
taxable year up to the maximum amount discussed earlier in this section under
"Limits on contributions". That is, for each of the taxable years 2005 and
2006, your fully deductible contribution can be up to $4,000, or if less, your
earned income. The dollar limit is $4,500 for people eligible to make age
50-70-1/2 catch-up contributions for 2005 and $5,000 for 2006, respectively.
If you are covered by a retirement plan during any part of the year, and your
adjusted gross income (AGI) is below the lower dollar figure in a phase-out
range, you can make fully deductible contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls within a phase-out range, you can make partially deductible
contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls above the higher figure in the phase-out range, you may not deduct
any of your regular contributions to your traditional IRAs.
If you are single and covered by a retirement plan during any part of the
taxable year, the deduction for traditional IRA contributions phases out with
AGI between $50,000 and $60,000 in 2005 and later years.
If you are married and file a joint return, and you are covered by a retirement
plan during any part of the taxable year, the deduction for traditional IRA
contributions phases out with AGI between $70,000 and $80,000 in 2005 and AGI
between $75,000 and $85,000 in 2006. In 2007, the deduction will phase out for
AGI between $80,000 and $100,000.
52 Tax information
Married individuals filing separately and living apart at all times are not
considered married for purposes of this deductible contribution calculation.
Generally, the active participation in an employer-sponsored retirement plan of
an individual is determined independently for each spouse. Where spouses have
"married filing jointly" status, however, the maximum deductible traditional
IRA contribution for an individual who is not an active participant (but whose
spouse is an active participant) is phased out for taxpayers with an AGI
between $150,000 and $160,000.
To determine the deductible amount of the contribution for 2005, for example,
you determine AGI and subtract $50,000 if you are single, or $70,000 if you are
married and file a joint return with your spouse. The resulting amount is your
excess AGI. You then determine the limit on the deduction for traditional IRA
contributions using the following formula:
($10,000-excess AGI) times the maximum Equals the adjusted
- ---------------------- x regular = deductible
divided by $10,000 contribution contribution
for the year limit
Additional "Saver's Credit" for contributions to a
traditional IRA or Roth IRA
You may be eligible for a nonrefundable income tax credit for contributions you
make to a traditional IRA or Roth IRA. The final year this credit is available
is 2006. If you qualify, you may take this credit even though your traditional
IRA contribution is already fully or partially deductible. To take advantage of
this "saver's credit" you must be 18 or over before the end of the taxable year
for which the contribution is made. You cannot be a full-time student or
claimed as a dependent on another's tax return, and your adjusted gross income
cannot exceed $50,000. The amount of the tax credit you can get varies from 10%
of your contribution to 50% of your contribution and depends on your income tax
filing status and your adjusted gross income. The maximum annual contribution
eligible for the saver's credit is $2,000. If you and your spouse file a joint
return, and each of you qualifies, each is eligible for a maximum annual
contribution of $2,000. Your saver's credit may also be reduced if you take or
have taken a taxable distribution from any plan eligible for a saver's credit
contribution -- even if you make a contribution to one plan and take the
distribution from another plan -- during the "testing period." The "testing
period" begins two years before the year for which you make the contribution
and ends when your tax return is due for the year for which you make the
contribution. Saver's-credit-eligible contributions may be made to a 401(k)
plan, 403(b) TSA, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA,
as well as a traditional IRA or Roth IRA.
Nondeductible regular contributions. If you are not eligible to deduct part or
all of the traditional IRA contribution, you may still make nondeductible
contributions on which earnings will accumulate on a tax-deferred basis. The
combined deductible and nondeductible contributions to your traditional IRA (or
the nonworking spouse's traditional IRA) may not, however, exceed the maximum
dollar per person limit for the applicable taxable year ($4,000 for 2005 and
2006). The dollar limit is $4,500 in 2005 and $5,000 in 2006 for people
eligible to make ages 50-70-1/2 catch-up contributions. See "Excess
contributions" later in this section. You must keep your own records of
deductible and nondeductible contributions in order to prevent double taxation
on the distribution of previously taxed amounts. See "Withdrawals, payments and
transfers of funds out of traditional IRAs" later in this section.
If you are making nondeductible contributions in any taxable year, or you have
made nondeductible contributions to a traditional IRA in prior years and are
receiving distributions from any traditional IRA, you must file the required
information with the IRS. Moreover, if you are making nondeductible traditional
IRA contributions, you must retain all income tax returns and records
pertaining to such contributions until interests in all traditional IRAs are
fully distributed.
When you can make regular contributions. If you file your tax returns on a
calendar year basis like most taxpayers, you have until the April 15 return
filing deadline (without extensions) of the following calendar year to make
your regular traditional IRA contributions for a tax year.
Rollover and transfer contributions to traditional IRA
Rollover contributions may be made to a traditional IRA from these "eligible
retirement plans":
o qualified plans;
o governmental employer 457(b) plans;
o TSAs (including Internal Revenue Code Section 403(b)(7) custodial
accounts); and
o other traditional IRAs.
Direct transfer contributions may only be made from one traditional IRA to
another. Any amount contributed to a traditional IRA after you reach age 70-1/2
must be net of your required minimum distribution for the year in which the
rollover or direct transfer contribution is made.
Rollovers from "eligible retirement plans" other than
traditional IRAs
Your plan administrator will tell you whether or not your distribution is
eligible to be rolled over. Spousal beneficiaries and spousal alternate payees
under qualified domestic relations orders may roll over funds on the same basis
as the plan participant.
There are two ways to do rollovers:
o Do it yourself:
You actually receive a distribution that can be rolled over and you roll it
over to a traditional IRA within 60 days after the date you receive the
funds. The distribution from your eligible retirement plan will be net of
20% mandatory federal income tax withholding. If you want, you can replace
the withheld funds yourself and roll over the full amount.
o Direct rollover:
You tell the trustee or custodian of the eligible retirement plan to send
the distribution directly to your traditional IRA issuer. Direct rollovers
are not subject to mandatory federal income tax withholding.
Tax information 53
All distributions from a TSA, qualified plan or governmental employer 457(b)
plan are eligible rollover distributions, unless the distributions are:
o "required minimum distributions" after age 70-1/2 or retirement from
service with the employer; or
o substantially equal periodic payments made at least annually for your life
(or life expectancy) or the joint lives (or joint life expectancies) of you
and your designated beneficiary; or
o substantially equal periodic payments made for a specified period of 10
years or more; or
o hardship withdrawals; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o death benefit payments to a beneficiary who is not your surviving spouse;
or
o qualified domestic relations order distributions to a beneficiary who is
not your current spouse or former spouse.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental employer 457(b) plan are not subject to the
additional 10% federal income tax penalty for premature distributions, but they
may become subject to this penalty if you roll the funds to a different type of
eligible retirement plan such as a traditional IRA, and subsequently take a
premature distribution.
Rollovers of after-tax contributions from eligible retirement plans other than
traditional IRAs
Any after-tax contributions you have made to a qualified plan or TSA (but not a
governmental employer 457(b) plan) may be rolled over to a traditional IRA
(either in a direct rollover or a rollover you do yourself). When the recipient
plan is a traditional IRA, you are responsible for recordkeeping and
calculating the taxable amount of any distributions you take from that
traditional IRA. See "Taxation of Payments" later in this section under
"Withdrawals, payments and transfers of funds out of traditional IRAs."
After-tax contributions in a traditional IRA cannot be rolled over from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan.
Rollovers from traditional IRAs to traditional IRAs
You may roll over amounts from one traditional IRA to one or more of your other
traditional IRAs if you complete the transaction within 60 days after you
receive the funds. You may make such a rollover only once in every 12-month
period for the same funds. Trustee-to-trustee or custodian-to-custodian direct
transfers are not rollover transactions. You can make these more frequently
than once in every 12-month period.
SPOUSAL ROLLOVERS AND DIVORCE-RELATED DIRECT TRANSFERS
The surviving spouse beneficiary of a deceased individual can roll over funds
from, or directly transfer funds from, an inherited traditional IRA to one or
more other traditional IRAs. Also, in some cases, traditional IRAs can be
transferred on a tax-free basis between spouses or former spouses as a result
of a court-ordered divorce or separation decree.
Excess contributions
Excess contributions to IRAs are subject to a 6% excise tax for the year in
which made and for each year after until withdrawn. The following are excess
contributions to IRAs:
o regular contributions of more than the maximum regular contri bution amount
for the applicable taxable year; or
o regular contributions to a traditional IRA made after you reach age 70-1/2;
or
o rollover contributions of amounts, which are not eligible to be rolled
over, for example, minimum distributions required to be made after age
70-1/2.
You can avoid the excise tax by withdrawing an excess contribution (rollover or
regular) before the due date (including extensions) for filing your federal
income tax return for the year. If it is an excess regular traditional IRA
contribution, you cannot take a tax deduction for the amount withdrawn. You do
not have to include the excess contribution withdrawn as part of your income.
It is also not subject to the 10% additional penalty tax on early
distributions, discussed later in this section under "Early distribution
penalty tax." You do have to withdraw any earnings that are attributed to the
excess contribution. The withdrawn earnings would be included in your gross
income and could be subject to the 10% penalty tax.
Even after the due date for filing your return, you may withdraw an excess
rollover contribution, without income inclusion or 10% penalty, if:
(1) the rollover was from an eligible retirement plan to a traditional IRA;
(2) the excess contribution was due to incorrect information that the plan
provided; and
(3) you took no tax deduction for the excess contribution.
Recharacterizations
Amounts that have been contributed as traditional IRA funds may subsequently be
treated as Roth IRA funds. Special federal income tax rules allow you to change
your mind again and have amounts that are subsequently treated as Roth IRA
funds, once again treated as traditional IRA funds. You do this by using the
forms we prescribe. This is referred to as having "recharacterized" your
contribution.
Withdrawals, payments and transfers of funds out of
traditional IRAs
No federal income tax law restrictions on withdrawals. You can withdraw any or
all of your funds from a traditional IRA at any time. You do not need to wait
for a special event like retirement.
Taxation of payments. Earnings in traditional IRAs are not subject to federal
income tax until you or your beneficiary receive them. Tax-
54 Tax information
able payments or distributions include withdrawals from your contract,
surrender of your contract and annuity payments from your contract. Death
benefits are also taxable.
Except as discussed below, the total amount of any distribution from a
traditional IRA must be included in your gross income as ordinary income. We
report all payments from traditional IRA contracts on IRS Form 1099R as fully
taxable.
If you have ever made nondeductible IRA contributions to any traditional IRA
(it does not have to be to this particular traditional IRA contract), those
contributions are recovered tax free when you get distributions from any
traditional IRA. It is your responsibility to keep permanent tax records of all
of your nondeductible contributions to traditional IRAs so that you can
correctly report the taxable amount of any distribution on your own tax return.
At the end of any year in which you have received a distribution from any
traditional IRA, you calculate the ratio of your total nondeductible
traditional IRA contributions (less any amounts previously withdrawn tax free)
to the total account balances of all traditional IRAs you own at the end of the
year plus all traditional IRA distributions made during the year. Multiply this
by all distributions from the traditional IRA during the year to determine the
nontaxable portion of each distribution.
A distribution from a traditional IRA is not taxable if:
o the amount received is a withdrawal of excess contributions, as described
under "Excess contributions" earlier in this section; or
o the entire amount received is rolled over to another traditional IRA or
other eligible retirement plan which agrees to accept the funds. (See
"Rollovers from eligible retirement plans other than traditional IRAs"
under "Rollovers and transfer contributions to traditional IRAs" earlier in
this section.)
The following are eligible to receive rollovers of distributions from a
traditional IRA: a qualified plan, a TSA or a governmental employer 457(b)
plan. After-tax contributions in a traditional IRA cannot be rolled from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan. Before you decide to roll over a distribution from a
traditional IRA to another eligible retirement plan, you should check with the
administrator of that plan about whether the plan accepts rollovers and, if so,
the types it accepts. You should also check with the administrator of the
receiving plan about any documents required to be completed before it will
accept a rollover.
Distributions from a traditional IRA are not eligible for favorable ten-year
averaging or long-term capital gain treatment available under limited
circumstances for certain distributions from qualified plans. If you might be
eligible for such tax treatment from your qualified plan, you may be able to
preserve such tax treatment even though an eligible rollover from a qualified
plan is temporarily rolled into a "conduit IRA" before being rolled back into a
qualified plan. See your tax adviser.
Required minimum distributions
Background on Regulations -- Required Minimum Distri-butions. Distributions
must be made from traditional IRAs according to the rules contained in the Code
and Treasury Regulations. Certain provisions of the Treasury Regulations will
require, beginning in 2006, that the actuarial present value of additional
annuity contract benefits be added to the dollar amount credited for purposes
of calculating certain types of required minimum distributions from individual
retirement annuity contracts. This could increase the amount required to be
distributed from these contracts if you take annual withdrawals instead of
annuitizing. Please consult your tax adviser concerning applicability of these
complex rules to your situation.
Lifetime required minimum distributions. You must start taking annual
distributions from your traditional IRAs for the year in which you turn 70-1/2.
When you have to take the first lifetime required minimum distribution. The
first required minimum distribution is for the calendar year in which you turn
age 70-1/2. You have the choice to take this first required minimum
distribution during the calendar year you actually reach age 70-1/2, or to
delay taking it until the first three-month period in the next calendar year
(January 1 - April 1). Distributions must start no later than your "Required
Beginning Date," which is April 1st of the calendar year after the calendar
year in which you turn age 70-1/2. If you choose to delay taking the first
annual minimum distribution, then you will have to take two minimum
distributions in that year -- the delayed one for the first year and the one
actually for that year. Once minimum distributions begin, they must be made at
some time each year.
How you can calculate required minimum distributions.
There are two approaches to taking required minimum distributions --
"account-based" or "annuity-based."
ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the
value of your traditional IRA as of December 31st of the past calendar year by
a number corresponding to your age from an IRS table. This gives you the
required minimum distribution amount for that particular IRA for that year. If
your spouse is your sole beneficiary and more than 10 years younger than you,
the dividing number you use may be from another IRS table and may produce a
smaller lifetime required minimum distribution amount. Regardless of the table
used, the required minimum distribution amount will vary each year as the
account value and the divisor change. If you initially choose an account-based
method, you may later apply your traditional IRA funds to a life annuity-based
payout with any certain period not exceeding remaining life expectancy,
determined in accordance with IRS tables.
ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to
do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a designated beneficiary or for a
period certain not extending beyond applicable life expectancies, determined in
accordance with IRS tables
Do you have to pick the same method to calculate your required minimum
distributions for all of your traditional IRAs and other retirement plans? No.
If you want, you can choose a different method for each of your traditional
IRAs and other retirement plans. For example, you can choose an annuity payout
from one IRA, a different annuity payout from a qualified plan and an
account-based annual withdrawal from another IRA.
Tax information 55
Will we pay you the annual amount every year from your traditional IRA based on
the method you choose? We will only pay you automatically if you affirmatively
select an annuity payout option or an account-based withdrawal option such as
our "automatic required minimum distribution (RMD) service." Even if you do not
enroll in our service, we will calculate the amount of the required minimum
distribution withdrawal for you, if you so request in writing. However, in that
case you will be responsible for asking us to pay the required minimum
distribution withdrawals to you.
Also, the IRS will let you calculate the required minimum distribution for each
traditional IRA that you maintain, using the method that you picked for that
particular IRA. You can add these required minimum distribution amount
calculations together. As long as the total amount you take out every year
satisfies your overall traditional IRA required minimum distribution amount,
you may choose to take your annual required minimum distribution from any one
or more traditional IRAs that you own.
What if you take more than you need to for any year? The required minimum
distribution amount for your traditional IRAs is calculated on a year-by-year
basis. There are no carry-back or carry-forward provisions. Also, you cannot
apply required minimum distribution amounts you take from your qualified plans
to the amounts you have to take from your traditional IRAs and vice versa.
What if you take less than you need to for any year? Your IRA could be
disqualified, and you could have to pay tax on the entire value. Even if your
IRA is not disqualified, you could have to pay a 50% penalty tax on the
shortfall (required amount for traditional IRAs less amount actually taken). It
is your responsibility to meet the required minimum distribution rules. We will
remind you when our records show that you are within the age group which must
take lifetime required minimum distributions. If you do not select a method
with us, we will assume you are taking your required minimum distribution from
another traditional IRA that you own.
What are the required minimum distribution payments after you die? These could
vary depending on whether you die before or after your Required Beginning Date
for lifetime required minimum distribution payments, and the status of your
beneficiary. The following assumes that you have not yet elected an
annuity-based payout at the time of your death. If you elect an annuity-based
payout, payments (if any) after your death must be made at least as rapidly as
when you were alive.
Individual beneficiary. Regardless of whether your death occurs before or after
your Required Beginning Date, an individual death beneficiary calculates annual
post-death required minimum distribution payments based on the beneficiary's
life expectancy using the "term certain method." That is, he or she determines
his or her life expectancy using the IRS-provided life expectancy tables as of
the calendar year after the owner's death and reduces that number by one each
subsequent year.
If you die before your Required Beginning Date, the rules permit any individual
beneficiary, including a spousal beneficiary, to elect instead to apply the
"5-year rule." Under this rule, instead of annual payments having to be made
beginning with the first in the year following the owner's death, the entire
account must be distributed by the end of the calendar year which contains the
fifth anniversary of the owner's death. No distribution is required before that
fifth year.
Spousal beneficiary. If you die after your Required Beginning Date, and your
death beneficiary is your surviving spouse, your spouse has a number of
choices. The revised proposed rules permit Post-death distributions may be made
over your spouse's single life expectancy. Any amounts distributed after that
surviving spouse's death are made over the spouse's life expectancy calculated
in the year of his/her death, reduced by one for each subsequent year. In some
circumstances, your surviving spouse may elect to become the owner of the
traditional IRA and halt distributions until he or she reaches age 70-1/2, or
roll over amounts from your traditional IRA into his/her own traditional IRA or
other eligible retirement plan.
If you die before your Required Beginning Date, and the death beneficiary is
your surviving spouse, the rules permit the spouse to delay starting payments
over his/her life expectancy until the year in which you would have attained
age 70-1/2.
Non-individual beneficiary. If you die after your Required Beginning Date, and
your death beneficiary is a non-individual such as the estate, the rules permit
the beneficiary to calculate post-death required minimum distribution amounts
based on the owner's life expectancy in the year of death. However, note that
we need an individual annuitant to keep an annuity contract in force. If the
beneficiary is not an individual, we must distribute amounts remaining in the
annuity contract after the death of the annuitant.
If you die before your Required Beginning Date for lifetime required minimum
distribution payments, and the death beneficiary is a non-individual such as
the estate, the rules continue to apply the 5-year rule discussed earlier under
"Individual beneficiary." Please note that we need an individual annuitant to
keep an annuity contract in force. If the beneficiary is not an individual, we
must distribute amounts remaining in the annuity contract after the death of
the annuitant.
Successor owner and annuitant
If your spouse is the sole primary beneficiary and elects to become the
successor owner and annuitant, no death benefit is payable until your surviving
spouse's death.
Payments to a beneficiary after your death
IRA death benefits are taxed the same as IRA distributions.
Borrowing and loans are prohibited transactions
You cannot get loans from a traditional IRA. You cannot use a traditional IRA
as collateral for a loan or other obligation. If you borrow against your IRA or
use it as collateral, its tax-favored status will be lost as of the first day
of the tax year in which this prohibited event occurs. If this happens, you
must include the value of the traditional
56 Tax information
IRA in your federal gross income. Also, the early distribution penalty tax of
10% may apply if you have not reached age 59-1/2 before the first day of that
tax year.
Early distribution penalty tax
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a traditional IRA made before you reach age 59-1/2 . Some of
the available exceptions to the pre-age 59-1/2 penalty tax include
distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o used to pay certain extraordinary medical expenses (special fed eral income
tax definition); or
o used to pay medical insurance premiums for unemployed indi viduals (special
federal income tax definition); or
o used to pay certain first-time home buyer expenses (special fed eral income
tax definition); or
o used to pay certain higher education expenses (special federal income tax
definition); or
o in the form of substantially equal periodic payments made at least annually
over your life (or your life expectancy) or over the joint lives of you and
your beneficiary (or your joint life expectancies) using an IRS-approved
distribution method.
To meet this last exception, you could elect to apply your contract value to an
Income Manager(R) (life annuity with a period certain) payout annuity contract
(level payments version). You could also elect the substantially equal
withdrawals option. We will calculate the substantially equal annual payments
using your choice of IRS-approved methods we offer. Although substantially
equal withdrawals and Income Manager(R) payments are not subject to the 10%
penalty tax, they are taxable as discussed in "Withdrawals, payments and
transfers of funds out of traditional IRAs" earlier in this section. Once
substantially equal withdrawals or Income Manager(R) annuity payments begin,
the distributions should not be stopped or changed until after the later of
your reaching age 59-1/2 or five years after the date of the first distribution
or the penalty tax, including an interest charge for the prior penalty
avoidance, may apply to all prior distributions under either option. Also, it
is possible that the IRS could view any additional withdrawal or payment you
take from your contract as changing your pattern of substantially equal
withdrawals or Income Manager(R) payments for purposes of determining whether
the penalty applies.
Roth individual retirement annuities (Roth IRAs)
This section of the Prospectus covers some of the special tax rules that apply
to Roth IRAs. If the rules are the same as those that apply to the traditional
IRA, we will refer you to the same topic under "traditional IRAs."
The Accumulator(R) Plus(SM) Roth Conversion IRA contract is designed to qualify
as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of
the Internal Revenue Code.
Contributions to Roth IRAs
Individuals may make four different types of contributions to a Roth IRA:
o regular after-tax contributions out of earnings; or
o taxable rollover contributions from traditional IRAs ("conversion
contributions); or
o tax-free rollover contributions from other Roth IRAs; or
o tax-free direct custodian-to-custodian transfers from other Roth IRAs
("direct transfers").
Regular after-tax, direct transfer and rollover contributions may be made to a
Roth Conversion IRA contract. See "Rollovers and direct transfers" later in
this section. If you use the forms we require, we will also accept traditional
IRA funds which are subsequently recharacterized as Roth IRA funds following
special federal income tax rules.
Regular contributions to Roth IRAs
Limits on regular contributions. The "maximum regular contribution amount" for
any taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $4,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for each of the taxable years 2005
and 2006. This limit does not apply to rollover contributions or direct
custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth
IRAs reduce your ability to contribute to traditional IRAs and vice versa. When
your earnings are below $4,000, your earned income or compensation for the year
is the most you can contribute. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to Roth IRAs and
traditional IRAs. See the discussion earlier in this section under traditional
IRAs. If you or your spouse are at least age 50 at any time during the taxable
year for which you are making a regular contribution, additional catch-up
contributions totaling up to $500 can be made for the taxable year 2005. This
amount increases to $1,000 for the taxable year 2006.
With a Roth IRA, you can make regular contributions when you reach age 70-1/2,
as long as you have sufficient earnings. But, you cannot make contributions,
regardless of your age, for any year that:
o your federal income tax filing status is "married filing jointly" and your
modified adjusted gross income is over $160,000; or
o your federal income tax filing status is "single" and your modified
adjusted gross income is over $110,000.
However, you can make regular Roth IRA contributions in reduced amounts when:
o your federal income tax filing status is "married filing jointly" and your
modified adjusted gross income is between $150,000 and $160,000; or
Tax information 57
your federal income tax filing status is "single" and your modified o
adjusted gross income is between $95,000 and $110,000.
If you are married and filing separately and your modified adjusted gross
income is between $0 and $10,000 the amount of regular contributions you are
permitted to make is phased out. If your modified adjusted gross income is more
than $10,000 you cannot make regular Roth IRA contributions.
When you can make contributions. Same as traditional IRAs.
Deductibility of contributions. Roth IRA contributions are not tax deductible.
Rollovers and direct transfers
What is the difference between rollover and direct transfer transactions? You
may make rollover contributions to a Roth IRA from only two sources:
o another Roth IRA ("tax-free rollover contribution"); or
o another traditional IRA, including a SEP-IRA or SIMPLE IRA (after a
two-year rollover limitation period for SIMPLE IRA funds), in a taxable
conversion rollover ("conversion contribution").
You may not make contributions to a Roth IRA from a qualified plan under
Section 401(a) of the Internal Revenue Code, a TSA under Section 403(b) of the
Internal Revenue Code or any other eligible retirement plan. You may make
direct transfer contributions to a Roth IRA only from another Roth IRA.
The difference between a rollover transaction and a direct transfer transaction
is the following: in a rollover transaction you actually take possession of the
funds rolled over or are considered to have received them under tax law in the
case of a change from one type of plan to another. In a direct transfer
transaction, you never take possession of the funds, but direct the first Roth
IRA custodian, trustee or issuer to transfer the first Roth IRA funds directly
to the recipient Roth IRA custodian, trustee or issuer. You can make direct
transfer transactions only between identical plan types (for example, Roth IRA
to Roth IRA). You can also make rollover transactions between identical plan
types. However, you can only use rollover transactions between different plan
types (for example, traditional IRA to Roth IRA).
You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to
Roth IRA direct transfer transactions. This can be accomplished on a completely
tax-free basis. However, you may make Roth IRA to Roth IRA rollover
transactions only once in any 12-month period for the same funds.
Trustee-to-trustee or custodian-to-custodian direct transfers can be made more
frequently than once a year. Also, if you send us the rollover contribution to
apply it to a Roth IRA, you must do so within 60 days after you receive the
proceeds from the original IRA to get rollover treatment.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some
cases, Roth IRAs can be transferred on a tax-free basis between spouses or
former spouses as a result of a court-ordered divorce or separation decree.
Conversion contributions to Roth IRAs
In a conversion rollover transaction, you withdraw (or are considered to have
withdrawn) all or a portion of funds from a traditional IRA you maintain and
convert it to a Roth IRA within 60 days after you receive (or are considered to
have received) the traditional IRA proceeds. Unlike a rollover from a
traditional IRA to another traditional IRA, the conversion rollover transaction
is not tax free. Instead, the distribution from the traditional IRA is
generally fully taxable. For this reason, we are required to withhold 10%
federal income tax from the amount converted unless you elect out of such
withholding. If you have ever made nondeductible regular contributions to any
traditional IRA -- whether or not it is the traditional IRA you are converting
- -- a pro rata portion of the distribution is tax free.
There is, however, no early distribution penalty tax on the traditional IRA
withdrawal that you are converting to a Roth IRA, even if you are under age
59-1/2.
You cannot make conversion contributions to a Roth IRA for any taxable year in
which your modified adjusted gross income exceeds $100,000. (For this purpose,
your modified adjusted gross income is calculated without the gross income
stemming from the traditional IRA conversion. Beginning in 2005, modified
adjusted gross income for this purpose will also exclude any lifetime required
minimum distribution from a traditional IRA.) You also cannot make conversion
contributions to a Roth IRA for any taxable year in which your federal income
tax filing status is "married filing separately."
You cannot make conversion contributions to a Roth IRA to the extent that the
funds in your traditional IRA are subject to the annual required minimum
distribution rule applicable to traditional IRAs beginning at age 70-1/2.
You cannot convert and reconvert an amount during the same taxable year, or if
later, during the 30-day period following a recharacterization. If you
reconvert during either of these periods, it will be a failed Roth IRA
conversion.
Recharacterizations
You may be able to treat a contribution made to one type of IRA as having been
made to a different type of IRA. This is called recharacterizing the
contribution.
How to recharacterize. To recharacterize a contribution, you generally must
have the contribution transferred from the first IRA (the one to which it was
made) to the second IRA in a deemed trustee-to-trustee transfer. If the
transfer is made by the due date (including extensions) for your tax return for
the year during which the contribution was made, you can elect to treat the
contribution as having been originally made to the second IRA instead of to the
first IRA. It will be treated as having been made to the second IRA on the date
that it was actually made to the first IRA. You must report the
recharacterization and must treat the contribution as having been made to the
second IRA, instead of the first IRA, on your tax return for the year during
which the contribution was made.
58 Tax information
The condition will not be treated as having been made to the second IRA unless
the transfer includes any net income allocable to the contribution. You can
take into account any loss on the contribution while it was in the IRA when
calculating the amount that must be transferred. If there was a loss, the net
income you must transfer may be a negative amount.
No deduction is allowed for the contribution to the first IRA and any net
income transferred with the recharacterized contribution is treated as earned
in the second IRA. The contribution will not be treated as having been made to
the second IRA to the extent any deduction was allowed with respect to the
contribution to the first IRA.
For recharacterization purposes, a distribution from a traditional IRA that is
received in one tax year and rolled over into a Roth IRA in the next year, but
still within 60 days of the distribution from the traditional IRA, is treated
as a contribution to the Roth IRA in the year of the distribution from the
traditional IRA.
Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be
recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or
SIMPLE-IRA).
To recharacterize a contribution, you must use our forms.
The recharacterization of a contribution is not treated as a rollover for
purposes of the 12-month period described above. This rule applies even if the
contribution would have been treated as a rollover contribution by the second
IRA if it had been made directly to the second IRA rather than as a result of a
recharacterization of a contribution to the first IRA.
Withdrawals, payments and transfers of funds out of Roth IRAs
No federal income tax law restrictions on withdrawals. You can withdraw any or
all of your funds from a Roth IRA at any time; you do not need to wait for a
special event like retirement.
Distributions from Roth IRAs
Distributions include withdrawals from your contract, surrender of your
contract and annuity payments from your contract. Death benefits are also
distributions.
You must keep your own records of regular and conversion contributions to all
Roth IRAs to assure appropriate taxation. You may have to file information on
your contributions to and distributions from any Roth IRA on your tax return.
You may have to retain all income tax returns and records pertaining to such
contributions and distributions until your interests in all Roth IRAs are
distributed.
Like traditional IRAs, taxable distributions from a Roth IRA are not entitled
to the special favorable ten-year averaging and long-term capital gain
treatment available in limited cases to certain distributions from qualified
plans.
The following distributions from Roth IRAs are free of income tax:
o rollovers from a Roth IRA to another Roth IRA;
o direct transfers from a Roth IRA to another Roth IRA;
o qualified distributions from a Roth IRA; and
o return of excess contributions or amounts recharacterized to a
traditional IRA.
Qualified distributions from Roth IRAs. Qualified distributions from Roth IRAs
made because of one of the following four qualifying events or reasons are not
includable in income:
o you are age 59-1/2 or older; or
o you die; or
o you become disabled (special federal income tax definition); or
o your distribution is a "qualified first-time home buyer distribu
tion" (special federal income tax definition; $10,000 lifetime total limit
for these distributions from all of your traditional and Roth IRAs).
You also have to meet a five-year aging period. A qualified distribution is any
distribution made after the five-taxable-year period beginning with the first
taxable year for which you made any contribution to any Roth IRA (whether or
not the one from which the distribution is being made).
Nonqualified distributions from Roth IRAs. Nonqualified distributions from Roth
IRAs are distributions that do not meet both the qualifying event and five-year
aging period tests described above. If you receive such a distribution, part of
it may be taxable. For purposes of determining the correct tax treatment of
distributions (other than the withdrawal of excess contributions and the
earnings on them) there is a set order in which contributions (including
conversion contributions) and earnings are considered to be distributed from
your Roth IRA. The order of distributions is as follows:
(1) Regular contributions.
(2) Conversion contributions, on a first-in-first-out basis (generally, total
conversions from the earliest year first). These conversion contributions
are taken into account as follows:
(a) Taxable portion (the amount required to be included in gross income
because of conversion) first, and then the
(b) Nontaxable portion.
(3) Earnings on contributions.
Rollover contributions from other Roth IRAs are disregarded for this purpose.
To determine the taxable amount distributed, distributions and contributions
are aggregated or grouped together as follows:
(1) All distributions made during the year from all Roth IRAs you maintain --
with any custodian or issuer -- are added together.
(2) All regular contributions made during and for the year (contribu tions made
after the close of the year, but before the due date of your return) are
added together. This total is added to the total undistributed regular
contributions made in prior years.
(3) All conversion contributions made during the year are added together. For
purposes of the ordering rules, in the case of any
Tax information 59
conversion in which the conversion distribution is made in 2005 and the
conversion contribution is made in 2006, the conversion contribution is
treated as contributed prior to other conversion contributions made in
2006.
Any recharacterized contributions that end up in a Roth IRA are added to the
appropriate contribution group for the year that the original contribution
would have been taken into account if it had been made directly to the Roth
IRA.
Any recharacterized contribution that ends up in an IRA other than a Roth IRA
is disregarded for the purpose of grouping both contributions and
distributions. Any amount withdrawn to correct an excess contribution
(including the earnings withdrawn) is also disregarded for this purpose.
Required minimum distributions during life
Lifetime required minimum distributions do not apply.
Required minimum distributions at death
Same as traditional IRA under "What are the required minimum distribution
payments after you die?"
Payments to a beneficiary after your death
Distributions to a beneficiary generally receive the same tax treatment as if
the distribution had been made to you.
Borrowing and loans are prohibited transactions
Same as traditional IRA.
Excess contributions
Generally the same as traditional IRA, except that regular contributions made
after age 70-1/2 are not excess contributions.
Excess rollover contributions to Roth IRAs are contributions not eligible to be
rolled over (for example, conversion contributions from a traditional IRA if
your modified adjusted gross income is in excess of $100,000 in the conversion
year).
You can withdraw or recharacterize any contribution to a Roth IRA before the
due date (including extensions) for filing your federal income tax return for
the tax year. If you do this, you must also withdraw or recharacterize any
earnings attributable to the contribution.
Early distribution penalty tax
Same as traditional IRA.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
General
This section of the Prospectus covers some of the special tax rules that apply
to TSA contracts under Section 403(b) of the Internal Revenue Code (TSAs). If
the rules are the same as those that apply to another kind of contract, for
example, traditional IRAs, we will refer you to the same topic under
"traditional IRAs."
PLEASE NOTE: The following discussion reflects our understanding of some of the
current federal income tax rules applicable to Section 403(b) of the Code. The
IRS and Treasury have recently issued Proposed Regulations on Section 403(b) of
the Code. If finalized in their current form, these Proposed Regulations would
affect the establishment and operation of plans and arrangements under Section
403(b) of the Code, and the contracts issued to fund such plans. Please consult
your tax adviser concerning how these Proposed Regulations could affect you.
Generally, there are two types of funding vehicles available for 403(b)
arrangements--an annuity contract under Section 403(b)(1) of the Internal
Revenue Code or a custodial account that invests only in mutual funds and which
is treated as an annuity contract under Section 403(b)(7) of the Code. Both
types of 403(b) arrangements qualify for tax deferral.
Protection Plus(SM) feature
The Protection Plus(SM) feature was offered for Rollover TSA contracts, subject
to state and contract availability. There is no assurance that the contract with
the Protection Plus(SM) feature meets the IRS qualification requirements for
TSAs. There is a limit to the amount of life insurance benefits that TSAs may
offer. Although we view the optional Protection Plus(SM) benefit as an
investment protection feature which should have no adverse tax effect and not as
a life insurance benefit, it is possible that the IRS could take a contrary
position regarding tax qualification or assert that the Protection Plus(SM)
rider is not a permissible part of a TSA contract. If the IRS were to take the
position that the optional Protection Plus(SM) benefit is not part of the
contract, in such a case, the charges for the Protection Plus(SM) rider could be
treated for federal income tax purposes as a partial withdrawal from the
contract. If this were so, such a deemed withdrawal could affect the tax
qualification of the TSA and could be taxable. Were the IRS to take any adverse
position, AXA Equitable would take all reasonable steps to attempt to avoid any
adverse result, which would include amending the contract (with appropriate
notice to you). You should consult with your tax adviser for further
information.
Contributions to TSAs
There were two ways you might have contributed to establish your Accumulator(R)
Plus(SM) Rollover TSA contract:
o a full or partial direct transfer of assets ("direct transfer") from
another contract or arrangement that met the requirements of Section 403(b)
of the Internal Revenue Code by means of IRS Revenue Ruling 90-24; and
o a rollover from another 403(b) arrangement.
If you made a direct transfer, you filled out our transfer form.
We do not accept after-tax contribution rollovers to the Accumulator(R) Plus(SM)
Rollover TSA.
Employer-remitted contributions. The Rollover TSA contract does not accept
employer-remitted contributions. However, we provide the following discussion
as part of our description of restrictions on the distribution of funds
directly transferred, which include employer-remitted contributions to other
TSAs.
Employer-remitted contributions to TSAs made through the employer's payroll are
subject to annual limits. (Tax-free direct transfer contributions from another
403(b) arrangement and rollover contributions from another eligible retirement
plan are not subject to these annual
60 Tax information
contribution limits.) Commonly, some or all of the contributions made to a TSA
are made under a salary reduction agreement between the employee and the
employer. These contributions are called "salary reduction" or "elective
deferral" contributions. However, a TSA can also be wholly or partially funded
through non-elective employer contributions or after-tax employee
contributions. Amounts attributable to salary reduction contributions to TSAs
are generally subject to withdrawal restrictions. Also, all amounts
attributable to investments in a 403(b)(7) custodial account are subject to
withdrawal restrictions discussed below.
Rollover or direct transfer contributions. Once you establish your Rollover TSA
contract with 403(b)-source funds, you may make subsequent rollover
contributions to your Rollover TSA contract from these sources: qualified
plans, governmental employer 457(b) plans and traditional IRAs, as well as
other TSAs and 403(b) arrangements. All rollover contributions must be pre-tax
funds only with appropriate documentation satisfactory to us.
Generally, you may make a rollover contribution to your TSA when you have a
distributable event from an existing TSA or other eligible retirement plan as a
result of your:
o termination of employment with the employer who provided the funds for the
plan; or
o reaching age 59-1/2 even if you are still employed; or
o disability (special federal income tax definition).
You can roll over pre-tax funds from traditional IRA to a TSA at any time.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental employer 457(b) plan are not subject to the
additional 10% federal income tax penalty for premature distributions, but they
may become subject to this penalty if you roll the funds to a different type of
eligible retirement plan and subsequently take a premature distribution.
If the recipient plan separately accounts for funds rolled-over from another
eligible retirement plan, the IRS has ruled that an exception is available in
certain situations to withdrawal restrictions that would otherwise apply to the
rollover contribution funds in the recipient plan. We do not currently
separately account for rollover contributions from other eligible retirement
plans.
A transfer occurs when changing the funding vehicle, even if there is no
distributable event. Under a direct transfer, you do not receive a
distribution. We accept direct transfers of TSA funds under Revenue Ruling
90-24 only if:
o you give us acceptable written documentation as to the source of the funds,
and
o the Accumulator(R) Plus(SM) contract receiving the funds has provi sions at
least as restrictive as the source contract.
Before you transfer funds to a Rollover TSA contract, you may have to obtain
your employer's authorization or demonstrate that you do not need employer
authorization. For example, the transferring TSA may be subject to Title I of
ERISA if the employer makes matching contributions to salary reduction
contributions made by employees. In that case, the employer must continue to
approve distributions from the plan or contract.
Your contribution to the Rollover TSA must be net of the required minimum
distribution for the tax year in which we issue the contract if:
o you are or will be at least age 70-1/2 in the current calendar year, and
o you have retired from service with the employer who provided the funds to
purchase the TSA you are transferring or rolling over to the Rollover TSA.
This rule applies regardless of whether the source of funds is a:
o rollover by check of the proceeds from another TSA or eligible retirement
plan; or
o direct rollover from another TSA or eligible retirement plan; or
o direct transfer under Revenue Ruling 90-24 from another TSA.
Distributions from TSAs
General. Depending on the terms of the employer plan and your employment
status, you may have to get your employer's consent to take a loan or
withdrawal. Your employer will tell us this when you establish the TSA through
a direct transfer.
Withdrawal restrictions. If this is a Revenue Ruling 90-24 direct transfer, we
will treat all amounts transferred to this contract and any future earnings on
the amount transferred as not eligible for withdrawal until one of the
following events happens:
o you are severed from employment with the employer who pro vided the funds
to purchase the TSA you are transferring to the Rollover TSA; or
o you reach age 59-1/2 ; or
o you die; or
o you become disabled (special federal income tax definition); or
o you take a hardship withdrawal (special federal income tax definition).
If any portion of the funds directly transferred to your TSA contract is
attributable to the amounts that you invested in a 403(b)(7) custodial account,
such amounts, including earnings, are subject to withdrawal restrictions. With
respect to the portion of the funds that were never invested in a 403(b)(7)
custodial account, these restrictions apply to the salary reduction (elective
deferral) contributions to a TSA annuity contract you made and any earnings on
them. These restrictions do not apply to the amount directly transferred to
your TSA contract that represents your December 31, 1988, account balance
attributable to salary reduction contributions to a TSA annuity contract and
earnings. To take advantage of this grandfathering, you must properly notify us
in writing at our processing office of your December 31, 1988, account balance
if you have qualifying amounts transferred to your TSA contract.
Tax information 61
This paragraph applies only to participants in a Texas Optional Retirement
Program. Texas Law permits withdrawals only after one of the following
distributable events occurs:
(1) the requirements for minimum distribution (discussed under "Required
minimum distributions" later in this section) are met; or
(2) death; or
(3) retirement; or
(4) termination of employment in all Texas public institutions of higher
education.
For you to make a withdrawal, we must receive a properly completed written
acknowledgment from the employer. If a distributable event occurs before you
are vested, we will refund to the employer any amounts provided by an
employer's first-year matching contributions. We reserve the right to change
these provisions without your consent, but only to the extent necessary to
maintain compliance with applicable law. Loans are not permitted under Texas
Optional Retirement Programs.
Tax treatment of distributions. Amounts held under TSAs are generally not
subject to federal income tax until benefits are distributed. Distributions
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSAs are includable in
gross income as ordinary income. Distributions from TSAs may be subject to 20%
federal income tax withholding. See "Federal and state income tax withholding
and information reporting" later in this section. In addition, TSA
distributions may be subject to additional tax penalties.
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since we currently do not accept
after-tax funds, we do not track your investment in the contract, if any. We
will report all distributions from this Rollover TSA as fully taxable. It is
your responsibility to determine how much of the distribution is taxable.
Distributions before annuity payments begin. On a total surrender, the amount
received in excess of the investment in the contract is taxable. The amount of
any partial distribution from a TSA prior to the annuity starting date is
generally taxable, except to the extent that the distribution is treated as a
withdrawal of after-tax contributions. Distributions are normally treated as
pro rata withdrawals of any after-tax contributions and earnings on those
contributions.
Annuity payments. If you elect an annuity payout option, you will recover any
investment in the contract as each payment is received by dividing the
investment in the contract by an expected return determined under an IRS table
prescribed for qualified annuities. The amount of each payment not excluded
from income under this exclusion ratio is fully taxable. The full amount of the
payments received after your investment in the contract is recovered is fully
taxable. If you (and your beneficiary under a joint and survivor annuity) die
before recovering the full investment in the contract, a deduction is allowed
on your (or your beneficiary's) final tax return.
Payments to a beneficiary after your death. Death benefit distributions from a
TSA generally receive the same tax treatment as distribution during your
lifetime. In some instances, distributions from a TSA made to your surviving
spouse may be rolled over to a traditional IRA or other eligible retirement
plan.
Loans from TSAs. You may take loans from a TSA unless restricted by the
employer (for example, under an employer plan subject to ERISA). If you cannot
take a loan, or cannot take a loan without approval from the employer who
provided the funds, we will have this information in our records based on what
you and the employer who provided the TSA funds told us when you purchased your
contract.
Loans are generally not treated as a taxable distribution. If the amount of the
loan when made exceeds permissible limits under federal income tax rules, the
amount of the excess is treated (solely for tax purposes) as a taxable
distribution. Additionally, if the loan is not repaid at least quarterly,
amortizing (paying down) interest and principal, the amount not repaid when due
will be treated as a taxable distribution. The entire unpaid balance of the
loan is includable in income in the year of the default.
TSA loans are subject to federal income tax limits and may also be subject to
limits of the plan from which the funds came. Federal income tax rule
requirements apply even if the plan is not subject to ERISA. For example, loans
offered by TSAs are subject to the following conditions:
o The amount of a loan to a participant, when combined with all other loans
to the participant from all qualified plans of the employer, cannot exceed
the lesser of:
(1) the greater of $10,000 or 50% of the participant's nonforfeit able
accrued benefits; and
(2) $50,000 reduced by the excess (if any) of the highest out standing
loan balance over the previous twelve months over the outstanding loan
balance of plan loans on the date the loan was made.
o In general, the term of the loan cannot exceed five years unless the loan
is used to acquire the participant's primary residence. Rollover TSA
contracts have a term limit of 10 years for loans used to acquire the
participant's primary residence.
o All principal and interest must be amortized in substantially level
payments over the term of the loan, with payments being made at least
quarterly. In very limited circumstances, the repayment obligation may be
temporarily suspended during a leave of absence.
The amount borrowed and not repaid may be treated as a distribution if:
62 Tax information
o the loan does not qualify under the conditions above;
o the participant fails to repay the interest or principal when due; or
o in some instances, the participant separates from service with the employer
who provided the funds or the plan is terminated.
In this case, the participant may have to include the unpaid amount due as
ordinary income. In addition, the 10% early distribution penalty tax may apply.
The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as
a distribution.
Tax-deferred rollovers and direct transfers. You may roll over an "eligible
rollover distribution" from a TSA into another eligible retirement plan which
agrees to accept the rollover. The rollover may be a direct rollover or one you
do yourself within 60 days after you receive the distribution. To the extent
rolled over, a distribution remains tax-deferred.
You may roll over a distribution from a TSA to any of the following: a
qualified plan, a governmental employer 457(b) plan (separate accounting
required) or a traditional IRA. A spousal beneficiary may also roll over death
benefits as above.
The taxable portion of most distributions will be eligible for rollover except
as specifically excluded under federal income tax rules. Distributions that you
cannot roll over generally include periodic payments for life or for a period
of 10 years or more, hardship withdrawals and required minimum distributions
under federal income tax rules.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling
90-24 are not distributions.
Required minimum distributions
Generally the same as traditional IRA with these differences:
When you have to take the first required minimum distribution. The minimum
distribution rules force TSA participants to start calculating and taking
annual distribution from their TSAs by a required date. Generally you must take
the first required minimum distribution for the calendar year in which you turn
age 70-1/2. You may be able to delay the start of required minimum
distributions for all or part of your account balance until after age 70-1/2,
as follows:
o For TSA participants who have not retired from service with the employer
who provided the funds for the TSA by the calendar year the participant
turns age 70-1/2, the required beginning date for minimum distribution is
extended to April 1 following the calendar year of retirement.
o TSA plan participants may also delay the start of required mini mum
distribution to age 75 of the portion of their account value attributable
to their December 31, 1986, TSA account balance, even if retired at age
70-1/2. We will know whether or not you qualify for this exception because
it will only apply to people who establish their Rollover TSA by direct
Revenue Ruling 90-24 transfers. If you do not give us the amount of your
December 31, 1986, account balance that is being transferred to the
Rollover TSA on the form used to establish the TSA, you do not qualify.
Spousal consent rules
This only applies to you if you established your Accumulator(R) Plus(SM)
Rollover TSA by direct Revenue Ruling 90-24 transfer. Your employer will tell us
on the form used to establish the TSA whether or not you need to get spousal
consent for loans, withdrawals or other distributions. If you do, you will need
such consent if you are married when you request a withdrawal under the TSA
contract. In addition, unless you elect otherwise with the written consent of
your spouse, the retirement benefits payable under the plan must be paid in the
form of a qualified joint and survivor annuity. A qualified joint and survivor
annuity is payable for the life of the annuitant with a survivor annuity for the
life of the spouse in an amount not less than one-half of the amount payable to
the annuitant during his or her lifetime. In addition, if you are married, the
beneficiary must be your spouse, unless your spouse consents in writing to the
designation of another beneficiary.
If you are married and you die before annuity payments have begun, payments
will be made to your surviving spouse in the form of a life annuity unless at
the time of your death a contrary election was in effect. However, your
surviving spouse may elect, before payments begin, to receive payments in any
form permitted under the terms of the TSA contract and the plan of the employer
who provided the funds for the TSA.
Early distribution penalty tax
A penalty tax of 10% of the taxable portion of a distribution applies to
distribution from a TSA before you reach age 59-1/2. This is in addition to any
income tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax
include distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o to pay for certain extraordinary medical expenses (special federal income
tax definition); or
o in any form of payout after you have separated from service (only if the
separation during or after the calendar year you reach age 55); or
o in a payout in the form of substantially equal periodic payments made at
least annually over your life (or your life expectancy), or over the joint
lives of you and your beneficiary (or your joint life expectancies) using
an IRS-approved distribution method (only after you have separated from
service at any age).
FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING
We must withhold federal income tax from distributions from annuity contracts.
You may be able to elect out of this income tax withholding in some cases.
Generally, we do not have to withhold if your distributions are not taxable.
The rate of withholding will depend on the type of distribution and, in certain
cases, the amount of your distribution.
Tax information 63
Any income tax withheld is a credit against your income tax liability. If you
do not have sufficient income tax withheld or do not make sufficient estimated
income tax payments, you may incur penalties under the estimated income tax
rules.
You must file your request not to withhold in writing before the payment or
distribution is made. Our processing office will provide forms for this
purpose. You cannot elect out of withholding unless you provide us with your
correct Taxpayer Identification Number and a United States residence address.
You cannot elect out of withholding if we are sending the payment out of the
United States.
You should note the following special situations:
o We might have to withhold and/or report on amounts we pay under a free look
or cancellation.
o We are generally required to withhold on conversion rollovers of
traditional IRAs to Roth IRAs, as it is considered a withdrawal from the
traditional IRA and is taxable.
o We are required to withhold on the gross amount of a distribu tion from a
Roth IRA to the extent it is reasonable for us to believe that a
distribution is includable in your gross income. This may result in tax
being withheld even though the Roth IRA distribution is ultimately not
taxable. You can elect out of withholding, as described below.
Special withholding rules apply to foreign recipients and United States
citizens residing outside the United States. We do not discuss these rules here
in detail. However, we may require additional documentation in the case of
payments made to non United States persons and United States persons living
abroad prior to processing any requested transaction.
Certain states have indicated that state income tax withholding will also apply
to payments from the contracts made to residents. In some states, you may elect
out of state withholding, even if federal withholding applies. Generally, an
election out of federal withholding will also be considered an election out of
state withholding. If you need more information concerning a particular state
or any required forms, call our processing office at the toll-free number.
Federal income tax withholding on periodic annuity payments
We withhold differently on "periodic" and "non-periodic" payments. For a
periodic annuity payment, for example, unless you specify a different number of
withholding exemptions, we withhold assuming that you are married and claiming
three withholding exemptions. If you do not give us your correct Taxpayer
Identification Number, we withhold as if you are single with no exemptions.
Based on the assumption that you are married and claiming three withholding
exemptions, if you receive less than $17,760 in periodic annuity payments in
2005, your payments will generally be exempt from federal income tax
withholding. You could specify a different choice of withholding exemption or
request that tax be withheld. Your withholding election remains effective
unless and until you revoke it. You may revoke or change your withholding
election at any time.
Federal income tax withholding on non-periodic annuity payments (withdrawals)
For a non-periodic distribution (total surrender or partial withdrawal), we
generally withhold at a flat 10% rate. We apply that rate to the taxable amount
in the case of nonqualified contracts, and to the payment amount in the case of
traditional IRAs and Roth IRAs where it is reasonable to assume an amount is
includable in gross income.
You cannot elect out of withholding if the payment is an eligible rollover
distribution from a qualified plan or TSA. If a non-periodic distribution from
a qualified plan or TSA is not an eligible rollover distribution then the 10%
withholding rate applies.
Mandatory withholding from TSA and qualified plan distributions
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans and TSAs are subject to mandatory 20%
withholding. The plan administrator is responsible for withholding from
qualified plan distributions. An eligible rollover distribution from a TSA or a
qualified plan can be rolled over to another eligible retirement plan. All
distributions from a TSA or qualified plan are eligible rollover distributions
unless they are on the following list of exceptions:
o any distributions which are required minimum distributions after age 70-1/2
or retirement from service with the employer; or
o substantially equal periodic payments made at least annually for your life
(or life expectancy) or the joint lives (or joint life expectancies) of you
and your designated beneficiary; or
o substantially equal periodic payments made for a specified period of 10
years or more; or
o hardship withdrawals; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviving spouse;
or
o a qualified domestic relations order distribution to a beneficiary who is
not your current spouse or former spouse.
A death benefit payment to your surviving spouse, or a qualified domestic
relations order distribution to your current or former spouse, may be a
distribution subject to mandatory 20% withholding.
SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS
For QP contracts, your plan administrator or trustee notifies you as to tax
consequences. See Appendix II at the end of this Prospectus.
IMPACT OF TAXES TO AXA EQUITABLE
The contracts provide that we may charge Separate Account No. 49 for taxes. We
do not now, but may in the future set up reserves for such taxes.
64 Tax information
8. More information
- --------------------------------------------------------------------------------
ABOUT SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 49. We
established Separate Account No. 49 in 1996 under special provisions of the New
York Insurance Law. These provisions prevent creditors from any other business
we conduct from reaching the assets we hold in our variable investment options
for owners of our variable annuity contracts. We are the legal owner of all of
the assets in Separate Account No. 49 and may withdraw any amounts that exceed
our reserves and other liabilities with respect to variable investment options
under our contracts. The results of the Separate Account's operations are
accounted for without regard to AXA Equitable's other operations.
The Separate Account is registered under the Investment Company Act of 1940 and
is classified by that act as a "unit investment trust." The SEC, however, does
not manage or supervise AXA Equitable or the Separate Account.
Each subaccount (variable investment option) within the Separate Account
invests solely in class IB/B shares issued by the corresponding portfolio of
its Trusts.
We reserve the right subject to compliance with laws that apply:
(1) to add variable investment options to, or to remove variable investment
options from the Separate Account, or to add other separate accounts;
(2) to combine any two or more variable investment options;
(3) to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment option
to another variable investment option;
(4) to operate the Separate Account or any variable investment option as a
management investment company under the Investment Company Act of 1940 (in
which case, charges and expenses that otherwise would be assessed against
an underlying mutual fund would be assessed against the Separate Account or
a variable investment option directly);
(5) to deregister the Separate Account under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to the Separate Account; and
(7) to cause one or more variable investment options to invest some or all of
their assets in one or more other trusts or investment companies.
ABOUT THE TRUSTS
The Trusts are registered under the Investment Company Act of 1940. They are
classified as "open-end management investment companies," more commonly called
mutual funds. Each Trust issues different shares relating to each portfolio.
The Trusts do not impose sales charges or "loads" for buying and selling their
shares. All dividends and other distributions on the Trusts' shares are
reinvested in full. The Board of Trustees of each Trust may establish
additional portfolios or eliminate existing portfolios at any time. More
detailed information about each Trust, its portfolio investment objectives,
policies, restrictions, risks, expenses, its Rule 12b-1 Plan, and other aspects
of its operations, appears in the Prospectuses for each Trust, which are
generally attached at the end of this Prospectus, or in their respective SAIs
which are available upon request.
ABOUT OUR FIXED MATURITY OPTIONS
RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE
We can determine the amount required to be allocated to one or more fixed
maturity options in order to produce specified maturity values. For example, we
can tell you how much you need to allocate per $100 of maturity value.
FMO rates are determined daily. The rates in the table below are illustrative
only and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
The rates to maturity for new allocations as of February 15, 2005 and the
related price per $100 of maturity value were as shown below.
- ---------------------------------------------------------------
Fixed Maturity
Options with
February 15th Rate to Price
Maturity Date of Maturity as of Per $100 of
Maturity Year February 15, 2005 Maturity Value
- ---------------------------------------------------------------
2006 3.00%* $ 97.09
2007 3.00%* $ 94.26
2008 3.00%* $ 91.51
2009 3.00%* $ 88.84
2010 3.00%* $ 86.25
2011 3.00%* $ 83.74
2012 3.00%* $ 81.30
2013 3.08% $ 78.44
2014 3.22% $ 75.17
2015 3.32% $ 72.12
- ---------------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated
to these options.
HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT
We use the following procedure to calculate the market value adjustment (up or
down) we make if you withdraw any of your value from a fixed maturity option
before its maturity date.
(1) We determine the market adjusted amount on the date of the withdrawal as
follows:
(a) We determine the fixed maturity amount that would be payable on the
maturity date, using the rate to maturity for the fixed maturity
option.
More information 65
(b) We determine the period remaining in your fixed maturity option (based
on the withdrawal date) and convert it to fractional years based on a
365-day year. For example, three years and 12 days becomes 3.0329.
(c) We determine the current rate to maturity for your FMO based on the
rate for a new FMO issued on the same date and having the same
maturity date as your FMO; if the same maturity date is not available
for new FMOs, we determine a rate that is between the rates for new
FMO maturities that immediately precede and immediately follow your
FMOs maturity date.
(d) We determine the present value of the fixed maturity amount payable at
the maturity date, using the period determined in (b) and the rate
determined in (c).
(2) We determine the fixed maturity amount as of the current date.
(3) We subtract (2) from the result in (1)(d). The result is the market value
adjustment applicable to such fixed maturity option, which may be positive
or negative.
If you withdraw only a portion of the amount in a fixed maturity option, the
market value adjustment will be a percentage of the market value adjustment
that would have applied if you had withdrawn the entire value in that fixed
maturity option. This percentage is equal to the percentage of the value in the
fixed maturity option that you are withdrawing. Any withdrawal charges that are
deducted from a fixed maturity option will result in a market value adjustment
calculated in the same way. See Appendix III at the end of this Prospectus for
an example.
For purposes of calculating the rate to maturity for new allocations to a fixed
maturity option (see (1)(c) above), we use the rate we have in effect for new
allocations to that fixed maturity option. We use this rate even if new
allocations to that option would not be accepted at that time. This rate will
not be less than 3%. If we do not have a rate to maturity in effect for a fixed
maturity option to which the "current rate to maturity" in (1)(c) would apply,
we will use the rate at the next closest maturity date. If we are no longer
offering new fixed maturity options, the "current rate to maturity" will be
determined by using a widely-published Index. We reserve the right to add up to
0.25% to the current rate in (1)(c) above for purposes of calculating the
market value adjustment only.
INVESTMENTS UNDER THE FIXED MATURITY OPTIONS
Amounts allocated to the fixed maturity options are held in a "nonunitized"
separate account we have established under the New York Insurance Law. This
separate account provides an additional measure of assurance that we will make
full payment of amounts due under the fixed maturity options. Under New York
Insurance Law, the portion of the separate account's assets equal to the
reserves and other contract liabilities relating to the contracts are not
chargeable with liabilities from any other business we may conduct. We own the
assets of the separate account, as well as any favorable investment performance
on those assets. You do not participate in the performance of the assets held
in this separate account. We may, subject to state law that applies, transfer
all assets allocated to the separate account to our general account. We
guarantee all benefits relating to your value in the fixed maturity options,
regardless of whether assets supporting fixed maturity options are held in a
separate account or our general account.
We expect the rates to maturity for the fixed maturity options to be influenced
by, but not necessarily correspond to, among other things, the yields that we
can expect to realize on the separate account's investments from time to time.
Our current plans are to invest in fixed-income obligations, including
corporate bonds, mortgage-backed and asset-backed securities, and government
and agency issues having durations in the aggregate consistent with those of
the fixed maturity options.
Although the above generally describes our plans for investing the assets
supporting our obligations under the fixed maturity options under the
contracts, we are not obligated to invest those assets according to any
particular plan except as we may be required to by state insurance laws. We
will not determine the rates to maturity we establish by the performance of the
nonunitized separate account.
ABOUT THE GENERAL ACCOUNT
Our general account supports all of our policy and contract guarantees,
guaranteed interest option and fixed maturity options as well as our general
obligations. Credits allocated to your account value are funded from our
general account.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations
of all jurisdictions where we are authorized to do business. Because of
exemptions and exclusionary provisions that apply, interests in the general
account have not been registered under the Securities Act of 1933, nor is the
general account an investment company under the Investment Company Act of 1940.
We have been advised that the staff of the SEC has not reviewed the portions of
this Prospectus that relate to the general account. The disclosure with regard
to the general account, however, may be subject to certain provisions of the
federal securities laws relating to the accuracy and completeness of statements
made in prospectuses.
ABOUT OTHER METHODS OF PAYMENT
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept subsequent contributions sent by wire to our processing office by
agreement with certain broker-dealers. Such transmittals must be accompanied by
information we require to allocate your contribution. Wire orders not
accompanied by complete information may be retained as described under "How you
can make your contributions" under "Contract features and benefits" earlier in
this Prospectus.
Even if we accepted the wire order and essential information, a contract
generally was not issued until we received and accepted a properly completed
application. In certain cases, we may have issued a contract based on
information provided through certain broker-dealers with whom we have
established electronic facilities. In any such case, you must have signed our
Acknowledgement of Receipt form.
66 More information
Where we required a signed application, the above procedures did not apply and
no financial transactions were permitted until we received the signed
application and issued the contract. Where we issued a contract based on
information provided through electronic facilities, we required an
Acknowledgement of Receipt form. Financial transactions were only permitted if
you requested them in writing, signed the request and had it signature
guaranteed, until we received the signed Acknowledgement of Receipt form. After
a contract is issued, additional contributions are allowed by wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY
You may use our automatic investment program, or "AIP," to have a specified
amount automatically deducted from a checking account, money market account, or
credit union checking account and contributed as an additional contribution
into an NQ contract on a monthly or quarterly basis. AIP is not available for
Rollover IRA, Roth Conversion IRA, QP contracts or Rollover TSA contracts.
The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP
additional contributions may be allocated to any of the variable investment
options and available fixed maturity options. You choose the day of the month
you wish to have your account debited. However, you may not choose a date later
than the 28th day of the month.
You may cancel AIP at any time by notifying our processing office. We are not
responsible for any debits made to your account before the time written notice
of cancellation is received at our processing office.
DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this Prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our business day, generally, is any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions. Our business day generally ends at 4:00 p.m. Eastern Time for
purposes of determining the date when contributions are applied and any other
transaction requests are processed. Contributions will be applied and any other
transaction requests will be processed when they are received along with all
the required information unless another date applies as indicated below.
o If your contribution, transfer, or any other transaction request,
containing all the required information, reaches us on a non-business day
or after 4:00 p.m. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then
the transaction will occur on the 1st day of the next month.
o When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
o If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your
contribution will be considered received at the time your broker-dealer
receives your contribution and all information needed to process your
application, along with any required documents, and transmits your order to
us in accordance with our processing procedures. Such arrangements may
apply to initial contributions, subsequent contributions, or both, and may
be commenced or terminated at any time without prior notice. If required by
law, the "closing time" for such orders will be earlier than 4 p.m.,
Eastern Time.
CONTRIBUTIONS, CREDITS, AND TRANSFERS
o Contributions and credits allocated to the variable investment options are
invested at the value next determined after the close of the business day.
o Contributions and credits allocated to the guaranteed interest option will
receive the crediting rate in effect on that business day for the specified
time period.
o Contributions and credits allocated to a fixed maturity option will receive
the rate to maturity in effect for that fixed maturity option on that
business day (unless a rate lock-in is applicable).
o Transfers to or from variable investment options will be made at the value
next determined after the close of the business day.
o Transfers to a fixed maturity option will be based on the rate to maturity
in effect for that fixed maturity option on the business day of the
transfer.
o Transfers to the guaranteed interest option will receive the crediting rate
in effect on that business day for the specified time period.
o For the interest sweep option, the first monthly transfer will occur on the
last business day of the month following the month that we receive your
election form at our processing center.
ABOUT YOUR VOTING RIGHTS
As the owner of the shares of the Trusts we have the right to vote on certain
matters involving the portfolios, such as:
o the election of trustees;
More information 67
o the formal approval of independent public accounting firms selected for
each Trust; or
o any other matters described in the prospectus for each Trust or requiring a
shareholders' vote under the Investment Company Act of 1940.
We will give contract owners the opportunity to instruct us how to vote the
number of shares attributable to their contracts if a shareholder vote is
taken. If we do not receive instructions in time from all contract owners, we
will vote the shares of a portfolio for which no instructions have been
received in the same proportion as we vote shares of that portfolio for which
we have received instructions. We will also vote any shares that we are
entitled to vote directly because of amounts we have in a portfolio in the same
proportions that contract owners vote.
VOTING RIGHTS OF OTHERS
Currently, we control the Trusts. Their shares are sold to our separate
accounts and an affiliated qualified plan trust. In addition, shares of the
Trusts are held by separate accounts of insurance companies both affiliated and
unaffiliated with us. Shares held by these separate accounts will probably be
voted according to the instructions of the owners of insurance policies and
contracts issued by those insurance companies. While this will dilute the
effect of the voting instructions of the contract owners, we currently do not
foresee any disadvantages because of this. The Board of Trustees of each Trust
intends to monitor events in order to identify any material irreconcilable
conflicts that may arise and to determine what action, if any, should be taken
in response. If we believe that a response to any of those events
insufficiently protects our contract owners, we will see to it that appropriate
action is taken.
SEPARATE ACCOUNT NO. 49 VOTING RIGHTS
If actions relating to the Separate Account require contract owner approval,
contract owners will be entitled to one vote for each unit they have in the
variable investment options. Each contract owner who has elected a variable
annuity payout option may cast the number of votes equal to the dollar amount
of reserves we are holding for that annuity in a variable investment option
divided by the annuity unit value for that option. We will cast votes
attributable to any amounts we have in the variable investment options in the
same proportion as votes cast by contract owners.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this Prospectus are created under applicable
federal securities laws. To the extent that those laws or the regulations
published under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
ABOUT LEGAL PROCEEDINGS
AXA Equitable and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings would be considered material with respect
to a contract owner's interest in Separate Account No. 49, nor would any of
these proceedings be likely to have a material adverse effect upon the Separate
Account, our ability to meet our obligations under the contracts, or the
distribution of the contracts.
ABOUT OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The consolidated financial statements of AXA Equitable at December 31, 2004 and
2003, and for the three years ended December 31, 2004 incorporated in this
Prospectus by reference to the 2004 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent registered
public accounting firm, given on the authority of said firm as experts in
auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 49, as well as consolidated
financial statements of AXA Equitable, are in the SAI. The SAI is available
free of charge. You may request one by writing to our processing office or
calling 1-800-789-7771.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING
You can transfer ownership of an NQ contract at any time before annuity
payments begin. We will continue to treat you as the owner until we receive
written notification of any change at our processing office. You cannot assign
your NQ contract as collateral or security for a loan. Loans are also not
available under your NQ contract. In some cases, an assignment or change of
ownership may have adverse tax consequences. See "Tax information" earlier in
this Prospectus.
You cannot assign or transfer ownership of a Rollover IRA, Roth Conversion IRA,
QP or Rollover TSA contract except by surrender to us. If your individual
retirement annuity contract is held in your custodial individual retirement
account, you may only assign or transfer ownership of such an IRA contract to
yourself. Loans are not available and you cannot assign Rollover IRA, Roth
Conversion IRA and QP contracts as security for a loan or other obligation. If
the employer that provided the funds does not restrict them, loans are
available under a Rollover TSA contract.
For limited transfers of ownership after the owner's death see "Beneficiary
continuation option" in "Payment of death benefit" earlier in this Prospectus.
You may direct the transfer of the values under your Rollover IRA, Roth
Conversion IRA, QP or Rollover TSA contract to another similar arrangement
under federal income tax rules. In the case of such a transfer, we will impose
a withdrawal charge, if one applies.
DISTRIBUTION OF THE CONTRACTS
The contracts are distributed by AXA Distributors, LLC ("AXA Distributors")
(the "Distributor"). The Distributor serves as principal underwriter of
Separate Account No. 49. The offering of the contracts is intended to be
continuous.
68 More information
AXA Distributors, an indirect wholly owned subsidiary of AXA Equitable, is
registered with the SEC as a broker-dealer and member of the National
Association of Securities Dealers, Inc. ("NASD"). Its principal business
address is 1290 Avenue of the Americas, New York, NY 10104. It also acts as a
distributor for other AXA Equitable annuity products. AXA Distributors is a
successor by merger to all of the functions, rights and obligations of
Equitable Distributors, Inc. ("EDI"). Like AXA Distributors, EDI was owned by
Equitable Holdings, LLC.
The contracts are sold by financial professionals of both affiliated and
unaffiliated broker-dealers that have entered into selling agreements with the
Distributor ("Selling broker-dealers"). Affiliated broker-dealers include MONY
Securities Corporation ("MSC")* and Advest, Inc. The Distributor, MSC and
Advest are all under the common control of AXA Financial, Inc.
AXA Equitable pays sales compensation to the Distributor. In general,
broker-dealers receiving sales compensation will pay all or a portion of it to
its individual financial representatives (or to its Selling broker-dealers) as
commissions related to the sale of contracts.
Sales compensation paid to AXA Distributors will generally not exceed 4.50% of
the total contributions made under the contracts. AXA Distributors passes all
sales compensation it receives through to the Selling broker-dealer. The
Selling broker-dealer may elect to receive reduced contribution-based
compensation in combination with asset-based compensation of up to 1.00% of the
account value of all or a portion of the contracts sold through the
broker-dealer. Contribution-based compensation, when combined with asset-based
compensation, could exceed 4.50% of the total contributions made under the
contracts. The sales compensation we pay varies among broker-dealers. AXA
Distributors may also receive compensation and reimbursement for its marketing
services under the terms of its distribution agreement with AXA Equitable.
The Distributor may also pay certain affiliated and/or unaffiliated
broker-dealers and other financial intermediaries additional compensation for
certain services and/or in recognition of certain expenses that may be incurred
by them or on their behalf (commonly referred to as "marketing allowances").
Services for which such payments are made may include, but are not limited to,
the preferred placement of AXA Equitable and/or Accumulator(R) Plus(SM) on a
company and/or product list; sales personnel training; due diligence and related
costs; marketing and related services; conferences; and/or other support
services, including some that may benefit the contract owner. Payments may be
based on the amount of assets or purchase payments attributable to contracts
sold through a broker-dealer. We may also make fixed payments to broker-dealers
in connection with the initiation of a new relationship or the introduction of a
new product. These payments may serve as an incentive for Selling broker-dealers
to promote the sale of our products. Additionally, as an incentive for financial
professionals of Selling broker-dealers to promote the sale of our products, we
may increase the sales compensation paid to the Selling broker-dealer for a
period of time (commonly referred to as "compensation enhancements"). These
types of payments are made out of the Distributor's assets. Not all Selling
broker-dealers receive additional compensation. For more information about any
such arrangements, ask your financial professional.
The Distributor will also receive 12b-1 fees from certain portfolios for
providing certain distribution and/or shareholder support services. In
connection with portfolios offered through unaffiliated insurance trusts, the
Distributor may also receive other payments from the portfolio advisers and/or
their affiliates for administrative costs, as well as payments for sales
meetings and/or seminar sponsorships.
Payments received can vary in amount based on the applicable product and/or
entity or individual involved. Such payments may cause the financial
professional to show preference in recommending the purchase or sale of our
products. However, under applicable rules of the NASD, AXA Advisors may only
recommend to you products that they reasonably believe are suitable for you
based on facts that you have disclosed as to your other security holdings,
financial situation and needs. In making any recommendation, financial
professionals may nonetheless face conflicts of interest because of the
differences in compensation from one product category to another, and because
of differences in compensation between products in the same category.
Although AXA Equitable takes all of its costs into account in establishing the
level of fees and expenses in our products, any compensation paid will not
result in any separate charge to you under your contract. All payments made
will be in compliance with all applicable NASD rules and other laws and
regulations.
- ----------------------
* On or about June 6, 2005, MSC financial professionals are expected to
become financial professionals of AXA Advisors. At that time the
Distributor will replace MSC as the principal underwriter of its affiliated
products.
More information 69
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
AXA Equitable's Annual Report on Form 10-K for the year ended December 31, 2004
is considered to be a part of this prospectus because it is incorporated by
reference.
After the date of this prospectus and before we terminate the offering of the
securities under this prospectus, all documents or reports we file with the SEC
under the Securities Exchange Act of 1934 ("Exchange Act"), will be considered
to become part of this prospectus because they are incorporated by reference.
Any statement contained in a document that is, or becomes part of this
prospectus, will be considered changed or replaced for purposes of this
prospectus if a statement contained in this prospectus changes or is replaced.
Any statement that is considered to be a part of this prospectus because of its
incorporation will be considered changed or replaced for the purpose of this
prospectus if a statement contained in any other subsequently filed document
that is considered to be part of this prospectus changes or replaces that
statement. After that, only the statement that is changed or replaced will be
considered to be part of this prospectus.
We file our Exchange Act documents and reports, including our Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR
under CIK No. 0000727920. The SEC maintains a website that contains reports,
proxy and information statements, and other information regarding registrants
that file electronically with the SEC. The address of the website is
www.sec.gov.
Upon written or oral request, we will provide, free of charge, to each person
to whom this prospectus is delivered, a copy of any or all of the documents
considered to be part of this prospectus because they are incorporated herein.
This does not include exhibits not specifically incorporated by reference into
the text of such documents. Requests for documents should be directed to AXA
Equitable Life Insurance Company,1290 Avenue of the Americas, New York, New
York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234).
70 Incorporation of certain documents by reference
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account No. 49 with the same daily asset charges of
1.40%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004
- ----------------------------------------------------------------------------------------------------------------------------
For the year ending December 31,
---------------------------------
2004 2003 2002
- ----------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.61 -- --
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,088 -- --
- ----------------------------------------------------------------------------------------------------------------------------
AXA Conservative Allocation
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.29 -- --
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 801 -- --
- ----------------------------------------------------------------------------------------------------------------------------
AXA Conservative-Plus Allocation
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.39 -- --
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,570 -- --
- ----------------------------------------------------------------------------------------------------------------------------
AXA Moderate Allocation
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 43.82 $ 40.88 $ 34.80
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 7,909 6,360 1,307
- ----------------------------------------------------------------------------------------------------------------------------
AXA Moderate-Plus Allocation
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.63 -- --
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 5,246 -- --
- ----------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 53.37 $ 48.29 $ 35.61
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 391 352 65
- ----------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.18 $ 10.91 $ 10.67
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 20,725 21,868 7,979
- ----------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.03 $ 9.97 $ 7.89
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 5,832 5,004 1,289
- ----------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 29.19 $ 27.25 $ 22.55
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 7,606 7,467 1,128
- ----------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.01 $ 10.33 $ 7.80
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 6,557 5,137 1,360
- ----------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.44 $ 9.65 $ 7.64
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 5,046 4,778 1,529
- ----------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.19 $ 8.74 $ 6.78
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 10,463 9,505 2,593
- ----------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.53 $ 10.22 $ 7.90
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 9,747 8,731 2,676
- ----------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.44 $ 8.57 $ 6.20
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 12,924 12,264 3,087
- ----------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------
For the year ending December 31,
---------------------------------
2004 2003 2002
- ----------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.60 $ 10.21 $ 7.37
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 10,507 9,465 2,371
- ----------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.11 $ 8.90 $ 5.66
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 7,471 3,799 1,127
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 234.29 $ 208.22 $ 141.20
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 942 814 112
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 28.12 $ 25.38 $ 19.73
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 7,405 6,681 1,786
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 18.52 $ 18.42 $ 18.29
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 5,829 6,022 2,463
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Alliance International
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.23 $ 11.35 $ 8.52
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 7,600 6,792 1,026
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Large Cap Growth
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 6.27 $ 5.86 $ 4.83
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 8,590 8,430 2,607
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 15.80 $ 15.45 $ 15.13
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 7,011 7,296 2,167
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 15.30 $ 13.61 $ 9.80
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 5,878 5,936 1,577
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Bear Stearns Small Company Growth
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 7.60 -- --
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 67 -- --
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.36 $ 12.84 $ 10.11
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 23,412 21,328 5,924
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Boston Advisors Equity Income
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 5.64 -- --
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 780 -- --
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.10 $ 7.93 $ 6.28
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,019 964 208
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Growth
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.89 $ 11.43 $ 9.35
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,253 2,284 762
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.65 $ 9.51 $ 7.27
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 10,189 8,648 1,957
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.27 $ 10.30 $ 7.95
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 8,947 8,367 2,246
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.06 $ 10.26 $ 7.63
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 16,717 15,286 3,232
- ----------------------------------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------
For the year ending December 31,
---------------------------------
2004 2003 2002
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 25.49 $ 23.45 $ 18.61
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 13,022 12,430 3,667
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.30 $ 7.87 $ 5.77
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 4,201 3,589 625
- ----------------------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.11 $ 9.71 $ 6.86
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 17,707 16,254 3,145
- ----------------------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.35 $ 12.35 $ 9.40
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 12,978 12,257 4,007
- ----------------------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.79 $ 13.44 $ 13.19
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 17,843 18,211 5,930
- ----------------------------------------------------------------------------------------------------------------------------
EQ/JP Morgan Value Opportunities
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.15 $ 12.02 $ 9.62
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 4,753 4,353 1,383
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 6.01 $ 5.44 $ 4.38
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 7,699 7,279 2,586
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 16.57 $ 14.35 $ 10.59
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 12,065 10,965 3,006
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.93 $ 12.78 $ 9.89
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 21,440 20,675 4,362
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 19.88 $ 18.24 $ 14.10
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 9,113 8,213 2,399
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Mercury International Equity
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 16.83 $ 14.03 $ 11.11
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 6,084 5,257 1,712
- ----------------------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.14 $ 11.84 $ 9.28
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,192 2,043 538
- ----------------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.95 $ 8.15 $ 6.77
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 4,946 4,865 1,329
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Money Market
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 27.84 $ 28.02 $ 28.26
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,473 4,639 4,457
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Montag & Caldwell Growth
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 4.42 -- --
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 46 -- --
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Index
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.30 $ 12.32 $ 8.57
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 6,730 6,188 1,437
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Value
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 22.60 -- --
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 173 -- --
- ----------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------
For the year ending December 31,
---------------------------------
2004 2003 2002
- ----------------------------------------------------------------------------------------------------------------------------
EQ/TCW Equity
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 16.85 -- --
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 37 -- --
- ----------------------------------------------------------------------------------------------------------------------------
EQ/UBS Growth and Income
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 5.15 -- --
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 41 -- --
- ----------------------------------------------------------------------------------------------------------------------------
EQ/Van Kampen Emerging Markets Equity
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.60 $ 8.69 $ 5.66
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 7,052 5,307 1,261
- ----------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.14 -- --
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 774 -- --
- ----------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II
- ----------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.71 -- --
- ----------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,062 -- --
- ----------------------------------------------------------------------------------------------------------------------------
A-4 Appendix I: Condensed financial information
Appendix II: Purchase considerations for QP contracts
- --------------------------------------------------------------------------------
Trustees who are considering the purchase of an Accumulator(R) Plus(SM) QP
contract should discuss with their tax advisers whether this is an appropriate
investment vehicle for the employer's plan. Trustees should consider whether
the plan provisions permit the investment of plan assets in the QP contract,
the distribution of such an annuity and the payment of death benefits in
accordance with the requirements of the federal income tax rules. The QP
contract and this prospectus should be reviewed in full, and the following
factors, among others, should be noted. Assuming continued plan qualification
and operation, earnings on qualified plan assets will accumulate value on a
tax-deferred basis even if the plan is not funded by the Accumulator(R) Plus(SM)
QP contract or another annuity. Therefore, you should purchase an
Accumulator(R) Plus(SM) QP contract to fund a plan for the contract's features
and benefits other than tax deferral, after considering the relative costs and
benefits of annuity contracts and other types of arrangements and funding
vehicles. This QP contract accepts transfer contributions only and not regular,
ongoing payroll contributions. For 401(k) plans under defined contribution
plans, no employee after-tax contributions are accepted.
We will not accept defined benefit plans. For defined contribution plans, we
will only accept transfers from another defined contribution plan or a change
of investment vehicles in the plan. Only one additional transfer contribution
may be made per contract year. If overfunding of a plan occurs or amounts
attributable to an excess contribution must be withdrawn, withdrawals from the
QP contract may be required. A withdrawal charge and/or market value adjustment
may apply.
AXA Equitable will not perform or provide any plan recordkeeping services with
respect to the QP contracts. The plan's administrator will be solely
responsible for performing or providing for all such services. There is no loan
feature offered under the QP contracts, so if the plan provides for loans and a
participant/employee takes a loan from the plan, other plan assets must be used
as the source of the loan and any loan repayments must be credited to other
investment vehicles and/or accounts available under the plan.
Given that required minimum distributions must generally commence from the plan
for annuitants after age 70-1/2, trustees should consider that:
o the QP contract may not be an appropriate purchase for annuitants
approaching or over age 70-1/2;
o provisions in the Treasury Regulations on required minimum distributions
will require, beginning in 2006, that the actuarial present value of
additional annuity contract benefits be added to the dollar amount credited
for purposes of calculating required minimum distributions. This could
increase the amounts required to be distributed from the contract; and
o the guaranteed minimum income benefit under the Living Benefit may not be
an appropriate feature for annuitants who are older than 601/2 when the
contract is issued.
Finally, because the method of purchasing the QP contract, including the large
initial contribution and the features of the QP contract may appeal more to
plan participants/employees who are older and tend to be highly paid, and
because certain features of the QP contract are available only to plan
participants/employees who meet certain minimum and/or maximum age
requirements, plan trustees should discuss with their advisers whether the
purchase of the QP contract would cause the plan to engage in prohibited
discrimination in contributions, benefits or otherwise.
Appendix II: Purchase considerations for QP contracts B-1
Appendix III: Market value adjustment example
- --------------------------------------------------------------------------------
The example below shows how the market value adjustment would be determined and
how it would be applied to a withdrawal, assuming that $100,000 was allocated
on February 15, 2005 to a fixed maturity option with a maturity date of
February 15, 2014 (nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value of $183,914 on the maturity date. We
further assume that a withdrawal of $50,000 is made four years later on
February 15, 2009.
- --------------------------------------------------------------------------------
Hypothetical Assumed
rate to maturity on
February 15, 2009
----------------------
5.00% 9.00%
- --------------------------------------------------------------------------------
As of February 15, 2009 (before withdrawal)
(1) Market adjusted amount $144,082 $119,503
(2) Fixed maturity amount $131,104 $131,104
(3) Market value adjustment:
(1) - (2) $ 12,978 $(11,601)
- --------------------------------------------------------------------------------
On February 15, 2009 (after withdrawal)
- --------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with withdrawal:
(3) x [$50,000/(1)] $ 4,504 $ (4,854)
(5) Reduction in fixed maturity amount: [$50,000 - (4)] $ 45,496 $ 54,854
(6) Fixed maturity amount: (2) - (5) $ 85,608 $ 76,250
(7) Maturity value $120,091 $106,965
(8) Market adjusted amount of (7) $ 94,082 $ 69,503
- --------------------------------------------------------------------------------
You should note that under this example if a withdrawal is made when rates have
increased from 7.00% to 9.00% (right column), a portion of a negative market
value adjustment is realized. On the other hand, if a withdrawal is made when
rates have decreased from 7.00% to 5.00% (left column), a portion of a positive
market value adjustment is realized. The market value is computed differently
if you withdraw amounts on a date other than the anniversary of the
establishment of the fixed maturity option.
C-1 Appendix III: Market value adjustment example
Appendix IV: Guaranteed enhanced death benefit example
- --------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the enhanced death benefit.
The following illustrates the enhanced death benefit calculation. Assuming
$100,000 (plus the applicable 4% credit) is allocated to the variable
investment options (with no allocation to the EQ/Alliance Intermediate
Government Securities, EQ/Money Market, EQ/PIMCO Real Return, EQ/Short Duration
Bond, the guaranteed interest option or the fixed maturity options), no
additional contributions, no transfers, no withdrawals and no loans under a
Rollover TSA contract, the enhanced death benefit for an annuitant age 45 would
be calculated as follows:
- ----------------------------------------------------------------------------------------------------
6% roll up to age 85 Annual ratchet to age 85
End of Contract Year Account Value enhanced death benefit enhanced death benefit
- ----------------------------------------------------------------------------------------------------
1 109,200 110,240 109,200
2 120,120 116,854 120,120
3 134,534 123,866 134,534
4 107,628 131,298 134,534
5 118,390 139,175 134,534
6 132,597 147,526 134,534
7 132,597 156,378 134,534
The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%.
We are using these rates solely to illustrate how the benefit is determined.
The return rates bear no relationship to past or future investment results.
6% ROLL-UP TO AGE 85
(1) At the end of contract year 1, and again at the end of contract years 4
through 7, the death benefit will be the enhanced death benefit.
(2) At the end of contract years 2 and 3, the death benefit will be the current
account value since it is higher than the current enhanced death benefit.
ANNUAL RATCHET TO AGE 85
(3) At the end of contract years 1 through 3, the enhanced death benefit is the
current account value.
(4) At the end of contract years 4 through 7, the enhanced death benefit is the
enhanced death benefit at the end of the prior year since it is equal to or
higher than the current account value.
GREATER OF 6% ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85
The enhanced death benefit under this option for each year shown would be the
greater of the amounts shown under the 6% roll-up to age 85 or the Annual
ratchet to age 85.
Appendix IV: Guaranteed enhanced death benefit example D-1
Appendix V: Hypothetical illustrations
- --------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM
BENEFITS
The following tables illustrate the changes in account value, cash value and
the values of the "greater of 6% Roll up to Age 85 or the Annual Ratchet to Age
85" guaranteed minimum death benefit, the Protection Plus(SM) benefit and the
Guaranteed minimum income benefit under certain hypothetical circumstances for
an Accumulator(R) Plus(SM) contract. The table illustrates the operation of a
contract based on a male, issue age 60, who makes a single$10,00 contribution
and takes no withdrawals. The amounts shown are for the beginning of each
contract year and assume that all of the account value is invested in
portfolios that achieve investment returns at constant gross annual rates of 0%
and 6% (i.e., before any investment management fees, 12b-1 fees or other
expenses are deducted from the underlying portfolio assets). After the
deduction of the arithmetic average of the investment management fees, 12b-1
fees and other expenses of all of the underlying Portfolios (as described
below), the corresponding net annual rates of return would be (2.73)%, 3.27%
for the Accumulator(R) Plus(SM) Contract, at the 0% and 6% gross annual rates,
respectively. These net annual rates of return reflect the trust and separate
account level charges but they do not reflect the charges we deduct from your
account value annually for the Guaranteed minimum death benefit, Protection
Plus(SM) benefit and the Guaranteed minimum income benefit features, as well as
the annual administrative charge. If the net annual rates of return did reflect
these charges, the net annual rates of return would be lower; however, the
values shown in the following tables reflect all contract charges. The values
shown under "Lifetime Annual Guaranteed Minimum Income Benefit" reflect the
lifetime income that would be guaranteed if the Guaranteed minimum income
benefit is selected at that contract anniversary. An "N/A" in these columns
indicates that the benefit is not exercisable in that year. A "0" under any of
the Death Benefit and/or "Lifetime Annual Guaranteed Minimum Income Benefit"
columns indicates that the contract has terminated due to insufficient account
value and, consequently, the guaranteed benefit has no value.
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in all tables reflect (1) investment management
fees equivalent to an effective annual rate of 0.69%, and (2) an assumed
average asset charge for all other expenses of the underlying portfolios
equivalent to an effective annual rate of 0.39% and (3) 12b-1 fees equivalent
to an effective annual rate of 0.25%. These rates are the arithmetic average
for all portfolios that are available as investment options. In other words,
they are based on the hypothetical assumption that account values are allocated
equally among the variable investment options. The actual rates associated with
any contract will vary depending upon the actual allocation of contract values
among the investment options. These rates do not reflect expense limitation
arrangements in effect with respect to certain of the underlying portfolios as
described in the footnotes to the fee table for the underlying portfolios in
"Fee Table" earlier in this prospectus. With these arrangements, the charges
shown above would be lower. This would result in higher values than those shown
in the following tables.
Because your circumstances will no doubt differ from those in the illustrations
that follow, values under your contract will differ, in most cases
substantially. Upon request, we will furnish you with a personalized
illustration.
E-1 Appendix V: Hypothetical illustrations
Variable deferred annuity
Accumulator Plus
$100,000 Single contribution and no withdrawals
Male, issue age 60
Benefits:
Greater of 6% Roll up to age 85 or the Annual Ratchet to age 85 Guaranteed
minimum death benefit
Protection Plus(SM)
Guaranteed minimum income benefit
Greater of 6% Roll
up
to age 85 or the
Annual
Ratchet to age 85
Guaranteed
Minimum Death
Account Value Cash Value Benefit
------------------- ------------------ -------------------
Age Contract Year 0% 6% 0% 6% 0% 6%
- ----- -------------- --------- --------- -------- --------- --------- ---------
60 1 104,000 104,000 96,000 96,000 104,000 104,000
61 2 99,484 105,702 91,484 97,702 110,240 110,240
62 3 95,027 107,374 88,027 100,374 116,854 116,854
63 4 90,623 109,011 83,623 102,011 123,866 123,866
64 5 86,265 110,606 80,265 104,606 131,298 131,298
65 6 81,946 112,153 76,946 107,153 139,175 139,175
66 7 77,660 113,645 73,660 109,645 147,526 147,526
67 8 73,399 115,073 70,399 112,073 156,378 156,378
68 9 69,156 116,431 69,156 116,431 165,760 165,760
69 10 64,924 117,709 64,924 117,709 175,706 175,706
74 15 43,629 122,544 43,629 122,544 235,134 235,134
79 20 21,275 123,622 21,275 123,622 314,662 314,662
84 25 0 118,843 0 118,843 0 421,089
89 30 0 119,965 0 119,965 0 446,355
94 35 0 124,263 0 124,263 0 446,355
95 36 0 125,200 0 125,200 0 446,355
Lifetime Annual
Guaranteed Minimum Income Benefit
Total Death Benefit ------------------------------------
with Protection Guaranteed Hypothetical
Plus Income Income
------------------- ------------------ -----------------
Age 0% 6% 0% 6% 0% 6%
- ----- --------- --------- --------- -------- --------- -------
60 104,000 104,000 N/A N/A N/A N/A
61 114,336 114,336 N/A N/A N/A N/A
62 123,596 123,596 N/A N/A N/A N/A
63 133,412 133,412 N/A N/A N/A N/A
64 143,817 143,817 N/A N/A N/A N/A
65 154,846 154,846 N/A N/A N/A N/A
66 166,536 166,536 N/A N/A N/A N/A
67 178,929 178,929 N/A N/A N/A N/A
68 192,064 192,064 N/A N/A N/A N/A
69 205,988 205,988 N/A N/A N/A N/A
74 289,188 289,188 14,837 14,837 14,837 14,837
79 400,527 400,527 21,208 21,208 21,208 21,208
84 0 514,506 0 36,214 0 36,214
89 0 539,771 N/A N/A N/A N/A
94 0 539,771 N/A N/A N/A N/A
95 0 539,771 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for
individual contract years. We can make no representation that these
hypothetical investment results can be achieved for any one year or continued
over any period of time. In fact, for any given period of time, the investment
results could be negative.
Appendix V: Hypothetical illustrations E-2
Appendix VI: Contract variations
- --------------------------------------------------------------------------------
The contract described in this Prospectus is no longer sold. You should note
that your contract features and charges may vary from what is described in this
Prospectus depending on the date on which you purchased your contract. You may
not change your contract or its features after issue. This Appendix reflects
contract variations that differ from what is described in this Prospectus but
may have been in effect at the time you purchased your contract.
In addition, options and/or features may vary among states in light of
applicable regulations or state approvals. Any such state variations are
generally not included here. For more information about state variations
applicable to you, as well as particular features, charges and options available
under your contract based upon when you purchased it, please contact your
financial professional and/or refer to your contract.
- -----------------------------------------------------------------------------------------------------------------------------------
Approximate Time Period Feature/Benefit Variation
- -----------------------------------------------------------------------------------------------------------------------------------
April 2002 - July 2003 Guaranteed interest option No limitations regarding allocations or transfers into the guaranteed
interest account.
- -----------------------------------------------------------------------------------------------------------------------------------
April 2002 - February 2003 Fee table Guaranteed minimum death benefit charge:
Annual Ratchet to age 85: 0.20%
6% Roll up to age 85: 0.35%
The Greater of the 6% Roll up to age 85 or the
Annual Ratchet to age 85: 0.45%
Guaranteed minimum income benefit: 0.45%
- -----------------------------------------------------------------------------------------------------------------------------------
F-1 Appendix VI: Contract variations
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Unit Values 2
Custodian and Independent Registered Public Accounting Firm 2
Distribution of the Contracts 2
Financial Statements 2
How to obtain an Accumulator(R) Plus(SM) Statement of Additional Information for
Separate Account No. 49
Send this request form to:
Accumulator(R) Plus(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me an Accumulator(R) Plus(SM) SAI for Separate Account No. 49 dated
May 1, 2005.
- --------------------------------------------------------------------------------
Name
- --------------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
City State Zip
(SAI 10AMLF(05/03))
X01010/Plus '02 ML and '04 Series
Accumulator(R) Plus(SM)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2005
Please read and keep this Prospectus for future reference. It contains
important information that you should know before purchasing or taking any
other action under your contract. You should read the prospectuses for each
Trust, which contain important information about the portfolios.
- --------------------------------------------------------------------------------
WHAT IS THE ACCUMULATOR(R) PLUS(SM)?
Accumulator(R) Plus(SM) is a deferred annuity contract issued by AXA Equitable
Life Insurance Company. It provides for the accumulation of retirement savings
and for income. The contract offers death benefit protection and a number of
payout options. You invest to accumulate value on a tax-deferred basis in one
or more of our variable investment options, the guaranteed interest option or
fixed maturity options ("investment options"). This contract may not currently
be available in all states. Certain features and benefits described in this
Prospectus may vary in your state; all features and benefits may not be
available in all contracts or all states. Please see Appendix VIII later in
this Prospectus for more information on state availability and/or variations of
certain features and benefits.
- --------------------------------------------------------------------------------
Variable investment options
- --------------------------------------------------------------------------------
o AXA Aggressive Allocation(1) o EQ/Equity 500 Index
o AXA Conservative Allocation(1) o EQ/Evergreen Omega
o AXA Conservative-Plus Allocation(1) o EQ/FI Mid Cap
o AXA Moderate Allocation(1) o EQ/FI Small/Mid Cap Value
o AXA Moderate-Plus Allocation(1) o EQ/International Growth(3)
o AXA Premier VIP Aggressive Equity o EQ/J.P. Morgan Core Bond
o AXA Premier VIP Core Bond o EQ/JP Morgan Value Opportunities
o AXA Premier VIP Health Care o EQ/Janus Large Cap Growth
o AXA Premier VIP High Yield o EQ/Lazard Small Cap Value
o AXA Premier VIP International Equity o EQ/Long Term Bond(3)
o AXA Premier VIP Large Cap Core o EQ/Lord Abbett Growth and Income(3)
Equity o EQ/Lord Abbett Large Cap Core(3)
o AXA Premier VIP Large Cap Growth o EQ/Lord Abbett Mid Cap Value(3)
o AXA Premier VIP Large Cap Value o EQ/Marsico Focus
o AXA Premier VIP Small/Mid Cap o EQ/Mercury Basic Value Equity
Growth o EQ/Mercury International Value
o AXA Premier VIP Small/Mid Cap Value o EQ/Mergers and Acquisitions(3)
o AXA Premier VIP Technology o EQ/MFS Emerging Growth Companies
o EQ/Alliance Common Stock o EQ/MFS Investors Trust
o EQ/Alliance Growth and Income o EQ/Money Market
o EQ/Alliance Intermediate Government o EQ/Montag & Caldwell Growth(2)
Securities o EQ/PIMCO Real Return(3)
o EQ/Alliance International o EQ/Short Duration Bond(3)
o EQ/Alliance Large Cap Growth(2) o EQ/Small Company Index
o EQ/Alliance Quality Bond o EQ/Small Company Value(2)
o EQ/Alliance Small Cap Growth o EQ/TCW Equity(2)
o EQ/Bear Stearns Small Company o EQ/UBS Growth and Income(2)
Growth(2) o EQ/Van Kampen Comstock(3)
o EQ/Bernstein Diversified Value o EQ/Van Kampen Emerging Markets
o EQ/Boston Advisors Equity Income(2) Equity(2)
o EQ/Calvert Socially Responsible o EQ/Van Kampen Mid Cap Growth(3)
o EQ/Capital Guardian Growth o EQ/Wells Fargo Montgomery Small Cap
o EQ/Capital Guardian International o Laudus Rosenberg VIT Value Long/
o EQ/Capital Guardian Research Short Equity
o EQ/Capital Guardian U.S. Equity o U.S. Real Estate -- Class II
o EQ/Caywood-Scholl High Yield Bond(3)
(1) The "AXA Allocation" portfolios.
(2) This is the option's new name, effective on or about May 9, 2005,
subject to regulatory approval. Please see "Portfolios of the Trusts" in
"Contract features and benefits" later in this Prospectus for the option's
former name.
(3) Available on or about May 9, 2005, subject to regulatory approval.
Please see "Portfolios of the Trusts" in "Contract features and benefits"
later in this Prospectus for more information on the new investment option.
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of Separate Account No. 49. Each
variable investment option, in turn, invests in a corresponding securities
portfolio of EQ Advisors Trust, AXA Premier VIP Trust, The Universal
Institutional Funds, Inc. or Laudus Variable Insurance Trust (the "Trusts").
Your investment results in a variable investment option will depend on the
investment performance of the related portfolio.
You may also allocate amounts to the guaranteed interest option and the fixed
maturity options, which are discussed later in this Prospectus.
TYPES OF CONTRACTS. We offer the contracts for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only.
o An individual retirement annuity ("IRA"), either traditional IRA ("Rollover
IRA") or Roth IRA ("Roth Conversion IRA").
o An annuity that is an investment vehicle for a qualified defined contribution
plan ("QP").
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") --
("Rollover TSA").
A contribution of at least $10,000 is required to purchase a contract. We add
an amount ("credit") to your contract with each contribution you make. Expenses
for this contract may be higher than for a comparable contract without a
credit. Over time, the amount of the credit may be more than offset by fees and
charges associated with the credit.
A registration statement relating to this offering has been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2005, is part of the registration statement.
The SAI is available free of charge. You may request one by writing to our
processing office or calling 1-800-789-7771. The SAI has been incorporated by
reference into this Prospectus. This Prospectus and the SAI can also be
obtained from the SEC's website at www.sec.gov. The table of contents for the
SAI appears at the back of this Prospectus.
The SEC has not approved or disapproved these securities or determined if this
Prospectus is accurate or complete. Any representation to the contrary is a
criminal offense. The contracts are not insured by the FDIC or any other
agency. They are not deposits or other obligations of any bank and are not bank
guaranteed. They are subject to investment risks and possible loss of
principal.
Although this Prospectus is primarily designed for potential purchasers of the
contract, you may have previously purchased a contract and be receiving this
Prospectus as a current contract owner. If you are a current contract owner,
you should note that the options, features and charges of the contract may have
varied over time (and, as noted above, may vary depending on your state) and
you may not change your contract or its features as issued. For more
information about the particular options, features and charges applicable to
you, please contact your financial professional and/or refer to your contract
and/or see Appendix IX for contract variations later in this Prospectus.
X00995/Plus '04 Series
Contents of this Prospectus
- --------------------------------------------------------------------------------
ACCUMULATOR(R) PLUS(SM)
- --------------------------------------------------------------------------------
Index of key words and phrases 4
Who is AXA Equitable? 6
How to reach us 7
Accumulator(R) Plus(SM) at a glance -- key features 9
- --------------------------------------------------------------------------------
FEE TABLE 12
- --------------------------------------------------------------------------------
Example 16
Condensed financial information 19
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 20
- --------------------------------------------------------------------------------
How you can purchase and contribute to your contract 20
Owner and annuitant requirements 22
How you can make your contributions 22
What are your investment options under the contract? 22
Portfolios of the Trusts 23
Allocating your contributions 29
Credits 31
Your Guaranteed minimum death benefit and Guaranteed
minimum income benefit base 32
Annuity purchase factors 33
Our Guaranteed minimum income benefit option 33
Guaranteed minimum death benefit 35
Principal Protector(SM) 36
Your right to cancel within a certain number of days 39
- --------------------------------------------------------------------------------
2. DETERMINING YOUR CONTRACT'S VALUE 40
- --------------------------------------------------------------------------------
Your account value and cash value 40
Your contract's value in the variable investment options 40
Your contract's value in the guaranteed interest option 40
Your contract's value in the fixed maturity options 40
Termination of your contract 40
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG THE INVESTMENT OPTIONS 42
- --------------------------------------------------------------------------------
Transferring your account value 42
Disruptive transfer activity 42
Rebalancing your account value 43
- --------------
"We," "our," and "us" refer to AXA Equitable. When we use the word "contract"
it also includes certificates that are issued under group contracts in some
states.
When we address the reader of this Prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the contract owner.
When we use the word "contract" it also includes certificates that are issued
under group contracts in same states.
2 Contents of this Prospectus
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 45
- --------------------------------------------------------------------------------
Withdrawing your account value 45
How withdrawals are taken from your account value 46
How withdrawals (and transfers out of the Special 10 year fixed
maturity option) affect your Guaranteed minimum income
benefit, Guaranteed minimum death benefit and
Guaranteed principal benefit option 2 46
How withdrawals affect Principal Protector(SM) 47
Withdrawals treated as surrenders 47
Loans under Rollover TSA contracts 47
Surrendering your contract to receive its cash value 48
When to expect payments 48
Your annuity payout options 48
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 51
- --------------------------------------------------------------------------------
Charges that AXA Equitable deducts 51
Charges that the Trusts deduct 54
Group or sponsored arrangements 54
Other distribution arrangements 54
- --------------------------------------------------------------------------------
6. PAYMENT OF DEATH BENEFIT 56
- --------------------------------------------------------------------------------
Your beneficiary and payment of benefit 56
How death benefit payment is made 57
Beneficiary continuation option 58
- --------------------------------------------------------------------------------
7. TAX INFORMATION 62
- --------------------------------------------------------------------------------
Overview 62
Buying a contract to fund a retirement arrangement 62
Transfers among variable investment options 62
Taxation of nonqualified annuities 62
Individual retirement arrangements (IRAs) 64
Tax-Sheltered Annuity contracts (TSAs) 73
Federal and state income tax withholding and information
reporting 77
Special rules for contracts funding qualified plans 78
Impact of taxes to AXA Equitable 78
- --------------------------------------------------------------------------------
8. MORE INFORMATION 79
- --------------------------------------------------------------------------------
About Separate Account No. 49 79
About the Trusts 79
About our fixed maturity options 79
About the general account 80
About other methods of payment 80
Dates and prices at which contract events occur 81
About your voting rights 82
About legal proceedings 82
About our independent registered public accounting firm 82
Financial statements 82
Transfers of ownership, collateral assignments, loans
and borrowing 82
Distribution of the contracts 83
- --------------------------------------------------------------------------------
9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 85
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed financial information A-1
II -- Purchase considerations for QP contracts B-1
III -- Market value adjustment example C-1
IV -- Enhanced death benefit example D-1
V -- Hypothetical illustrations E-1
VI -- Guaranteed principal benefit example F-1
VII -- Protection Plus(SM) example G-1
VIII -- State contract availability and/or variations
of certain features and benefits H-1
IX -- Contract variations I-1
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Contents of this Prospectus 3
Index of key words and phrases
- --------------------------------------------------------------------------------
This index should help you locate more information on the terms used in this
Prospectus.
Page
6% Roll up to age 85 32
account value 40
administrative charge 51
annual administrative charge 51
Annual Ratchet to age 85 enhanced death benefit 33
annuitant 20
annuity maturity date 50
annuity payout options 48
annuity purchase factors 33
automatic investment program 81
beneficiary 56
Beneficiary continuation option ("BCO") 58
benefit base 32
business day 81
cash value 40
charges for state premium and other applicable taxes 54
contract date 11
contract date anniversary 11
contract year 11
Contributions to Roth IRAs 70
regular contributions 70
rollovers and transfers 71
conversion contributions 71
contributions to traditional IRAs 65
regular contributions 65
rollovers and transfers 66
credit 31
disability, terminal illness or confinement to nursing home 52
disruptive transfer activity 42
distribution charge 51
EQAccess 7
ERISA 47
Fixed-dollar option 31
fixed maturity options 28
free look 39
free withdrawal amount 52
general account 80
General dollar cost averaging 30
guaranteed interest option 28
Guaranteed minimum death benefit 35
Guaranteed minimum income benefit 33
Guaranteed minimum income benefit charge 53
Guaranteed principal benefits 29
IRA cover
IRS 62
Page
Investment simplifier 31
lifetime required minimum distribution withdrawals 46
loan reserve account 47
loans under Rollover TSA 47
lump sum withdrawals 45
market adjusted amount 28
market value adjustment 28
market timing 42
maturity dates 28
maturity value 29
Mortality and expense risks charge 51
NQ cover
Optional step up charge 54
participant 22
portfolio cover
processing office 7
Principal Protector(SM) 36
Principal Protector(SM) charge 53
Protection Plus(SM) 53
Protection Plus(SM) charge 53
QP cover
rate to maturity 28
Rebalancing 43
Rollover IRA cover
Rollover TSA cover
Roth Conversion IRA cover
Roth IRA cover
SAI cover
SEC cover
self-directed allocation 29
Separate Account No. 49 79
Standard death benefit 32
substantially equal withdrawals 45
Successor owner and annuitant 57
Spousal protection 57
systematic withdrawals 45
TOPS 7
TSA cover
traditional IRA cover
Trusts 79
unit 40
variable investment options 22
wire transmittals and electronic applications 80
withdrawal charge 52
To make this Prospectus easier to read, we sometimes use different words than
in the contract or supplemental materials. This is illustrated below. Although
we use different words, they have the same meaning in this Prospectus as in the
contract or supplemental materials. Your financial professional can provide
further explanation about your contract or supplemental materials.
- --------------------------------------------------------------------------------
Prospectus Contract or Supplemental Materials
- --------------------------------------------------------------------------------
fixed maturity options Guarantee Periods (Guaranteed Fixed Interest
Accounts in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
- --------------------------------------------------------------------------------
4 Index of key words and phrases
- -----------------------------------------------------------------------------------
Prospectus Contract or Supplemental Materials
- -----------------------------------------------------------------------------------
Guaranteed minimum death benefit Guaranteed death benefit
Guarantee minimum income benefit Guaranteed Income Benefit
guaranteed interest option Guaranteed Interest Account
Principal Protector(SM) Guaranteed withdrawal benefit
GWB benefit base Principal Protector(SM) benefit base
GWB Annual withdrawal amount Principal Protector(SM) Annual withdrawal amount
GWB Annual withdrawal option Principal Protector(SM) Annual withdrawal option
GWB Excess withdrawal Principal Protector(SM) Excess withdrawal
- -----------------------------------------------------------------------------------
Index of key words and phrases 5
Who is AXA Equitable?
- --------------------------------------------------------------------------------
We are AXA Equitable Life Insurance Company ("AXA Equitable") (previously, The
Equitable Life Assurance Society of the United States), a New York stock life
insurance corporation. We have been doing business since 1859. AXA Equitable is
a subsidiary of AXA Financial, Inc. AXA, a French holding company for an
international group of insurance and related financial services companies, is
the sole shareholder of AXA Financial, Inc. As the sole shareholder, and under
its other arrangements with AXA Equitable and AXA Equitable's parent, AXA
exercises significant influence over the operations and capital structure of
AXA Equitable and its parent. No company other than AXA Equitable, however, has
any legal responsibility to pay amounts that AXA Equitable owes under the
contract.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$598 billion in assets as of December 31, 2004. For over 100 years AXA
Equitable has been among the largest insurance companies in the United States.
We are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office
is located at 1290 Avenue of the Americas, New York, N.Y. 10104.
6 Who is AXA Equitable?
HOW TO REACH US
You may communicate with our processing office as listed below for the purposes
described. Certain methods of contacting us, such as by telephone or
electronically, may be unavailable or delayed (for example our facsimile
service may not be available at all times and/or we may be unavailable due to
emergency closing). In addition, the level and type of service available may be
restricted based on criteria established by us.
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Accumulator(R) Plus(SM)
P.O. Box 13014
Newark, NJ 07188-0014
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Accumulator(R) Plus(SM)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY
REGULAR MAIL:
- --------------------------------------------------------------------------------
Accumulator(R) Plus(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY
EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Accumulator(R) Plus(SM)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year and any
calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract
year, including notification of eligibility to exercise the guaranteed
minimum income benefit, if applicable.
- --------------------------------------------------------------------------------
TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND
EQACCESS SYSTEMS:
- --------------------------------------------------------------------------------
TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQAccess is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for the fixed maturity options;
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
available through TOPS).
You can also:
o change your allocation percentages and/or transfer among the variable
investment options;
o elect to receive certain contract statements electronically;
o change your address (not available through TOPS);
o change your TOPS personal identification number ("PIN") (through TOPS only)
and your EQAccess password (through EQAccess only); and
o access Frequently Asked Questions and Service Forms (not available through
TOPS).
TOPS and EQAccess are normally available seven days a week, 24 hours a day. You
may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our website at www.axaonline.com and
logging in to access your account. All other clients may access EQAccess by
visiting our website at www.axa-equitable.com. Of course, for reasons beyond
our control, these services may sometimes be unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or Internet are genuine. For example, we will require
certain personal identification information before we will act on telephone or
Internet instructions and we will provide written confirmation of your
transfers. If we do not employ reasonable procedures to confirm the genuineness
of telephone or Internet instructions, we may be liable for any losses arising
out of any act or omission that constitutes negligence, lack of good faith, or
willful misconduct. In light of our procedures, we will not be liable for
following telephone or Internet instructions we reasonably believe to be
genuine.
We reserve the right to limit access to these services if we determine that you
engaged in a disruptive transfer activity, such as "market timing" (see
"Disruptive transfer activity" in "Transferring your money among investment
options" later in this Prospectus).
- --------------------------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVE:
- --------------------------------------------------------------------------------
You may also use our toll-free number (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
Who is AXA Equitable? 7
(2) conversion of a traditional IRA to a Roth Conversion IRA
contract;
(3) election of the automatic investment program;
(4) election of the rebalancing program;
(5) requests for loans under Rollover TSA contracts;
(6) spousal consent for loans under Rollover TSA contracts;
(7) requests for withdrawals or surrenders from Rollover TSA
contracts;
(8) tax withholding elections;
(9) election of the beneficiary continuation option;
(10) IRA contribution recharacterizations;
(11) certain Section 1035 exchanges;
(12) direct transfers;
(13) exercise of the Guaranteed minimum income benefit;
(14) requests to step up your Guaranteed withdrawal benefit ("GWB") benefit
base under the Optional step up provision; and
(15) requests to terminate or reinstate your Guaranteed withdrawal benefit
under the Beneficiary continuation option, if applicable;
(16) death claims; and
(17) change in ownership (NQ only).
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between variable investment options;
(4) contract surrender and withdrawal requests; and
(5) general dollar cost averaging (including the fixed dollar and interest
sweep options)
TO CANCEL OR CHANGE ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) automatic investment program;
(2) dollar cost averaging (including the fixed dollar amount and interest sweep
options);
(3) rebalancing;
(4) substantially equal withdrawals;
(5) systematic withdrawals; and
(6) the date annuity payments are to begin.
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us to
take.
SIGNATURES:
The proper person to sign forms, notices and requests would normally be the
owner. If there are joint owners all must sign.
8 Who is AXA Equitable?
Accumulator(R) Plus(SM) at a glance -- key features
- ------------------------------------------------------------------------------------------------------------------------------------
Professional investment Accumulator(R) Plus(SM) variable investment options invest in different portfolios managed by professional
management investment advisers.
- ------------------------------------------------------------------------------------------------------------------------------------
Fixed maturity options o Fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years
(subject to availability).
o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to
maturity.
o Special 10 year fixed maturity option (available under Guaranteed principal benefit option 2
only).
----------------------------------------------------------------------------------------------------------
If you make withdrawals or transfers from a fixed maturity option before maturity, there will be
a market value adjustment due to differences in interest rates. If you withdraw or transfer only a
portion of a fixed maturity amount, this may increase or decrease any value that you have left in
that fixed maturity option. If you surrender your contract, a market value adjustment also applies.
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed interest o Principal and interest guarantees.
option
o Interest rates set periodically.
- ------------------------------------------------------------------------------------------------------------------------------------
Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or
receive annuity payments.
o No tax on transfers among variable investment options inside the contract.
----------------------------------------------------------------------------------------------------------
If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA) or Tax Sheltered
Annuity (TSA), or to fund an employer retirement plan (QP or Qualified Plan), you should be aware that
such annuities do not provide tax deferral benefits beyond those already provided by the Internal Revenue
Code. Before purchasing one of these annuities, you should consider whether its features and benefits
beyond tax deferral meet your needs and goals. You may also want to consider the relative features,
benefits and costs of these annuities compared with any other investment that you may use in connection
with your retirement plan or arrangement. Depending on your personal situation, the contract's guaranteed
benefits may have limited usefulness because of required minimum distributions ("RMDs").
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum The Guaranteed minimum income benefit provides income protection for you during the annuitant's life once
income benefit you elect to annuitize the contract.
- ------------------------------------------------------------------------------------------------------------------------------------
Principal Protector(SM) Principal Protector(SM) is our optional Guaranteed withdrawal benefit ("GWB"), which provides for
recovery of your total contributions through withdrawals, even if your account value falls to zero,
provided that during each contract year, your total withdrawals do not exceed a specified amount.
- ------------------------------------------------------------------------------------------------------------------------------------
Contribution amounts o Initial minimum: $10,000
o Additional minimum: $500 (NQ, QP and Rollover TSA contracts)
$100 monthly and $300 quarterly under our automatic investment program
(NQ contracts)
$50 (IRA contracts)
----------------------------------------------------------------------------------------------------------
Maximum contribution limitations may apply. In general, contributions are limited to $1.5
million.
- ------------------------------------------------------------------------------------------------------------------------------------
Credit We allocate your contributions to your account value. We allocate a credit to your account value
at the same time that we allocate your contributions. The amount of credit may be up to 5% of each
contribution, depending on certain factors. The credit is subject to recovery by us in certain limited
circumstances.
- ------------------------------------------------------------------------------------------------------------------------------------
Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Loans under Rollover TSA contracts
o Contract surrender
You may incur a withdrawal charge for certain withdrawals
or if you surrender your contract. You may also incur
income tax and a tax penalty.
Accumulator(R) Plus(SM) at a glance -- key features 9
- -----------------------------------------------------------------------------------------------
Payout options o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout options
- -----------------------------------------------------------------------------------------------
Additional features o Guaranteed minimum death benefit options
o Guaranteed principal benefit options
o Dollar cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually, and
annually)
o Free transfers
o Waiver of withdrawal charge for disability, terminal
illness, confinement to a nursing home and certain other
withdrawals
o Protection Plus(SM), an optional death benefit available
under certain contracts
o Spousal protection
o Successor owner/annuitant
o Beneficiary continuation option
- -----------------------------------------------------------------------------------------------
Fees and charges o Daily charges on amounts invested in the variable
investment options for mortality and expense risks,
administrative, and distribution charges at an annual
rate of 1.50%.
o The charges for the Guaranteed minimum death benefits
range from 0.0% to 0.60%, annually, of the applicable
benefit base. The benefit base is described under "Your
Guaranteed minimum death benefit and Guaranteed minimum
income benefit base" in "Contract features and benefits"
later in this Prospectus.
o An annual charge of 0.35% of the account value for the
Protection Plus(SM) optional death benefit.
o An annual charge of 0.35% of account value for the 5%
GWB Annual withdrawal option or 0.50% of account value
for the 7% GWB Annual withdrawal option for the
Principal Protector(SM) benefit. If you "step up" your GWB
benefit base, we reserve the right to raise the charge
up to 0.60% and 0.80%, respectively. See "Principal
Protector(SM)" in "Contract features and benefits" later
in this Prospectus.
o Annual 0.65% of the applicable benefit base charge for
the optional Guaranteed minimum income benefit, until
you exercise the benefit, elect another annuity payout
or the contract date anniversary after the annuitant
reaches age 85, whichever occurs first. The benefit base
is described under "Your Guaranteed minimum death
benefit and Guaranteed minimum income benefit base" in
"Contract features and benefits" later in this
Prospectus.
o An annual charge for the optional Guaranteed principal
benefit option 2 deducted on the first 10 contract date
anniversaries equal to 0.50% of account value.
o If your account value at the end of the contract year is
less than $50,000, we deduct an annual administrative
charge equal to $30, or during the first two contract
years, 2% of your account value, if less. If your
account value, on the contract date anniversary, is
$50,000 or more, we will not deduct the charge.
o No sales charge deducted at the time you make
contributions.
10 Accumulator(R) Plus(SM) at a glance -- key features
Fees and charges
(continued)
o During the first eight contract years following a
contribution, a charge will be deducted from amounts
that you withdraw that exceed 10% of your account value.
We use the account value at the beginning of each
contract year to calculate the 10% amount available. The
charge is 8% in each of the first two contract years
following a contribution; the charge is 7% in the third
and fourth contract years following a contribution;
thereafter, it declines by 1% each year in the fifth to
eighth contract year following a contribution. There is
no withdrawal charge in the ninth and later contract
years following a contribution. Certain other exemptions
may apply.
-------------------------------
THE "CONTRACT DATE" IS THE EFFECTIVE DATE OF A CONTRACT.
THIS USUALLY IS THE BUSINESS DAY WE RECEIVE THE PROPERLY
COMPLETED AND SIGNED APPLICATION, ALONG WITH ANY
OTHER REQUIRED DOCUMENTS, AND YOUR INITIAL CONTRIBUTION.
YOUR CONTRACT DATE WILL BE SHOWN IN YOUR CONTRACT. THE
12-MONTH PERIOD BEGINNING ON YOUR CONTRACT DATE
AND EACH 12-MONTH PERIOD AFTER THAT DATE IS A "CONTRACT
YEAR." THE END OF EACH 12-MONTH PERIOD IS YOUR "CONTRACT
DATE ANNIVERSARY." FOR EXAMPLE, IF YOUR CONTRACT DATE IS
MAY 1, YOUR CONTRACT DATE ANNIVERSARY IS APRIL 30.
-------------------------------
o We deduct a charge designed to approximate certain taxes
that may be imposed on us, such as premium taxes in your
state. This charge is generally deducted from the amount
applied to an annuity payout option.
o We deduct a $350 annuity administrative fee from amounts
applied to the Variable Immediate Annuity payout
options.
o Annual expenses of the Trusts' portfolios are calculated
as a percentage of the average daily net assets invested
in each portfolio. These expenses include management
fees ranging from 0.10% to 1.50% annually, 12b-1 fees of
either 0.25% or 0.35% annually and other expenses.
- -----------------------------------------------------------------------------------------------
Annuitant issue ages NQ: 0-80
Rollover IRA, Roth Conversion
IRA and Rollover TSA: 20-80
QP: 20-70
- -----------------------------------------------------------------------------------------------
THE ABOVE IS NOT A COMPLETE DESCRIPTION OF ALL MATERIAL PROVISIONS OF THE
CONTRACT. IN SOME CASES, RESTRICTIONS OR EXCEPTIONS APPLY. ALSO, ALL FEATURES
OF THE CONTRACT ARE NOT NECESSARILY AVAILABLE IN YOUR STATE OR AT CERTAIN AGES.
PLEASE SEE APPENDIX VIII LATER IN THIS PROSPECTUS FOR MORE INFORMATION ON STATE
AVAILABILITY AND/OR VARIATIONS OF CERTAIN FEATURES AND BENEFITS.
For more detailed information, we urge you to read the contents of this
Prospectus, as well as your contract. Please feel free to speak with your
financial professional, or call us, if you have any questions.
OTHER CONTRACTS
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, credits, fees and/or charges that are
different from those in the contracts offered by this Prospectus. Not every
contract is offered through the same distributor. At their sole discretion,
some distributors may eliminate and/or limit the availability of certain
features or options, as well as limit the availability of the contracts, based
on annuitant issue age or other criteria. Upon request, your financial
professional can show you information regarding other AXA Equitable annuity
contracts that he or she distributes. You can also contact us to find out more
about any of the AXA Equitable annuity contracts.
Accumulator(R) Plus(SM) at a glance -- key features 11
Fee table
- --------------------------------------------------------------------------------
The following tables describe the fees and expenses that you will pay when
buying, owning, and surrendering the contract. Each of the charges and expenses
is more fully described in "Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay at the time you
surrender the contract or if you make certain withdrawals or apply your cash
value to certain payout options or if you purchase a Variable Immediate
Annuity. Charges designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state, may also apply. Charges for certain
features shown in the fee table are mutually exclusive.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value at the time you request
certain ransactions
- ------------------------------------------------------------------------------------------------------------------------------------
Maximum withdrawal charge as a percentage of contributions with-
drawn(1) (deducted if you surrender your contract, make certain
withdrawals, or apply your cash value to certain payout options). 8.00%
Charge if you elect a Variable Immediate Annuity payout option $ 350
- ------------------------------------------------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay
periodically during the time that you own the contract, not including
the underlying trust portfolio fees and expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your variable investment options expressed
as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Mortality and expense risks 0.90%(2)
Administrative 0.35%
Distribution 0.25%
-------
Total annual expenses 1.50%
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value on each contract date
anniversary
- ------------------------------------------------------------------------------------------------------------------------------------
Maximum annual administrative charge(4)
If your account value on a contract date anniversary is less
than $50,000(3) $ 30
If your account value on a contract date anniversary is
$50,000 or more $ 0
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value each year if you elect the optional benefit
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum death benefit charge (calculated as a
percentage of the applicable benefit base. Deducted annually(4) on each
contract date anniversary for which the benefit is in effect.)
Standard death benefit 0.00%
Annual Ratchet to age 85 0.25% of the Annual Ratchet to age 85 benefit base
Greater of 6% Roll up to age 85 or Annual Ratchet to age 85 0.60% of the greater of 6% Roll up to age 85
benefit base or the Annual Ratchet to age 85 benefit
base, as applicable
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed principal benefit charge for option 2 (calculated as
a percentage of the account value. Deducted annually(4) on the first 10
contract date anniversaries.) 0.50%
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum income benefit charge (calculated as a
percentage of the applicable benefit base. Deducted annually(4) on each
contract date anniversary for which the benefit is in effect.) 0.65%
- ------------------------------------------------------------------------------------------------------------------------------------
Protection Plus(SM) benefit charge (calculated as a percentage of
the account value. Deducted annually(4) on each contract date anniver-
sary for which the benefit is in effect.) 0.35%
- ------------------------------------------------------------------------------------------------------------------------------------
12 Fee table
- ------------------------------------------------------------------------------------------------------------------------------------
Principal Protector(SM) benefit charge(4) (calculated as a percentage 0.35% for the 5% GWB Annual
of the account value. Deducted annually on each contract date anniver- withdrawal option
sary, provided your GWB benefit base is greater than zero.) 0.50% for the 7% GWB Annual
If you "step up" your GWB benefit base, we reserve the right to withdrawal option
increase your charge up to: 0.60% for the 5% GWB Annual
withdrawal option
0.80% for the 7% GWB Annual
withdrawal option
Please see "Principal Protector(SM)" in "Contract features and benefits" for
more information about this feature, including its benefit base and
the Optional step up provision, and "Principal Protector(SM) charge" in "Charges
and expenses," both later in this Prospectus, for more information about when
the charge applies.
- ------------------------------------------------------------------------------------------------------------------------------------
NET LOAN INTEREST CHARGE -- ROLLOVER TSA CONTRACTS ONLY
(calculated and deducted daily as a percentage of the outstanding loan amount) 2.00%(5)
- ------------------------------------------------------------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net
asset value each day. Therefore, they reduce the investment return of the
Portfolio and the related variable investment option. Actual fees and expenses
are likely to fluctuate from year to year. More detail concerning each
Portfolio's fees and expenses is contained in the Trust prospectus for the
Portfolio.
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets Lowest Highest
- ------------------------------------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2004 (expenses that are deducted
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or 0.55% 7.61%
other expenses)(6)
This table shows the fees and expenses for 2004 as an annual percentage of each
Portfolio's daily average net assets.
- --------------------------------------------------------------------------------
Manage-
ment 12b-1 Other
Portfolio Name Fees(7) Fees(8) Expenses(9)
- --------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- --------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 0.29%
AXA Conservative Allocation 0.10% 0.25% 0.41%
AXA Conservative-Plus Allocation 0.10% 0.25% 0.30%
AXA Moderate Allocation 0.10% 0.25% 0.16%
AXA Moderate-Plus Allocation 0.10% 0.25% 0.20%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.18%
AXA Premier VIP Core Bond 0.60% 0.25% 0.20%
AXA Premier VIP Health Care 1.20% 0.25% 0.40%
AXA Premier VIP High Yield 0.58% 0.25% 0.18%
AXA Premier VIP International Equity 1.05% 0.25% 0.50%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.32%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.26%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.25%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.25%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.25%
AXA Premier VIP Technology 1.20% 0.25% 0.40%
- --------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.47% 0.25% 0.05%
EQ/Alliance Growth and Income 0.56% 0.25% 0.05%
EQ/Alliance Intermediate Government Securities 0.50% 0.25% 0.06%
EQ/Alliance International 0.73% 0.25% 0.12%
EQ/Alliance Large Cap Growth* 0.90% 0.25% 0.05%
EQ/Alliance Quality Bond 0.50% 0.25% 0.06%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.06%
EQ/Bear Stearns Small Company Growth* 1.00% 0.25% 0.18%
EQ/Bernstein Diversified Value 0.63% 0.25% 0.07%
EQ/Boston Advisors Equity Income* 0.75% 0.25% 0.21%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.29%
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Portfolio (Before Expense After
Fees and Expense Reimburse- Expense
Portfolio Name Expenses(10) Limitation) ments(11) Limitations
- -------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.99% 1.63% (0.29)% 1.34%
AXA Conservative Allocation 0.75% 1.51% (0.41)% 1.10%
AXA Conservative-Plus Allocation 0.80% 1.45% (0.30)% 1.15%
AXA Moderate Allocation 0.83% 1.34% (0.16)% 1.18%
AXA Moderate-Plus Allocation 1.02% 1.57% (0.20)% 1.37%
AXA Premier VIP Aggressive Equity -- 1.05% -- 1.05%
AXA Premier VIP Core Bond -- 1.05% (0.10)% 0.95%
AXA Premier VIP Health Care -- 1.85% 0.00% 1.85%
AXA Premier VIP High Yield -- 1.01% -- 1.01%
AXA Premier VIP International Equity -- 1.80% 0.00% 1.80%
AXA Premier VIP Large Cap Core Equity -- 1.47% (0.12)% 1.35%
AXA Premier VIP Large Cap Growth -- 1.41% (0.06)% 1.35%
AXA Premier VIP Large Cap Value -- 1.40% (0.05)% 1.35%
AXA Premier VIP Small/Mid Cap Growth -- 1.60% 0.00% 1.60%
AXA Premier VIP Small/Mid Cap Value -- 1.60% 0.00% 1.60%
AXA Premier VIP Technology -- 1.85% 0.00% 1.85%
- -------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock -- 0.77% -- 0.77%
EQ/Alliance Growth and Income -- 0.86% -- 0.86%
EQ/Alliance Intermediate Government Securities -- 0.81% -- 0.81%
EQ/Alliance International -- 1.10% 0.00% 1.10%
EQ/Alliance Large Cap Growth* -- 1.20% (0.10)% 1.10%
EQ/Alliance Quality Bond -- 0.81% -- 0.81%
EQ/Alliance Small Cap Growth -- 1.06% -- 1.06%
EQ/Bear Stearns Small Company Growth* -- 1.43% (0.13)% 1.30%
EQ/Bernstein Diversified Value -- 0.95% 0.00% 0.95%
EQ/Boston Advisors Equity Income* -- 1.21% (0.16)% 1.05%
EQ/Calvert Socially Responsible -- 1.19% (0.14)% 1.05%
- -------------------------------------------------------------------------------------------------------
Fee table 13
This table shows the fees and expenses for 2004 as an annual percentage of each
Portfolio's daily average net assets.
- --------------------------------------------------------------------------------
Manage-
ment 12b-1 Other
Portfolio Name Fees(7) Fees(8) Expenses(9)
- --------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------
EQ/Capital Guardian Growth 0.65% 0.25% 0.09%
EQ/Capital Guardian International 0.85% 0.25% 0.17%
EQ/Capital Guardian Research 0.65% 0.25% 0.05%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.05%
EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.12%
EQ/Equity 500 Index 0.25% 0.25% 0.05%
EQ/Evergreen Omega 0.65% 0.25% 0.11%
EQ/FI Mid Cap 0.70% 0.25% 0.06%
EQ/FI Small/Mid Cap Value 0.74% 0.25% 0.08%
EQ/International Growth 0.85% 0.25% 0.22%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.06%
EQ/JP Morgan Value Opportunities 0.60% 0.25% 0.10%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.08%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.05%
EQ/Long Term Bond 0.50% 0.25% 0.25%
EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.19%
EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.19%
EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.19%
EQ/Marsico Focus 0.88% 0.25% 0.06%
EQ/Mercury Basic Value Equity 0.58% 0.25% 0.05%
EQ/Mercury International Value 0.85% 0.25% 0.15%
EQ/Mergers and Acquisitions 0.90% 0.25% 1.21%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.06%
EQ/MFS Investors Trust 0.60% 0.25% 0.10%
EQ/Money Market 0.34% 0.25% 0.05%
EQ/Montag & Caldwell Growth* 0.75% 0.25% 0.12%
EQ/PIMCO Real Return 0.55% 0.25% 0.20%
EQ/Short Duration Bond 0.45% 0.25% 0.52%
EQ/Small Company Index 0.25% 0.25% 0.13%
EQ/Small Company Value* 0.80% 0.25% 0.12%
EQ/TCW Equity* 0.80% 0.25% 0.12%
EQ/UBS Growth and Income* 0.75% 0.25% 0.16%
EQ/Van Kampen Comstock 0.65% 0.25% 0.19%
EQ/Van Kampen Emerging Markets Equity* 1.15% 0.25% 0.40%
EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.19%
EQ/Wells Fargo Montgomery Small Cap 0.85% 0.25% 6.51%
- --------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- --------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity 1.50% 0.25% 2.35%
- --------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- --------------------------------------------------------------------------------
U.S. Real Estate - Class II** 0.76% 0.35% 0.26%
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Portfolio (Before Expense After
Fees and Expense Reimburse- Expense
Portfolio Name Expenses(10) Limitation) ments(11) Limitations
- ------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Growth -- 0.99% (0.04)% 0.95%
EQ/Capital Guardian International -- 1.27% (0.07)% 1.20%
EQ/Capital Guardian Research -- 0.95% 0.00% 0.95%
EQ/Capital Guardian U.S. Equity -- 0.95% 0.00% 0.95%
EQ/Caywood-Scholl High Yield Bond -- 0.97% (0.12)% 0.85%
EQ/Equity 500 Index -- 0.55% -- 0.55%
EQ/Evergreen Omega -- 1.01% (0.06)% 0.95%
EQ/FI Mid Cap -- 1.01% (0.01)% 1.00%
EQ/FI Small/Mid Cap Value -- 1.07% 0.00% 1.07%
EQ/International Growth -- 1.32% 0.00% 1.32%
EQ/J.P. Morgan Core Bond -- 0.75% 0.00% 0.75%
EQ/JP Morgan Value Opportunities -- 0.95% 0.00% 0.95%
EQ/Janus Large Cap Growth -- 1.23% (0.08)% 1.15%
EQ/Lazard Small Cap Value -- 1.05% 0.00% 1.05%
EQ/Long Term Bond -- 1.00% 0.00% 1.00%
EQ/Lord Abbett Growth and Income -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Large Cap Core -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Mid Cap Value -- 1.14% (0.09)% 1.05%
EQ/Marsico Focus -- 1.19% (0.04)% 1.15%
EQ/Mercury Basic Value Equity -- 0.88% 0.00% 0.88%
EQ/Mercury International Value -- 1.25% 0.00% 1.25%
EQ/Mergers and Acquisitions -- 2.36% (0.91)% 1.45%
EQ/MFS Emerging Growth Companies -- 0.96% -- 0.96%
EQ/MFS Investors Trust -- 0.95% 0.00% 0.95%
EQ/Money Market -- 0.64% -- 0.64%
EQ/Montag & Caldwell Growth* -- 1.12% 0.00% 1.12%
EQ/PIMCO Real Return -- 1.00% (0.35)% 0.65%
EQ/Short Duration Bond -- 1.22% (0.57)% 0.65%
EQ/Small Company Index -- 0.63% 0.00% 0.63%
EQ/Small Company Value* -- 1.17% 0.00% 1.17%
EQ/TCW Equity* -- 1.17% (0.02)% 1.15%
EQ/UBS Growth and Income* -- 1.16% (0.11)% 1.05%
EQ/Van Kampen Comstock -- 1.09% (0.09)% 1.00%
EQ/Van Kampen Emerging Markets Equity* -- 1.80% 0.00% 1.80%
EQ/Van Kampen Mid Cap Growth -- 1.14% (0.09)% 1.05%
EQ/Wells Fargo Montgomery Small Cap -- 7.61% (6.33)% 1.28%
- -------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- -------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity -- 4.10% (0.96)% 3.14%
- -------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- -------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II** -- 1.37% (0.10)% 1.27%
- -------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject to
regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former name.
** Expense information has been restored to reflect current fees in effect as of
November 1, 2004.
Notes:
(1) Deducted upon a withdrawal of amounts in excess of the 10% free withdrawal
amount, if applicable.
14 Fee table
The withdrawal charge percentage we use is determined by the contract year Contract
in which you make the withdrawal or surrender your contract. For each contribution, Year
we consider the contract year in which we receive that contribution to be
"contract year 1") 1 8.00%
2 8.00%
3 7.00%
4 7.00%
5 6.00%
6 5.00%
7 4.00%
8 3.00%
9+ 0.00%
(2) These charges compensate us for certain risks we assume and expenses we
incur under the contract. They also compensate us for the expense
associated with the credit. We expect to make a profit from these charges.
(3) During the first two contract years this charge, if applicable, is equal to
the lesser of $30 or 2% of your account value. Thereafter, if applicable,
the charge is $30 for each contract year.
(4) If the contract is surrendered or annuitized or a death benefit is paid on
any date other than the contract date anniversary, we will deduct a pro
rata portion of the charge for that year. For Principal Protector(SM) only,
if the contract is continued under the Beneficiary continuation option with
Principal Protector(SM), the pro rata deduction for the Principal
Protector(SM) charge is waived.
(5) We charge interest on loans under Rollover TSA contracts but also credit
you interest on your loan reserve account. Our net loan interest charge is
determined by the excess between the interest rate we charge over the
interest rate we credit. See "Loans under Rollover TSA contracts" later in
this Prospectus for more information on how the loan interest is calculated
and for restrictions that may apply.
(6) "Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2004 and for the
underlying portfolios.
(7) The management fees for each Portfolio cannot be increased without a vote
of that Portfolio's shareholders. See footnote (11) for any expense
limitation agreement information.
(8) Portfolio shares are all subject to fees imposed under the distribution
plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1
under the Investment Company Act of 1940. The 12b-1 fee will not be
increased for the life of the contracts.
(9) Other expenses shown are those incurred in 2004. The amounts shown as
"Other Expenses" will fluctuate from year to year depending on actual
expenses. See footnote (11) for any expense limitation agreement
information.
(10) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and AXA
Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolio's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocations
as of 12/31/04. A "--" indicates that the listed portfolio does not invest
in underlying portfolios, i.e., it is not an allocation portfolio.
(11) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A "--" indicates that there is no expense
limitation in effect. "0.0%" indicates that the expense limitation
arrangement did not result in a fee waiver reimbursement. AXA Equitable,
the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has
entered into Expense Limitation Agreements with respect to certain
Portfolios, which are effective through April 30, 2006. Under these
agreements AXA Equitable has agreed to waive or limit its fees and assume
other expenses of certain Portfolios, if necessary, in an amount that
limits each affected Portfolio's total Annual Expenses (exclusive of
interest, taxes, brokerage commissions, capitalized expenditures and
extraordinary expenses) to not more than specified amounts. Each Portfolio
may at a later date make a reimbursement to AXA Equitable for any of the
management fees waived or limited and other expenses assumed and paid by
AXA Equitable pursuant to the expense limitation agreement provided that
the Portfolio's current annual operating expenses do not exceed the
operating expense limit determined for such Portfolio. Morgan Stanley
Investment Management Inc., which does business in certain instances as
"Van Kampen," is the manager of The Universal Institutional Funds, Inc. --
U.S. Real Estate Portfolio -- Class II and has voluntarily agreed to reduce
its management fee and/or reimburse the Portfolio so that total annual
operating expenses of the Portfolio (exclusive of investment related
expenses, such as foreign country tax expense and interest expense on
amounts borrowed) are not more than specified amounts. Additionally, the
distributor of The Universal Institutional Funds, Inc. has agreed to waive
a portion of the 12b-1 fee for Class II shares. Van Kampen and/or the
fund's distributor reserves the right to terminate any waiver and/or
reimbursement at any time without notice. Charles Schwab Investment
Management, Inc., the manager of the Laudus Variable Insurance Trust --
Laudus Rosenberg VIT Value Long/Short Equity Portfolio has voluntarily
agreed to reimburse expenses in excess of specified amounts. See the
Prospectus for each applicable underlying Trust for more information about
the arrangements. In addition, a portion of the brokerage commissions of
certain portfolios of EQ Advisors Trust Portfolio and AXA Premier VIP Trust
Portfolio is used to reduce the applicable Portfolio's expenses. If the
above table reflected both the expense limitation arrangements plus the
portion of the brokerage commissions used to reduce portfolio expenses, the
net expenses would be as shown in the table below:
- --------------------------------------------------
Portfolio Name
- --------------------------------------------------
AXA Moderate Allocation 1.17%
AXA Premier VIP Aggressive Equity 0.93%
AXA Premier VIP Health Care 1.81%
AXA Premier VIP International Equity 1.75%
AXA Premier VIP Large Cap Core Equity 1.32%
AXA Premier VIP Large Cap Growth 1.30%
AXA Premier VIP Large Cap Value 1.21%
AXA Premier VIP Small/Mid Cap Growth 1.50%
AXA Premier VIP Small/Mid Cap Value 1.54%
AXA Premier VIP Technology 1.75%
EQ/Alliance Common Stock 0.68%
EQ/Alliance Growth and Income 0.80%
EQ/Alliance International 1.08%
EQ/Alliance Large Cap Growth 1.04%
EQ/Alliance Small Cap Growth 0.98%
EQ/Calvert Socially Responsible 1.00%
EQ/Capital Guardian Growth 0.67%
EQ/Capital Guardian International 1.17%
EQ/Capital Guardian Research 0.90%
EQ/Capital Guardian U.S. Equity 0.93%
EQ/Evergreen Omega 0.57%
EQ/FI Mid Cap 0.96%
EQ/FI Small/Mid Cap Value 1.05%
- --------------------------------------------------
Fee table 15
- -------------------------------------------------
Portfolio Name
- -------------------------------------------------
EQ/JP Morgan Value Opportunities 0.76%
EQ/Lazard Small Cap Value 0.86%
EQ/Marsico Focus 1.12%
EQ/Mercury Basic Value Equity 0.86%
EQ/Mercury International Value 1.18%
EQ/MFS Emerging Growth Companies 0.91%
EQ/MFS Investors Trust 0.91%
EQ/Small Company Value 1.16%
EQ/TCW Equity 1.14%
EQ/Van Kampen Emerging Markets Equity 1.75%
EQ/Wells Fargo Montgomery Small Cap 1.26%
- --------------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses).
The example below shows the expenses that a hypothetical contract owner (who
has elected the Guaranteed minimum income benefit with the enhanced death
benefit that provides for the greater of the 6% Roll up to age 85 or the Annual
Ratchet to age 85 and Protection Plus(SM)) would pay in the situations
illustrated. The annual administrative charge is based on the charges that
apply to a mix of estimated contract sizes, resulting in an estimated
administrative charge for the purpose of these examples of $1.10 per $10,000.
The fixed maturity options and guaranteed interest option are not covered by
the examples. However, the annual administrative charge, the withdrawal charge,
the charge for any optional benefits and the charge if you elect a Variable
Immediate Annuity payout option do apply to the fixed maturity options and
guaranteed interest option. A market value adjustment (up or down) may apply as
a result of a withdrawal, transfer, or surrender of amounts from a fixed
maturity option.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes that your investment has a 5%
return each year. This example should not be considered a representation of
past or future expenses for each option. Actual expenses may be greater or less
than those shown. Similarly, the annual rate of return assumed in the example
is not an estimate or guarantee of future investment performance.
Although your actual cost may be higher or lower, based on these assumptions,
your cost would be:
16 Fee table
- -----------------------------------------------------------------------------------------------------------
If you surrender your contract at the end of the
applicable time period
- -----------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,313.68 $ 2,265.76 $ 3,252.12 $ 5,529.21
AXA Conservative Allocation $ 1,300.57 $ 2,227.84 $ 3,191.34 $ 5,420.84
AXA Conservative-Plus Allocation $ 1,294.02 $ 2,208.84 $ 3,160.82 $ 5,366.13
AXA Moderate Allocation $ 1,281.79 $ 2,173.31 $ 3,103.65 $ 5,263.06
AXA Moderate-Plus Allocation $ 1,307.12 $ 2,246.81 $ 3,221.77 $ 5,475.20
AXA Premier VIP Aggressive Equity $ 1,250.37 $ 2,081.58 $ 2,955.35 $ 4,992.33
AXA Premier VIP Core Bond $ 1,250.37 $ 2,081.58 $ 2,955.35 $ 4,992.33
AXA Premier VIP Health Care $ 1,337.70 $ 2,335.03 $ 3,362.72 $ 5,724.31
AXA Premier VIP High Yield $ 1,246.06 $ 2,068.84 $ 2,934.65 $ 4,954.11
AXA Premier VIP International Equity $ 1,332.24 $ 2,319.32 $ 3,337.68 $ 5,680.38
AXA Premier VIP Large Cap Core Equity $ 1,296.21 $ 2,215.17 $ 3,171.00 $ 5,384.40
AXA Premier VIP Large Cap Growth $ 1,289.65 $ 2,196.16 $ 3,140.44 $ 5,329.46
AXA Premier VIP Large Cap Value $ 1,288.56 $ 2,192.99 $ 3,135.33 $ 5,320.27
AXA Premier VIP Small/Mid Cap Growth $ 1,310.40 $ 2,256.29 $ 3,236.95 $ 5,502.25
AXA Premier VIP Small/Mid Cap Value $ 1,310.40 $ 2,256.29 $ 3,236.95 $ 5,502.25
AXA Premier VIP Technology $ 1,337.70 $ 2,335.03 $ 3,362.72 $ 5,724.31
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 1,220.18 $ 1,992.18 $ 2,809.67 $ 4,721.34
EQ/Alliance Growth and Income $ 1,229.89 $ 2,020.97 $ 2,856.69 $ 4,809.32
EQ/Alliance Intermediate Government Securities $ 1,224.50 $ 2,004.99 $ 2,830.59 $ 4,760.54
EQ/Alliance International $ 1,255.81 $ 2,097.52 $ 2,981.21 $ 5,039.91
EQ/Alliance Large Cap Growth* $ 1,266.72 $ 2,129.41 $ 3,032.81 $ 5,134.36
EQ/Alliance Quality Bond $ 1,224.50 $ 2,004.99 $ 2,830.59 $ 4,760.54
EQ/Alliance Small Cap Growth $ 1,251.45 $ 2,084.76 $ 2,960.52 $ 5,001.86
EQ/Bear Stearns Small Company Growth* $ 1,291.84 $ 2,202.50 $ 3,150.63 $ 5,347.81
EQ/Bernstein Diversified Value $ 1,239.59 $ 2,049.71 $ 2,903.53 $ 4,896.47
EQ/Boston Advisors Equity Income* $ 1,267.82 $ 2,132.60 $ 3,037.96 $ 5,143.75
EQ/Calvert Socially Responsible $ 1,265.63 $ 2,126.23 $ 3,027.66 $ 5,124.96
EQ/Capital Guardian Growth $ 1,243.90 $ 2,062.47 $ 2,924.28 $ 4,934.93
EQ/Capital Guardian International $ 1,274.37 $ 2,151.69 $ 3,068.80 $ 5,199.88
EQ/Capital Guardian Research $ 1,239.59 $ 2,049.71 $ 2,903.53 $ 4,896.47
EQ/Capital Guardian U.S. Equity $ 1,239.59 $ 2,049.71 $ 2,903.53 $ 4,896.47
EQ/Caywood-Scholl High Yield Bond $ 1,241.75 $ 2,056.09 $ 2,913.91 $ 4,915.72
EQ/Equity 500 Index $ 1,196.46 $ 1,921.57 $ 2,693.95 $ 4,502.74
EQ/Evergreen Omega $ 1,246.06 $ 2,068.84 $ 2,934.65 $ 4,954.11
EQ/FI Mid Cap $ 1,246.06 $ 2,068.84 $ 2,934.65 $ 4,954.11
EQ/FI Small/Mid Cap Value $ 1,252.53 $ 2,087.94 $ 2,965.69 $ 5,011.38
EQ/International Growth $ 1,279.83 $ 2,167.59 $ 3,094.43 $ 5,246.38
EQ/J.P. Morgan Core Bond $ 1,218.03 $ 1,985.78 $ 2,799.20 $ 4,701.67
EQ/JP Morgan Value Opportunities $ 1,239.59 $ 2,049.71 $ 2,903.53 $ 4,896.47
EQ/Janus Large Cap Growth $ 1,270.00 $ 2,138.97 $ 3,048.25 $ 5,162.50
EQ/Lazard Small Cap Value $ 1,250.37 $ 2,081.58 $ 2,955.35 $ 4,992.33
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
If you annuitize at the end of the applicable time period
- -----------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 863.68 $ 1,915.76 $ 3,002.12 $ 5,879.21
AXA Conservative Allocation $ 850.57 $ 1,877.84 $ 2,941.34 $ 5,770.84
AXA Conservative-Plus Allocation $ 844.02 $ 1,858.84 $ 2,910.82 $ 5,716.13
AXA Moderate Allocation $ 831.79 $ 1,823.31 $ 2,853.65 $ 5,613.06
AXA Moderate-Plus Allocation $ 857.12 $ 1,896.81 $ 2,971.77 $ 5,825.20
AXA Premier VIP Aggressive Equity $ 800.37 $ 1,731.58 $ 2,705.35 $ 5,342.33
AXA Premier VIP Core Bond $ 800.37 $ 1,731.58 $ 2,705.35 $ 5,342.33
AXA Premier VIP Health Care $ 887.70 $ 1,985.03 $ 3,112.72 $ 6,074.31
AXA Premier VIP High Yield $ 796.06 $ 1,718.84 $ 2,684.65 $ 5,304.11
AXA Premier VIP International Equity $ 882.24 $ 1,969.32 $ 3,087.68 $ 6,030.38
AXA Premier VIP Large Cap Core Equity $ 846.21 $ 1,865.17 $ 2,921.00 $ 5,734.40
AXA Premier VIP Large Cap Growth $ 839.65 $ 1,846.16 $ 2,890.44 $ 5,679.46
AXA Premier VIP Large Cap Value $ 838.56 $ 1,842.99 $ 2,885.33 $ 5,670.27
AXA Premier VIP Small/Mid Cap Growth $ 860.40 $ 1,906.29 $ 2,986.95 $ 5,852.25
AXA Premier VIP Small/Mid Cap Value $ 860.40 $ 1,906.29 $ 2,986.95 $ 5,852.25
AXA Premier VIP Technology $ 887.70 $ 1,985.03 $ 3,112.72 $ 6,074.31
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 770.18 $ 1,642.18 $ 2,559.67 $ 5,071.34
EQ/Alliance Growth and Income $ 779.89 $ 1,670.97 $ 2,606.69 $ 5,159.32
EQ/Alliance Intermediate Government Securities $ 774.50 $ 1,654.99 $ 2,580.59 $ 5,110.54
EQ/Alliance International $ 805.81 $ 1,747.52 $ 2,731.21 $ 5,389.91
EQ/Alliance Large Cap Growth* $ 816.72 $ 1,779.41 $ 2,782.81 $ 5,484.36
EQ/Alliance Quality Bond $ 774.50 $ 1,654.99 $ 2,580.59 $ 5,110.54
EQ/Alliance Small Cap Growth $ 801.45 $ 1,734.76 $ 2,710.52 $ 5,351.86
EQ/Bear Stearns Small Company Growth* $ 841.84 $ 1,852.50 $ 2,900.63 $ 5,697.81
EQ/Bernstein Diversified Value $ 789.59 $ 1,699.71 $ 2,653.53 $ 5,246.47
EQ/Boston Advisors Equity Income* $ 817.82 $ 1,782.60 $ 2,787.96 $ 5,493.75
EQ/Calvert Socially Responsible $ 815.63 $ 1,776.23 $ 2,777.66 $ 5,474.96
EQ/Capital Guardian Growth $ 793.90 $ 1,712.47 $ 2,674.28 $ 5,284.93
EQ/Capital Guardian International $ 824.37 $ 1,801.69 $ 2,818.80 $ 5,549.88
EQ/Capital Guardian Research $ 789.59 $ 1,699.71 $ 2,653.53 $ 5,246.47
EQ/Capital Guardian U.S. Equity $ 789.59 $ 1,699.71 $ 2,653.53 $ 5,246.47
EQ/Caywood-Scholl High Yield Bond $ 791.75 $ 1,706.09 $ 2,663.91 $ 5,265.72
EQ/Equity 500 Index $ 746.46 $ 1,571.57 $ 2,443.95 $ 4,852.74
EQ/Evergreen Omega $ 796.06 $ 1,718.84 $ 2,684.65 $ 5,304.11
EQ/FI Mid Cap $ 796.06 $ 1,718.84 $ 2,684.65 $ 5,304.11
EQ/FI Small/Mid Cap Value $ 802.53 $ 1,737.94 $ 2,715.69 $ 5,361.38
EQ/International Growth $ 829.83 $ 1,817.59 $ 2,844.43 $ 5,596.38
EQ/J.P. Morgan Core Bond $ 768.03 $ 1,635.78 $ 2,549.20 $ 5,051.67
EQ/JP Morgan Value Opportunities $ 789.59 $ 1,699.71 $ 2,653.53 $ 5,246.47
EQ/Janus Large Cap Growth $ 820.00 $ 1,788.97 $ 2,798.25 $ 5,512.50
EQ/Lazard Small Cap Value $ 800.37 $ 1,731.58 $ 2,705.35 $ 5,342.33
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the
end of the applicable time period
- -----------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 513.68 $ 1,565.76 $ 2,652.12 $ 5,529.21
AXA Conservative Allocation $ 500.57 $ 1,527.84 $ 2,591.34 $ 5,420.84
AXA Conservative-Plus Allocation $ 494.02 $ 1,508.84 $ 2,560.82 $ 5,366.13
AXA Moderate Allocation $ 481.79 $ 1,473.31 $ 2,503.65 $ 5,263.06
AXA Moderate-Plus Allocation $ 507.12 $ 1,546.81 $ 2,621.77 $ 5,475.20
AXA Premier VIP Aggressive Equity $ 450.37 $ 1,381.58 $ 2,355.35 $ 4,992.33
AXA Premier VIP Core Bond $ 450.37 $ 1,381.58 $ 2,355.35 $ 4,992.33
AXA Premier VIP Health Care $ 537.70 $ 1,635.03 $ 2,762.72 $ 5,724.31
AXA Premier VIP High Yield $ 446.06 $ 1,368.84 $ 2,334.65 $ 4,954.11
AXA Premier VIP International Equity $ 532.24 $ 1,619.32 $ 2,737.68 $ 5,680.38
AXA Premier VIP Large Cap Core Equity $ 496.21 $ 1,515.17 $ 2,571.00 $ 5,384.40
AXA Premier VIP Large Cap Growth $ 489.65 $ 1,496.16 $ 2,540.44 $ 5,329.46
AXA Premier VIP Large Cap Value $ 488.56 $ 1,492.99 $ 2,535.33 $ 5,320.27
AXA Premier VIP Small/Mid Cap Growth $ 510.40 $ 1,556.29 $ 2,636.95 $ 5,502.25
AXA Premier VIP Small/Mid Cap Value $ 510.40 $ 1,556.29 $ 2,636.95 $ 5,502.25
AXA Premier VIP Technology $ 537.70 $ 1,635.03 $ 2,762.72 $ 5,724.31
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 420.18 $ 1,292.18 $ 2,209.67 $ 4,721.34
EQ/Alliance Growth and Income $ 429.89 $ 1,320.97 $ 2,256.69 $ 4,809.32
EQ/Alliance Intermediate Government Securities $ 424.50 $ 1,304.99 $ 2,230.59 $ 4,760.54
EQ/Alliance International $ 455.81 $ 1,397.52 $ 2,381.21 $ 5,039.91
EQ/Alliance Large Cap Growth* $ 466.72 $ 1,429.41 $ 2,432.81 $ 5,134.36
EQ/Alliance Quality Bond $ 424.50 $ 1,304.99 $ 2,230.59 $ 4,760.54
EQ/Alliance Small Cap Growth $ 451.45 $ 1,384.76 $ 2,360.52 $ 5,001.86
EQ/Bear Stearns Small Company Growth* $ 491.84 $ 1,502.50 $ 2,550.63 $ 5,347.81
EQ/Bernstein Diversified Value $ 439.59 $ 1,349.71 $ 2,303.53 $ 4,896.47
EQ/Boston Advisors Equity Income* $ 467.82 $ 1,432.60 $ 2,437.96 $ 5,143.75
EQ/Calvert Socially Responsible $ 465.63 $ 1,426.23 $ 2,427.66 $ 5,124.96
EQ/Capital Guardian Growth $ 443.90 $ 1,362.47 $ 2,324.28 $ 4,934.93
EQ/Capital Guardian International $ 474.37 $ 1,451.69 $ 2,468.80 $ 5,199.88
EQ/Capital Guardian Research $ 439.59 $ 1,349.71 $ 2,303.53 $ 4,896.47
EQ/Capital Guardian U.S. Equity $ 439.59 $ 1,349.71 $ 2,303.53 $ 4,896.47
EQ/Caywood-Scholl High Yield Bond $ 441.75 $ 1,356.09 $ 2,313.91 $ 4,915.72
EQ/Equity 500 Index $ 396.46 $ 1,221.57 $ 2,093.95 $ 4,502.74
EQ/Evergreen Omega $ 446.06 $ 1,368.84 $ 2,334.65 $ 4,954.11
EQ/FI Mid Cap $ 446.06 $ 1,368.84 $ 2,334.65 $ 4,954.11
EQ/FI Small/Mid Cap Value $ 452.53 $ 1,387.94 $ 2,365.69 $ 5,011.38
EQ/International Growth $ 479.83 $ 1,467.59 $ 2,494.43 $ 5,246.38
EQ/J.P. Morgan Core Bond $ 418.03 $ 1,285.78 $ 2,199.20 $ 4,701.67
EQ/JP Morgan Value Opportunities $ 439.59 $ 1,349.71 $ 2,303.53 $ 4,896.47
EQ/Janus Large Cap Growth $ 470.00 $ 1,438.97 $ 2,448.25 $ 5,162.50
EQ/Lazard Small Cap Value $ 450.37 $ 1,381.58 $ 2,355.35 $ 4,992.33
- -----------------------------------------------------------------------------------------------------------
Fee table 17
- -----------------------------------------------------------------------------------------------------------
If you surrender your contract at the end of the
applicable time period
- -----------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 1,244.98 $ 2,065.65 $ 2,929.47 $ 4,944.52
EQ/Lord Abbett Growth and Income $ 1,254.71 $ 2,094.33 $ 2,976.04 $ 5,030.41
EQ/Lord Abbett Large Cap Core $ 1,254.71 $ 2,094.33 $ 2,976.04 $ 5,030.41
EQ/Lord Abbett Mid Cap Value $ 1,260.17 $ 2,110.29 $ 3,001.88 $ 5,077.81
EQ/Marsico Focus $ 1,265.63 $ 2,126.23 $ 3,027.66 $ 5,124.96
EQ/Mercury Basic Value Equity $ 1,232.04 $ 2,027.37 $ 2,867.11 $ 4,828.76
EQ/Mercury International Value $ 1,272.18 $ 2,145.33 $ 3,058.53 $ 5,181.21
EQ/Mergers and Acquisitions $ 1,393.38 $ 2,494.35 $ 3,614.98 $ 6,159.19
EQ/MFS Emerging Growth Companies $ 1,240.67 $ 2,052.90 $ 2,908.72 $ 4,906.10
EQ/MFS Investors Trust $ 1,239.59 $ 2,049.71 $ 2,903.53 $ 4,896.47
EQ/Money Market $ 1,206.17 $ 1,950.50 $ 2,741.42 $ 4,592.78
EQ/Montag & Caldwell Growth* $ 1,257.99 $ 2,103.91 $ 2,991.55 $ 5,058.88
EQ/PIMCO Real Return $ 1,244.98 $ 2,065.65 $ 2,929.47 $ 4,944.52
EQ/Short Duration Bond $ 1,268.91 $ 2,135.78 $ 3,043.10 $ 5,153.13
EQ/Small Company Index $ 1,205.09 $ 1,947.28 $ 2,736.16 $ 4,582.81
EQ/Small Company Value* $ 1,263.45 $ 2,119.85 $ 3,017.36 $ 5,106.13
EQ/TCW Equity* $ 1,263.45 $ 2,119.85 $ 3,017.36 $ 5,106.13
EQ/UBS Growth and Income* $ 1,262.36 $ 2,116.66 $ 3,012.20 $ 5,096.70
EQ/Van Kampen Comstock $ 1,254.71 $ 2,094.33 $ 2,976.04 $ 5,030.41
EQ/Van Kampen Emerging Markets Equity* $ 1,332.24 $ 2,319.32 $ 3,337.68 $ 5,680.38
EQ/Van Kampen Mid Cap Growth $ 1,260.17 $ 2,110.29 $ 3,001.88 $ 5,077.81
EQ/Wells Fargo Montgomery Small Cap $ 1,966.62 $ 4,033.68 $ 5,897.61 $ 9,447.37
- -----------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- -----------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,583.37 $ 3,024.70 $ 4,433.40 $ 7,472.73
- -----------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- -----------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II $ 1,285.29 $ 2,183.47 $ 3,120.01 $ 5,292.63
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
If you annuitize at the end of the applicable time period
- -----------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 794.98 $ 1,715.65 $ 2,679.47 $ 5,294.52
EQ/Lord Abbett Growth and Income $ 804.71 $ 1,744.33 $ 2,726.04 $ 5,380.41
EQ/Lord Abbett Large Cap Core $ 804.71 $ 1,744.33 $ 2,726.04 $ 5,380.41
EQ/Lord Abbett Mid Cap Value $ 810.17 $ 1,760.29 $ 2,751.88 $ 5,427.81
EQ/Marsico Focus $ 815.63 $ 1,776.23 $ 2,777.66 $ 5,474.96
EQ/Mercury Basic Value Equity $ 782.04 $ 1,677.37 $ 2,617.11 $ 5,178.76
EQ/Mercury International Value $ 822.18 $ 1,795.33 $ 2,808.53 $ 5,531.21
EQ/Mergers and Acquisitions $ 943.38 $ 2,144.35 $ 3,364.98 $ 6,509.19
EQ/MFS Emerging Growth Companies $ 790.67 $ 1,702.90 $ 2,658.72 $ 5,256.10
EQ/MFS Investors Trust $ 789.59 $ 1,699.71 $ 2,653.53 $ 5,246.47
EQ/Money Market $ 756.17 $ 1,600.50 $ 2,491.42 $ 4,942.78
EQ/Montag & Caldwell Growth* $ 807.99 $ 1,753.91 $ 2,741.55 $ 5,408.88
EQ/PIMCO Real Return $ 794.98 $ 1,715.65 $ 2,679.47 $ 5,294.52
EQ/Short Duration Bond $ 818.91 $ 1,785.78 $ 2,793.10 $ 5,503.13
EQ/Small Company Index $ 755.09 $ 1,597.28 $ 2,486.16 $ 4,932.81
EQ/Small Company Value* $ 813.45 $ 1,769.85 $ 2,767.36 $ 5,456.13
EQ/TCW Equity* $ 813.45 $ 1,769.85 $ 2,767.36 $ 5,456.13
EQ/UBS Growth and Income* $ 812.36 $ 1,766.66 $ 2,762.20 $ 5,446.70
EQ/Van Kampen Comstock $ 804.71 $ 1,744.33 $ 2,726.04 $ 5,380.41
EQ/Van Kampen Emerging Markets Equity* $ 882.24 $ 1,969.32 $ 3,087.68 $ 6,030.38
EQ/Van Kampen Mid Cap Growth $ 810.17 $ 1,760.29 $ 2,751.88 $ 5,427.81
EQ/Wells Fargo Montgomery Small Cap $ 1,516.62 $ 3,683.68 $ 5,647.61 $ 9,797.37
- -----------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- -----------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,133.37 $ 2,674.70 $ 4,183.40 $ 7,822.73
- -----------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- -----------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II $ 835.29 $ 1,833.47 $ 2,870.01 $ 5,642.63
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the
end of the applicable time period
- -----------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 444.98 $ 1,365.65 $ 2,329.47 $ 4,944.52
EQ/Lord Abbett Growth and Income $ 454.71 $ 1,394.33 $ 2,376.04 $ 5,030.41
EQ/Lord Abbett Large Cap Core $ 454.71 $ 1,394.33 $ 2,376.04 $ 5,030.41
EQ/Lord Abbett Mid Cap Value $ 460.17 $ 1,410.29 $ 2,401.88 $ 5,077.81
EQ/Marsico Focus $ 465.63 $ 1,426.23 $ 2,427.66 $ 5,124.96
EQ/Mercury Basic Value Equity $ 432.04 $ 1,327.37 $ 2,267.11 $ 4,828.76
EQ/Mercury International Value $ 472.18 $ 1,445.33 $ 2,458.53 $ 5,181.21
EQ/Mergers and Acquisitions $ 593.38 $ 1,794.35 $ 3,014.98 $ 6,159.19
EQ/MFS Emerging Growth Companies $ 440.67 $ 1,352.90 $ 2,308.72 $ 4,906.10
EQ/MFS Investors Trust $ 439.59 $ 1,349.71 $ 2,303.53 $ 4,896.47
EQ/Money Market $ 406.17 $ 1,250.50 $ 2,141.42 $ 4,592.78
EQ/Montag & Caldwell Growth* $ 457.99 $ 1,403.91 $ 2,391.55 $ 5,058.88
EQ/PIMCO Real Return $ 444.98 $ 1,365.65 $ 2,329.47 $ 4,944.52
EQ/Short Duration Bond $ 468.91 $ 1,435.78 $ 2,443.10 $ 5,153.13
EQ/Small Company Index $ 405.09 $ 1,247.28 $ 2,136.16 $ 4,582.81
EQ/Small Company Value* $ 463.45 $ 1,419.85 $ 2,417.36 $ 5,106.13
EQ/TCW Equity* $ 463.45 $ 1,419.85 $ 2,417.36 $ 5,106.13
EQ/UBS Growth and Income* $ 462.36 $ 1,416.66 $ 2,412.20 $ 5,096.70
EQ/Van Kampen Comstock $ 454.71 $ 1,394.33 $ 2,376.04 $ 5,030.41
EQ/Van Kampen Emerging Markets Equity* $ 532.24 $ 1,619.32 $ 2,737.68 $ 5,680.38
EQ/Van Kampen Mid Cap Growth $ 460.17 $ 1,410.29 $ 2,401.88 $ 5,077.81
EQ/Wells Fargo Montgomery Small Cap $ 1,166.62 $ 3,333.68 $ 5,297.61 $ 9,447.37
- -----------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- -----------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 783.37 $ 2,324.70 $ 3,833.40 $ 7,472.73
- -----------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- -----------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II $ 485.29 $ 1,483.47 $ 2,520.01 $ 5,292.63
- -----------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject to
regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former name.
18 Fee table
CONDENSED FINANCIAL INFORMATION
Please see Appendix I at the end of this Prospectus for the unit values and the
number of units outstanding as the end of the periods shown for each of the
variable investment options available as of December 31, 2004.
Fee table 19
1. Contract features and benefits
- --------------------------------------------------------------------------------
HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT
You may purchase a contract by making payments to us that we call
"contributions." We require a minimum initial contribution of $10,000 for you
to purchase a contract. You may make additional contributions of at least $500
each for NQ, QP and Rollover TSA contracts and $50 each for IRA contracts,
subject to limitations noted below. The following table summarizes our rules
regarding contributions to your contract. All ages in the table refer to the
age of the annuitant named in the contract. Additional contributions may not be
permitted in your state. Please see Appendix VIII later in this Prospectus to
see if additional contributions are permitted in your state.
We may refuse to accept any contribution if the sum of all contributions under
all Accumulator(R) series contracts with the same owner or annuitant would then
total more than $1,500,000. We reserve the right to limit aggregate
contributions made after the first contract year to 150% of first-year
contributions. We may also refuse to accept any contribution if the sum of all
contributions under all AXA Equitable annuity accumulation contracts with the
same owner or annuitant would then total more than $2,500,000. We may accept
less than the minimum initial contribution under a contract if an aggregate
amount of contracts purchased at the same time by an individual (including
spouse) meets the minimum.
THE "ANNUITANT" IS THE PERSON WHO IS THE MEASURING LIFE FOR DETERMINING
CONTRACT BENEFITS. THE ANNUITANT IS NOT NECESSARILY THE CONTRACT OWNER.
- -----------------------------------------------------------------------------------------------------------------------------------
Available
for annuitant Limitations on
Contract type issue ages Source of contributions contributions+
- -----------------------------------------------------------------------------------------------------------------------------------
NQ 0 through 80 o After-tax money. o No additional contributions after attainment
o Paid to us by check or transfer of contract of age 81 or, if later, the first contract
value in a tax-deferred exchange under anniversary.*
Section 1035 of the Internal Revenue
Code.
- -----------------------------------------------------------------------------------------------------------------------------------
Rollover IRA 20 through 80 o Eligible rollover distributions from TSA o No contributions after attainment of age 81
contracts or other 403(b) arrangements, or, if later, the first contract anniversary.*
qualified plans, and governmental o Contributions after age 701/2 must be net of
employer 457(b) plans. required minimum distributions.
o Rollovers from another traditional o Although we accept regular IRA contribu-
individual retirement arrangement. tions (limited to $4,000 for 2005; same for
o Direct custodian-to-custodian transfers 2006) under Rollover IRA contracts, we
from another traditional individual retire- intend that this contract be used primarily for
ment arrangement. rollover and direct transfer contributions.
o Regular IRA contributions. o Additional catch-up contributions of up to
o Additional "catch-up" contributions. $500 can be made for the calendar year
2005 ($1,000 for 2006) where the owner is
at least age 50 but under age 701/2 at any
time during the calendar year for which the
contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
20 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------
Available
for annuitant Limitations on
Contract type issue ages Source of contributions contributions+
- ------------------------------------------------------------------------------------------------------------------------------------
Roth Conversion IRA 20 through 80 o Rollovers from another Roth IRA. o No additional rollover or direct
o Conversion rollovers from a transfer contributions after
traditional IRA. attainment of age 81 or, if later,
o Direct transfers from another Roth IRA. the first contract anniversary.*
o Regular Roth IRA contributions.
o Additional catch-up contributions. o Conversion rollovers after age 701/2
must be net of required minimum
distributions for the traditional IRA
you are rolling over.
o You cannot roll over funds from a
traditional IRA if your adjusted
gross income is $100,000 or more.
o Although we accept regular Roth IRA
contributions (limited to $4,000
for 2005; same for 2006) under the
Roth IRA contracts, we intend that
this contract be used primarily for
rollover and direct transfer
contributions.
o Additional catch-up contributions of
up to $500 can be made for the
calendar year 2005 ($1,000 for 2006)
where the owner is at least age 50 at
any time during the calendar year for
which the contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover TSA 20 through 80 o Direct transfers of pre-tax funds from o Additional rollover or direct
another contract or arrangement under transfer contributions may be made
Section 403(b) of the Internal Revenue up to attainment of age 81 or, if
Code, complying with IRS Revenue Ruling later, the first contract
90-24. anniversary.*
o Eligible rollover distributions of pre-tax o Rollover or direct transfer
funds from other 403(b) plans. Subsequent contributions after age 701/2 must be
contributions may also be rollovers from net of any required mini- mum
qualified plans, governmental employer distributions.
457(b) plans and traditional IRAs.
o We do not accept employer-remitted
contributions.
- ------------------------------------------------------------------------------------------------------------------------------------
QP 20 through 70 o Only transfer contributions from an existing o We do not accept regular ongoing
defined contribution qualified plan trust. payroll contributions.
o The plan must be qualified under Section
401(a) of the Internal Revenue Code. o Only one additional transfer
o For 401(k) plans, transferred contributions contribution may be made during a
may only include employee pre-tax contract year.
contributions.
o No additional transfer contributions
after attainment of age 71 or, if
later, the first contract
anniversary.
o A separate QP contract must be
established for each plan
participant.
o We do not accept employer-remitted
contributions.
o We do not accept contributions from
defined benefit plans.
See Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts.
- ------------------------------------------------------------------------------------------------------------------------------------
+ If you purchase Guaranteed principal benefit option 2, no contributions are
permitted after the six month period beginning on the contract date.
Additional contributions may not be permitted under certain conditions in
your state. Please see Appendix VIII later in this Prospectus to see if
additional contributions are permitted in your state.
* For Pennsylvania contracts, please see Appendix VIII later in this
Prospectus for state variations.
Please see Appendix VIII later in this Prospectus for more information on state
availability and/or variations of certain features and benefits.
See "Tax information" later in this Prospectus for a more detailed discussion
of sources of contributions and certain contribution limitations. For
information on when contributions are credited under your contract see "Dates
and prices at which contract events occur" in "More information" later in this
Prospectus.
Contract features and benefits 21
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from the owner. A joint
owner may also be named. Only natural persons can be joint owners. This means
that an entity such as a corporation cannot be a joint owner. In general we
will not permit a contract to be owned by a minor unless it is pursuant to the
Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act in your
state. If the Spousal protection feature is elected, the spouses must be joint
owners, one of the spouses must be the annuitant and both must be named as the
only primary beneficiaries.
Under all IRA and Rollover TSA contracts, the owner and annuitant must be the
same person. In some cases, an IRA contract may be held in a custodial
individual retirement account for the benefit of the individual annuitant. This
option may not be available under your contract.
Under QP contracts, the owner must be the trustee of the qualified plan and the
annuitant must be the plan participant/employee. See Appendix II at the end of
this Prospectus for more information on QP contracts.
- --------------------------------------------------------------------------------
A PARTICIPANT IS AN INDIVIDUAL WHO IS CURRENTLY, OR WAS FORMERLY, PARTICIPATING
IN AN ELIGIBLE EMPLOYER'S QUALIFIED PLAN OR TSA PLAN.
- --------------------------------------------------------------------------------
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be by check drawn on a U.S. bank, in
U.S. dollars, and made payable to AXA Equitable. We may also apply
contributions made pursuant to a Section 1035 tax-free exchange or a direct
transfer. We do not accept third-party checks endorsed to us except for
rollover contributions, tax-free exchanges or trustee checks that involve no
refund. All checks are subject to our ability to collect the funds. We reserve
the right to reject a payment if it is received in an unacceptable form.
For your convenience, we will accept initial and additional contributions by
wire transmittal from certain broker-dealers who have agreements with us for
this purpose. Additional contributions may also be made under our automatic
investment program. These methods of payment, including circumstances under
which such contributions are considered received by us when your order is taken
by such broker-dealer, are discussed in detail in "More information" later in
this Prospectus.
Your initial contribution must generally be accompanied by an application and
any other form we need to process the payments. If any information is missing
or unclear, we will try to obtain that information. If we are unable to obtain
all of the information we require within five business days after we receive an
incomplete application or form, we will inform the financial professional
submitting the application on your behalf. We will then return the contribution
to you unless you specifically direct us to keep your contribution until we
receive the required information.
- --------------------------------------------------------------------------------
OUR "BUSINESS DAY" IS GENERALLY ANY DAY THE NEW YORK STOCK EXCHANGE IS OPEN FOR
TRADING AND GENERALLY ENDS AT 4:00 P.M. EASTERN TIME. A BUSINESS DAY DOES NOT
INCLUDE A DAY WE CHOOSE NOT TO OPEN DUE TO EMERGENCY CONDITIONS. WE MAY ALSO
CLOSE EARLY DUE TO EMERGENCY CONDITIONS.
- --------------------------------------------------------------------------------
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
Your investment options are the variable investment options, the guaranteed
interest option and the fixed maturity options.
VARIABLE INVESTMENT OPTIONS
Your investment results in any one of the variable investment options will
depend on the investment performance of the underlying portfolios. You can lose
your principal when investing in the variable investment options. In periods of
poor market performance, the net return, after charges and expenses, may result
in negative yields, including for the EQ/Money Market variable investment
option. Listed below are the currently available portfolios, their investment
objectives and their advisers.
- --------------------------------------------------------------------------------
YOU CAN CHOOSE FROM AMONG THE VARIABLE INVESTMENT OPTIONS, THE GUARANTEED
INTEREST OPTION AND THE FIXED MATURITY OPTIONS.
- --------------------------------------------------------------------------------
22 Contract features and benefits
PORTFOLIOS OF THE TRUSTS
You should note that some portfolios have objectives and strategies that are
substantially similar to those of certain funds that are purchased directly
rather than under a variable insurance product such as the Accumulator(R)
Plus(SM) contract. These portfolios may even have the same manager(s) and/or a
similar name. However, there are numerous factors that can contribute to
differences in performance between two investments, particularly over short
periods of time. Such factors include the timing of stock purchases and sales;
differences in fund cash flows; and specific strategies employed by the
portfolio manager.
AXA Equitable serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. As such, AXA Equitable oversees
the activities of the investment advisers with respect to the Trusts and is
responsible for retaining or discontinuing the services of those advisers. The
advisers for these Portfolios, listed in the chart below, are those who make
the investment decisions for each Portfolio. The chart also indicates the
investment manager for each of the other Portfolios.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Advisers
- ------------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o AXA Equitable
ALLOCATION greater emphasis on current income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o AXA Equitable
ALLOCATION with a greater emphasis on capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
EQUITY o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of risk. o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o AIM Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of o Alliance Capital Management L.P.
current income and capital appreciation. o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P.,
INTERNATIONAL EQUITY through its Bernstein Investment
Research and Management Unit
o J.P. Morgan Investment Management Inc.
o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.,
CORE EQUITY through its Bernstein Investment
Research and Management Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 23
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Advisers(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH o RCM Capital Management LLC
o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE o Institutional Capital Corporation
o MFS Investment Management
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
o AXA Rosenberg Investment Management
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. LLC
CAP VALUE o TCW Investment Management Company
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
GOVERNMENT SECURITIES relative stability of principal.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE LARGE CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH(1)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
moderate risk to capital.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BEAR STEARNS Seeks to achieve capital appreciation. o Bear Stearns Asset Management Inc.
SMALL COMPANY GROWTH(7)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment
Research and Management Unit
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BOSTON ADVISORS EQUITY Seeks a combination of growth and income to achieve o Boston Advisors, Inc.
INCOME(4) an above-average and consistent total return.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company,
RESPONSIBLE Inc. and Brown Capital Management,
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN GROWTH Seeks long-term growth of capital. o Capital Guardian Trust Company
- ------------------------------------------------------------------------------------------------------------------------------------
24 Contract features and benefits
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. o Caywood-Scholl Capital Management
YIELD BOND
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates o Alliance Capital Management L.P.
the total return performance of the S&P 500 Index,
including reinvestment of dividends, at a risk level
consistent with that of the S&P 500 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA Seeks long-term capital growth. o Evergreen Investment Management
Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o SSgA Funds Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent with o J.P. Morgan Investment Management Inc.
moderate risk to capital and maintenance of liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JP MORGAN VALUE Long-term capital appreciation. o J.P. Morgan Investment Management Inc.
OPPORTUNITIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LONG TERM BOND Seeks to maximize income and capital appreciation o Boston Advisors, Inc.
through investment in long-maturity debt obligations.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT GROWTH AND Capital appreciation and growth of income without o Lord, Abbett & Co. LLC
INCOME excessive fluctuation in market value.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT LARGE CAP Capital appreciation and growth of income with o Lord, Abbett & Co. LLC
CORE reasonable risk.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT MID CAP VALUE Capital appreciation. o Lord, Abbett & Co, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers
VALUE International Limited
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERGERS AND ACQUISITIONS Seeks to achieve capital appreciation. o GAMCO Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary o MFS Investment Management
objective to seek reasonable current income.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 25
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve o Alliance Capital Management L.P.
its assets and maintain liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. o Montag & Caldwell, Inc.
GROWTH(5)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PIMCO REAL RETURN Seeks maximum real return consistent with preservation o Pacific Investment Management
of real capital and prudent investment management. Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SHORT DURATION BOND Seeks current income with reduced volatility of principal. o Boston Advisors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o Alliance Capital Management L. P.
deduction of portfolio expenses) the total return of the
Russell 2000 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY VALUE(8) Seeks to maximize capital appreciation. o GAMCO Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/TCW EQUITY(3) Seeks to achieve long-term capital appreciation. o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/UBS GROWTH AND INCOME(6) Seeks to achieve total return through capital appreciation o UBS Global Asset Management
with income as a secondary consideration. (Americas) Inc.
EQ/VAN KAMPEN COMSTOCK Capital growth and income. o Morgan Stanley Management Investment
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN EMERGING Seeks long-term capital appreciation. o Morgan Stanley Management Investment
MARKETS EQUITY(2) Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN MID CAP Capital growth. o Morgan Stanley Management Investment
GROWTH Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/WELLS FARGO MONTGOMERY Seeks long-term capital appreciation. o Wells Capital Management Inc.
SMALL CAP
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Variable
Insurance Trust
Portfolio Name Objective Investment Manager/Adviser
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG VIT VALUE Seeks to increase the value of your investment in bull o Charles Schwab Investment
LONG/SHORT EQUITY markets and bear markets through strategies that are Management, Inc.
designed to have limited exposure to general equity o AXA Rosenberg Investment
market risk. Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
The Universal Institutional
Funds, Inc.
Portfolio Name Objective Investment Manager
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. REAL ESTATE -- CLASS II Seeks to provide above average current income and long- o Van Kampen (is the name under which
term capital appreciation by investing primarily in equity Morgan Stanley Investment Management
securities of companies in the U.S. real estate industry, Inc.does business in certain
including real estate investment trusts. situations)
- ------------------------------------------------------------------------------------------------------------------------------------
* This portfolio information reflects the portfolio's name change effective on
or about May 9. 2005, subject to regulatory approval. The table below reflects
the portfolio name in effect until on or about May 9. 2005. The number in the
"FN" column corresponds with the number contained in the chart above.
FN Portfolio Name until May 9. 2005
(1) EQ/Alliance Premier Growth
(2) EQ/Emerging Markets Equity
(3) EQ/Enterprise Equity
(4) EQ/Enterprise Equity Income
(5) EQ/Enterprise Growth
(6) EQ/Enterprise Growth and Income
(7) EQ/Enterprise Small Company Growth
(8) EQ/Enterprise Small Company Value
26 Contract features and benefits
You should consider the investment objectives, risks and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may
call one of our customer service representatives at 1-800-789-7771.
Contract features and benefits 27
GUARANTEED INTEREST OPTION
The guaranteed interest option is part of our general account and pays interest
at guaranteed rates. We discuss our general account under "More information"
later in this Prospectus.
We assign an interest rate to each amount allocated to the guaranteed interest
option. This rate is guaranteed for a specified period. Therefore, different
interest rates may apply to different amounts in the guaranteed interest
option.
We credit interest daily to amounts in the guaranteed interest option. There
are three levels of interest in effect at the same time in the guaranteed
interest option:
(1) the minimum interest rate guaranteed over the life of the contract,
(2) the yearly guaranteed interest rate for the calendar year, and
(3) the current interest rate.
We set current interest rates periodically, according to our procedures that we
have in effect at the time. We reserve the right to change these procedures.
All interest rates are effective annual rates, but before deduction of annual
administrative charges, any withdrawal charges and any optional benefit
charges. See Appendix VIII later in this Prospectus for state variations.
Depending on the state where your contract is issued, your lifetime minimum
ranges from 1.00% to 3.00%. The data page for your contract shows the lifetime
minimum rate. The minimum yearly rate will never be less than the lifetime
minimum rate. The minimum yearly rate for 2005 is equal to 2.25% except that
for contracts issued with a lifetime minimum guaranteed interest rate of 3.00%,
the minimum yearly rate for 2005 is also 3.00%. Check with your financial
professional as to which rate applies in your state. Current interest rates
will never be less than the yearly guaranteed interest rate.
Generally, contributions and transfers into and out of the guaranteed interest
option are limited. See "Transferring your money among the investment options"
later in this Prospectus for restrictions on transfers from the guaranteed
interest option.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied the rate to maturity is 3%. This
means that at points in time there may be no fixed maturity options available.
You can allocate your contributions to one or more of these fixed maturity
options, however, you may not have more than 12 different maturities running
during any contract year. This limit includes any maturities that have had any
allocation or transfers, even if the entire amount is withdrawn or transferred
during the contract year. These amounts become part of a non-unitized separate
account. They will accumulate interest at the "rate to maturity" for each fixed
maturity option. The total amount you allocate to and accumulate in each fixed
maturity option is called the "fixed maturity amount." The fixed maturity
options are not available in all states. Check with your financial professional
or see Appendix VIII later in this Prospectus to see if fixed maturity options
are available in your state.
- --------------------------------------------------------------------------------
FIXED MATURITY OPTIONS GENERALLY RANGE FROM ONE TO TEN YEARS TO MATURITY.
- --------------------------------------------------------------------------------
Under the Special 10 year fixed maturity option (which is available only under
GPB Option 2), additional contributions will have the same maturity date as
your initial contribution (See "The guaranteed principal benefits," below). The
rate to maturity you will receive for each additional contribution is the rate
to maturity in effect for new contributions allocated to that fixed maturity
option on the date we apply your contribution.
On the maturity date of a fixed maturity option your fixed maturity amount,
assuming you have not made any withdrawals or transfers, will equal your
contribution to that fixed maturity option plus interest, at the rate to
maturity for that contribution, to the date of the calculation. This is the
fixed maturity option's "maturity value." Before maturity, the current value we
will report for your fixed maturity amounts will reflect a market value
adjustment. Your current value will reflect the market value adjustment that we
would make if you were to withdraw all of your fixed maturity amounts on the
date of the report. We call this your "market adjusted amount."
FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with
maturity dates ranging from one to ten years. Not all of these fixed maturity
options will be available for annuitant ages 76 and older. See "Allocating your
contributions" below.
Each new contribution is applied to a new fixed maturity option. When you apply
for an Accumulator(R) Plus(SM) contract, a 60-day rate lock-in will apply from
the date the application is signed. Any contributions received and designated
for a fixed maturity option during this period will receive the then current
fixed maturity option rate or the rate that was in effect on the date that the
application was signed, whichever is greater. There is no rate lock available
for subsequent contributions to the contract after 60 days, transfers from the
variable investment options or the guaranteed interest option into a fixed
maturity option or transfers from one fixed maturity option to another.
YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days
before each of your fixed maturity options is scheduled to mature. At that
time, you may choose to have one of the following take place on the maturity
date, as long as none of the restrictive conditions listed in "Allocating your
contributions," below would apply:
(a) transfer the maturity value into another available fixed maturity option,
any of the variable investment options or the guaranteed interest option;
or
(b) withdraw the maturity value (there may be a withdrawal charge).
If we do not receive your choice on or before the fixed maturity option's
maturity date, we will automatically transfer your maturity value into the
shortest available maturity option beginning on that date. As of February 15,
2005, the next available maturity date was
28 Contract features and benefits
February 15, 2013. If no fixed maturity options are available, we will transfer
your maturity value to the EQ/Money Market option.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender of your contract, or when we make deductions for charges) from a
fixed maturity option before it matures we will make a market value adjustment,
which will increase or decrease any fixed maturity amount you have in that
fixed maturity option. The amount of the adjustment will depend on two factors:
(a) the difference between the rate to maturity that applies to the amount
being withdrawn and the rate we have in effect at that time for new fixed
maturity options (adjusted to reflect a similar maturity date), and
(b) the length of time remaining until the maturity date.
In general, if interest rates rise from the time that you originally allocate
an amount to a fixed maturity option to the time that you take a withdrawal,
the market value adjustment will be negative. Likewise, if interest rates drop
at the end of that time, the market value adjustment will be positive. Also,
the amount of the market value adjustment, either up or down, will be greater
the longer the time remaining until the fixed maturity option's maturity date.
Therefore, it is possible that the market value adjustment could greatly reduce
your value in the fixed maturity options, particularly in the fixed maturity
options with later maturity dates.
We provide an illustration of the market adjusted amount of specified maturity
values, an explanation of how we calculate the market value adjustment, and
information concerning our general account and investments purchased with
amounts allocated to the fixed maturity options, in "More information" later in
this Prospectus. Appendix III at the end of this Prospectus provides an example
of how the market value adjustment is calculated.
ALLOCATING YOUR CONTRIBUTIONS
You may choose from among three ways to allocate your contributions under your
contract: self-directed, the guaranteed principal benefits, or dollar cost
averaging. Subsequent contributions are allocated according to instructions on
file unless you provide new instructions.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options, guaranteed interest option and fixed maturity options.
Allocations must be in whole percentages and you may change your allocations at
any time. No more than 25% of any contribution may be allocated to the
guaranteed interest option. The total of your allocations into all available
investment options must equal 100%. If the annuitant is age 76-80, you may
allocate contributions to fixed maturity options with maturities of seven years
or less. If the annuitant is age 81 or older, you may allocate contributions to
fixed maturity options with maturities of five years or less. Also you may not
allocate amounts to fixed maturity options with maturity dates that are later
than the date annuity payments are to begin.
THE GUARANTEED PRINCIPAL BENEFITS
Subject to state availability (see Appendix VIII later in this Prospectus for
state availability of these benefits), we offer a Guaranteed principal benefit
("GPB") with two options. You may only elect one of the GPBs. We will not offer
either GPB when the rate to maturity for the applicable fixed maturity option
is 3%. If you elect either GPB, you may not elect the Guaranteed minimum income
benefit, Principal Protector(SM), the systematic withdrawals option or the
substantially equal withdrawals option. Both GPB options allow you to allocate
a portion of your contribution or contributions to the variable investment
options, while ensuring that your account value will at least equal your
contributions adjusted for withdrawals and transfers on a specified date. GPB
Option 2 generally provides you with the ability to allocate more of your
contributions to the variable investment options than could be allocated using
GPB Option 1.
You may elect GPB Option 1 when the contract is issued (after age 75, only the
7-year fixed maturity option is available; for QP the annuitant must be age 70
or younger when the contract is issued). You may elect GPB Option 2 only if the
annuitant is age 75 (70 for QP contracts) or younger when the contract is
issued. If you are purchasing an IRA, QP or Rollover TSA contract, before you
either purchase GPB Option 2 or elect GPB Option 1 with a maturity year that
would extend beyond the year in which you will reach age 701/2, you should
consider whether your value in the variable investment options, guaranteed
interest option and permissible funds outside this contract are sufficient to
meet your required minimum distributions. See "Tax information" later in this
Prospectus. If you elect GPB Option 2 and change ownership of the contract, GPB
Option 2 will automatically terminate, except under certain circumstances. See
"Transfers of ownership, collateral assignments, loans and borrowing" in "More
information," later in this Prospectus for more information.
GUARANTEED PRINCIPAL BENEFIT OPTION 1. Under GPB Option 1, you select a fixed
maturity option at the time you sign your application. We specify the portion
of your initial contribution (plus any applicable portion of the credit we pay)
to be allocated to that fixed maturity option in an amount that will cause the
maturity value to equal the amount of your entire initial contribution (plus
any credit paid under your contract) on the fixed maturity option's maturity
date. The percentage of your contribution allocated to the fixed maturity
option will be calculated based upon the rate to maturity then in effect for
the fixed maturity option you choose. Your contract will contain information on
the amount of your contribution allocated to the fixed maturity option. If you
make any withdrawals or transfers from the fixed maturity option before the
option's maturity date, the amount in the fixed maturity option will be
adjusted and may no longer grow to equal your initial contribution under GPB
Option 1. The maturity date you select generally may not be later than 10
years, or earlier than 7 years from your contract date. You may allocate the
rest of your initial contribution to the variable investment options and
guaranteed interest option however you choose (unless you elect a dollar cost
averaging program, in which case the remainder of your initial contribution
must be allocated to the dollar cost averaging program). Upon the maturity date
of the fixed maturity option, you will be provided with the same notice and the
same choices with respect to the maturity value as described above under "Your
choices at the maturity date." There is no charge for GPB Option 1.
Contract features and benefits 29
GUARANTEED PRINCIPAL BENEFIT OPTION 2. You may purchase GPB Option 2 at the
time you apply for your contract. IF YOU PURCHASE GPB OPTION 2, YOU MAY NOT
MAKE ADDITIONAL CONTRIBUTIONS TO YOUR CONTRACT AFTER SIX MONTHS FROM THE
CONTRACT ISSUE DATE OR AT ANY EARLIER TIME IF AT SUCH TIME THE THEN APPLICABLE
RATE TO MATURITY ON THE SPECIAL 10 YEAR FIXED MATURITY OPTION IS 3%. Therefore,
any discussion in this Prospectus that involves any additional contributions
after the first six months will be inapplicable.
We specify the portion of your initial contribution (including any applicable
portion of the credit we pay), and any additional permitted contributions, to
be allocated to a Special 10 year fixed maturity option. Your contract will
contain information on the percentage of applicable contributions allocated to
the Special 10 year fixed maturity option. You may allocate the rest of your
contributions among the investment options (other than the Special 10 year
fixed maturity option) however you choose, as permitted under your contract and
other than the Investment simplifier (unless you elect a dollar cost averaging
program, in which case all contributions, other than amounts allocated to the
Special 10 year fixed maturity option, must be allocated to the dollar cost
averaging program). The Special 10 year fixed maturity option will earn
interest at the specified rate to maturity then in effect.
If on the 10th contract date anniversary, your annuity account value is less
than the amount that is guaranteed under GPB Option 2, we will increase your
annuity account value to be equal to the guaranteed amount under GPB Option 2.
Any such additional amounts added to your annuity account value will be
allocated to the EQ/Money Market investment option. After the maturity date of
the Special 10 year fixed maturity option, the guarantee under GPB Option 2
will terminate. Upon the maturity date of the Special 10 year fixed maturity
option, you will be provided with the same notice and the same choices with
respect to the maturity value as described above under "Your choices at the
maturity date." The guaranteed amount under GPB Option 2 is equal to your
initial contribution adjusted for any additional permitted contributions
(excluding any credit applied to your contract), transfers out of the Special
10 year fixed maturity option and withdrawals from the contract (see "How
withdrawals (and transfers out of the Special 10 year fixed maturity option)
affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit
and Guaranteed principal benefit option 2" in "Accessing your money" later in
this Prospectus). Any transfers or withdrawals from the Special 10 year fixed
maturity option will also be subject to a market value adjustment (see "Market
value adjustment" under "Fixed maturity options" above in this section).
Once you purchase the Guaranteed principal benefit option 2, you may not
voluntarily terminate this benefit. GPB Option 2 will terminate if the contract
terminates before the maturity date of the Special 10 year fixed maturity
option. If the owner and the annuitant are different people and the owner dies
before the maturity date of the Special 10 year fixed maturity option, we will
continue GPB Option 2 only if the contract can continue through the maturity
date of the Special 10 year fixed maturity option. If the contract cannot so
continue, we will terminate GPB Option 2. GPB Option 2 will continue where
there is a successor owner/annuitant. GPB Option 2 will terminate upon the
exercise of the beneficiary continuation option. See "Payment of death benefit"
later in this Prospectus for more information about the continuation of the
contract after the death of the owner and/or the annuitant.
There is a fee associated with GPB Option 2 (see "Charges and expenses" later
in this Prospectus). You should note that the purchase of GPB Option 2 is not
appropriate if you want to make additional contributions to your contract
beyond the first six months after your contract is issued. If you later decide
that you would like to make additional contributions to the Accumulator(R)
Plus(SM) contract, we may permit you to purchase another contract. If we do,
however, you should note that we do not reduce or waive any of the charges on
the new contract, nor do we guarantee that the features available under this
contract will be available under the new contract. This means that you might
end up paying more with respect to certain charges than if you had simply
purchased a single contract (for example, the administrative charge).
The purchase of GPB Option 2 is also not appropriate if you plan on terminating
your contract before the maturity date of the Special 10 year fixed maturity
option. In addition, because we prohibit contributions to your contract after
the first six months, certain contract benefits that are dependent upon
contributions or account value will be limited (for example the amount of your
credit, the Guaranteed death benefits and Protection Plus). You should also
note that if you intend to allocate a large percentage of your contributions to
the guaranteed interest option or other fixed maturity options, the purchase of
GPB Option 2 may not be appropriate because of the guarantees already provided
by these options. In addition, GPB Option 2 protects only contributions (not
including the credit), and therefore your account value would have to decline
in an amount greater than the credit in order for the benefit to apply. An
example of the effect of GPB Option 1 and GPB Option 2 on your annuity contract
is included in Appendix VI later in this Prospectus.
DOLLAR COST AVERAGING
We offer a variety of dollar cost averaging programs. You may only participate
in one program at a time. Each program allows you to gradually allocate amounts
to the variable investment options by periodically transferring approximately
the same dollar amount to the variable investment options you select. This will
cause you to purchase more units if the unit's value is low and fewer units if
the unit's value is high. Therefore, you may get a lower average cost per unit
over the long term. This plan of investing, however, does not guarantee that
you will earn a profit or be protected against losses. You may not make
transfers to the fixed maturity options.
- --------------------------------------------------------------------------------
UNITS MEASURE YOUR VALUE IN EACH VARIABLE INVESTMENT OPTION.
- --------------------------------------------------------------------------------
GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market
option is at least $5,000, you may choose, at any time, to have a specified
dollar amount or percentage of your value transferred from that option to the
other variable investment options. You can select to have transfers made on a
monthly, quarterly or annual basis. The transfer date will be the same calendar
day of the month as the contract date, but not later than the 28th day of the
30 Contract features and benefits
month. You can also specify the number of transfers or instruct us to continue
making the transfers until all amounts in the EQ/Money Market option have been
transferred out. The minimum amount that we will transfer each time is $250.
If, on any transfer date, your value in the EQ/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The dollar cost averaging program will then end. You may
change the transfer amount once each contract year or cancel this program at
any time.
INVESTMENT SIMPLIFIER
Fixed-dollar option. Under this option, you may elect to have a fixed-dollar
amount transferred out of the guaranteed interest option and into the variable
investment options of your choice. Transfers may be made on a monthly,
quarterly or annual basis. You can specify the number of transfers or instruct
us to continue to make transfers until all available amounts in the guaranteed
interest option have been transferred out.
In order to elect the fixed-dollar option, you must have a minimum of $5,000 in
the guaranteed interest option on the date we receive your election form at our
processing office. The transfer date will be the same calendar day of the month
as the contract date but not later than the 28th day of the month. The minimum
transfer amount is $50. The fixed-dollar option is subject to the guaranteed
interest option transfer limitations described under "Transferring your account
value" in "Transferring your money among investment options" later in this
Prospectus. While the program is running, any transfer that exceeds those
limitations will cause the program to end for that contract year. You will be
notified. You must send in a request form to resume the program in the next or
subsequent contract years.
If, on any transfer date, your value in the guaranteed interest option is equal
to or less than the amount you have elected to have transferred, the entire
amount will be transferred, and the program will end. You may change the
transfer amount once each contract year or cancel this program at any time.
Interest sweep option. Under this option, you may elect to have monthly
transfers from amounts in the guaranteed interest option into the variable
investment options of your choice. The transfer date will be the last business
day of the month. The amount we will transfer will be the interest credited to
amounts you have in the guaranteed interest option from the last business day
of the prior month to the last business day of the current month. You must have
at least $7,500 in the guaranteed interest option on the date we receive your
election. We will automatically cancel the interest sweep program if the amount
in the guaranteed interest option is less than $7,500 on the last day of the
month for two months in a row. For the interest sweep option, the first monthly
transfer will occur on the last business day of the month following the month
that we receive your election form at our processing office.
----------------------------------
You may not participate in any dollar cost averaging program if you are
participating in the rebalancing program. If you elect a GPB, you may also
elect the General dollar cost averaging program. If you elect either of these
programs, everything other than amounts allocated to the fixed maturity option
under the GPB must be allocated to that dollar cost averaging program. You may
still elect the Investment simplifier for amounts transferred from investment
options (other than the fixed maturity option under the GPB you have elected),
and, for GPB Option 1, you may also elect Investment simplifier for subsequent
contributions. See "Transferring your money among investment options" later in
this Prospectus.
Not all dollar cost averaging programs are available in all states. See
Appendix VIII later in this Prospectus for more information on state
availability.
CREDITS
A credit will also be allocated to your account value at the same time that we
allocate your contribution. Credits are allocated to the same investment
options based on the same percentages used to allocate your contributions. If
you elected Principal Protector(SM) the credit amounts attributable to your
contributions are not included for purposes of calculating your Guaranteed
withdrawal benefit ("GWB") (see "Principal Protector(SM)" later in this
Prospectus for more information) benefit base.
The amount of the credit will be 4%, 4.5% or 5% of each contribution based on
the following breakpoints and rules:
- ---------------------------------------------------
Credit percentage
First year total contributions* applied to
Breakpoints contributions
- ---------------------------------------------------
Less than $500,000 4%
- ---------------------------------------------------
$500,000-$999,999.99 4.5%
- ---------------------------------------------------
$1 million or more 5%
- ---------------------------------------------------
- ----------------------
* First year total contributions means your total contributions made in the
first contract year.
The percentage of the credit is based on your first year total contributions.
If you purchase GPB Option 2, you may not make additional contributions after
the first six months. This credit percentage will be credited to each
contribution made in the first year (after adjustment as described below), as
well as the second and later contract years. Although the credit, as adjusted
at the end of the first contract year, will be based upon first year total
contributions, the following rules affect the percentage with which
contributions made in the first contract year are credited during the first
contract year:
o Indication of intent: If you indicate in the application at the time you
purchase your contract an intention to make additional contributions to
meet one of the breakpoints (the "Expected First Year Contribution
Amount") and your initial contribution is at least 50% of the Expected
First Year Contribution Amount, your credit percentage will be as follows:
o For any contributions resulting in total contributions to date less
than or equal to your Expected First Year Contribution Amount, the
credit percentage will be the percentage that applies to the Expected
First Year Contribution Amount based on the table above.
o For any subsequent contribution that results in your total contributions
to date exceeding your Expected First Year Contribution
Contract features and benefits 31
Amount, such that the credit percentage should have been higher, we will
increase the credit percentage applied to that contribution, as well as
any prior or subsequent contributions made in the first contract year,
accordingly.
o If at the end of the first contract year your total contributions
were lower than your Expected First Year Contribution Amount such that the
credit applied should have been lower, we will recover any Excess Credit.
The Excess Credit is equal to the difference between the credit that was
actually applied based on your Expected First Year Contribution Amount (as
applicable) and the credit that should have been applied based on first
year total contributions.
o The "Indication of intent" approach to first year contributions is
not available in all states. Please see Appendix VIII later in this
Prospectus for information on state availability.
o No indication of intent:
o For your initial contribution (if available in your state) we will
apply the credit percentage based upon the above table.
o For any subsequent contribution that results in a higher appli
cable credit percentage (based on total contributions to date), we will
increase the credit percentage applied to that contribution, as well as
any prior or subsequent contributions made in the first contract year,
accordingly.
In addition to the recovery of any Excess Credit, we will recover all of the
credit or a portion of the credit in the following situations:
o If you exercise your right to cancel the contract, we will recover the entire
credit made to your contract (see "Your right to cancel within a certain
number of days" later in this Prospectus)(1)
o If you start receiving annuity payments within three years of making any
contribution, we will recover the credit that applies to any contribution
made within the prior three years. Please see Appendix VIII later in this
Prospectus for information on state variations.
We will recover any credit on a pro rata basis from the value in your variable
investment options and guaranteed interest option. If there is insufficient
value or no value in the variable investment options and guaranteed interest
option, the fixed maturity options in order of the earliest maturing date(s),
any additional amount of the withdrawal required or the total amount of the
withdrawal will be withdrawn from the Special 10 year fixed maturity option. A
market value adjustment may apply to withdrawals from the fixed maturity
options.
We do not consider credits to be contributions for purposes of any discussion
in this Prospectus. Credits are also not considered to be part of your
investment in the contract for tax purposes.
We use a portion of the mortality and expense risks charge and withdrawal
charge to help recover our cost of providing the credit. See "Charges and
expenses" later in this Prospectus. The charge associ-
ated with the credit may, over time, exceed the sum of the credit and any
related earnings. You should consider this possibility before purchasing the
contract.
YOUR GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED MINIMUM INCOME BENEFIT
BASE
The Guaranteed minimum death benefit and Guaranteed minimum income benefit base
(hereinafter, in this section called your "benefit base") is used to calculate
the Guaranteed minimum income benefit and the death benefits, as described in
this section. Your benefit base is not an account value or a cash value. See
also "Our Guaranteed minimum income benefit option" and "Guaranteed minimum
death benefit" below.
STANDARD DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
less
o a deduction that reflects any withdrawals you make. (See "How withdrawals
(and transfers out of the Special 10 year fixed maturity option) affect
your Guaranteed minimum income benefit, Guaranteed minimum death benefit
and Guaranteed principal benefit option 2" in "Accessing your money" later
in this Prospectus.)
6% ROLL UP TO AGE 85 (USED FOR THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE
ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM
INCOME BENEFIT). Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
o daily interest; less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death benefit and Guaranteed principal
benefit option 2" in "Accessing your money" and the section entitled
"Charges and expenses" later in this Prospectus.)
The effective annual interest rate credited to this benefit base is:
o 6% with respect to the variable investment options (other than EQ/Alliance
Intermediate Government Securities, EQ/Money Market, EQ/PIMCO Real Return
and EQ/Short Duration Bond) the effective annual rate may be 4% in some
states. Please see Appendix VIII later in this Prospectus to see what
applies in your state; and
o 3% with respect to the EQ/Alliance Intermediate Government Securities,
EQ/Money Market, EQ/PIMCO Real Return and EQ/Short Duration Bond, the
fixed maturity options, the Special 10 year fixed maturity option, the
guaranteed interest option and the loan reserve account under Rollover TSA
(if applicable).
No interest is credited to the benefit base after the contract anniversary
following the annuitant's 85th birthday.
- ----------------------
(1) The amount we return to you upon exercise of this right to cancel will
not include any credit or the amount of charges deducted prior to
cancellation but will reflect, except in states where we are required to
return the amount of your contributions, any investment gain or loss in the
variable investment options associated with your contributions and with the
full amount of the credit.
32 Contract features and benefits
ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH
BENEFIT AND THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO
AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME
BENEFIT). Your benefit base is equal to the greater of either:
o your initial contribution to the contract and any additional contributions,
or
o your highest account value on any contract anniversary up to the contract
anniversary following the annuitant's 85th birthday, plus any
contributions made since the most recent contract anniversary,
less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death benefit and Guaranteed principal
benefit option 2" in "Accessing your money" later in this Prospectus).
GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED
DEATH BENEFIT AND THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is
equal to the greater of the benefit base computed for the 6% Roll up to age 85
or the benefit base computed for the Annual Ratchet to age 85, as described
immediately above, on each contract anniversary. For the Guaranteed minimum
income benefit, the benefit base is reduced by any applicable withdrawal charge
remaining when the option is exercised.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the Guaranteed minimum income benefit and annuity payout
options. The Guaranteed minimum income benefit is discussed under "Our
Guaranteed minimum income benefit option" below and annuity payout options are
discussed under "Your annuity payout options" in "Accessing your money" later
in this Prospectus. The guaranteed annuity purchase factors are those factors
specified in your contract. The current annuity purchase factors are those
factors that are in effect at any given time. Annuity purchase factors are
based on interest rates, mortality tables, frequency of payments, the form of
annuity benefit, and the annuitant's (and any joint annuitant's) age and sex in
certain instances.
OUR GUARANTEED MINIMUM INCOME BENEFIT OPTION
The Guaranteed minimum income benefit is available if the annuitant is age 20
through 75 at the time the contract is issued. There is an additional charge
for the Guaranteed minimum income benefit which is described under "Guaranteed
minimum income benefit charge" in "Charges and expenses" later in this
Prospectus. Once you purchase the Guaranteed minimum income benefit, you may
not voluntarily terminate this benefit.
This feature is not available if you elect a GPB or Principal Protector(SM). If
you are purchasing this contract to fund a Charitable Remainder Trust, the
Guaranteed minimum income benefit is not available, except for certain
split-funded Charitable Remainder Trusts. If the annuitant was older than age
60 at the time an IRA, QP or Rollover TSA contract was issued, the Guaranteed
minimum income benefit may not be an appropriate feature because the minimum
distributions required by tax law generally must begin before the Guaranteed
minimum income benefit can be exercised.
If you elect the Guaranteed minimum income benefit option and change ownership
of the contract, this benefit will automatically terminate, except under
certain circumstances. See "Transfers of ownership, collateral assignments,
loans and borrowing" in "More information," later in this Prospectus for more
information.
The Guaranteed minimum income benefit guarantees you a minimum amount of fixed
income under your choice of a life annuity fixed payout option or a life with a
period certain payout option. You choose which of these payout options you want
and whether you want the option to be paid on a single or joint life basis at
the time you exercise your Guaranteed minimum income benefit. The maximum
period certain available under the life with a period certain payout option is
10 years. This period may be shorter, depending on the annuitant's age as
follows:
- -------------------------------------------
Level payments
- -------------------------------------------
Period certain
years
----------------------
Annuitant's age at
exercise IRAs NQ
- -------------------------------------------
75 and younger 10 10
76 9 10
77 8 10
78 7 10
79 7 10
80 7 10
81 7 9
82 7 8
83 7 7
84 6 6
85 5 5
- --------------------------------------------
We may also make other forms of payout options available. For a description of
payout options, see "Your annuity payout options" in "Accessing your money"
later in this Prospectus.
- --------------------------------------------------------------------------------
THE GUARANTEED MINIMUM INCOME BENEFIT, SHOULD BE REGARDED AS A SAFETY NET ONLY.
IT PROVIDES INCOME PROTECTION IF YOU ELECT AN INCOME PAYOUT WHILE THE ANNUITANT
IS ALIVE.
- --------------------------------------------------------------------------------
When you exercise the Guaranteed minimum income benefit, the annual lifetime
income that you will receive will be the greater of (i) your Guaranteed minimum
income benefit which is calculated by applying your Guaranteed minimum income
benefit base less, any applicable withdrawal charge remaining, at guaranteed
annuity purchase factors, or (ii) the income provided by applying your account
value at our then current annuity purchase factors. For Rollover TSA only, we
will subtract from the Guaranteed minimum income benefit base or account value
any outstanding loan, including interest accrued but not paid. You may also
elect to receive monthly or quarterly payments as an alternative. The payments
will be less than 1/12 or 1/4 of the
Contract features and benefits 33
annual payments, respectively, due to the effect of interest compounding. The
benefit base is applied only to the guaranteed annuity purchase factors under
the Guaranteed minimum income benefit in your contract and not to any other
guaranteed or current annuity purchase rates. The amount of income you actually
receive will be determined when we receive your request to exercise the
benefit.
When you elect to receive annual lifetime income, your contract will terminate
and you will receive a new contract for the annuity payout option. For a
discussion of when your payments will begin and end, see "Exercise of
Guaranteed minimum income benefit" below.
Before you elect the Guaranteed minimum income benefit, you should consider the
fact that it provides a form of insurance and is based on conservative
actuarial factors. The guaranteed annuity purchase factors we use to determine
your payout annuity benefit under the Guaranteed minimum income benefit are
more conservative than the guaranteed annuity purchase factors we use for our
standard payout annuity options. This means that, assuming the same amount is
applied to purchase the benefit and that we use guaranteed annuity purchase
factors to compute the benefit, each periodic payment under the Guaranteed
minimum income benefit payout annuity will be smaller than each periodic
payment under our standard payout annuity options. Therefore, even if your
account value is less than your benefit base, you may generate more income by
applying your account value to current annuity purchase factors. We will make
this comparison for you when the need arises.
ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll up to
age 85 benefit base, the table below illustrates the Guaranteed minimum income
benefit amounts per $100,000 of initial contribution, for a male annuitant age
60 (at issue) on the contract date anniversaries indicated, who has elected the
life annuity fixed payout option, using the guaranteed annuity purchase factors
as of the date of this Prospectus, assuming no additional contributions,
withdrawals or loans under Rollover TSA contracts, and assuming there were no
allocations to the EQ/Alliance Intermediate Government Securities, EQ/Money
Market, EQ/PIMCO Real Return, EQ/Short Duration Bond, the guaranteed interest
option, the fixed maturity options (including the Special 10 year fixed
maturity option) or the loan reserve account under Rollover TSA contracts.
Guaranteed minimum
Contract date income benefit -- annual
anniversary at exercise income payable for life
- ------------------------------------------------------
10 $11,891
15 $18,597
- ------------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date
anniversary that you are eligible to exercise the Guaranteed minimum income
benefit, we will send you an eligibility notice illustrating how much income
could be provided as of the contract date anniversary. You must notify us
within 30 days following the contract date anniversary if you want to exercise
the Guaranteed minimum income benefit. You must return your contract to us
along with all required information within 30 days following your contract date
anniversary in order to exercise this benefit. You will begin receiving annual
payments one year after the annuity payout contract is issued. If you choose
monthly or quarterly payments, you will receive your payment one month or one
quarter after the annuity payment contract is issued. You may choose to take a
withdrawal prior to exercising the Guaranteed minimum income benefit, which
will reduce your payments. You may not partially exercise this benefit. See
"Accessing your money" under "Withdrawing your account value" later in this
Prospectus. Payments end with the last payment before the annuitant's (or joint
annuitant's, if applicable) death, or if later, the end of the period certain
(where the payout option chosen includes a period certain).
EXERCISE RULES. You will be eligible to exercise the Guaranteed minimum income
benefit during your life and the annuitant's life, as follows:
o If the annuitant was at least age 20 and no older than age 44 when the
contract was issued, you are eligible to exercise the Guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 15th contract date anniversary.
o If the annuitant was at least age 45 and no older than age 49 when the
contract was issued, you are eligible to exercise the Guaranteed minimum
income benefit within 30 days following each contract date anniversary
after the annuitant is age 60.
o If the annuitant was at least age 50 and no older than age 75 when the
contract was issued, you are eligible to exercise the Guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 10th contract date anniversary.
Please note:
(i) the latest date you may exercise the Guaranteed minimum income benefit
is within 30 days following the contract date anniversary following the
annuitant's 85th birthday;
(ii) if the annuitant was age 75 when the contract was issued, the only time
you may exercise the Guaranteed minimum income benefit is within 30 days
following the first contract date anniversary that it becomes available;
(iii) for Accumulator(R) Plus(SM) QP contracts, the Plan participant can
exercise the Guaranteed minimum income benefit only if he or she elects to
take a distribution from the Plan and, in connection with this
distribution, the Plan's trustee changes the ownership of the contract to
the participant. This effects a rollover of the Accumulator(R) Plus(SM) QP
contract into an Accumulator(R) Rollover IRA. This process must be
completed within the 30-day timeframe following the contract date
anniversary in order for the Plan participant to be eligible to exercise;
(iv) for Accumulator(R) Plus(SM) Rollover TSA contracts, you may exercise the
Guaranteed minimum income benefit only if you effect a rollover of the TSA
contract to an Accumulator(R) Plus(SM) Rollover IRA. This may only occur
when you are eligible for a distribution from the TSA. This process must
be completed within the 30-day timeframe following the contract date
anniversary in order for you to be eligible to exercise;
(v) a successor owner/annuitant may only continue the Guaranteed minimum
income benefit if the contract is not past the last date on which the
original annuitant could have exercised the benefit.
34 Contract features and benefits
In addition, the successor owner/annuitant must be eligible to continue
the benefit and to exercise the benefit under the applicable exercise rule
(described in the above bullets) using the following additional rules. The
successor owner/annuitant's age on the date of the annuitant's death
replaces the annuitant's age at issue for purposes of determining the
availability of the benefit and which of the exercise rules applies. The
original contract issue date will continue to apply for purposes of the
exercise rules. If you elect Spousal Protection and the spouse who is the
annuitant dies, the above rules apply if the contract is continued by the
surviving spouse as the successor owner annuitant; and
(vi) if you are the owner but not the annuitant and you die prior to
exercise, then the following applies:
o A successor owner who is not the annuitant may not be able
to exercise the guaranteed minimum income benefit without causing a
tax problem. You should consider naming the annuitant as successor
owner, or if you do not name a successor owner, as the sole primary
beneficiary. You should carefully review your successor owner and/or
beneficiary designations at least one year prior to the first
contract anniversary on which you could exercise the benefit.
o If the successor owner is the annuitant, the guaranteed
minimum income benefit continues only if the benefit could be
exercised under the rules described above on a contract anniversary
that is within one year following the owner's death. This would be
the only opportunity for the successor owner to exercise. If the
guaranteed minimum income benefit cannot be exercised within this
timeframe, the benefit will terminate and the charge for it will no
longer apply as of the date we receive proof of your death and any
required information.
o If you designate your surviving spouse as successor owner,
the guaranteed minimum income benefit continues and your surviving
spouse may exercise the benefit according to the rules described
above even if your spouse is not the annuitant and even if the
benefit is exercised more than one year after your death. If your
surviving spouse dies prior to exercise, the rule described in the
previous bullet applies.
o A successor owner or beneficiary that is a trust or other non-
natural person may not exercise the benefit; in this case, the
benefit will terminate and the charge for it will no longer apply as
of the date we receive proof of your death and any required
information.
See "When an NQ contract owner dies before the annuitant" under "Payment of
death benefit" later in this Prospectus for more information.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals (and transfers out of the Special 10 year fixed
maturity option) affect your Guaranteed minimum income benefit, Guaranteed
minimum death benefit and Guaranteed principal benefit option 2" in "Accessing
your money" and the section entitled "Charges and expenses" later in this
Prospectus for more information on these guaranteed benefits.
GUARANTEED MINIMUM DEATH BENEFIT
Your contract provides a death benefit. If you do not elect one of the enhanced
death benefits described below, the death benefit is equal to your account
value (without adjustment for any otherwise applicable negative market value
adjustment) as of the date we receive satisfactory proof of death, any required
instructions for the method of payment, information and forms necessary to
effect payment, OR the standard death benefit, whichever provides the higher
amount. The standard death benefit is equal to your total contributions
(adjusted for any withdrawals and any withdrawal charges, and any taxes that
apply). The standard death benefit is the only death benefit available for
annuitant ages 76 to 80 at issue. Once your contract is issued, you may not
change or voluntarily terminate your death benefit.
If you elect one of the guaranteed death benefits, the death benefit is equal
to your account value (without adjustment for any otherwise applicable negative
market value adjustment) as of the date we receive satisfactory proof of the
annuitant's death, any required instructions for the method of payment,
information and forms necessary to effect payment, OR your elected guaranteed
death benefit on the date of the annuitant's death (adjusted for any subsequent
withdrawals, withdrawal charges and taxes that apply) whichever provides the
higher amount. If you elect the Spousal protection option, the guaranteed
minimum death benefit is based on the age of the older spouse, who may or may
not be the annuitant, for the life of the contract. See "Spousal protection" in
"Payment of death benefit" later in this Prospectus for more information.
If you elect one of the enhanced death benefit options described below and
change ownership of the contract, generally the benefit will automatically
terminate, except under certain circumstances. If this occurs, any enhanced
death benefit elected will be replaced with the standard death benefit. See
"Transfers of ownership, collateral assignments, loans and borrowing" in "More
information," later in this Prospectus for more information.
OPTIONAL ENHANCED DEATH BENEFITS APPLICABLE FOR ANNUITANT AGES 0 THROUGH 75 AT
ISSUE OF NQ CONTRACTS; 20 THROUGH 75 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION
IRA AND ROLLOVER TSA CONTRACTS; AND 20 THROUGH 70 AT ISSUE OF QP CONTRACTS.
Subject to state availability (please see Appendix VIII later in this
Prospectus for state availability of these benefits), you may elect one of the
following enhanced death benefits:
o ANNUAL RATCHET TO AGE 85.
o THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85.
Each enhanced death benefit is equal to its corresponding benefit base
described earlier in "Your Guaranteed minimum death benefit and Guaranteed
minimum income benefit base." Once you have made your enhanced death benefit
election, you may not change it.
If you elect Principal Protector(SM), only the standard death benefit and the
Annual Ratchet to Age 85 enhanced death benefit are available.
----------------------------------
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals (and transfers out of the Spe-
Contract features and benefits 35
cial 10 year fixed maturity option) affect your Guaranteed minimum income
benefit, Guaranteed minimum death benefit and Guaranteed principal benefit
option 2" in "Accessing your money" and the section entitled "Charges and
expenses" later in this Prospectus for more information on these guaranteed
benefits.
See Appendix IV later in this Prospectus for an example of how we calculate an
enhanced minimum death benefit.
PROTECTION PLUS(SM)
Subject to state and contract availability (please see Appendix VIII later in
this Prospectus for state availability of these benefits), if you are purchasing
a contract, under which the Protection Plus(SM) feature is available, you may
elect the Protection Plus(SM) death benefit at the time you purchase your
contract. Protection Plus(SM) provides an additional death benefit as described
below. See the appropriate part of "Tax information" later in this Prospectus
for the potential tax consequences of electing to purchase the Protection
Plus(SM) feature in an NQ, IRA or Rollover TSA contract. Once you purchase the
Protection Plus(SM) feature, you may not voluntarily terminate the feature. If
you elect Principal Protector(SM), the Protection Plus(SM) feature is not
available.
If you elect the Protection Plus(SM) option described below and change ownership
of the contract, generally this benefit will automatically terminate, except
under certain circumstances. See "Transfers of ownership, collateral
assignments, loans and borrowing" in "More information," later in this
Prospectus for more information.
If the annuitant is 70 or younger when we issue your contract (or if the
successor owner/annuitant is 70 or younger when he or she becomes the successor
owner/annuitant), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit less total net contributions, multiplied by 40%.
For purposes of calculating your Protection Plus(SM) benefit, the following
applies: (i) "Net contributions" are the total contributions made (or if
applicable, the total amount that would otherwise have been paid as a death
benefit had the successor owner/annuitant election not been made plus any
subsequent contributions) adjusted for each withdrawal that exceeds your
Protection Plus(SM) earnings. "Net contributions" are reduced by the amount of
that excess. Protection Plus(SM) earnings are equal to (a) minus (b) where (a)
is the greater of the account value and the death benefit immediately prior to
the withdrawal and (b) is the net contributions as adjusted by any prior
withdrawals (credit amounts are not included in "net contributions"); and (ii)
"Death benefit" is equal to the greater of the account value as of the date we
receive satisfactory proof of death or any applicable Guaranteed minimum death
benefit as of the date of death.
If the annuitant is age 71 through 75 when we issue your contract (or if the
successor owner/annuitant is between the ages of 71 and 75 when he or she
becomes the successor owner/annuitant and Protection Plus(SM) had been elected
at issue), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit (as described above) less total net contributions,
multiplied by 25%.
The value of the Protection Plus(SM) death benefit is frozen on the first
contract date anniversary after the annuitant turns age 80, except that the
benefit will be reduced for withdrawals on a pro rata basis. Reduction on a pro
rata basis means that we calculate the percentage of the current account value
that is being withdrawn and we reduce the benefit by that percentage. For
example, if the account value is $30,000 and you withdraw $12,000, you have
withdrawn 40% of your account value. If the benefit is $40,000 before the
withdrawal, it would be reduced by $16,000 ($40,000 X .40) and the benefit
after the withdrawal would be $24,000 ($40,000-$16,000).
For an example of how the Protection Plus(SM) death benefit is calculated,
please see Appendix VII.
If you elect Spousal protection, the Protection Plus(SM) benefit is based on the
age of the older spouse, who may or may not be the annuitant. Upon the death of
the non-annuitant spouse, the account value will be increased by the value of
the Protection Plus(SM) benefit as of the date we receive due proof of death.
Upon the death of the annuitant, the value of the Protection Plus(SM) benefit is
either added to the death benefit payment or to the account value if Successor
owner/annuitant is elected. If the surviving spouse elects to continue the
contract, the benefit will be based on the age of the surviving spouse as of
the date of the non-surviving spouse's death for the remainder of the contract.
If the surviving spouse is age 76 or older, the benefit will terminate and the
charge will no longer be in effect. See "Spousal protection" in "Payment of
death benefit" later in this Prospectus for more information.
Protection Plus(SM) must be elected when the contract is first issued; neither
the owner nor the successor owner/annuitant can add it subsequently. Ask your
financial professional or see Appendix VIII later in this Prospectus to see if
this feature is available in your state.
PRINCIPAL PROTECTOR(SM)
As described below, Principal Protector(SM) provides for recovery of your total
contributions through withdrawals, even if your account value falls to zero,
provided that during each contract year, your total withdrawals do not exceed
your Guaranteed Annual withdrawal amount. Principal Protector(SM) is not an
automated withdrawal program. You may request a withdrawal through any of our
available withdrawal methods. See "Withdrawing your account value" in
"Accessing your money" later in this Prospectus. All withdrawals reduce your
account value and the guaranteed minimum death benefit.
Principal Protector(SM) may be elected at contract issue, for an additional
charge, if the annuitant is age 0 through 80 for NQ contracts or age 20 through
75 for all IRA contracts. Please see "Principal Protector(SM) charge" in
"Charges and expenses" later in this Prospectus for a description of the charge
and when it applies. If you elect this benefit, you cannot terminate it.
36 Contract features and benefits
If you die, and your beneficiary elects the Beneficiary continuation option, if
available, your beneficiary may continue Principal Protector(SM) provided that
the beneficiary was 75 or younger on the original contract date. If the
beneficiary was older, Principal Protector(SM) will terminate without value even
if the GWB benefit base is greater than zero. In the case of multiple
beneficiaries, any beneficiary older than 75 may not continue Principal
Protector(SM) and that beneficiary's portion of the GWB benefit base will
terminate without value, even if it was greater than zero. The ability to
continue Principal Protector(SM) under the Beneficiary continuation option is
subject to state availability. When and if it is approved in your state, it
will be added to your contract if you had already elected GWB. See "Beneficiary
continuation option" under "Payment of death benefit" later in the Prospectus
for more information on continuing Principal Protector(SM) under the Beneficiary
continuation option.
If you are purchasing this contract as a TSA or QP, Principal Protector(SM) is
not available. This benefit is also not available if you elect the Guaranteed
minimum income benefit, the Greater of 6% Roll Up to age 85 and Annual Ratchet
to Age 85 enhanced death benefit, Protection Plus(SM), GPB Option 1 or GPB
Option 2.
If you elect the Principal Protector(SM) option and change ownership of the
contract, generally this benefit will automatically terminate, except under
certain circumstances. See "Transfers of ownership, collateral assignments,
loans and borrowing" in "More information," later in this Prospectus for more
information.
You should not purchase Principal Protector(SM) if you plan to take withdrawals
in excess of your GWB Annual withdrawal amount because those withdrawals
significantly reduce or eliminate the value of the benefit. See "Effect of GWB
Excess withdrawals" below. For traditional IRAs, the Principal Protector(SM)
makes provision for you to take lifetime required minimum distributions
("RMDs") without losing the value of the Principal Protector(SM) guarantee,
provided you comply with the conditions under "Lifetime required minimum
distribution withdrawals" in "Accessing your money" later in this Prospectus,
including utilizing our Automatic RMD service. If you do not expect to comply
with these conditions, including utilization of our Automatic RMD service, this
benefit may have limited usefulness for you and you should consider whether it
is appropriate. Please consult your tax adviser.
YOUR GWB BENEFIT BASE
At issue, your GWB benefit base is equal to your initial contribution and will
increase or decrease, as follows:
o Your GWB benefit base increases by the dollar amount of any additional
contributions.
o Your GWB benefit base decreases by the dollar amount of withdrawals.
o Your GWB benefit base may be further decreased if a withdrawal is taken in
excess of your GWB Annual withdrawal amount.
o Your GWB benefit base may also be increased under the Optional step up
provision.
o Your GWB benefit base may also be increased under the one time step up
applicable with the Beneficiary continuation option.
Each of these events is described in detail below. Once your GWB benefit base
is depleted, you may continue to make withdrawals from your account value, but
they are not guaranteed under Principal Protector(SM).
Credit amounts attributable to your contributions are not included for purposes
of calculating your GWB benefit base.
YOUR GWB ANNUAL WITHDRAWAL AMOUNT
Your GWB Annual withdrawal amount is equal to either 5% or 7% ("Applicable
percentage"), as applicable, of your initial GWB benefit base, and is the
maximum amount that you can withdraw each year without making a GWB Excess
withdrawal, as described below. When you purchase your contract, you choose
between two available GWB Annual withdrawal options:
o 7% GWB Annual withdrawal option
o 5% GWB Annual withdrawal option
The GWB Annual withdrawal amount may decrease as a result of a GWB Excess
withdrawal and may increase as a result of an Automatic reset, additional
contributions or a "step up" of the GWB benefit base; each of these
transactions are discussed below in detail. Once you elect a GWB Annual
withdrawal option, it cannot be changed.
Your GWB Annual withdrawal amounts are not cumulative. If you withdraw less
than the GWB Annual withdrawal amount in any contract year, you may not add the
remainder to your GWB Annual withdrawal amount in any subsequent year.
The withdrawal charge, if applicable, is waived for withdrawals up to the GWB
Annual withdrawal amount, but all withdrawals are counted toward your free
withdrawal amount. See "Withdrawal charge" in "Charges and expenses" later in
this Prospectus.
EFFECT OF GWB EXCESS WITHDRAWALS
A GWB Excess withdrawal is caused when you withdraw more than your GWB Annual
withdrawal amount in any contract year. Once a withdrawal causes cumulative
withdrawals in a contract year to exceed your GWB Annual withdrawal amount, the
entire amount of the withdrawal and each subsequent withdrawal in that contract
year are GWB Excess withdrawals.
A GWB Excess withdrawal can cause a significant reduction in both your GWB
benefit base and your GWB Annual withdrawal amount. If you make a GWB Excess
withdrawal, we will recalculate your GWB benefit base and the GWB Annual
withdrawal amount. As of the date of the GWB Excess withdrawal, the GWB benefit
base is first reduced by the dollar amount of the withdrawal (including any
applicable withdrawal charge), and the reduced GWB benefit base and the GWB
Annual withdrawal amount are then further adjusted, as follows:
o If the account value after the deduction of the withdrawal is less than the
GWB benefit base, then the GWB benefit base is reset equal to the account
value.
o If the account value after the deduction of the withdrawal is greater than
or equal to the GWB benefit base, then the GWB benefit base is not adjusted
further.
Contract features and benefits 37
o The GWB Annual withdrawal amount equals the lesser of: (i) the Applicable
percentage of the adjusted GWB benefit base and (ii) the GWB Annual
withdrawal amount prior to the GWB Excess withdrawal.
You should not purchase this benefit if you plan to take withdrawals in excess
of your GWB Annual withdrawal amount, as such withdrawals significantly reduce
or eliminate the value of Principal Protector(SM). If your account value is less
than your GWB benefit base (due, for example, to negative market performance),
a GWB Excess withdrawal, even one that is only slightly more than your GWB
Annual withdrawal amount, can significantly reduce your GWB benefit base and
the GWB Annual withdrawal amount.
For example, if you contribute $100,000 at contract issue, your initial GWB
benefit base is $100,000. If you elect the 7% GWB Annual withdrawal option,
your GWB Annual withdrawal amount is equal to $7,000 (7% of $100,000). Assume
in contract year four that your account value is $80,000, you have not made any
prior withdrawals, and you request an $8,000 withdrawal. Your $100,000 benefit
base is first reduced by $8,000 to now equal $92,000. Your GWB benefit base is
then further reduced to equal the new account value: $72,000 ($80,000 minus
$8,000). In addition, your GWB Annual withdrawal amount is reduced to $5,040
(7% of $72,000), instead of the original $7,000.
Withdrawal charges, if applicable, are applied to the amount of the withdrawal
exceeding the GWB Annual withdrawal amount. See "Withdrawal charge" in "Charges
and expenses" later in this Prospectus. You should further note that a GWB
Excess withdrawal that reduces your account value to zero eliminates any
remaining value in your GWB benefit base. See "Termination of your contract" in
"Determining your contract value" later in this Prospectus.
In general, if you purchase this contract as a traditional IRA and participate
in our Automatic RMD service, and you do not take any other withdrawals, an
automatic withdrawal under that program will not cause a GWB Excess withdrawal,
even if it exceeds your GWB Annual withdrawal amount. For more information, see
"Lifetime required minimum distribution withdrawals" in "Accessing your money"
later in this Prospectus.
If you die, and your beneficiary continues Principal Protector(SM) under the
Beneficiary continuation option, and chooses scheduled payments, such payments
will not cause a GWB Excess withdrawal, provided no additional withdrawals are
taken. If your beneficiary chooses the "5-year rule" instead of scheduled
payments, this waiver does not apply and a GWB Excess withdrawal may occur if
withdrawals exceed the GWB Annual withdrawal amounts.
EFFECT OF AUTOMATIC RESET
If you take no withdrawals in the first five contract years, the Applicable
percentage to determine your GWB Annual withdrawal amount will be automatically
reset at no additional charge. The Applicable percentage under the 7% GWB
Annual withdrawal option will be increased to 10%, and the Applicable
percentage under the 5% GWB Annual withdrawal option will be increased to 7%.
The Applicable percentage is automatically reset on your fifth contract
anniversary, and your GWB Annual withdrawal amount will be recalculated.
If you die before the fifth contract anniversary, and your beneficiary
continues Principal Protector(SM) under the Beneficiary continuation option, if
available, the Automatic reset will apply on the fifth contract anniversary if
you have not taken any withdrawals and: (1) your beneficiary chooses scheduled
payments and payments have not yet started; or, (2) if your beneficiary chooses
the "5-year rule" option and has not taken withdrawals. See "Beneficiary
continuation option" in "Payment of death benefit" later in this Prospectus.
EFFECT OF ADDITIONAL CONTRIBUTIONS
Anytime you make an additional contribution, we will recalculate your GWB
benefit base and your GWB Annual withdrawal amount. Your GWB benefit base will
be increased by the amount of the contribution (credit amounts are not
included) and your GWB Annual withdrawal amount will be equal to the greater of
(i) the Applicable percentage of the new GWB benefit base, or (ii) the GWB
Annual withdrawal amount in effect immediately prior to the additional
contribution.
If you die, and your beneficiary continues Principal Protector(SM) under the
Beneficiary continuation option, no additional contributions will be permitted.
OPTIONAL STEP UP PROVISION
Except as stated below, any time after the fifth contract anniversary, you may
request a step up in the GWB benefit base to equal your account value. If your
GWB benefit base is higher than the account value as of the date we receive
your step up request, no step up will be made. If a step up is made, we may
increase the charge for the benefit. For a description of the charge increase,
see "Principal Protector(SM) charge" in "Charges and expenses" later in this
Prospectus. Once you elect to step up the GWB benefit base, you may not do so
again for five complete contract years from the next contract date anniversary.
Under both the Spousal protection and the successor owner annuitant features,
upon the first death, the surviving spouse must wait five complete contract
years from the last step up or from contract issue, whichever is later, to be
eligible for a step up.
As of the date of your GWB benefit base step up, your GWB Annual withdrawal
amount will be equal to the greater of (i) your GWB Annual withdrawal amount
before the step up, and (ii) your GWB Applicable percentage applied to your
stepped up GWB benefit base.
It is important to note that a step up in your GWB benefit base may not
increase your GWB Annual withdrawal amount. In that situation, the effect of
the step up is only to increase your GWB benefit base and support future
withdrawals. We will process your step up request even if it does not increase
your GWB Annual withdrawal amount, and we will increase the Principal
Protector(SM) charge, if applicable. In addition, you will not be eligible to
request another step up for five complete contract years. After processing your
request, we will send you a confirmation showing the amount of your GWB benefit
base and your GWB Annual withdrawal amount.
For example, if you contribute $100,000 at contract issue, your initial GWB
benefit base is $100,000. If you elect the 7% GWB Annual withdrawal option,
your GWB Annual withdrawal amount is equal to $7,000 (7% of $100,000). Assume
you take withdrawals of $7,000 in
38 Contract features and benefits
each of the first five contract years, reducing the GWB benefit base to
$65,000. After five contract years, further assume that your account value is
$92,000, and you elect to step up the GWB benefit base from $65,000 to $92,000.
The GWB Annual withdrawal amount is recalculated to equal the greater of 7% of
the new GWB benefit base, which is $6,440 (7% of $92,000), or the current GWB
Annual withdrawal amount, $7,000. Therefore, following the step up, even though
your GWB benefit base has increased, your GWB Annual withdrawal amount does not
increase and remains $7,000.
The Optional step up provision is not available once your beneficiary continues
Principal Protector(SM) under the Beneficiary continuation option. However, if
you die, and your beneficiary continues Principal Protector(SM) under the
Beneficiary continuation option, the GWB benefit base will be stepped up to
equal the account value, if higher, as of the transaction date that we receive
the Beneficiary continuation option election. As of the date of the GWB benefit
base step up, your beneficiary's GWB Annual withdrawal amount will be equal to
the greater of (i) your GWB Annual withdrawal amount before the step up, and
(ii) your GWB Applicable percentage applied to the stepped up GWB benefit base.
This is a one-time step up at no additional charge.
OTHER IMPORTANT CONSIDERATIONS
o Principal Protector(SM) protects your principal only through withdrawals. Your
account value may be less than your total contributions.
o You can take withdrawals under your contract without purchasing Principal
Protector(SM). In other words, you do not need this benefit to make
withdrawals.
o Amounts withdrawn in excess of your GWB Annual withdrawal amount may be
subject to a withdrawal charge, if applicable, as described in "Charges
and expenses" later in the Prospectus. In addition, all withdrawals count
toward your free withdrawal amount for that contract year.
o Withdrawals made under Principal Protector(SM) will be treated, for tax
purposes, in the same way as other withdrawals under your contract.
o All withdrawals are subject to all of the terms and conditions of the
contract. Principal Protector(SM) does not change the effect of withdrawals
on your account value or guaranteed minimum death benefit; both are
reduced by withdrawals whether or not you elect Principal Protector(SM). See
"How withdrawals are taken from your account value" and "How withdrawals
(and transfers out of the Special 10 year fixed maturity option) affect
your Guaranteed minimum income benefit, Guaranteed minimum death benefit
and Guaranteed principal benefit option 2" in "Accessing your money" later
in this Prospectus.
o If you withdraw less than the GWB Annual withdrawal amount in any contract
year, you may not add the remainder to your GWB Annual withdrawal amount
in any subsequent year.
o GWB Excess withdrawals can significantly reduce or completely eliminate the
value of this benefit. See "Effect of GWB Excess withdrawals" above in
this section and "Withdrawing your account value" in "Accessing your
money" later in this Prospectus.
o If you surrender your contract to receive its cash value, all benefits under
the contract will terminate, including Principal Protector(SM) if your cash
value is greater than your GWB Annual withdrawal amount. Therefore, when
surrendering your contract, you should seriously consider the impact on
Principal Protector(SM) when you have a GWB benefit base that is greater
than zero.
o If you die and your beneficiary elects the Beneficiary continuation option,
then your beneficiary should consult with a tax adviser before choosing to
use the "5-year rule." The "5-year rule" is described in "Payment of death
benefit" under "Beneficiary continuation option" later in this Prospectus.
The GWB benefit base may be adversely affected if the beneficiary makes
any withdrawals that cause a GWB Excess withdrawal. Also, when the
contract terminates at the end of 5 years, any remaining GWB benefit base
would be lost.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
If for any reason you are not satisfied with your contract, you may return it
to us for a refund. To exercise this cancellation right you must mail the
contract, with a signed letter of instruction electing this right, to our
processing office within 10 days after you receive it. If state law requires,
this "free look" period may be longer. Other state variations may apply. Please
contact your financial professional to find out what applies in your state.
Generally, your refund will equal your account value (less loan reserve
account) under the contract on the day we receive notification to cancel the
contract and will reflect (i) any investment gain or loss in the variable
investment options (less the daily charges we deduct), (ii) any guaranteed
interest in the guaranteed interest option, and (iii) any positive or negative
market value adjustments in the fixed maturity options through the date we
receive your contract. Some states require that we refund the full amount of
your contribution (not reflecting (i), (ii) or (iii) above). For any IRA
contracts returned to us within seven days after you receive it, we are
required to refund the full amount of your contribution. Please note that you
will forfeit the credit by exercising this right of cancellation.
We may require that you wait six months before you may apply for a contract
with us again if:
o you cancel your contract during the free look period; or
o you change your mind before you receive your contract whether we have
received your contribution or not.
Please see "Tax information" later in this Prospectus for possible consequences
of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA contract, you may
cancel your Roth Conversion IRA contract and return to a Rollover IRA contract.
Our processing office or your financial professional can provide you with the
cancellation instructions.
Contract features and benefits 39
2. Determining your contract's value
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total value of the values you have in: (i) the
variable investment options; (ii) the guaranteed interest account; (iii) market
adjusted amounts in the fixed maturity options; and (iv) the loan reserve
account (applies for Rollover TSA contracts only).
Your contract also has a "cash value." At any time before annuity payments
begin, your contract's cash value is equal to the account value less: (i) the
total amount or a pro rata portion of the annual administrative charge as well
as any optional benefit charges; (ii) any applicable withdrawal charge; and
(iii) the amount of any outstanding loan plus accrued interest (applicable to
Rollover TSA contracts only). Please see "Surrendering your contract to receive
its cash value" in "Accessing your money" later in this Prospectus.
YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS
Each variable investment option invests in shares of a corresponding portfolio.
Your value in each variable investment option is measured by "units." The value
of your units will increase or decrease as though you had invested it in the
corresponding portfolio's shares directly. Your value, however will be reduced
by the amount of the fees and charges that we deduct under the contract.
The unit value for each variable investment option depends on the investment
performance of that option, less daily charges for:
(i) mortality and expense risks;
(ii) administrative, and
(iii) distribution charges.
On any day, your value in any variable investment option equals the number of
units credited to that option, adjusted for any units purchased for or deducted
from your contract under that option, multiplied by that day's value for one
unit. The number of your contract units in any variable investment option does
not change unless they are:
(i) increased to reflect additional contributions plus the credit;
(ii) decreased to reflect a withdrawal (plus applicable withdrawal charges);
(iii) increased to reflect transfer into, or decreased to reflect transfer
out of a variable investment option; or
(iv) increased or decreased to reflect a transfer of your loan amount from
or to the loan reserve account under a Rollover TSA contract.
In addition, when we deduct the enhanced death benefit, guaranteed minimum
income benefit, GPB Option 2, Principal Protector(SM) and/or Protection Plus(SM)
benefit charges, the number of units credited to your contract will be reduced.
Your units are also reduced when we deduct the annual administrative charge. A
description of how unit values are calculated is found in the SAI.
YOUR CONTRACT'S VALUE IN THE GUARANTEED
INTEREST OPTION
Your value in the guaranteed interest account at any time will equal: your
contributions and transfers to that option, plus interest, minus withdrawals
out of the option, and charges we deduct.
YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS
Your value in each fixed maturity option at any time before the maturity date
is the market adjusted amount in each option, which reflects withdrawals out of
the option and charges we deduct. This is equivalent to your fixed maturity
amount increased or decreased by the market value adjustment. Your value,
therefore, may be higher or lower than your contributions (less withdrawals)
accumulated at the rate to maturity. At the maturity date, your value in the
fixed maturity option will equal its maturity value, provided there have been
no withdrawals or transfers.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose all your rights under your contract and any
applicable guaranteed benefits, except as discussed below.
See Appendix VIII later in this Prospectus for any state variations with regard
to terminating your contract.
PRINCIPAL PROTECTOR(SM)
If you elect Principal Protector(SM) and your account value falls to zero due to
a GWB Excess withdrawal, we will terminate your contract and you will receive
no payment or annuity benefit, as discussed below, even if your GWB benefit
base is greater than zero. If, however, your account value falls to zero,
either due to a withdrawal or surrender that is not a GWB Excess withdrawal or
due to a deduction of charges, please note the following:
o If your GWB benefit base equals zero, we will terminate your contract and
make no payment.
o If your GWB benefit base is greater than zero but less than or equal to the
balance of your GWB Annual withdrawal amount, if any, for that contract
year, we will terminate your contract and pay you any remaining GWB
benefit base.
o If your GWB benefit base is greater than the balance of your remaining GWB
Annual withdrawal amount, if any, for that contract
40 Determining your contract's value
year, we will pay you your GWB Annual withdrawal amount balance and
terminate your contract, and we will pay you your remaining GWB benefit
base as an annuity benefit, as described below.
o If the Beneficiary continuation option is elected, and the account value falls
to zero while there is a remaining GWB benefit base, we will make payments to
the beneficiary as follows:
o If the beneficiary had elected scheduled payments we will con tinue to make
scheduled payments over remaining life expectancy until the GWB benefit
base is zero, and the Principal Protector(SM) charge will no longer apply.
o If the beneficiary had elected the "5-year rule" and the GWB benefit base
is greater than the remaining GWB Annual withdrawal amount, if any, for
that contract year, we will pay the beneficiary the GWB Annual withdrawal
amount balance. We will continue to pay the beneficiary the remaining GWB
Annual withdrawal amount each year until the GWB benefit base equals zero,
or the contract terminates at the end of the fifth contract year, whichever
comes first. Any remaining GWB benefit base at the end of the fifth
contract year will terminate without value.
ANNUITY BENEFIT. If the contract terminates and the remaining GWB benefit base
is to be paid in installments we will issue you an annuity benefit contract and
make annual payments equal to your GWB Annual withdrawal amount on your
contract anniversary beginning on the next contract anniversary, until the
cumulative amount of such payments equals the remaining GWB benefit base (as of
the date the contract terminates). The last installment payment may be smaller
than the previous installment payments in order for the total of such payments
to equal the remaining GWB benefit base.
The annuity benefit supplemental contract will carry over the same owner,
annuitant and beneficiary as under your contract. If you die before receiving
all of your payments, we will make any remaining payments to your beneficiary.
The charge for Principal Protector(SM) will no longer apply.
If at the time of your death the GWB Annual withdrawal amount was being paid to
you as an annuity benefit, your beneficiary may not elect the Beneficiary
continuation option.
Determining your contract's value 41
3. Transferring your money among investment options
- --------------------------------------------------------------------------------
TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer
some or all of your account value among the variable investment options,
subject to the following:
o You may not transfer to a fixed maturity option that has a rate to maturity
of 3% or less.
o If the annuitant is age 76-80, you must limit your transfers to fixed
maturity options with maturities of seven years or less. If the annuitant
is age 81 or older, you must limit your transfers to fixed maturity
options of five years or less. As of February 15, 2005, maturities of less
than eight years were not available. Also, the maturity dates may be no
later than the date annuity payments are to begin.
o If you make transfers out of a fixed maturity option other than at its
maturity date, the transfer may cause a market value adjustment and affect
your GPB.
o During the first contract year, transfers into the guaranteed interest option
are not permitted.
o After the first contract year, a transfer into the guaranteed interest option
will not be permitted if such transfer would result in more than 25% of
the annuity account value being allocated to the guaranteed interest
option, based on the annuity account value as of the previous business
day.
o No transfers are permitted into the Special 10 year fixed maturity option.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency or dollar amount of transfers.
The maximum amount that may be transferred from the guaranteed interest option
to any investment option (including amounts transferred pursuant to the
fixed-dollar option and interest sweep option dollar cost averaging programs
described under "Allocating your contributions" in "Contract features and
benefits" earlier in this Prospectus) in any contract year is the greatest of:
(a) 25% of the amount you have in the guaranteed interest option on the last day
of the prior contract year; or,
(b) the total of all amounts transferred at your request from the guaranteed
interest option to any of the Investment options in the prior contract year;
or,
(c) 25% of amounts transferred or allocated to the guaranteed interest option
during the current contract year.
From time to time, we may remove the restrictions regarding transferring
amounts out of the guaranteed interest option. If we do so, we will tell you.
We will also tell you at least 45 days in advance of the day we intend to
reimpose the transfer restrictions. When we reimpose the transfer restrictions,
if any dollar cost averaging transfer out of the guaranteed interest option
causes a violation of the 25% outbound restriction, that dollar cost averaging
program will be terminated for the current contract year. A new dollar cost
averaging program can be started in the next or subsequent contract years.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value to be
transferred, and
(3) the investment options to and from which you are transferring.
We will confirm all transfers in writing.
DISRUPTIVE TRANSFER ACTIVITY
You should note that the contract is not designed for professional "market
timing" organizations, or other organizations or individuals engaging in a
market timing strategy. The contract is not designed for programmed transfers,
frequent transfers or transfers that are large in relation to the total assets
of the underlying portfolio.
Frequent transfers, including market timing and other program trading or
short-term trading strategies, may be disruptive to the underlying portfolios
in which the variable investment options invest. Disruptive transfer activity
may adversely affect performance and the interests of long-term investors by
requiring a portfolio to maintain larger amounts of cash or to liquidate
portfolio holdings at a disadvantageous time or price. For example, when market
timing occurs, a portfolio may have to sell its holdings to have the cash
necessary to redeem the market timer's investment. This can happen when it is
not advantageous to sell any securities, so the portfolio's performance may be
hurt. When large dollar amounts are involved, market timing can also make it
difficult to use long-term investment strategies because a portfolio cannot
predict how much cash it will have to invest. In addition, disruptive transfers
or purchases and redemptions of portfolio investments may impede efficient
portfolio management and impose increased transaction costs, such as brokerage
costs, by requiring the portfolio manager to effect more frequent purchases and
sales of portfolio securities. Similarly, a portfolio may bear increased
administrative costs as a result of the asset level and investment volatility
that accompanies patterns of excessive or short-term trading. Portfolios that
invest a significant portion of their assets in foreign securities or the
securities of small- and mid-capitalization companies tend to be subject to the
risks associated with market timing and short-term trading strategies to a
greater extent than portfolios that do not. Securities trading in overseas
markets present time zone arbitrage opportunities when events affecting
portfolio securities values occur after the close of the overseas market but
prior to the close of the U.S. markets. Securities of small- and
mid-capitalization companies present arbitrage opportunities because the market
for such securities
42 Transferring your money among investment options
may be less liquid than the market for securities of larger companies, which
could result in pricing inefficiencies. Please see the prospectuses for the
underlying portfolios for more information on how portfolio shares are priced.
We currently use the procedures described below to discourage disruptive
transfer activity. You should understand, however, that these procedures are
subject to the following limitations: (1) they primarily rely on the policies
and procedures implemented by the underlying portfolios; (2) they do not
eliminate the possibility that disruptive transfer activity, including market
timing, will occur or that portfolio performance will be affected by such
activity; and (3) the design of market timing procedures involves inherently
subjective judgments, which we seek to make in a fair and reasonable manner
consistent with the interests of all policy and contract owners.
The AXA Premier VIP Trust and EQ Advisors Trust (the "affiliated trusts") have
adopted policies and procedures designed to discourage disruptive transfers by
contract owners investing in the portfolios of the affiliated trusts. The
affiliated trusts discourage frequent purchases and redemptions of portfolio
shares and will not make special arrangements to accommodate such transactions.
As a general matter, the affiliated trusts reserve the right to refuse or limit
any purchase or exchange order by a particular investor (or group of related
investors) if the transaction is deemed harmful to the portfolio's other
investors or would disrupt the management of the portfolio. The affiliated
trusts monitor aggregate inflows and outflows for each portfolio on a daily
basis. On any day when a portfolio's net inflows or outflows exceed an
established monitoring threshold, the affiliated trust obtains from us contract
owner trading activity. The affiliated trusts currently consider transfers into
and out of (or vice versa) the same variable investment option within a five
business day period as potentially disruptive transfer activity. When a
contract owner is identified as having engaged in a potentially disruptive
transfer for the first time, a letter is sent to the contract owner explaining
that there is a policy against disruptive transfer activity and that if such
activity continues certain transfer privileges may be eliminated. If and when
the contract owner is identified a second time as engaged in potentially
disruptive transfer activity, we currently prohibit the use of voice, fax and
automated transaction services. We currently apply such action for the
remaining life of each affected contract. We or the affiliated trusts may
change the definition of potentially disruptive transfer activity, the
monitoring procedures and thresholds, any notification procedures, and the
procedures to restrict this activity. Any new or revised policies and
procedures will apply to all contract owners uniformly. We do not permit
exceptions to our policies restricting disruptive transfer activity.
We may also offer investment options with underlying portfolios that are not
part of the AXA Premier VIP Trust or EQ Advisors Trust (the "unaffiliated
trusts"). Each unaffiliated trust may have its own policies and procedures
regarding disruptive transfer activity, which may be different than those
applied by the affiliated trusts. In most cases, the unaffiliated trust
reserves the right to reject a transfer that it believes, in its sole
discretion, is disruptive (or potentially disruptive) to the management of one
of its portfolios. Please see the prospectus for the underlying trust for
information regarding the policies and procedures, if any, employed by that
trust and any associated risks of investing in that trust. If an unaffiliated
trust advises us that there may be disruptive transfer activity from our
contract owners, we will work with the unaffiliated trust to review contract
owner trading activity. If the underlying trust determines that the trading
activity of a particular contract owner is disruptive, we will take action to
limit the disruptive trading activity of that contract owner as discussed
above.
Contract owners should note that it is not always possible for us and the
underlying trusts to identify and prevent disruptive transfer activity. Our
ability to monitor potentially disruptive transfer activity is limited in
particular with respect to certain group contracts. Group annuity contracts may
be owned by retirement plans on whose behalf we provide transfer instructions
on an omnibus (aggregate) basis, which may mask the disruptive transfer
activity of individual plan participants, and/or interfere with our ability to
restrict communication services. In addition, because we do not monitor for all
frequent trading at the separate account level, contract owners may engage in
frequent trading which may not be detected, for example, due to low net inflows
or outflows on the particular day(s). Therefore, no assurance can be given that
we or the trusts will successfully impose restrictions on all disruptive
transfers. Because there is no guarantee that disruptive trading will be
stopped, some contract owners/ participants may be treated differently than
others, resulting in the risk that some contract owners/participants may be
able to engage in frequent transfer activity while others will bear the effect
of that frequent transfer activity. The potential affects of frequent transfer
activity are discussed above.
REBALANCING YOUR ACCOUNT VALUE
We currently offer a rebalancing program that you can use to automatically
reallocate your account value among the variable investment options. You must
tell us:
(a) the percentage you want invested in each variable investment option (whole
percentages only), and
(b) how often you want the rebalancing to occur (quarterly, semiannually, or
annually on a contract year basis)
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options so that the percentage of your account value that
you specify is invested in each option at the end of each rebalancing date.
Your entire account value must be included in the rebalancing program.
- --------------------------------------------------------------------------------
Rebalancing does not assure a profit or protect against loss. You should
periodically review your allocation percentages as your needs change. You may
want to discuss the rebalancing program with your financial professional before
electing the program.
- --------------------------------------------------------------------------------
You may elect the rebalancing program at any time. You may also change your
allocation instructions or cancel the program at any time. If you request a
transfer while the rebalancing program is in effect, we will process the
transfer as requested; your rebalancing allocations will
Transferring your money among investment options 43
not be changed, and the rebalancing program will remain in effect unless you
request that it be canceled in writing. There is no charge for the rebalancing
feature.
You may not elect the rebalancing program if you are participating in any
dollar cost averaging program. Rebalancing is not available for amounts you
have allocated to the guaranteed interest option or the fixed maturity options.
44 Transferring your money among investment options
4. Accessing your money
- --------------------------------------------------------------------------------
WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your account value before annuity payments
begin. The table below shows the methods available under each type of contract.
More information follows the table.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus and "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum income
benefit, Guaranteed minimum death benefit and Guaranteed principal benefit
option 2," below for more information on how withdrawals affect your guaranteed
benefits and could potentially cause your contract to terminate.
- --------------------------------------------------------------------------------
Method of withdrawal
Lifetime
required
Substantially minimum
Contract Lump sum Systematic equal distribution
- --------------------------------------------------------------------------------
NQ Yes Yes No No
- --------------------------------------------------------------------------------
Rollover IRA Yes Yes Yes Yes
- --------------------------------------------------------------------------------
Roth Con-
version IRA Yes Yes Yes No
- --------------------------------------------------------------------------------
Rollover
TSA* Yes Yes No Yes
- --------------------------------------------------------------------------------
QP Yes No No Yes
- --------------------------------------------------------------------------------
* For some Rollover TSA contracts, your ability to take withdrawals, loans or
surrender your contract may be limited. You must provide withdrawal
restriction information when you apply for a contract. See "Tax Sheltered
Annuity contracts (TSAs)" in "Tax information" later in this Prospectus.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time. (Rollover
TSA contracts may have restrictions). The minimum amount you may withdraw is
$300.
Lump sum withdrawals will be subject to a withdrawal charge if they exceed the
10% free withdrawal amount (see "10% free withdrawal amount" in "Charges and
expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is
outstanding, you may only take lump sum withdrawals as long as the cash value
remaining after any withdrawal equals at least 10% of the outstanding loan plus
accrued interest.
SYSTEMATIC WITHDRAWALS
(All contracts except QP)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value. (Rollover TSA contracts may have
restrictions).
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 0.8% monthly, 2.4% quarterly and 10.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would
be less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
We will make the withdrawals on any day of the month that you select as long as
it is not later than the 28th day of the month. If you do not select a date, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59 1/2 and 70 1/2.
You may change the payment frequency, or the amount or percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
lump sum withdrawal. You can cancel the systematic withdrawal option at any
time.
Systematic withdrawals are not subject to a withdrawal charge, except to the
extent that, when added to a lump sum withdrawal previously taken in the same
contract year, the systematic withdrawal exceeds the 10% free withdrawal
amount. This option is not available if you have elected a guaranteed principal
benefit.
SUBSTANTIALLY EQUAL WITHDRAWALS
(All contracts except QP contracts)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 591/2. See "Tax information" later in this Prospectus. We use one of the
IRS-approved methods for doing this; this is not the exclusive method of
meeting this exception. After consultation with your tax adviser, you may
decide to use another method which would require you to compute amounts
yourself and request lump sum withdrawals. In such a case, a withdrawal charge
may apply. Once you begin to take substantially equal withdrawals, you should
not stop them or change the pattern of your withdrawals until after the later
of age 591/2 or five full years after the first withdrawal. If you stop or
change the withdrawals or take a lump sum withdrawal, you may be liable for the
10% federal tax penalty that would have otherwise been due on prior withdrawals
made under this option and for any interest on the delayed payment of the
penalty.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may change, without penalty, from one of the
IRS-approved methods of calculating fixed payments to another IRS-approved
method (similar to the required minimum distribution rules) of calculating
payments which vary each year.
Accessing your money 45
You may elect to take substantially equal withdrawals at any time before age
591/2. We will make the withdrawal on any day of the month that you select as
long as it is not later than the 28th day of the month. You may not elect to
receive the first payment in the same contract year in which you took a lump
sum withdrawal. We will calculate the amount of your substantially equal
withdrawals using the IRS-approved method we offer. The payments will be made
monthly, quarterly or annually as you select. These payments will continue
until we receive written notice from you to cancel this option or you take a
lump sum withdrawal. You may elect to start receiving substantially equal
withdrawals again, but the payments may not restart in the same contract year
in which you took a lump sum withdrawal. We will calculate the new withdrawal
amount.
Substantially equal withdrawals that we calculate for you are not subject to a
withdrawal charge. This option is not available if you have elected a
guaranteed principal benefit.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA and Rollover TSA and QP contracts only -- See "Tax information"
later in this Prospectus)
We offer our "automatic required minimum distribution (RMD) service" to help
you meet lifetime required minimum distributions under federal income tax
rules. This is not the exclusive way for you to meet these rules. After
consultation with your tax adviser, you may decide to compute required minimum
distributions yourself and request lump sum withdrawals. In such a case, a
withdrawal charge may apply. Before electing this account based withdrawal
option, you should consider whether annuitization might be better in your
situation. If you have elected certain additional benefits, such as the
Guaranteed minimum death benefit amounts withdrawn from the contract to meet
RMDs will reduce the benefit base and may limit the utility of the benefit.
Also, please refer to "Tax information" later in this Prospectus for
considerations on annuity contracts funding qualified plans, TSAs, and IRAs.
You may elect this service in the year in which you reach age 701/2 or in any
later year. The minimum amount we will pay out is $250. Currently, minimum
distribution withdrawal payments will be made annually. See "Required minimum
distributions" in "Tax information" later in this Prospectus for your specific
type of retirement arrangement.
We do not impose a withdrawal charge on minimum distribution withdrawals if you
are enrolled in our automatic RMD service except if, when added to a lump sum
withdrawal previously taken in the same contract year, the minimum distribution
withdrawal exceeds the 10% free withdrawal amount.
Under Rollover TSA contracts, you may not elect our automatic RMD service if a
loan is outstanding.
If you elect Principal Protector(SM), provided no other withdrawals are taken
during a contract year in which you participate in our Automatic RMD service,
an automatic withdrawal using our service will not cause a GWB Excess
withdrawal, even if it exceeds your GWB Annual withdrawal amount. If you take
any other withdrawal while you participate in the service, however, this GWB
Excess withdrawal exception terminates permanently. In order to take advantage
of this exception, you must elect and maintain participation in our Automatic
RMD service at your required beginning date, or the contract date, if your
required beginning date has occurred before the contract was purchased. See
"Principal Protector(SM)" in "Contract features and benefits" earlier in this
Prospectus for further information.
- --------------------------------------------------------------------------------
FOR ROLLOVER IRA AND ROLLOVER TSA CONTRACTS, WE WILL SEND A FORM OUTLINING THE
DISTRIBUTION OPTIONS AVAILABLE IN THE YEAR YOU REACH AGE 701/2 (IF YOU HAVE NOT
BEGUN YOUR ANNUITY PAYMENTS BEFORE THAT TIME).
- --------------------------------------------------------------------------------
HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your value in the variable investment options and the guaranteed
interest account. If there is insufficient value or no value in the variable
investment options and the guaranteed interest account, any additional amount
of the withdrawal required or the total amount of the withdrawal will be
withdrawn from the fixed maturity options (other than the Special 10 year fixed
maturity option) in the order of the earliest maturity date(s) first. If such
amounts are still insufficient, we will deduct any remaining portion from the
Special 10 year fixed maturity option. A market value adjustment will apply to
withdrawals from the fixed maturity options (including the Special 10 year
fixed maturity option).
HOW WITHDRAWALS (AND TRANSFERS OUT OF THE SPECIAL 10 YEAR FIXED MATURITY
OPTION) AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT, GUARANTEED MINIMUM DEATH
BENEFIT AND GUARANTEED PRINCIPAL BENEFIT OPTION 2
In general, withdrawals will reduce your guaranteed benefits on a pro rata
basis. Reduction on a pro rata basis means that we calculate the percentage of
your current account value that is being withdrawn and we reduce your current
benefit by the same percentage. For example, if your account value is $30,000
and you withdraw $12,000, you have withdrawn 40% of your account value. If your
benefit was $40,000 before the withdrawal, it would be reduced by $16,000
($40,000 X .40) and your new benefit after the withdrawal would be $24,000
($40,000-$16,000).
Transfers out of the Special 10 year fixed maturity option will reduce GPB
Option 2 on a pro rata basis. In addition, if you make a contract withdrawal
from the Special 10 year fixed maturity option, we will reduce your GPB Option
2 in a similar manner; however, the reduction will reflect both a transfer out
of the Special 10 year fixed maturity option and a withdrawal from the
contract. Therefore, the reduction in GPB Option 2 is greater when you take a
contract withdrawal from the Special 10 year fixed maturity option than it
would be if you took the withdrawal from another investment option.
Similar to the example above, if your account value is $30,000 and you withdraw
$12,000 from the Special 10 year fixed maturity option, you have withdrawn 40%
of your account value. If your GPB Option 2 benefit was $40,000 before the
withdrawal, the reduction to reflect the transfer out of the Special 10 year
fixed maturity option would equal $16,000 ($40,000 x .40). The amount used to
calculate the
46 Accessing your money
reduction to reflect the withdrawal from the contract is $24,000 ($40,000 -
$16,000). The reduction to reflect the withdrawal would equal $9,600 ($24,000 x
..40), and your new benefit after the withdrawal would be $14,400 ($24,000 -
$9,600).
With respect to the Guaranteed minimum income benefit and the greater of 6%
Roll up to age 85 or the Annual Ratchet to age 85 enhanced death benefit,
withdrawals will reduce each of the benefits' 6% Roll up to age 85 benefit base
on a dollar-for-dollar basis, as long as the sum of withdrawals in a contract
year is 6% or less of the 6% Roll up benefit base on the most recent contract
date anniversary. Additional contributions made during the contract year do not
affect the amount of the withdrawals that can be taken on a dollar-for-dollar
basis in that contract year. Once a withdrawal is taken that causes the sum of
withdrawals in a contract year to exceed 6% of the benefit base on the most
recent anniversary, that entire withdrawal and any subsequent withdrawals in
that same contract year will reduce the benefit base pro rata. Reduction on a
dollar-for-dollar basis means that your 6% Roll up to age 85 benefit base will
be reduced by the dollar amount of the withdrawal for each Guaranteed benefit.
The Annual Ratchet to age 85 benefit base will always be reduced on a pro rata
basis.
HOW WITHDRAWALS AFFECT PRINCIPAL PROTECTOR(SM)
If you elect Principal Protector(SM), any withdrawal reduces your GWB benefit
base by the amount of the withdrawal. In addition, a GWB Excess withdrawal can
significantly reduce your GWB Annual withdrawal amount and further reduce your
GWB benefit base. For more information, see "Effect of GWB Excess withdrawals"
and "Other important considerations" under "Principal Protector(SM)" in
"Contract features and benefits" earlier in this Prospectus.
WITHDRAWALS TREATED AS SURRENDERS
If you withdraw more than 90% of a contract's current cash value, we will treat
it as a request to surrender the contract for its cash value. In addition, we
have the right to pay the cash value and terminate this contract if no
contributions are made during the last three completed contract years, and the
account value is less than $500, or if you make a withdrawal that would result
in a cash value of less than $500. See "Surrendering your contract to receive
its cash value" below. For the tax consequences of withdrawals, see "Tax
information" later in this Prospectus.
SPECIAL RULES FOR PRINCIPAL PROTECTOR(SM). If you elect Principal
Protector(SM), all withdrawal methods described above can be used. We will not
treat a withdrawal request that results in a withdrawal in excess of 90% of the
contract's cash value as a request to surrender the contract unless it is a GWB
Excess withdrawal. In addition, we will not terminate your contract if either
your account value or cash value falls below $500, unless it is due to a GWB
Excess withdrawal. In other words, if you take a GWB Excess withdrawal that
equals more than 90% of your cash value or reduces your cash value to less than
$500, we will treat your request as a surrender of your contract even if your
GWB benefit base is greater than zero. Please also see "Termination of your
contract" in "Determining your contract value" earlier in this Prospectus.
Please also see "Principal Protector(SM)" in "Contract features and benefits,"
earlier in this Prospectus, for more information on how withdrawals affect your
guaranteed benefits and could potentially cause your contract to terminate.
LOANS UNDER ROLLOVER TSA CONTRACTS
You may take loans from a Rollover TSA unless restricted by the employer who
provided the Rollover TSA funds. If you cannot take a loan, or cannot take a
loan without approval from the employer who provided the funds, we will have
this information in our records based on what you and the employer who provided
the funds told us when you purchased your contract. The employer must also tell
us whether special employer plan rules of the Employee Retirement Income
Security Act of 1974 ("ERISA") apply. We will not permit you to take a loan
while you are enrolled in our "automatic required minimum distribution (RMD)
service."
You should read the terms and conditions on our loan request form carefully
before taking out a loan. Under Rollover TSA contracts subjected to ERISA, you
may only take a loan with the written consent of your spouse. Your contract
contains further details of the loan provision. Please see Appendix VIII later
in this Prospectus for any state restrictions you may be subject to if you take
a loan from a Rollover TSA contract. Also, see "Tax information" later in this
Prospectus, for general rules applicable to loans.
We will permit you to have only one loan outstanding at a time. The minimum
loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your
account value, subject to any limits under the federal income tax rules. The
term of the loan is five years. However, if you use the loan to acquire your
primary residence, the term is 10 years. The term may not extend beyond the
earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
(3) the date a death benefit is paid (the outstanding loan will be deducted from
the death benefit amounts).
A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the properly completed
loan request form is received. Interest will accrue daily on your outstanding
loan at a rate we set. The loan interest rate will be equal to the Moody's
Corporate Bond Yield Averages for Baa bonds for the calendar month ending two
months before the first day of the calendar quarter in which the rate is
determined.
LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the
amount of your loan to the loan reserve account. Unless you specify otherwise,
we will subtract your loan on a pro rata basis from your value in the variable
investment options and the guaranteed interest option. If those amounts are
insufficient, any additional amount of the loan will be subtracted from the
fixed maturity options (other than the Special 10 year fixed maturity option)
in the order of the earliest maturity date(s) first. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. A market value adjustment will apply to withdrawals from
the fixed maturity options (including the Special 10 year fixed maturity
option). If the amounts are withdrawn from the Special 10 year fixed maturity
option, the guaranteed benefit will be adversely
Accessing your money 47
affected. See "Guaranteed principal benefit option 2" in "Contract features and
benefits" earlier in this Prospectus.
We will credit interest to the amount in the loan reserve account at a rate of
2% lower than the loan interest rate that applies for the time your loan is
outstanding. On each contract date anniversary after the date the loan is
processed, we will transfer the amount of interest earned in the loan reserve
account to the variable investment options on a pro rata basis. When you make a
loan repayment, unless you specify otherwise, we will transfer the dollar
amount of the loan repaid from the loan reserve account to the investment
options according to the allocation percentages we have on our records. Loan
repayments are not considered contributions and therefore are not eligible for
additional credits.
SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time while the
annuitant is living and before you begin to receive annuity payments. (Rollover
TSA contracts may have restrictions). For a surrender to be effective, we must
receive your written request and your contract at our processing office. We
will determine your cash value on the date we receive the required information.
All benefits under the contract will terminate as of the date we receive the
required information, including Principal Protector(SM) (if applicable), if your
cash value is greater than your GWB Annual withdrawal amount. If you have a GWB
benefit base greater than zero, you should consider the impact of a contract
surrender on the Principal Protector(SM) benefit. If your surrender request does
not constitute a GWB Excess withdrawal, you may be eligible for additional
benefits. If, however, your surrender request constitutes a GWB Excess
withdrawal, you will lose those benefits. For more information, please see
"Annuity benefit" under "Termination of your contract" in "Determining your
contract value" and "Principal Protector(SM)" in "Contract features and
benefits" earlier in this Prospectus.
You may receive your cash value in a single sum payment or apply it to one or
more of the annuity payout options. See "Your annuity payout options" below.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments out of the variable investment
options within seven calendar days after the date of the transaction to which
the request relates. These transactions may include applying proceeds to a
variable annuity, payment of a death benefit, payment of any amount you
withdraw (less any withdrawal charge) and, upon surrender, payment of the cash
value. We may postpone such payments or applying proceeds for any period during
which:
(1) the New York Stock Exchange is closed or restricts trading,
(2) sales of securities or determination of the fair value of a variable
investment option's assets is not reasonably practicable because of an
emergency, or
(3) the SEC, by order, permits us to defer payment to protect people remaining
in the variable investment options.
We can defer payment of any portion of your value in the guaranteed interest
account and fixed maturity options (other than for death benefits) for up to
six months while you are living. We also may defer payments for a reasonable
amount of time (not to exceed 10 days) while we are waiting for a contribution
check to clear.
All payments are made by check and are mailed to you (or the payee named in a
tax-free exchange) by U.S. mail, unless you request that we use an express
delivery service at your expense.
YOUR ANNUITY PAYOUT OPTIONS
Accumulator(R) Plus(SM) offers you several choices of annuity payout options.
Some enable you to receive fixed annuity payments which can be either level or
increasing, and others enable you to receive variable annuity payments. Please
see Appendix VIII later in this Prospectus for variations that may apply to
your state.
You can choose from among the annuity payout options listed below. Restrictions
may apply, depending on the type of contract you own or the annuitant's age at
contract issue. In addition, if you are exercising your Guaranteed minimum
income benefit, your choice of payout options are those that are available
under the Guaranteed minimum income benefit (see "Our Guaranteed minimum income
benefit option" in "Contract features and benefits" earlier in this
Prospectus). If you elect Principal Protector(SM) and choose to annuitize your
contract, Principal Protector(SM) will terminate without value even if your GWB
benefit base is greater than zero. Payments you receive under the annuity
payout option you select may be less than your GWB benefit base. See "Principal
Protector(SM)" in "Contract features and benefits" earlier in this Prospectus
for further information.
- -----------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period certain
Life annuity with refund certain
Period certain annuity
- -----------------------------------------------------------------------
Variable Immediate Annuity Life annuity
payout options Life annuity with period certain
- -----------------------------------------------------------------------
Income Manager(R) payout Life annuity with period certain
options (available for annuitants Period certain annuity
age 83 or less at contract issue)
- -----------------------------------------------------------------------
o Life annuity: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment before the
annuitant's death. Because there is no continuation of benefits following
the annuitant's death with this payout option, it provides the highest
monthly payment of any of the life annuity options, so long as the annuitant
is living.
o Life annuity with period certain: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the end of a
selected period of time ("period certain"), payments continue to the
beneficiary for the balance of the period certain. The period certain cannot
extend beyond the annuitant's life expectancy. A life annuity with a period
certain is the form of annuity under the contracts that you will receive if
you do not elect a differ-
48 Accessing your money
ent payout option. In this case, the period certain will be based on the
annuitant's age and will not exceed 10 years.
o Life annuity with refund certain: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the amount
applied to purchase the annuity option has been recovered, payments to the
beneficiary will continue until that amount has been recovered. This payout
option is available only as a fixed annuity.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15, or 20 years. This guaranteed period may
not exceed the annuitant's life expectancy. This option does not guarantee
payments for the rest of the annuitant's life. It does not permit any
repayment of the unpaid principal, so you cannot elect to receive part of
the payments as a single sum payment with the rest paid in monthly annuity
payments. This payout option is available only as a fixed annuity.
The life annuity, life annuity with period certain, and life annuity with
refund certain payout options are available on a single life or joint and
survivor life basis. The joint and survivor life annuity guarantees payments
for the rest of the annuitant's life and, after the annuitant's death, payments
continue to the survivor. We may offer other payout options not outlined here.
Your financial professional can provide you with details.
FIXED ANNUITY PAYOUT OPTIONS
With fixed annuities, we guarantee fixed annuity payments will be based either
on the tables of guaranteed annuity purchase factors in your contract or on our
then current annuity purchase factors, whichever is more favorable for you.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS
Variable Immediate Annuities are described in a separate prospectus that is
available from your financial professional. Before you select a Variable
Immediate Annuity payout option, you should read the prospectus which contains
important information that you should know.
Variable Immediate Annuities may be funded through your choice of available
variable investment options investing in portfolios of the EQ Advisers Trust
and AXA Premier VIP Trust. The contract also offers a fixed income annuity
payout option that can be elected in combination with the variable annuity
payout option. The amount of each variable income annuity payment will
fluctuate, depending upon the performance of the variable investment options,
and whether the actual rate of investment return is higher or lower than an
assumed base rate.
INCOME MANAGER(R) PAYOUT OPTIONS
The Income Manager(R) payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts may provide higher or
lower income levels, but do not have all the features of the Income Manager(R)
payout annuity contract. You may request an illustration of the Income
Manager(R) payout annuity contract from your financial professional. Income
Manager(R) payout options are described in a separate prospectus that is
available from your financial professional. Before you select an Income
Manager(R) payout option, you should read the prospectus which contains
important information that you should know.
Both NQ and IRA Income Manager(R) payout options provide guaranteed level
payments. The Income Manager(R) (life annuity with period certain) also
provides guaranteed increasing payments (NQ contracts only). You may not elect
an Income Manager(R) payout option without life contingencies unless withdrawal
charges are no longer in effect under your Accumulator(R) Plus(SM).
For QP and Rollover TSA contracts, if you want to elect an Income Manager(R)
payout option, we will first roll over amounts in such contract to a Rollover
IRA contract with the plan participant as owner. You must be eligible for a
distribution under the QP or Rollover TSA contract.
You may choose to apply your account value of your Accumulator(R) Plus(SM)
contract to an Income Manager(R) payout annuity. In this case, we will consider
any amounts applied as a withdrawal from your Accumulator(R) Plus(SM). For the
tax consequences of withdrawals, see "Tax information" later in this
Prospectus.
Depending upon your circumstances, an Income Manager(R) contract may be
purchased on a tax-free basis. Please consult you tax adviser. The Income
Manager(R) payout options are not available in all states.
THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION
The amount applied to purchase an annuity payout option varies, depending on
the payout option that you choose, and the timing of your purchase as it
relates to any withdrawal charges.
For the fixed annuity payout options and Variable Immediate Annuity payout
options, no withdrawal charge is imposed if you select a life annuity, life
annuity with period certain or life annuity with refund certain.
For the fixed annuity payout option, the withdrawal charge applicable under
your Accumulator(R) Plus(SM) is imposed if you select a period certain. If the
period certain is more than 5 years, then the withdrawal charge deducted will
not exceed 5% of the account value.
For the Income Manager(R) payout life contingent options, no withdrawal charge
is imposed under the Accumulator(R) Plus(SM). If the withdrawal charge that
otherwise would have been applied to your account value under your
Accumulator(R) Plus(SM) is greater than 2% of the contributions that remain in
your contract at the time you purchase your payout option, the withdrawal
charges under the Income Manager(R) will apply. The year in which your account
value is applied to the payout option will be "contract year 1."
SELECTING AN ANNUITY PAYOUT OPTION
When you select a payout option, we will issue you a separate written agreement
confirming your right to receive annuity payments. We require you to return
your contract before annuity payments begin. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin from the Accumulator(R) Plus(SM)
contract. Generally, the date annuity payments begin may
Accessing your money 49
not be earlier than five years (in a limited number of jurisdictions this
requirement may be more or less than 5 years) from the contract date. Please
see Appendix VIII later in this Prospectus for information on state variations.
Except with respect to Income Manager(R) annuity payout options, where payments
are made on the 15th day of each month, you can change the date your annuity
payments are to begin anytime before that date as long as you do not choose a
date later than the 28th day of any month. Also, that date may not be later
than the annuity maturity date described below.
If you start receiving annuity payments within three years of making any
contribution, we will recover the credit that applies to any contribution made
within the prior three years. Please see Appendix VIII later in this Prospectus
for information on state variations.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier. Your financial professional can provide you with additional
information about your annuity payment options.
In no event will you ever receive payments under a fixed option or an initial
payment under a variable option of less than the minimum amounts guaranteed by
the contract.
If, at the time you elect a payout option, the amount to be applied is less
than $2,000 or the initial payment under the form elected is less than $20
monthly, we reserve the right to pay the account value in a single sum rather
than as payments under the payout option chosen.
ANNUITY MATURITY DATE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 95th birthday.
Please see Appendix VIII later in this Prospectus for variations that may apply
in your state.
Before the last day by which your annuity payments must begin, we will notify
you by letter. Once you have selected an annuity payout option and payments
have begun, no change can be made other than: (i) transfers (if permitted in
the future) among the variable investment options if a Variable Immediate
Annuity payout option is selected; and (ii) withdrawals or contract surrender
(subject to a market value adjustment) if an Income Manager(R) annuity payout
option is chosen.
50 Accessing your money
5. Charges and expenses
- --------------------------------------------------------------------------------
CHARGES THAT AXA EQUITABLE DEDUCTS
We deduct the following charges each day from the net assets of each variable
investment option. These charges are reflected in the unit values of each
variable investment option:
o A mortality and expense risks charge
o An administrative charge
o A distribution charge
We deduct the following charges from your account value. When we deduct these
charges from your variable investment options, we reduce the number of units
credited to your contract:
o On each contract date anniversary -- an annual administrative charge, if
applicable.
o At the time you make certain withdrawals or surrender your contract -- a
withdrawal charge.
o On each contract date anniversary -- a charge if you elect a death benefit
(other than the Standard death benefit).
o On each contract date anniversary -- a charge for the Guaranteed minimum
income benefit, if you elect this optional benefit.
o On each contract date anniversary -- a charge for Principal Protector(SM),
if you elect this optional benefit.
o On each contract date anniversary -- a charge for Protection Plus(SM), if
you elect this optional benefit.
o On the first 10 contract date anniversaries -- a charge for GPB Option 2, if
you elect this optional benefit.
o At the time annuity payments are to begin -- charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your
state. An annuity administrative fee may also apply.
More information about these charges appears below. We will not increase these
charges for the life of your contract, except as noted. We may reduce certain
charges under group or sponsored arrangements. See "Group or sponsored
arrangements" later in this section.
The charges under the contracts are designed to cover, in the aggregate, our
direct and indirect costs of selling, administering and providing benefits
under the contracts. They are also designed, in the aggregate, to compensate us
for the risks of loss we assume pursuant to the contracts. If, as we expect,
the charges that we collect from the contracts exceed our total costs in
connection with the contracts, we will earn a profit. Otherwise, we will incur
a loss.
The rates of certain of our charges have been set with reference to estimates
of the amount of specific types of expenses or risks that we will incur. In
most cases, this Prospectus identifies such expenses or risks in the name of
the charge; however, the fact that any charge bears the name of, or is designed
primarily to defray, a particular expense or risk does not mean that the amount
we collect from that charge will never be more than the amount of such expense
or risk. Nor does it mean that we may not also be compensated for such expense
or risk out of any other charges we are permitted to deduct by the terms of the
policies.
To help with your retirement planning, we may offer other annuities with
different charges, benefits, and features. Please contact your financial
professional for more information.
MORTALITY AND EXPENSE RISKS CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for mortality and expense risks, including the Standard death
benefit. The daily charge is equivalent to an annual rate of 0.90% of the net
assets in each variable investment option.
The mortality risk we assume is the risk that annuitants as a group will live
for a longer time than our actuarial tables predict. If that happens, we would
be paying more in annuity income than we planned. We also assume a risk that
the mortality assumptions reflected in our guaranteed annuity payment tables,
shown in each contract, will differ from actual mortality experience. Lastly,
we assume a mortality risk to the extent that at the time of death, the
Guaranteed minimum death benefit exceeds the cash value of the contract. The
expense risk we assume is the risk that it will cost us more to issue and
administer the contracts than we expect. A portion of this charge also
compensates us for the contract credit. For a discussion of the credit, see
"Credits" in "Contract features and benefits" earlier in this Prospectus. We
expect to make a profit from this charge.
ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for administrative expenses under the contracts. The daily
charge is equivalent to an annual rate of 0.35% of the net assets in each
variable investment option.
DISTRIBUTION CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for a portion of our sales expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on each contract
date anniversary. We deduct the charge if your account value on the last
business day of the contract year is less than $50,000. If your account value
on such date is $50,000 or more, we do not deduct the charge. During the first
two contract years, the charge is equal to $30 or, if less, 2% of your account
value. The charge is $30 for contract years three and later.
Charges and expenses 51
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VIII later in this Prospectus
to see if deducting this charge from the guaranteed interest option is
permitted in your state) on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options (other than the Special 10 year fixed maturity option) in the
order of the earliest maturity date(s) first. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. If the contract is surrendered or annuitized or a death
benefit is paid, we will deduct a pro rata portion of the charge for that year.
A market value adjustment will apply to deductions from the fixed maturity
options (including the Special 10 year fixed maturity option).
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
WITHDRAWAL CHARGE
A withdrawal charge applies in two circumstances: (1) if you make one or more
withdrawals during a contract year that, in total, exceed the 10% free
withdrawal amount, described below, or (2) if you surrender your contract to
receive its cash value or apply your cash value to a non life contingent
annuity payout option. A portion of this charge also compensates us for the
contract credit. For a discussion of the credit, see "Credits" in "Contracts
features and benefits" earlier in this Prospectus. We expect to make a profit
from this charge.
The withdrawal charge equals a percentage of the contributions withdrawn. We do
not consider credits to be contributions. Therefore, there is no withdrawal
charge associated with a credit.
The percentage of the withdrawal charge that applies to each contribution
depends on how long each contribution has been invested in the contract. We
determine the withdrawal charge separately for each contribution according to
the following table:
- ---------------------------------------------------------------------
Contract year
- ---------------------------------------------------------------------
1 2 3 4 5 6 7 8 9+
- ---------------------------------------------------------------------
Percentage of
contribution 8% 8% 7% 7% 6% 5% 4% 3% 0%
- ---------------------------------------------------------------------
For purposes of calculating the withdrawal charge, we treat the contract year
in which we receive a contribution as "contract year 1." Amounts withdrawn up
to the free withdrawal amount are not considered withdrawals of any
contribution. We also treat contributions that have been invested the longest
as being withdrawn first. We treat contributions as withdrawn before earnings
for purposes of calculating the withdrawal charge. However, federal income tax
rules treat earnings under your contract as withdrawn first. See "Tax
information" later in this Prospectus.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and the withdrawal charge from your account
value. Any amount deducted to pay withdrawal charges is also subject to the
same withdrawal charge percentage. We deduct the charge in proportion to the
amount of the withdrawal subtracted from each variable investment option. The
withdrawal charge helps cover our sales expenses.
The withdrawal charge does not apply in the circumstances described below.
10% FREE WITHDRAWAL AMOUNT. Each contract year you can withdraw up to 10% of
your account value without paying a withdrawal charge. The 10% free withdrawal
amount is determined using your account value at the beginning of each contract
year, or in the case of the first contract year, your initial contribution,
minus any other withdrawals made during the contract year. Additional
contributions during the contract year do not increase your 10% free withdrawal
amount. The 10% free withdrawal amount does not apply if you surrender your
contract except where required by law.
If you elect Principal Protector(SM), we will waive any withdrawal charge for
any withdrawal during the contract year up to the GWB Annual withdrawal amount,
even if such withdrawals exceed the free withdrawal amount. However, each
withdrawal reduces the free withdrawal amount for that contract year by the
amount of the withdrawal. Withdrawal charges are applied to the amount of the
withdrawal that exceeds the GWB Annual withdrawal amount.
CERTAIN WITHDRAWALS. If you elected the Guaranteed minimum income benefit
and/or the Greater of 6% roll up to age 85 or the annual ratchet to age 85
enhanced death benefit, the withdrawal charge will be waived for any withdrawal
that, together with any prior withdrawals made during the contract year, does
not exceed 6% of the beginning of contract year rollup portion of the related
benefit bases. If your withdrawal exceeds the amount described above, this
waiver is not applicable to that withdrawal, or to any subsequent withdrawal
for the life of the contract.
DISABILITY, TERMINAL ILLNESS, OR CONFINEMENT TO NURSING HOME. The withdrawal
charge also does not apply if:
(i) The annuitant has qualified to receive Social Security disability
benefits as certified by the Social Security Administration; or
(ii) We receive proof satisfactory to us (including certification by a
licensed physician) that the annuitant's life expectancy is six
months or less; or
(iii) The annuitant has been confined to a nursing home for more than
90 days (or such other period, as required in your state) as verified
by a licensed physician. A nursing home for this purpose means one
that is (a) approved by Medicare as a provider of skilled nursing
care service, or (b) licensed as a skilled nursing home by the
state or territory in which it is located (it must be within the
United States, Puerto Rico, or U.S. Virgin Islands) and meets all of
the following:
-- its main function is to provide skilled, intermediate, or
custodial nursing care;
-- it provides continuous room and board to three or more persons;
-- it is supervised by a registered nurse or licensed practical
nurse;
-- it keeps daily medical records of each patient;
52 Charges and expenses
-- it controls and records all medications dispensed; and
-- its primary service is other than to provide housing for residents.
We reserve the right to impose a withdrawal charge, in accordance with your
contract and applicable state law, if the conditions as described in (i), (ii)
or (iii) above existed at the time a contribution was remitted or if the
condition that began within 12 months of the period following remittance. Some
states may not permit us to waive the withdrawal charge in the above
circumstances, or may limit the circumstances for which the withdrawal charge
may be waived. Your financial professional can provide more information or you
may contact our processing office.
GUARANTEED MINIMUM DEATH BENEFIT CHARGE
ANNUAL RATCHET TO AGE 85. If you elect the Annual Ratchet to age 85 enhanced
death benefit, we deduct a charge annually from your account value on each
contract date anniversary for which it is in effect. The charge is equal to
0.25% of the Annual Ratchet to age 85 benefit base.
GREATER OF 6% ROLL UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this
enhanced death benefit, we deduct a charge annually from your account value on
each contract date anniversary for which it is in effect. The charge is equal
to 0.60% of the greater of the 6% Roll up to age 85 or the Annual Ratchet to
age 85 benefit base.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VIII later in this Prospectus
to see if deducting this charge from the guaranteed interest account is
permitted in your state) on a pro rata basis. If those amount are insufficient,
we will deduct all or a portion of the charge from the fixed maturity options
(other than the Special 10 year fixed maturity option) in the order of the
earliest maturity date(s) first. If such amounts are still insufficient, we
will deduct any remaining portion from the Special 10 year fixed maturity
option. If the contract is surrendered or annuitized or a death benefit is
paid, we will deduct a pro rata portion of the charge for that year. A market
value adjustment will apply to deductions from the fixed maturity options
(including the Special 10 year fixed maturity option).
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
STANDARD DEATH BENEFIT. There is no additional charge for the standard death
benefit.
GUARANTEED PRINCIPAL BENEFIT OPTION 2
If you purchase GPB Option 2, we deduct a charge annually from your account
value on the first 10 contract date anniversaries. The charge is equal 0.50% of
the account value. We will deduct this charge from your value in the variable
investment options and the guaranteed interest option (see Appendix VIII later
in this Prospectus to see if deducting this charge from the guaranteed interest
option is permitted in your state) on a pro rata basis. If those amounts are
insufficient, we will deduct any remaining portion of the charge from amounts
in any fixed maturity options (other than the Special 10 year fixed maturity
option) in the order of the earliest maturity date(s) first. If such amounts
are still insufficient, we will deduct any remaining portion from the Special
10 year fixed maturity option. If the contract is surrendered or annuitized or
a death benefit is paid, we will deduct a pro rata portion of the charge for
that year. A market value adjustment will apply to deductions from the fixed
maturity options (including the Special 10 year fixed maturity option).
GUARANTEED MINIMUM INCOME BENEFIT CHARGE
If you elect the Guaranteed minimum income benefit, we deduct a charge annually
from your account value on each contract date anniversary until such time as
you exercise the Guaranteed minimum income benefit, elect another annuity
payout option or the contract date anniversary after the annuitant reaches age
85, whichever occurs first. The charge is equal to 0.65% of the applicable
benefit base in effect on the contract date anniversary.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VIII later in this Prospectus
to see if deducting this charge from the guaranteed interest option is
permitted in your state) on a pro rata basis. If those amounts are still
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in the order of the earliest maturity date(s) first. If the
contract is surrendered or annuitized or a death benefit is paid, we will
deduct a pro rata portion of the charge for that year. A market value
adjustment will apply to deductions from the fixed maturity options.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
PROTECTION PLUS(SM)CHARGE
If you elect Protection Plus(SM), we deduct a charge annually from your account
value on each contract date anniversary for which it is in effect. The charge
is equal to 0.35% of the account value on each contract date anniversary. We
will deduct this charge from your value in the variable investment options and
the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options (other than the Special 10 year fixed maturity option) in the
order of the earliest maturity date(s) first. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. If the contract is surrendered or annuitized or a death
benefit is paid, we will deduct a pro rata portion of the charge for that year.
A market value adjustment will apply to deductions from the fixed maturity
options (including the Special 10 year fixed maturity option).
PRINCIPAL PROTECTOR(SM) CHARGE
If you elect Principal Protector(SM), we deduct a charge annually as a
percentage of your account value on each contract anniversary. If you elect
the 5% GWB Annual withdrawal option, the charge is equal to
Charges and expenses 53
0.35%. If you elect the 7% GWB Annual withdrawal option, the charge is equal to
0.50%. We will deduct this charge from your value in the variable investment
options and the guaranteed interest option (See Appendix VIII later in this
Prospectus to see if deducting this charge from the guaranteed interest option
is permitted in your state.) on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in the order of the earliest maturity date(s) first. If the
contract is surrendered or annuitized or a death benefit is paid, we will
deduct a pro rata portion of the charge for that year. If you die, and your
beneficiary continues Principal Protector(SM) under the Beneficiary continuation
option we will not deduct a pro rata portion of the charge upon your death.
However, the Principal Protector(SM) charge will continue. A market value
adjustment will apply to deductions from the fixed maturity options.
If your GWB benefit base falls to zero but your contract is still in force, the
charge will be suspended as of the next contract date anniversary. The charge
will be reinstated, as follows: (i) if you make a subsequent contribution, we
will reinstate the charge that was in effect at the time your GWB benefit base
became depleted, (ii) if you elect to exercise the Optional step up provision,
we will reinstate a charge, as discussed immediately below, and (iii) if your
beneficiary elects the Beneficiary continuation option and reinstates the
Principal Protector(SM) benefit with a one time step up, we will reinstate the
charge that was in effect when the GWB benefit base fell to zero.
If your beneficiary elects the Beneficiary continuation option, and is eligible
to continue Principal Protector(SM), the benefit and the charge will continue
unless your beneficiary tells us to terminate the benefit at the time of
election.
OPTIONAL STEP UP CHARGE. Every time you elect the Optional step up, we reserve
the right to raise the benefit charge at the time of the step up. The maximum
charge for Principal Protector(SM) with a 5% GWB Annual withdrawal option is
0.60%. The maximum charge for Principal Protector(SM) with a 7% GWB Annual
withdrawal amount option is 0.80%. The increased charge, if any, will apply as
of the next contract anniversary following the step up and on all contract
anniversaries thereafter.
If you die and your beneficiary elects the Beneficiary continuation option, if
available, a one time step up only (at no additional charge) is applicable. For
more information on the Optional step up, one time step up and Automatic reset
provisions, see "Principal Protector(SM)" in "Contract features and benefits."
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state. Generally, we deduct the charge from
the amount applied to provide an annuity payout option. The current tax charge
that might be imposed varies by jurisdiction and ranges from 0% to 3.5%.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $350 from the amount to be applied to the Variable Immediate
annuity payout option.
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
o Management fees ranging from 0.10% to 1.50%.
o 12b-1 fees of either 0.25% or 0.35%.
o Operating expenses, such as trustees' fees, independent public accounting
firms' fees, legal counsel fees, administrative service fees, custodian
fees and liability insurance.
o Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of each Trust are purchased at their net asset value, these fees and
expenses are, in effect, passed on to the variable investment options and are
reflected in their unit values. For more information about these charges,
please refer to the prospectuses for the Trusts.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the withdrawal
charge or the mortality and expense risks charge or change the minimum initial
contribution requirements. We also may change the Guaranteed minimum income
benefit or the Guaranteed minimum death benefit, or offer variable investment
options that invest in shares of the Trusts that are not subject to the 12b-1
fee. If permitted under the terms of our exemptive order regarding
Accumulator(R) Plus(SM) bonus feature, we may also change the crediting
percentage that applies to contributions. Group arrangements include those in
which a trustee or an employer, for example, purchases contracts covering a
group of individuals on a group basis. Group arrangements are not available for
Rollover IRA and Roth Conversion IRA contracts. Sponsored arrangements include
those in which an employer allows us to sell contracts to its employees or
retirees on an individual basis.
Our costs for sales, administration and mortality generally vary with the size
and stability of the group or sponsoring organization, among other factors. We
take all these factors into account when reducing charges. To qualify for
reduced charges, a group or sponsored arrangement must meet certain
requirements, such as requirements for size and number of years in existence.
Group or sponsored arrangements that have been set up solely to buy contracts
or that have been in existence less than six months will not qualify for
reduced charges.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these rules from time to
time. Any variation will reflect differences in costs or services and will not
be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules,
ERISA or both. We make no representations with regard to the impact of these
and other applicable laws on such programs. We recommend that employers,
trustees, and others purchasing or making contracts available for purchase
under such programs seek the advice of their own legal and benefits advisers.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that results
in savings of sales and administrative expenses, such
54 Charges and expenses
as sales through persons who are compensated by clients for recommending
investments and who receive no commission or reduced commissions in connection
with the sale of the contracts. We will not permit a reduction or elimination
of charges where it would be unfairly discriminatory.
Charges and expenses 55
6. Payment of death benefit
- --------------------------------------------------------------------------------
YOUR BENEFICIARY AND PAYMENT OF BENEFIT
You designate your beneficiary when you apply for your contract. You may change
your beneficiary at any time. The change will be effective on the date the
written request for the change is received in our processing office. We are not
responsible for any beneficiary change request that we do not receive. We will
send you written confirmation when we receive your request.
Under jointly owned contracts, the surviving owner is considered the
beneficiary, and will take the place of any other beneficiary. You may be
limited as to the beneficiary you can designate in a Rollover TSA contract. In
a QP contract, the beneficiary must be the trustee. Where an NQ contract is
owned by a minor pursuant to the Uniform Gift to Minors Act or the Uniform
Transfers to Minors Act, the beneficiary must be the estate of the annuitant.
Where an IRA contract is owned in a custodial individual retirement account,
the custodian must be the beneficiary so that the custodian can reinvest or
distribute the death benefit as the beneficiary of the account desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
applicable Guaranteed minimum death benefit. We determine the amount of the
death benefit (other than the applicable Guaranteed minimum death benefit) and
any amount applicable under the Protection Plus(SM) feature, as of the date we
receive satisfactory proof of the annuitant's death, any required instructions
for the method of payment, information and forms necessary to effect payment.
The amount of the applicable Guaranteed minimum death benefit will be such
Guaranteed minimum death benefit as of the date of the annuitant's death,
adjusted for any subsequent withdrawals. The death benefit will be less a
deduction for any outstanding loan plus accrued interest on the date that the
death benefit is made (applies to Rollover TSA only).
EFFECT OF THE ANNUITANT'S DEATH
If the annuitant dies before the annuity payments begin, we will pay the death
benefit to your beneficiary.
Generally, the death of the annuitant terminates the contract. However, a
surviving spouse who is the sole primary beneficiary of the deceased
owner/annuitant can choose to be treated as the successor owner/annuitant and
continue the contract. The Successor owner/ annuitant feature is only
available under NQ and individually-owned IRA contracts.
For NQ and all types of IRA contracts, a beneficiary may be able to have
limited ownership as discussed under "Beneficiary continuation option" below.
WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT
Under certain conditions the owner changes after the original owner's death for
purposes of receiving required distributions from the contract. When the owner
is not the annuitant under an NQ contract and the owner dies before annuity
payments begin, unless you specify otherwise, the beneficiary named to receive
the death benefit upon the annuitant's death will become the successor owner.
If you do not want this beneficiary to be the successor owner, you should name
a specific successor owner. You may name a successor owner at any time during
your life by sending satisfactory notice to our processing office. If the
contract is jointly owned and the first owner to die is not the annuitant, the
surviving owner becomes the sole contract owner. This person will be considered
the successor owner for purposes of the distribution rules described in this
section. The surviving owner automatically takes the place of any other
beneficiary designation.
You should carefully consider the following if you have elected the Guaranteed
minimum income benefit and you are the owner, but not the annuitant. Because
the payments under the Guaranteed minimum income benefit are based on the life
of the annuitant, and the federal tax law required distributions described
below are based on the life of the successor owner, a successor owner who is
not also the annuitant may not be able to exercise the Guaranteed minimum
income benefit, if you die before annuity payments begin. Therefore, one year
before you become eligible to exercise the Guaranteed minimum income benefit,
you should consider the effect of your beneficiary designations on potential
payments after your death. For more information, see "Exercise rules" under
"Our Guaranteed minimum income benefit option" in "Contracts features and
benefits" earlier in this Prospectus.
Unless the surviving spouse of the owner who has died (or in the case of a
joint ownership situation, the surviving spouse of the first owner to die) is
the successor owner for this purpose, the entire interest in the contract must
be distributed under the following rules:
o The cash value of the contract must be fully paid to the successor owner
(new owner) within five years after your death (the "5-year rule"), or in a
joint ownership situation, the death of the first owner to die.
o If Principal Protector(SM) was elected and if the "5-year rule" is elected
and the successor owner dies prior to the end of the fifth year, we will pay
any remaining account value in a lump sum and the contract and any remaining
GWB benefit base will terminate without value. Your successor owner should
consult with a tax adviser before choosing to use the "5-year rule." The GWB
benefit base may be adversely affected if the successor owner makes any
withdrawals that cause a GWB Excess withdrawal. Also, when the contract
terminates at the end of 5 years, any remaining GWB benefit base would be
lost. If you elect Principal Protector(SM), the successor owner has the
option to terminate the benefit and charge upon receipt by us of due proof
of death and notice to discontinue the benefit; otherwise, the benefit and
charge will automatically continue.
o The successor owner may instead elect to receive the cash value as a life
annuity (or payments for a period certain of not longer than
56 Payment of death benefit
the new owner's life expectancy). Payments must begin within one year after
the non-annuitant owner's death. Unless this alternative is elected, we
will pay any cash five years after your death (or the death of the first
owner to die).
o A successor owner should name a new beneficiary.
If the surviving spouse is the successor owner or joint owner, the spouse may
elect to continue the contract. No distributions are required as long as the
surviving spouse and annuitant are living. An eligible successor owner,
including a surviving joint owner after the first owner dies, may elect the
beneficiary continuation option for NQ contracts discussed later under
"Beneficiary continuation option" below.
HOW DEATH BENEFIT PAYMENT IS MADE
We will pay the death benefit to the beneficiary in the form of the annuity
payout option you have chosen. If you have not chosen an annuity payout option
as of the time of the annuitant's death, the beneficiary will receive the death
benefit in a single sum. Payment of the death benefit in a lump sum terminates
all rights and any applicable guarantees under the contract, including
Guaranteed minimum income benefit, GPB Options 1 and 2, and Principal
Protector(SM). Subject to any exceptions in the contract, our rules and any
applicable requirements under federal income tax rules, the beneficiary may
elect to apply the death benefit to one or more annuity payout options we offer
at the time. See "Your annuity payout options" in "Accessing your money"
earlier in this Prospectus. Please note that any annuity payout option chosen
may not extend beyond the life expectancy of the beneficiary.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may elect to
receive the death benefit or continue the contract as successor
owner/annuitant. The successor owner/annuitant must be 85 or younger as of the
date of the non-surviving spouse's death.
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required instructions and
information, and forms necessary to effect the Successor owner/annuitant
feature, we will increase the account value to equal your elected Guaranteed
minimum death benefit as of the date of your death if such death benefit is
greater than your account value, plus any amount applicable under the
Protection Plus(SM) feature, and adjusted for any subsequent withdrawals. The
increase in the account value will be allocated to the investment options
according to the allocation percentages we have on file for your contract.
Thereafter, withdrawal charges will no longer apply to contributions made
before your death. Withdrawal charges will apply if additional contributions
are made. These additional contributions will be considered to be withdrawn
only after all other amounts have been withdrawn.
We will determine whether your applicable Guaranteed minimum death benefit
option will continue as follows:
o If the successor owner/annuitant is age 75 or younger on the date of the
original owner/annuitant's death, and the original owner/
annuitant was age 84 or younger at death, the Guaranteed minimum death
benefit continues based upon the option that was elected by the original
owner/annuitant and will continue to grow according to its terms until the
contract date anniversary following the date the successor owner/annuitant
reaches age 85.
o If the successor owner/annuitant is age 75 or younger on the date of the
original owner/annuitant's death, and the original owner/ annuitant was age
85 or older at death, we will reinstate the Guaranteed minimum death benefit
that was elected by the original owner/annuitant. The benefit will continue
to grow according to its terms until the contract date anniversary following
the date the successor owner/annuitant reaches age 85.
o If the successor owner/annuitant is age 76 or over on the date of the
original owner/annuitant's death, the Guaranteed minimum death benefit will
no longer grow, and we will no longer charge for the benefit.
If you elect Principal Protector(SM), the benefit and charge will remain in
effect. If the GWB benefit base is zero at the time of your death, and the
charge had been suspended, the charge will be reinstated if any of the events,
described in "Principal Protector(SM) charge" in "Charges and expenses" earlier
in this Prospectus, occur. The GWB benefit base will not automatically be
stepped up to equal the account value, if higher, upon your death. Your spouse
must wait five complete years from the prior step up or from contract issue,
whichever is later, in order to be eligible for the Optional step up. For more
information, see "Principal Protector(SM)" in "Contract features and benefits"
earlier in this Prospectus.
Where an NQ contract is owned by a Living Trust, as defined in the contract,
and at the time of the annuitant's death the annuitant's spouse is the sole
beneficiary of the Living Trust, the Trustee, as owner of the contract, may
request that the spouse be substituted as annuitant as of the date of the
annuitant's death. No further change of annuitant will be permitted.
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole beneficiary of the account, the custodian may
request that the spouse be substituted as annuitant after your death.
For information on the operation of the successor owner/annuitant feature with
the Guaranteed minimum income benefit, see "Exercise of Guaranteed minimum
income benefit" under "Our Guaranteed minimum income benefit option" in
"Contract features and benefits," earlier in this Prospectus. For information
on the operation of this feature with Protection Plus(SM), see "Protection
Plus(SM)" in "Guaranteed minimum death benefit" under "Contract features and
benefits," earlier in this Prospectus.
SPOUSAL PROTECTION
SPOUSAL PROTECTION OPTION FOR NQ CONTRACTS ONLY. This feature permits spouses
who are joint contract owners to increase the account value to equal the
guaranteed minimum death benefit, if higher, and by the value of any Protection
Plus(SM) benefit, if elected, upon the death of either spouse. This account
value "step up" occurs even if the surviving spouse was the named annuitant.
If you and your spouse jointly
Payment of death benefit 57
own the contract and one of you is the named annuitant, you may elect the
Spousal protection option at the time you purchase your contract at no
additional charge. Both spouses must be between the ages of 20 and 70 at the
time the contract is issued and must each be named the primary beneficiary in
the event of the other's death.
The annuitant's age is generally used for the purpose of determining contract
benefits. However, for the Annual Ratchet to age 85 and the Greater of 6% Roll
up to age 85 or Annual Ratchet to age 85 guaranteed minimum death benefits and
the Protection Plus(SM) benefit, the benefit is based on the older spouse's age.
The older spouse may or may not be the annuitant.
If the annuitant dies prior to annuitization, the surviving spouse may elect to
receive the death benefit, including the value of the Protection Plus(SM)
benefit, or, if eligible, continue the contract as the sole owner/ annuitant
by electing the successor owner/annuitant option. If the non-annuitant spouse
dies prior to annuitization, the surviving spouse continues the contract
automatically as the sole owner/annuitant. In either case, the contract would
continue, as follows:
o As of the date we receive due proof of the spouse's death, the account value
will be re-set to equal the Guaranteed minimum death benefit as of the date
of the non-surviving spouse's death, if higher, increased by the value of
the Protection Plus(SM) benefit.
o The Guaranteed minimum death benefit continues to be based on the older
spouse's age for the life of the contract, even if the younger spouse is
originally or becomes the sole owner/annuitant.
o The Protection Plus(SM) benefit will now be based on the surviving spouse's
age at the date of the non-surviving spouse's death for the remainder of the
life of the contract. If the benefit had been previously frozen because the
older spouse had attained age 80, it will be reinstated if the surviving
spouse is age 75 or younger. The benefit is then frozen on the contract date
anniversary after the surviving spouse reaches age 80. If the surviving
spouse is age 76 or older, the benefit will be discontinued even if the
surviving spouse is the older spouse (upon whose age the benefit was
originally based).
o The Guaranteed minimum income benefit may continue if the benefit had not
already terminated and the benefit will be based on the successor
owner/annuitant, if applicable. See "Guaranteed minimum income benefit" in
"Contract features and benefits" earlier in this Prospectus.
o If the annuitant dies first, withdrawal charges will no longer apply to any
contributions made prior to the annuitant's death. If the non-annuitant
spouse dies first, the withdrawal charge schedule remains in effect with
regard to all contributions.
o If you elect Principal Protector(SM), the benefit and charge will remain in
effect. If your GWB benefit base is zero at the time of your death, and the
charge had been suspended, the charge will be reinstated if any of the
events, described in "Principal Protector(SM) charge" in "Charges and
expenses" earlier in this Prospectus, occur. The GWB benefit base will not
automatically be stepped up to equal the account value, if higher, upon your
death. Your spouse must wait five complete years from the prior step up or
from contract issue, whichever is later, in order to be eligible for the
Optional step up. For more information, see "Principal Protector(SM)" in
"Contract features and benefits" earlier in this Prospectus.
We will not allow Spousal protection to be added after contract issue. If there
is a change in owner or primary beneficiary, the Spousal protection benefit
will be terminated. If you divorce, but do not change the owner or primary
beneficiary, Spousal protection continues.
BENEFICIARY CONTINUATION OPTION
This feature permits a designated individual, on the contract owner's death, to
maintain a contract in the deceased contract owner's name and receive
distributions under the contract, instead of receiving the death benefit in a
single sum. We make this option available to beneficiaries under traditional
IRA, Roth IRA and NQ contracts, subject to state availability. Please speak
with your financial professional or see Appendix VIII later in this Prospectus
for further information.
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. The beneficiary continuation option must be elected by September 30th of
the year following the calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this option. If the election is made, then, as of the
date we receive satisfactory proof of death, any required instructions,
information and forms necessary to effect the beneficiary continuation option
feature, we will increase the account value to equal the applicable death
benefit, if such death benefit is greater than such account value, plus any
amount applicable under the Protection Plus(SM) feature, adjusted for any
subsequent withdrawals. Where an IRA contract is owned in a custodial
individual retirement account, the custodian may reinvest the death benefit in
an individual retirement annuity contract, using the account beneficiary as the
annuitant. Please speak with your financial professional for further
information.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy (determined in the calendar year after your death
and determined on a term certain basis). These payments must begin no later
than December 31st of the calendar year after the year of your death. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 701/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed later in this Prospectus in
"Tax information" under "Individual retirement arrangements (IRAs')," the
beneficiary may choose the "5-year rule" option instead of annual payments over
life expectancy. The 5-year rule is always available to beneficiaries under
Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may
take withdrawals as desired, but the entire account value must be fully
withdrawn by December 31st of the calendar year which contains the fifth
anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA contracts:
o The contract continues in your name for the benefit of your beneficiary.
58 Payment of death benefit
o This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals for
this purpose.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's own
life expectancy, if payments over life expectancy are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the Guaranteed minimum income benefit, an optional
enhanced death benefit, GPB Option 2 or Principal Protector(SM) (in certain
circumstances) under the contract, they will no longer be in effect and
charges for such benefits will stop. Also, any Guaranteed minimum death
benefit feature will no longer be in effect. See below for certain
circumstances where Principal Protector(SM) may continue to apply.
o The beneficiary may choose at any time to withdraw all or a portion of the
account value and no withdrawal charges, if any, will apply.
o Any partial withdrawal must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking required minimum distributions based on
the remaining life expectancy of the deceased beneficiary or to receive any
remaining interest in the contract in a lump sum. The option elected will be
processed when we receive satisfactory proof of death, any required
instructions for the method of payment and any required information and
forms necessary to effect payment.
o If you had elected Principal Protector(SM), your spousal beneficiary may not
continue Principal Protector(SM), and the benefit will terminate without
value, even if the GWB benefit base is greater than zero. In general,
spousal beneficiaries who wish to continue Principal Protector(SM) should
consider continuing the contract under the Successor owner and annuitant
feature, if eligible. In general, eligibility requires that your spouse must
be the sole primary beneficiary. Please see "Successor owner and annuitant"
in "How death benefit payment is made" under "Payment of death benefit"
earlier in this Prospectus for further details. If there are multiple
beneficiaries who elect the Beneficiary continuation option, the spousal
beneficiary may continue the contract without Principal Protector(SM) and
non-spousal beneficiaries may continue with Principal Protector(SM). In this
case, the spouse's portion of the GWB benefit base will terminate without
value.
o If you had elected Principal Protector(SM), your non-spousal beneficiary may
continue the benefit, as follows:
o The beneficiary was 75 or younger on the original contract date.
o The benefit and charge will remain in effect unless your beneficiary tells
us to terminate the benefit at the time of the Beneficiary continuation
option election.
o One time step up: Upon your death, if your account value is greater than
the GWB benefit base, the GWB benefit base will be automatically stepped
up to equal the account value, at no additional charge. If Principal
Protector(SM) is not in effect at the time of your death because the GWB
benefit base is zero, the beneficiary may reinstate the benefit (at the
charge that was last in effect) with the one time step up. If the
beneficiary chooses not to reinstate the Principal Protector(SM) at the
time the Beneficiary continuation option is elected, Principal
Protector(SM) will terminate.
o If there are multiple beneficiaries each beneficiary's interest in the GWB
benefit base will be separately accounted for.
o As long as the GWB benefit base is $5,000 or greater, the beneficiary may
elect the Beneficiary continuation option and continue Principal
Protector(SM) even if the account value is less than $5,000.
o If scheduled payments are elected, the beneficiary's scheduled payments
will be calculated, using the greater of the account value or the GWB
benefit base, as of each December 31. If the beneficiary dies prior to
receiving all payments, we will make the remaining payments to the person
designated by the deceased non-spousal beneficiary, unless that person
elects to take any remaining account value in a lump sum, in which case
any remaining GWB benefit base will terminate without value.
o If the "5-year rule" is elected and the beneficiary dies prior to the end
of the fifth year, we will pay any remaining account value in a lump sum
and the contract and any remaining GWB benefit base will terminate without
value.
o Provided no other withdrawals are taken during a contract year while the
beneficiary receives scheduled payments, the scheduled payments will not
cause a GWB Excess withdrawal, even if they exceed the GWB Annual
withdrawal amount. If the beneficiary takes any other withdrawals while
the Beneficiary continuation option scheduled payments are in effect, the
GWB Excess withdrawal exception terminates permanently. In order to take
advantage of this exception, the beneficiary must elect the scheduled
payments rather than the "5-year rule." If the beneficiary elects the
"5-year rule," there is no exception.
BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACT ONLY. This feature, also known
as the Inherited annuity, may only be elected when the NQ contract owner dies
before the annuity commencement date, whether or not the owner and the
annuitant are the same person. If the owner and annuitant are different and the
owner dies before the annuitant, for purposes of this discussion, "beneficiary"
refers to the successor owner. For a discussion of successor owner, see "When
an NQ contract owner dies before the annuitant" earlier in this section. This
feature must be elected within 9 months following the date of your death and
before any inconsistent election is made. Beneficiaries who do not make a
timely election will not be eligible for this option.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy, determined on a term certain basis and in the
year payments start. These payments must begin no later than one year after the
date of your death and are referred to as
Payment of death benefit 59
"scheduled payments." The beneficiary may choose the "5-year rule" instead of
scheduled payments over life expectancy. If the beneficiary chooses the 5-year
rule, there will be no scheduled payments. Under the 5-year rule, the
beneficiary may take withdrawals as desired, but the entire account value must
be fully withdrawn by the fifth anniversary of your death.
Under the beneficiary continuation option for NQ contracts (regardless of
whether the owner and the annuitant are the same person):
o This feature is only available if the beneficiary is an individual. It is
not available for any entity such as a trust, even if all of the
beneficiaries of the trust are individuals.
o The contract continues in your name for the benefit of your beneficiary.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the respective
beneficiary's own life expectancy, if scheduled payments are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the Guaranteed minimum income benefit, an optional
enhanced death benefit, GPB Option 2 or Principal Protector(SM) (in certain
circumstances) under the contract, they will no longer be in effect and
charges for such benefits will stop. Also, any Guaranteed minimum death
benefit feature will no longer be in effect. See below for certain
circumstances where Principal Protector(SM) may continue to apply.
o If the beneficiary chooses the "5-year rule," withdrawals may be made at any
time. If the beneficiary instead chooses scheduled payments, the beneficiary
must also choose between two potential withdrawal options at the time of
election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary
cannot later withdraw funds in addition to the scheduled payments the
beneficiary is receiving; "Withdrawal Option 1" permits total surrender
only. "Withdrawal Option 2" permits the beneficiary to take withdrawals, in
addition to scheduled payments, at any time. However, the scheduled payments
under "Withdrawal Option 1" are afforded favorable tax treatment as "annuity
payments." See "Taxation of nonqualified annuities" in "Tax Information"
later in this Prospectus.
o Any partial withdrawals must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract on the beneficiary's death.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking scheduled payments based on the
remaining life expectancy of the deceased beneficiary (if scheduled payments
were chosen) or to receive any remaining interest in the contract in a lump
sum. We will pay any remaining interest in the contract in a lump sum if
your beneficiary elects the 5-year rule. The option elected will be
processed when we receive satisfactory proof of death, any required
instructions for the method of payment and any required information and
forms necessary to effect payment.
o If you had elected Principal Protector(SM), your spousal beneficiary may not
continue Principal Protector(SM), and the benefit will terminate without
value, even if the GWB benefit base is greater than zero. In general,
spousal beneficiaries who wish to continue Principal Protector(SM) should
consider continuing the contract under the Successor owner and annuitant
feature, if eligible. In general, eligibility requires that you must be the
owner and annuitant and your spouse must be the sole primary beneficiary.
Please see "Successor owner and annuitant" in "How death benefit payment is
made" under "Payment of death benefit" earlier in this Prospectus for
further details. If there are multiple beneficiaries who elect the
Beneficiary continuation option, the spousal beneficiary may continue the
contract without Principal Protector(SM) and non-spousal beneficiaries may
continue with Principal Protector(SM). In this case, the spouse's portion of
the GWB benefit base will terminate without value.
o If the non-spousal beneficiary chooses scheduled payments under "Withdrawal
Option 1," as discussed above in this section, Principal Protector(SM) may
not be continued and will automatically terminate without value even if the
GWB benefit base is greater than zero.
o If you had elected Principal Protector(SM), your non-spousal beneficiary may
continue the benefit, as follows:
o The beneficiary was 75 or younger on the original contract date.
o The benefit and charge will remain in effect unless your beneficiary
tells us to terminate the benefit at the time of the Beneficiary
continuation option election.
o One time step up: Upon your death, if your account value is greater than
the GWB benefit base, the GWB benefit base will be automatically stepped
up to equal the account value, at no additional charge. If Principal
Protector(SM) is not in effect at the time of your death because the GWB
benefit base is zero, the beneficiary may reinstate the benefit (at the
charge that was last in effect) with the one time step up. If the
beneficiary chooses not to reinstate the Principal Protector(SM) at the
time the Beneficiary continuation option is elected, Principal
Protector(SM) will terminate.
o If there are multiple beneficiaries, each beneficiary's interest in the
GWB benefit base will be separately accounted for.
o As long as the GWB benefit base is $5,000 or greater, the beneficiary may
elect the Beneficiary continuation option and continue Principal
Protector(SM) even if the account value is less than $5,000.
o If scheduled payments under "Withdrawal Option 2" is elected, the
beneficiary's scheduled payments will be calculated using the greater of
the account value or the GWB benefit base, as of each December 31. If the
beneficiary dies prior to receiving all payments, we will make the
remaining payments to the person designated by the deceased non-spousal
beneficiary, unless that
60 Payment of death benefit
person elects to take any remaining account value in a lump sum, in which
case any remaining GWB benefit base will terminate without value.
o If the "5-year rule" is elected and the beneficiary dies prior to the
end of the fifth year, we will pay any remaining account value in a lump
sum and the contract and any remaining GWB benefit base will terminate
without value.
o Provided no other withdrawals are taken during a contract year while the
beneficiary receives scheduled payments, the scheduled payments will not
cause a GWB Excess withdrawal, even if they exceed the GWB Annual
withdrawal amount. If the beneficiary takes any other withdrawals while
the Beneficiary continuation option scheduled payments are in effect, the
GWB Excess withdrawal exception terminates permanently. In order to take
advantage of this exception, the beneficiary must elect scheduled
payments under "Withdrawal Option 2" rather than the "5-year rule." If
the beneficiary elects the "5-year rule," there is no exception.
If you are both the owner and annuitant:
o As of the date we receive satisfactory proof of death, any required
instructions, information and forms necessary to effect the beneficiary
continuation option feature, we will increase the annuity account value to
equal the applicable death benefit if such death benefit is greater than
such account value, plus any amount applicable under the Protection Plus(SM)
feature, adjusted for any subsequent withdrawals.
o No withdrawal charges, if any, will apply to any withdrawals by the
beneficiary.
If the owner and annuitant are not the same person:
o If the beneficiary continuation option is elected, the beneficiary
automatically becomes the new annuitant of the contract, replacing the
existing annuitant.
o The annuity account value will not be reset to the death benefit amount.
o The contract's withdrawal charge schedule will continue to be applied to any
withdrawal or surrender other than scheduled payments; the contract's free
corridor amount will continue to apply to withdrawals but does not apply to
surrenders.
o We do not impose a withdrawal charge on scheduled payments except if, when
added to any withdrawals previously taken in the same contract year,
including for this purpose a contract surrender, the total amount of
withdrawals and scheduled payments exceed the free corridor amount. See the
"Withdrawal charges" in "Charges and expenses" earlier in this Prospectus.
If a contract is jointly owned:
o The surviving owner supersedes any other named beneficiary and may elect the
beneficiary continuation option.
o If the deceased joint owner was also the annuitant, see "If you are both the
owner and annuitant" earlier in this section.
o If the deceased joint owner was not the annuitant, see "If the owner and
annuitant are not the same person" earlier in this section.
Payment of death benefit 61
7. Tax information
- --------------------------------------------------------------------------------
OVERVIEW
In this part of the prospectus, we discuss the current federal income tax rules
that generally apply to Accumulator(R) Plus(SM) contracts owned by United States
individual taxpayers. The tax rules can differ, depending on the type of
contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. Therefore, we
discuss the tax aspects of each type of contract separately.
Federal income tax rules include the United States laws in the Internal Revenue
Code, and Treasury Department Regulations and Internal Revenue Service ("IRS")
interpretations of the Internal Revenue Code. These tax rules may change
without notice. We cannot predict whether, when, or how these rules could
change. Any change could affect contracts purchased before the change. Congress
may also consider proposals in the future to comprehensively reform or overhaul
the United States tax and retirement systems, which if enacted, could affect
the tax benefits of a contract.
We cannot provide detailed information on all tax aspects of the contracts.
Moreover, the tax aspects that apply to a particular person's contract may vary
depending on the facts applicable to that person. We do not discuss state
income and other state taxes, federal income tax and withholding rules for
non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the
contract, rights or values under the contract, or payments under the contract,
for example, amounts due to beneficiaries, may be subject to federal or state
gift, estate, or inheritance taxes. You should not rely only on this document,
but should consult your tax adviser before your purchase.
President Bush signed the Economic Growth and Tax Relief Reconciliation Act of
2001 ("EGTRRA") on June 7, 2001. Many of the provisions of EGTRRA became
effective on January 1, 2002 and are phased in during the first decade of the
twenty-first century. In the absence of future legislation, all of the
amendments made by EGTRRA will no longer apply after December 31, 2010, and the
law in effect in 2001 will apply again. In general, EGTRRA liberalizes
contributions that can be made to all types of tax-favored retirement plans. In
addition to increasing amounts that can be contributed and permitting
individuals over age 50 to make additional contributions, EGTRRA also permits
rollover contributions to be made between different types of tax-favored
retirement plans. Please discuss with your tax adviser how EGTRRA affects your
personal financial situation.
BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT
Generally, there are two types of funding vehicles that are available for
Individual Retirement Arrangements ("IRAs") and Code Section 403(b)
Arrangements ("TSAs"), respectively: an IRA or 403(b) annuity contract such as
this one, or an IRA or 403(b)(7) custodial or other qualified account. Annuity
contracts can also be purchased in connection with retirement plans qualified
under Code section 401 ("QP contracts"). How these arrangements work, including
special rules applicable to each, are described in the specific sections for
each type of arrangement, below. You should be aware that the funding vehicle
for a qualified arrangement does not provide any tax deferral benefit beyond
that already provided by the Code for all permissible funding vehicles. Before
choosing an annuity contract, therefore, you should consider the annuity's
features and benefits, such as Accumulator(R) Plus'(SM) extra credit on each
contribution, choice of death benefits, the Guaranteed minimum income benefit,
guaranteed interest option, fixed maturity options, selection of investment
funds and its choices of pay-out options, as well as the features and benefits
of other permissible funding vehicles and the relative costs of annuities and
other arrangements. You should be aware that cost may vary depending on the
features and benefits made available and the charges and expenses of the
investment options or funds that you elect.
Beginning in 2006, certain provisions of the Treasury Regulations on required
minimum distributions concerning the actuarial present value of additional
contract benefits could increase the amount required to be distributed from
annuity contracts funding qualified plans, TSAs and IRAs. You should consider
the potential implication of these Regulations before you purchase this annuity
contract or purchase additional features under this annuity contract. See also
Appendix II at the end of this Prospectus for a discussion of QP contracts.
TRANSFERS AMONG VARIABLE INVESTMENT OPTIONS
You can make transfers among variable investment options inside the contract
without triggering taxable income.
TAXATION OF NONQUALIFIED ANNUITIES
CONTRIBUTIONS
You may not deduct the amount of your contributions to a nonqualified annuity
contract.
CONTRACT EARNINGS
Generally, you are not taxed on contract earnings until you receive a
distribution from your contract, whether as a withdrawal or as an annuity
payment. However, earnings are taxable, even without a distribution:
o if a contract fails investment diversification requirements as specified in
federal income tax rules (these rules are based on or are similar to those
specified for mutual funds under the securities laws);
o if you transfer a contract, for example, as a gift to someone other than
your spouse (or former spouse);
o if you use a contract as security for a loan (in this case, the amount
pledged will be treated as a distribution); and
o if the owner is other than an individual (such as a corporation,
partnership, trust, or other non-natural person).
62 Tax information
All nonqualified deferred annuity contracts that AXA Equitable and its
affiliates issue to you during the same calendar year are linked together and
treated as one contract for calculating the taxable amount of any distribution
from any of those contracts.
ANNUITY PAYMENTS
Once annuity payments begin, a portion of each payment is taxable as ordinary
income. You get back the remaining portion without paying taxes on it. This is
your "investment in the contract." Generally, your investment in the contract
equals the contributions you made, less any amounts you previously withdrew
that were not taxable.
For fixed annuity payments, the tax-free portion of each payment is determined
by (1) dividing your investment in the contract by the total amount you are
expected to receive out of the contract, and (2) multiplying the result by the
amount of the payment. For variable annuity payments, your tax-free portion of
each payment is your investment in the contract divided by the number of
expected payments.
Once you have received the amount of your investment in the contract, all
payments after that are fully taxable. If payments under a life annuity stop
because the annuitant dies, there is an income tax deduction for any
unrecovered investment in the contract.
PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN
If you make withdrawals before annuity payments begin under your contract, they
are taxable to you as ordinary income if there are earnings in the contract.
Generally, earnings are your account value less your investment in the
contract. If you withdraw an amount which is more than the earnings in the
contract as of the date of the withdrawal, the balance of the distribution is
treated as a return of your investment in the contract and is not taxable.
PROTECTION PLUS(SM) FEATURE
In order to enhance the amount of the death benefit to be paid at the
Annuitant's death, you may purchase a Protection Plus(SM) rider for your NQ
contract. Although we regard this benefit as an investment protection feature
which should have no adverse tax effect, it is possible that the IRS could take
a contrary position or assert that the Protection Plus(SM) rider is not part of
the contract. In such a case, the charges for the Protection Plus(SM) rider
could be treated for federal income tax purposes as a partial withdrawal from
the contract. If this were so, such a deemed withdrawal could be taxable, and
for contract owners under age 591/2, also subject to a tax penalty. Were the
IRS to take this position, Equitable would take all reasonable steps to attempt
to avoid this result which could include amending the contract (with appropriate
notice to you).
CONTRACTS PURCHASED THROUGH EXCHANGES
You may purchase your NQ contract through an exchange of another contract.
Normally, exchanges of contracts are taxable events. The exchange will not be
taxable under Section 1035 of the Internal Revenue Code if:
o the contract that is the source of the funds you are using to purchase the
NQ contract is another nonqualified deferred annuity contract or life
insurance or endowment contract.
o the owner and the annuitant are the same under the source contract and the
Accumulator(R) Plus(SM) NQ contract. If you are using a life insurance or
endowment contract the owner and the insured must be the same on both sides
of the exchange transaction.
The tax basis, also referred to as your investment in the contract, of the
source contract carries over to the Accumulator(R) Plus(SM) NQ contract.
An owner may direct the proceeds of a partial withdrawal from one nonqualified
deferred annuity contract to a different insurer to purchase a new nonqualified
deferred annuity contract on a tax-deferred basis. Special forms, agreement
between the carriers, and provision of cost basis information may be required
to process this type of exchange.
SURRENDERS
If you surrender or cancel the contract, the distribution is taxable as
ordinary income (not capital gain) to the extent it exceeds your investment in
the contract.
DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH
For the rules applicable to death benefits, see "Payment of death benefit"
earlier in this Prospectus. The tax treatment of a death benefit taken as a
single sum is generally the same as the tax treatment of a withdrawal from or
surrender of your contract. The tax treatment of a death benefit taken as
annuity payments is generally the same as the tax treatment of annuity payments
under your contract. The IRS has not specifically addressed the tax treatment
of the Spousal protection benefit. Please consult with your tax adviser before
electing this feature.
Beneficiary continuation option
We have received a private letter ruling from the IRS regarding certain tax
consequences of scheduled payments under the beneficiary continuation option
for NQ contracts. See the discussion "Beneficiary continuation option for NQ
contracts only" in "Payment of death benefit" earlier in this Prospectus. Among
other things, the IRS rules that:
o scheduled payments under the beneficiary continuation option for NQ
contracts satisfy the death of owner rules of Section 72(s)(2) of the Code,
regardless of whether the beneficiary elects "Withdrawal Option 1" or
"Withdrawal Option 2;"
o scheduled payments, any additional withdrawals under "Withdrawal Option 2,"
or contract surrenders under "Withdrawal Option 1" will only be taxable to
the beneficiary when amounts are actually paid, regardless of the Withdrawal
Option selected by the beneficiary;
o a beneficiary who irrevocably elects scheduled payments with "Withdrawal
Option 1" will receive "excludable amount" tax treatment on scheduled
payments. See "Annuity payments" earlier in this section. If the beneficiary
elects to surrender the contract before all scheduled payments are paid, the
amount received upon surrender is a non-annuity payment taxable to the
extent it exceeds any remaining investment in the contract.
The ruling specifically does not address the taxation of any payments received
by a beneficiary electing "Withdrawal Option 2" (whether
Tax information 63
scheduled payments or any withdrawal that might be taken). The ruling also does
not address the effect of the retention of the Principal Protector(SM) feature
discussed earlier in this Prospectus under "Contract features and benefits,"
which a non-spousal beneficiary may elect under certain conditions. Before
electing the beneficiary continuation option feature, the individuals you
designate as beneficiary or successor owner should discuss with their tax
advisers the consequences of such elections.
The tax treatment of a withdrawal after the death of the owner taken as a
single sum or taken as withdrawals under the 5-year rule is generally the same
as the tax treatment of a withdrawal from or surrender of your contract.
EARLY DISTRIBUTION PENALTY TAX
If you take distributions before you are age 591/2 a penalty tax of 10% of the
taxable portion of your distribution applies in addition to the income tax.
Some of the available exceptions to the pre-age 591/2 penalty tax include
distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o in the form of substantially equal periodic annuity payments for your life
(or life expectancy), or the joint lives (or joint life expectancy) of you
and a beneficiary, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If
you were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. The IRS has said that the owners of variable annuities will
not be treated as owning the separate account assets provided the underlying
portfolios are restricted to variable life and annuity assets. The variable
annuity owners must have the right only to choose among the portfolios, and
must have no right to direct the particular investment decisions within the
portfolios.
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some
issues that remain unclear. For example, the IRS has not issued any guidance as
to whether having a larger number of portfolios available, or an unlimited
right to transfer among them, could cause you to be treated as the owner. We do
not know whether the IRS will ever provide such guidance or whether such
guidance, if unfavorable, would apply retroactively to your contract.
Furthermore, the IRS could reverse its current guidance at any time. We reserve
the right to modify your contract as necessary to prevent you from being
treated as the owner of the assets of Separate Accounts 45 and 49.
SPECIAL RULES FOR NQ CONTRACTS ISSUED IN PUERTO RICO
Income from NQ contracts we issue is U.S. source. A Puerto Rico resident is
subject to U.S. taxation on such U.S. source income. Only Puerto Rico source
income of Puerto Rico residents is excludable from U.S. taxation. Income from
NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable
portion of amounts distributed from a contract may differ in the two
jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax
returns, showing different amounts of income from the contract for each tax
return. Puerto Rico generally provides a credit against Puerto Rico tax for
U.S. tax paid. Depending on your personal situation and the timing of the
different tax liabilities, you may not be able to take full advantage of this
credit.
INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS)
GENERAL
"IRA" stands for individual retirement arrangement. There are two basic types
of such arrangements, individual retirement accounts and individual retirement
annuities. In an individual retirement account, a trustee or custodian holds
the assets funding the account for the benefit of the IRA owner. The assets
typically can include mutual funds and/or individual stocks and/or securities
in a custodial account, and bank certificates of deposit in a trusteed account.
In an individual retirement annuity, an insurance company issues an annuity
contract that serves as the IRA.
There are two basic types of IRAs, as follows:
o Traditional IRAs, typically funded on a pre-tax basis, including SEP-IRAs
and SIMPLE IRAs issued and funded in connection with employer-sponsored
retirement plans; and
o Roth IRAs, funded on an after-tax basis.
Regardless of the type of IRA, your ownership interest in the IRA cannot be
forfeited. You or your beneficiaries who survive you are the only ones who can
receive the IRA's benefits or payments. All types of IRAs qualify for tax
deferral, regardless of the funding vehicle selected.
You can hold your IRA assets in as many different accounts and annuities as you
would like, as long as you meet the rules for setting up and making
contributions to IRAs. However, if you own multiple IRAs, you may be required
to combine IRA values or contributions for tax purposes. For further
information about individual retirement arrangements, you can read Internal
Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)").
This publication is usually updated annually, and can be obtained from any IRS
district office or the IRS website (www.irs.gov).
AXA Equitable designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may purchase
the contract as a traditional IRA ("Rollover IRA") or Roth IRA ("Roth
Conversion IRA"). This Prospectus contains the information that the IRS
requires you to have before you purchase an IRA. The first section covers some
of the special tax rules that apply to traditional IRAs. The next section
covers Roth IRAs. The disclosure generally assumes direct ownership of the
individual retirement annuity contract. For contracts owned in a custodial
individual retirement account, the disclosure will apply only if you terminate
your account or transfer ownership of the contract to yourself.
We have not applied for an opinion letter from the IRS to approve the
respective forms of the Accumulator(R) Plus(SM) traditional and Roth IRA
64 Tax information
contracts for use as a traditional and Roth IRA, respectively. We have received
IRS opinion letters approving the respective forms of a similar traditional IRA
and Roth IRA endorsement for use as a traditional and Roth IRA, respectively.
This IRS approval is a determination only as to the form of the annuity. It
does not represent a determination of the merits of the annuity as an
investment. The contracts submitted for IRS approval do not include every
feature possibly available under the Accumulator(R) traditional and Roth IRA
contracts.
PROTECTION PLUS(SM) FEATURE
The Protection Plus(SM) feature is offered for IRA contracts, subject to state
and contract availability. We have received IRS opinion letters that the
contract with a similar Protection Plus(SM) feature qualifies as to form for use
as a traditional IRA and Roth IRA, respectively. This IRS approval is a
determination only as to the form of the annuity. It does not represent a
determination of the merits of the annuity as an investment. The contracts
submitted for IRS approval do not include every feature possibly available
under the Accumulator(R) traditional and Roth IRA contracts. You should discuss
with your tax adviser whether you should consider purchasing an Accumulator(R)
Plus(SM) IRA or Accumulator(R) Plus(SM) Roth IRA with optional Protection
Plus(SM) feature.
Your right to cancel within a certain number of days
You can cancel either type of Accumulator(R) Plus(SM) IRA contract (traditional
IRA or Roth IRA) by following the directions in "Your right to cancel within a
certain number of days" under "Contract features and benefits" earlier in this
Prospectus. If you cancel a traditional IRA or Roth IRA contract, we may have
to withhold tax, and we must report the transaction to the IRS. A contract
cancellation would have an unfavorable tax impact.
Traditional individual retirement annuities (traditional IRAs)
Contributions to traditional IRAs. Individuals may make three different types
of contributions to a traditional IRA:
o regular contributions out of earned income or compensation; or
o tax-free "rollover" contributions; or
o direct custodian-to-custodian transfers from other traditional
IRAs ("direct transfers").
Regular contributions to traditional IRAs
Limits on contributions. The "maximum regular contribution amount" for any
taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $4,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for each of the taxable years 2005
and 2006. When your earnings are below $4,000, your earned income or
compensation for the year is the most you can contribute. This limit does not
apply to rollover contributions or direct custodian-to-custodian transfers into
a traditional IRA. You cannot make regular traditional IRA contributions for
the tax year in which you reach age 701/2 or any tax year after that.
If you reach age 50 before the close of the taxable year for which you are
making a regular contribution to your IRA, you may be eligible to make an
additional "catch up contribution" of up to $500 to your traditional IRA for
2005. This amount increases to $1,000 for the taxable year 2006.
Special rules for spouses. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to traditional IRAs
(and Roth IRAs discussed below). Even if one spouse has no compensation or
compensation under $4,000, married individuals filing jointly can contribute up
to $8,000 for each of the taxable years 2005 and 2006 to any combination of
traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the
ability to contribute to traditional IRAs and vice versa. The maximum amount
may be less if earned income is less and the other spouse has made IRA
contributions. No more than a combined total of $4,000 can be contributed
annually to either spouse's traditional and Roth IRAs. Each spouse owns his or
her traditional IRAs and Roth IRAs even if the other spouse funded the
contributions. A working spouse age 701/2 or over can contribute up to the
lesser of $4,000 or 100% of "earned income" to a traditional IRA for a
nonworking spouse until the year in which the nonworking spouse reaches age
701/2. Catch-up contributions may be made as described above for spouses who
are at least age 50 but under age 701/2 at any time during the taxable year for
which the contribution is made.
Deductibility of contributions. The amount of traditional IRA contributions
that you can deduct for a taxable year depends on whether you are covered by an
employer-sponsored-tax-favored retirement plan, as defined under special
federal income tax rules. Your Form W-2 will indicate whether or not you are
covered by such a retirement plan.
If you are not covered by a retirement plan during any part of the year, you
can make fully deductible contributions to your traditional IRAs for the
taxable year up to the maximum amount discussed earlier in this section under
"Limits on contributions." That is, for each of the taxable years 2005 and
2006, your fully deductible contribution can be up to $4,000, or if less, your
earned income. The dollar limit is $4,500 for people eligible to make age
50-701/2 catch-up contributions for 2005, and $5,000 for 2006, respectively.
If you are covered by a retirement plan during any part of the year, and your
adjusted gross income (AGI) is below the lower dollar figure in a phase-out
range, you can make fully deductible contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls within a phase-out range, you can make partially deductible
contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls above the higher figure in the phase-out range, you may not deduct
any of your regular contributions to your traditional IRAs.
If you are single and covered by a retirement plan during any part of the
taxable year, the deduction for traditional IRA contributions phases out with
AGI between $50,000 and $60,000 in 2005 and later years.
Tax information 65
If you are married and file a joint return, and you are covered by a retirement
plan during any part of the taxable year, the deduction for traditional IRA
contributions phases out with AGI between $70,000 and $80,000 in 2005 and AGI
between $75,000 and $85,000 in 2006. In 2007, the deduction will phase out for
AGI between $80,000 and $100,000.
Married individuals filing separately and living apart at all times are not
considered married for purposes of this deductible contribution calculation.
Generally, the active participation in an employer-sponsored retirement plan of
an individual is determined independently for each spouse. Where spouses have
"married filing jointly" status, however, the maximum deductible traditional
IRA contribution for an individual who is not an active participant (but whose
spouse is an active participant) is phased out for taxpayers with an AGI
between $150,000 and $160,000.
To determine the deductible amount of the contribution for 2005, for example,
you determine AGI and subtract $50,000 if you are single, or $70,000 if you are
married and file a joint return with your spouse. The resulting amount is your
excess AGI. You then determine the limit on the deduction for traditional IRA
contributions using the following formula:
($10,000-excess AGI) times the maximum Equals the adjusted
-------------------- x regular = deductible
divided by $10,000 contribution contribution
for the year limit
Additional "Saver's Credit" for contributions to a traditional
IRA or Roth IRA
You may be eligible for a nonrefundable income tax credit for contributions you
make to a traditional IRA or Roth IRA. The final year this credit is available
is 2006. If you qualify, you may take this credit even though your traditional
IRA contribution is already fully or partially deductible. To take advantage of
this "saver's credit" you must be age 18 or over before the end of the taxable
year for which the contribution is made. You cannot be a full-time student or
claimed as a dependent on another's tax return, and your adjusted gross income
cannot exceed $50,000. The amount of the tax credit you can get varies from 10%
of your contribution to 50% of your contribution, and depends on your income
tax filing status and your adjusted gross income. The maximum annual
contribution eligible for the saver's credit is $2,000. If you and your spouse
file a joint return, and each of you qualifies, each is eligible for a maximum
annual contribution of $2,000. Your saver's credit may also be reduced if you
take or have taken a taxable distribution from any plan eligible for a saver's
credit contribution -- even if you make a contribution to one plan and take the
distribution from another plan -- during the "testing period." The "testing
period" begins two years before the year for which you make the contribution
and ends when your tax return is due for the year for which you make the
contribution. Saver's-credit-eligible contributions may be made to a 401(k)
plan, 403(b) TSA, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA,
as well as a traditional IRA or Roth IRA.
Nondeductible regular contributions. If you are not eligible to deduct part or
all of the traditional IRA contribution, you may still make nondeductible
contributions on which earnings will accumulate on a tax-deferred basis. The
combined deductible and nondeductible contributions to your traditional IRA (or
the nonworking spouse's traditional IRA) may not, however, exceed the maximum
dollar per person limit for the applicable taxable year ($4,000 for 2005 and
2006). The dollar limit is $4,500 in 2005 and $5,000 in 2006 for people
eligible to make age 50-701/2 catch-up contributions. See "Excess
contributions" later in this section. You must keep your own records of
deductible and nondeductible contributions in order to prevent double taxation
on the distribution of previously taxed amounts. See "Withdrawals, payments and
transfers of funds out of traditional IRAs" later in this section.
If you are making nondeductible contributions in any taxable year, or you have
made nondeductible contributions to a traditional IRA in prior years and are
receiving distributions from any traditional IRA, you must file the required
information with the IRS. Moreover, if you are making nondeductible traditional
IRA contributions, you must retain all income tax returns and records
pertaining to such contributions until interests in all traditional IRAs are
fully distributed.
When you can make regular contributions. If you file your tax returns on a
calendar year basis like most taxpayers, you have until the April 15 return
filing deadline (without extensions) of the following calendar year to make
your regular traditional IRA contributions for a taxable year.
Rollover and transfer contributions to traditional IRAs
Rollover contributions may be made to a traditional IRA from these "eligible
retirement plans":
o qualified plans;
o governmental employer 457(b) plans;
o TSAs (including Internal Revenue Code Section 403(b)(7) custodial
accounts); and
o other traditional IRAs.
Direct transfer contributions may only be made directly from one traditional
IRA to another. Any amount contributed to a traditional IRA after you reach age
701/2 must be net of your required minimum distribution for the year in which
the rollover or direct transfer contribution is made.
Rollovers from "eligible retirement plans" other than
traditional IRAs
Your plan administrator will tell you whether or not your distribution is
eligible to be rolled over. Spousal beneficiaries and spousal alternate payees
under qualified domestic relations orders may roll over funds on the same basis
as the plan participant.
There are two ways to do rollovers:
o Do it yourself:
You actually receive a distribution that can be rolled over and you
66 Tax information
roll it over to a traditional IRA within 60 days after the date you
receive the funds. The distribution from your eligible retirement plan
will be net of 20% mandatory federal income tax withholding. If you want,
you can replace the withheld funds yourself and roll over the full amount.
o Direct rollover:
You tell the trustee or custodian of the eligible retirement plan to send
the distribution directly to your traditional IRA issuer. Direct rollovers
are not subject to mandatory federal income tax withholding.
All distributions from a TSA, qualified plan or governmental employer 457(b)
plan are eligible rollover distributions, unless the distributions are:
o "required minimum distributions" after age 701/2 or retirement
from service with the employer; or
o substantially equal periodic payments made at least annually for
your life (or life expectancy) or the joint lives (or joint life
expectancies) of you and your designated beneficiary; or
o substantially equal periodic payments made for a specified period
of 10 years or more; or
o hardship withdrawals; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o death benefit payments to a beneficiary who is not your surviving
spouse; or
o qualified domestic relations order distributions to a beneficiary
who is not your current spouse or former spouse.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental employer 457(b) plan are not subject to the
additional 10% federal income tax penalty for premature distributions, but they
may become subject to this penalty if you roll the funds to a different type of
eligible retirement plan such as a traditional IRA, and subsequently take a
premature distribution.
ROLLOVERS OF AFTER-TAX CONTRIBUTIONS FROM ELIGIBLE RETIREMENT
PLANS OTHER THAN TRADITIONAL IRAS
Any after-tax contributions you have made to a qualified plan or TSA (but not a
governmental employer 457(b) plan) may be rolled over to a traditional IRA
(either in a direct rollover or a rollover you do yourself). When the recipient
plan is a traditional IRA, you are responsible for recordkeeping and
calculating the taxable amount of any distributions you take from that
traditional IRA. See "Taxation of Payments" later in this section under
"Withdrawals, payments and transfers of funds out of traditional IRAs."
After-tax contributions in a traditional IRA cannot be rolled over from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan.
Rollovers from traditional IRAs to traditional IRAs
You may roll over amounts from one traditional IRA to one or more of your other
traditional IRAs if you complete the transaction within 60 days after you
receive the funds. You may make such a rollover only once in every 12-month
period for the same funds. Trustee-to-trustee or custodian-to-custodian direct
transfers are not rollover transactions. You can make these more frequently
than once in every 12-month period.
SPOUSAL ROLLOVER AND DIVORCE-RELATED DIRECT TRANSFERS
The surviving spouse beneficiary of a deceased individual can roll over funds
from, or directly transfer funds from, an inherited traditional IRA to one or
more other traditional IRAs. Also, in some cases, traditional IRAs can be
transferred on a tax-free basis between spouses or former spouses as a result
of a court ordered divorce or separation decree.
EXCESS CONTRIBUTIONS
Excess contributions to IRAs are subject to a 6% excise tax for the year in
which made and for each year after until withdrawn. The following are excess
contributions to IRAs:
o regular contributions of more than the maximum regular contri
bution amount for the applicable taxable year); or
o regular contributions to a traditional IRA made after you reach
age 701/2; or
o rollover contributions of amounts which are not eligible to be
rolled over, for example, minimum distributions required to be made after
age 701/2.
You can avoid the excise tax by withdrawing an excess contribution (rollover or
regular) before the due date (including extensions) for filing your federal
income tax return for the year. If it is an excess regular traditional IRA
contribution, you cannot take a tax deduction for the amount withdrawn. You do
not have to include the excess contribution withdrawn as part of your income.
It is also not subject to the 10% additional penalty tax on early
distributions, discussed later in this section under "Early distribution
penalty tax." You do have to withdraw any earnings that are attributed to the
excess contribution. The withdrawn earnings would be included in your gross
income and could be subject to the 10% penalty tax.
Even after the due date for filing your return, you may withdraw an excess
rollover contribution, without income inclusion or 10% penalty, if:
(1) the rollover was from an eligible retirement plan to a traditional IRA;
(2) the excess contribution was due to incorrect information that the plan
provided; and
Tax information 67
you took no tax deduction for the excess contribution. (3)
RECHARACTERIZATIONS
Amounts that have been contributed as traditional IRA funds may subsequently be
treated as Roth IRA funds. Special federal income tax rules allow you to change
your mind again and have amounts that are subsequently treated as Roth IRA
funds, once again treated as traditional IRA funds. You do this by using the
forms we prescribe. This is referred to as having "recharacterized" your
contribution.
WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF
TRADITIONAL IRAS
NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or
all of your funds from a traditional IRA at any time. You do not need to wait
for a special event like retirement.
TAXATION OF PAYMENTS. Earnings in traditional IRAs are not subject to federal
income tax until you or your beneficiary receive them. Taxable payments or
distributions include withdrawals from your contract, surrender of your
contract and annuity payments from your contract. Death benefits are also
taxable.
Except as discussed below, the total amount of any distribution from a
traditional IRA must be included in your gross income as ordinary income. We
report all payments from traditional IRA contracts on IRS Form 1099R as fully
taxable.
If you have ever made nondeductible IRA contributions to any traditional IRA
(it does not have to be to this particular traditional IRA contract), those
contributions are recovered tax free when you get distributions from any
traditional IRA. It is your responsibility to keep permanent tax records of all
of your nondeductible contributions to traditional IRAs so that you can
correctly report the taxable amount of any distribution on your own tax return.
At the end of any year in which you have received a distribution from any
traditional IRA, you calculate the ratio of your total nondeductible
traditional IRA contributions (less any amounts previously withdrawn tax free)
to the total account balances of all traditional IRAs you own at the end of the
year plus all traditional IRA distributions made during the year. Multiply this
by all distributions from the traditional IRA during the year to determine the
nontaxable portion of each distribution.
A distribution from a traditional IRA is not taxable if:
o the amount received is a withdrawal of excess contributions, as
described under "Excess contributions" earlier in this section; or
o the entire amount received is rolled over to another traditional
IRA or other eligible retirement plan which agrees to accept the funds.
(See "Rollovers from eligible retirement plans other than traditional
IRAs" under "Rollover and transfer contributions to traditional IRAs"
earlier in this section.)
The following are eligible to receive rollovers of distributions from a
traditional IRA: a qualified plan, a TSA or a governmental employer 457(b)
plan. After-tax contributions in a traditional IRA cannot be rolled from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan. Before you decide to roll over a distribution from a
traditional IRA to another eligible retirement plan, you should check with the
administrator of that plan about whether the plan accepts rollovers and, if so,
the types it accepts. You should also check with the administrator of the
receiving plan about any documents required to be completed before it will
accept a rollover.
Distributions from a traditional IRA are not eligible for favorable ten-year
averaging and long-term capital gain treatment available under limited
circumstances for certain distributions from qualified plans. If you might be
eligible for such tax treatment from your qualified plan, you may be able to
preserve such tax treatment even though an eligible rollover from a qualified
plan is temporarily rolled into a "conduit IRA" before being rolled back into a
qualified plan. See your tax adviser.
REQUIRED MINIMUM DISTRIBUTIONS
BACKGROUND ON REGULATIONS -- REQUIRED MINIMUM DISTRIBUTIONS
Distributions must be made from traditional IRAs according to rules contained
in the Code and Treasury Regulations. Certain provisions of the Treasury
Regulations will require, beginning in 2006, that the actuarial present value
of additional annuity contract benefits be added to the dollar amount credited
for purposes of calculating certain types of required minimum distributions
from individual retirement annuity contracts. This could increase the amount
required to be distributed from these contracts. If you take annual withdrawal
instead of annuitizing, please consult your tax adviser concerning
applicability of these complex rules to your situation.
LIFETIME REQUIRED MINIMUM DISTRIBUTIONS. You must start taking annual
distributions from your traditional IRAs for the year in which you turn age
701/2.
WHEN YOU HAVE TO TAKE THE FIRST LIFETIME REQUIRED MINIMUM DISTRIBUTION. The
first required minimum distribution is for the calendar year in which you turn
age 701/2. You have the choice to take this first required minimum distribution
during the calendar year you actually reach age 701/2, or to delay taking it
until the first three-month period in the next calendar year (January 1 - April
1). Distributions must start no later than your "Required Beginning Date,"
which is April 1st of the calendar year after the calendar year in which you
turn age 701/2. If you choose to delay taking the first annual minimum
distribution, then you will have to take two minimum distributions in that
year--the delayed one for the first year and the one actually for that year.
Once minimum distributions begin, they must be made at some time each year.
HOW YOU CAN CALCULATE REQUIRED MINIMUM DISTRIBUTIONS.
There are two approaches to taking required minimum distributions --
"account-based" or "annuity-based."
ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the
value of your traditional IRA as of December 31st of the past calendar year by
a number corresponding to your age from an IRS table. This gives you the
required minimum distribution amount for that particular IRA for that year. If
your spouse is your sole beneficiary and more than 10 years younger than you,
the dividing number you use may be from another IRS table and may produce a
smaller lifetime required minimum distribution amount. Regardless of the table
used, the required minimum distribution amount will vary each year as the
68 Tax information
account value and the divisor change. If you initially choose an account-based
method, you may later apply your traditional IRA funds to a life annuity-based
payout with any certain period not exceeding remaining life expectancy,
determined in accordance with IRS tables.
ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to
do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a designated beneficiary or for a
period certain not extending beyond applicable life expectancies, determined in
accordance with IRS tables.
Do you have to pick the same method to calculate your required minimum
distributions for all of your traditional IRAs and other retirement plans? No.
If you want, you can choose a different method for each of your traditional
IRAs and other retirement plans. For example, you can choose an annuity payout
from one IRA, a different annuity payout from a qualified plan and an
account-based annual withdrawal from another IRA.
WILL WE PAY YOU THE ANNUAL AMOUNT EVERY YEAR FROM YOUR TRADITIONAL IRA BASED ON
THE METHOD YOU CHOOSE? We will only pay you automatically if you affirmatively
select an annuity payout option or an account-based withdrawal option such as
our "automatic required minimum distribution (RMD) service." Even if you do not
enroll in our service, we will calculate the amount of the required minimum
distribution withdrawal for you, if you so request in writing. However, in that
case you will be responsible for asking us to pay the required minimum
distribution withdrawal to you.
Also, the IRS will let you calculate the required minimum distribution for each
traditional IRA that you maintain, using the method that you picked for that
particular IRA. You can add these required minimum distribution amount
calculations together. As long as the total amount you take out every year
satisfies your overall traditional IRA required minimum distribution amount,
you may choose to take your annual required minimum distribution from any one
or more traditional IRAs that you own.
WHAT IF YOU TAKE MORE THAN YOU NEED TO FOR ANY YEAR? The required minimum
distribution amount for your traditional IRAs is calculated on a year-by-year
basis. There are no carry-back or carry-forward provisions. Also, you cannot
apply required minimum distribution amounts you take from your qualified plans
to the amounts you have to take from your traditional IRAs and vice versa.
WHAT IF YOU TAKE LESS THAN YOU NEED TO FOR ANY YEAR? Your IRA could be
disqualified, and you could have to pay tax on the entire value. Even if your
IRA is not disqualified, you could have to pay a 50% penalty tax on the
shortfall (required amount for traditional IRAs less amount actually taken). It
is your responsibility to meet the required minimum distribution rules. We will
remind you when our records show that you are within the age group which must
take lifetime required minimum distributions. If you do not select a method
with us, we will assume you are taking your required minimum distribution from
another traditional IRA that you own.
WHAT ARE THE REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER YOU DIE? These could
vary depending on whether you die before or after your Required Beginning Date
for lifetime required minimum distribution payments, and the status of your
beneficiary. The following assumes that you have not yet elected an
annuity-based payout at the time of your death. If you elect an annuity-based
payout, payments (if any) after your death must be made at least as rapidly as
when you were alive.
INDIVIDUAL BENEFICIARY. Regardless of whether your death occurs before or
after your Required Beginning Date, an individual death beneficiary calculates
annual post-death required minimum distribution payments based on the
beneficiary's life expectancy using the "term certain method." That is, he or
she determines his or her life expectancy using the IRS-provided life
expectancy tables as of the calendar year after the owner's death and reduces
that number by one each subsequent year.
If you die before your Required Beginning Date, the rules permit any individual
beneficiary, including a spousal beneficiary, to elect instead to apply the
"5-year rule." Under this rule, instead of annual payments having to be made
beginning with the first in the year following the owner's death, the entire
account must be distributed by the end of the calendar year which contains the
fifth anniversary of the owner's death. No distribution is required before that
fifth year.
SPOUSAL BENEFICIARY. If you die after your Required Beginning Date, and your
death beneficiary is your surviving spouse, your spouse has a number of
choices. Post-death distributions may be made over your spouse's single life
expectancy. Any amounts distributed after that surviving spouse's death are
made over the spouse's life expectancy calculated in the year of his/her death,
reduced by one for each subsequent year. In some circumstances, your surviving
spouse may elect to become the owner of the traditional IRA and halt
distributions until he or she reaches age 701/2, or roll over amounts from your
traditional IRA into his/her own traditional IRA or other eligible retirement
plan.
If you die before your Required Beginning Date, and the death beneficiary is
your surviving spouse, the rules permit the spouse to delay starting payments
over his/her life expectancy until the year in which you would have attained
age 701/2.
NON-INDIVIDUAL BENEFICIARY. If you die after your Required Beginning Date, and
your death beneficiary is a non-individual, such as the estate, the rules
permit the beneficiary to calculate post-death required minimum distribution
amounts based on the owner's life expectancy in the year of death. HOWEVER,
NOTE THAT WE NEED AN INDIVIDUAL ANNUITANT TO KEEP AN ANNUITY CONTRACT IN FORCE.
IF THE BENEFICIARY IS NOT AN INDIVIDUAL, WE MUST DISTRIBUTE AMOUNTS REMAINING
IN THE ANNUITY CONTRACT AFTER THE DEATH OF THE ANNUITANT.
If you die before your Required Beginning Date for lifetime required minimum
distribution payments, and the death beneficiary is a non-individual, such as
the estate, the rules continue to apply the 5-year rule discussed earlier under
"Individual beneficiary." PLEASE NOTE THAT WE NEED AN INDIVIDUAL ANNUITANT TO
KEEP AN ANNUITY CONTRACT IN FORCE. IF THE BENEFICIARY IS NOT AN INDIVIDUAL, WE
MUST DISTRIBUTE AMOUNTS REMAINING IN THE ANNUITY CONTRACT AFTER THE DEATH OF
THE ANNUITANT.
Tax information 69
SUCCESSOR OWNER AND ANNUITANT
If your spouse is the sole primary beneficiary and elects to become the
successor owner and annuitant, no death benefit is payable until your surviving
spouse's death.
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
IRA death benefits are taxed the same as IRA distributions.
BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS
You cannot get loans from a traditional IRA. You cannot use a traditional IRA
as collateral for a loan or other obligation. If you borrow against your IRA or
use it as collateral, its tax-favored status will be lost as of the first day
of the tax year in which this prohibited event occurs. If this happens, you
must include the value of the traditional IRA in your federal gross income.
Also, the early distribution penalty tax of 10% may apply if you have not
reached age 591/2 before the first day of that tax year.
Early distribution penalty tax
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a traditional IRA made before you reach age 591/2. Some of
the available exceptions to the pre-age 591/2 penalty tax include distributions
made:
o on or after your death; or
o because you are disabled (special federal income tax definition);
or
o used to pay certain extraordinary medical expenses (special fed
eral income tax definition); or
o used to pay medical insurance premiums for unemployed indi
viduals (special federal income tax definition); or
o used to pay certain first-time home buyer expenses (special fed
eral income tax definition; $10,000 lifetime total limit for these
distributions from all your traditional and Roth IRAs); or
o used to pay certain higher education expenses (special federal
income tax definition); or
o in the form of substantially equal periodic payments made at
least annually over your life (or your life expectancy) or over the joint
lives of you and your beneficiary (or your joint life expectancies using
an IRS-approved distribution method.
To meet this last exception, you could elect to apply your contract value to an
Income Manager(R) (life annuity with a period certain) payout annuity contract
(level payments version). You could also elect the substantially equal
withdrawals option. We will calculate the substantially equal annual payments
using your choice of IRS-approved methods we offer. Although substantially
equal withdrawals and Income Manager(R) payments are not subject to the 10%
penalty tax, they are taxable as discussed in "Withdrawals, payments and
transfers of funds out of traditional IRAs" above. Once substantially equal
withdrawals or Income Manager(R) annuity payments begin, the distributions
should not be stopped or changed until after the later of your reaching age
591/2 or five years after the date of the first distribution, or the penalty
tax, including an interest charge for the prior penalty avoidance, may apply to
all prior distributions under this option. Also, it is possible that the IRS
could view any additional withdrawal or payment you take from your contract as
changing your pattern of substantially equal withdrawals or Income Manager(R)
payments for purposes of determining whether the penalty applies.
ROTH INDIVIDUAL RETIREMENT ANNUITIES (ROTH IRAS)
This section of the Prospectus covers some of the special tax rules that apply
to Roth IRAs. If the rules are the same as those that apply to the traditional
IRA, we will refer you to the same topic under "traditional IRAs."
The Accumulator(R) Plus(SM) Roth Conversion IRA contract is designed to qualify
as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of
the Internal Revenue Code.
CONTRIBUTIONS TO ROTH IRAS
Individuals may make four different types of contributions to a Roth IRA:
o regular after-tax contributions out of earnings; or
o taxable rollover contributions from traditional IRAs ("conversion"
contributions); or
o tax-free rollover contributions from other Roth IRAs; or
o tax-free direct custodian-to-custodian transfers from other Roth
IRAs ("direct transfers").
Regular after-tax, direct transfer and rollover contributions may be made to a
Roth Conversion IRA contract. See "Rollovers and direct transfers" later in
this section. If you use the forms we require, we will also accept traditional
IRA funds which are subsequently recharacterized as Roth IRA funds following
special federal income tax rules.
REGULAR CONTRIBUTIONS TO ROTH IRAS
LIMITS ON REGULAR CONTRIBUTIONS. The "maximum regular contribution amount" for
any taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $4,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for each of the taxable years 2005
and 2006. This limit does not apply to rollover contributions or direct
custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth
IRAs reduce your ability to contribute to traditional IRAs and vice versa. When
your earnings are below $4,000, your earned income or compensation for the year
is the most you can contribute. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to Roth IRAs and
traditional IRAs. See the discussion earlier in this section under traditional
IRAs. If you or your spouse are at least age 50 at any time during the taxable
year for which you are making a regular contribution, additional
70 Tax information
catch-up contributions totaling up to $500 can be made for the taxable year
2005. This amount increases to $1,000 for the taxable year 2006.
With a Roth IRA, you can make regular contributions when you reach 701/2, as
long as you have sufficient earnings. But, you cannot make contributions,
regardless of your age, for any year that:
o your federal income tax filing status is "married filing jointly" and
your modified adjusted gross income is over $160,000; or
o your federal income tax filing status is "single" and your modified
adjusted gross income is over $110,000.
However, you can make regular Roth IRA contributions in reduced amounts when:
o your federal income tax filing status is "married filing jointly" and
your modified adjusted gross income is between $150,000 and $160,000; or
o your federal income tax filing status is "single" and your modified
adjusted gross income is between $95,000 and $110,000.
If you are married and filing separately and your modified adjusted gross
income is between $0 and $10,000 the amount of regular contributions you are
permitted to make is phased out. If your modified adjusted gross income is more
than $10,000 you cannot make regular Roth IRA contributions.
WHEN YOU CAN MAKE CONTRIBUTIONS. Same as traditional IRAs.
DEDUCTIBILITY OF CONTRIBUTIONS. Roth IRA contributions are not tax deductible.
ROLLOVERS AND DIRECT TRANSFERS
WHAT IS THE DIFFERENCE BETWEEN ROLLOVER AND DIRECT TRANSFER TRANSACTIONS? You
may make rollover contributions to a Roth IRA from only two sources:
o another Roth IRA ("tax-free rollover contribution"); or
o another traditional IRA, including a SEP-IRA or SIMPLE IRA (after
a two-year rollover limitation period for SIMPLE IRA funds), in a taxable
conversion rollover ("conversion contribution").
You may not make contributions to a Roth IRA from a qualified plan under
Section 401(a) of the Internal Revenue Code, a TSA under Section 403(b) of the
Internal Revenue Code or any other eligible retirement plan. You may make
direct transfer contributions to a Roth IRA only from another Roth IRA.
The difference between a rollover transaction and a direct transfer transaction
is the following: in a rollover transaction you actually take possession of the
funds rolled over or are considered to have received them under tax law in the
case of a change from one type of plan to another. In a direct transfer
transaction, you never take possession of the funds, but direct the first Roth
IRA custodian trustee or issuer to transfer the first Roth IRA funds directly
to the recipient Roth IRA custodian, trustee or issuer. You can make direct
transfer transactions only between identical plan types (for example, Roth IRA
to Roth IRA). You can also make rollover transactions between identical plan
types. However, you can only use rollover transactions between different plan
types (for example, traditional IRA to Roth IRA).
You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to
Roth IRA direct transfer transactions. This can be accomplished on a completely
tax-free basis. However, you may make Roth IRA to Roth IRA rollover
transactions only once in any 12-month period for the same funds.
Trustee-to-trustee or custodian-to-custodian direct transfers can be made more
frequently than once a year. Also, if you send us the rollover contribution to
apply it to a Roth IRA, you must do so within 60 days after you receive the
proceeds from the original IRA to get rollover treatment.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some
cases, Roth IRAs can be transferred on a tax-free basis between spouses or
former spouses as a result of a court-ordered divorce or separation decree.
CONVERSION CONTRIBUTIONS TO ROTH IRAS
In a conversion rollover transaction, you withdraw (or are considered to have
withdrawn) all or a portion of funds from a traditional IRA you maintain and
convert it to a Roth IRA within 60 days after you receive (or are considered to
have received) the traditional IRA proceeds. Unlike a rollover from a
traditional IRA to another traditional IRA, the conversion rollover transaction
is not tax-free. Instead, the distribution from the traditional IRA is
generally fully taxable. For this reason, we are required to withhold 10%
federal income tax from the amount converted unless you elect out of such
withholding. If you have ever made nondeductible regular contributions to any
traditional IRA -- whether or not it is the traditional IRA you are converting
- -- a pro rata portion of the distribution is tax free.
There is, however, no early distribution penalty tax on the traditional IRA
withdrawal that you are converting to a Roth IRA, even if you are under age
591/2.
You cannot make conversion contributions to a Roth IRA for any taxable year in
which your modified adjusted gross income exceeds $100,000. (For this purpose,
your modified adjusted gross income is calculated without the gross income
stemming from the traditional IRA conversion. Beginning in 2005, modified
adjusted gross income for this purpose will also exclude any lifetime required
minimum distribution from a traditional IRA.) You also cannot make conversion
contributions to a Roth IRA for any taxable year in which your federal income
tax filing status is "married filing separately."
You cannot make conversion contributions to a Roth IRA to the extent that the
funds in your traditional IRA are subject to the annual required minimum
distribution rule applicable to traditional IRAs beginning at age 701/2.
You cannot convert and reconvert an amount during the same taxable year, or if
later, during the 30-day period following a recharacterization. If you
reconvert during either of these periods, it will be a failed Roth IRA
conversion.
Tax information 71
RECHARACTERIZATIONS
You may be able to treat a contribution made to one type of IRA as having been
made to a different type of IRA. This is called recharacterizing the
contribution.
HOW TO RECHARACTERIZE. To recharacterize a contribution, you generally must
have the contribution transferred from the first IRA (the one to which it was
made) to the second IRA in a deemed trustee-to-trustee transfer. If the
transfer is made by the due date (including extensions) for your tax return for
the year during which the contribution was made, you can elect to treat the
contribution as having been originally made to the second IRA instead of to the
first IRA. It will be treated as having been made to the second IRA on the same
date that it was actually made to the first IRA. You must report the
recharacterization and must treat the contribution as having been made to the
second IRA, instead of the first IRA, on your tax return for the year during
which the contribution was made.
The contribution will not be treated as having been made to the second IRA
unless the transfer includes any net income allocable to the contribution. You
can take into account any loss on the contribution while it was in the IRA when
calculating the amount that must be transferred. If there was a loss, the net
income you must transfer may be a negative amount.
No deduction is allowed for the contribution to the first IRA and any net
income transferred with the recharacterized contribution is treated as earned
in the second IRA. The contribution will not be treated as having been made to
the second IRA to the extent any deduction was allowed with respect to the
contribution to the first IRA.
For recharacterization purposes, a distribution from a traditional IRA that is
received in one tax year and rolled over into a Roth IRA in the next year, but
still within 60 days of the distribution from the traditional IRA, is treated
as a contribution to the Roth IRA in the year of the distribution from the
traditional IRA.
Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be
recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or
SIMPLE IRA).
To recharacterize a contribution, you must use our forms.
The recharacterization of a contribution is not treated as a rollover for
purposes of the 12-month limitation period described above. This rule applies
even if the contribution would have been treated as a rollover contribution by
the second IRA if it had been made directly to the second IRA rather than as a
result of a recharacterization of a contribution to the first IRA.
WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF ROTH
IRAS
NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or
all of your funds from a Roth IRA at any time; you do not need to wait for a
special event like retirement.
DISTRIBUTIONS FROM ROTH IRAS
Distributions include withdrawals from your contract, surrender of your
contract and annuity payments from your contract. Death benefits are also
distributions.
You must keep your own records of regular and conversion contributions to all
Roth IRAs to assure appropriate taxation. You may have to file information on
your contributions to and distributions from any Roth IRA on your tax return.
You may have to retain all income tax returns and records pertaining to such
contributions and distributions until your interests in all Roth IRAs are
distributed.
Like traditional IRAs, taxable distributions from a Roth IRA are not entitled
to special favorable ten-year averaging and long-term capital gain treatment
available in limited cases to certain distributions from qualified plans.
The following distributions from Roth IRAs are free of income tax:
o rollovers from a Roth IRA to another Roth IRA;
o direct transfers from a Roth IRA to another Roth IRA;
o qualified distributions from a Roth IRA; and
o return of excess contributions or amounts recharacterized to a
traditional IRA.
QUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Qualified distributions from Roth IRAs
made because of one of the following four qualifying events or reasons are not
includable in income:
o you are age 591/2 or older; or
o you die; or
o you become disabled (special federal income tax definition); or
o your distribution is a "qualified first-time homebuyer distribution"
(special federal income tax definition; $10,000 lifetime total limit for
these distributions from all of your traditional and Roth IRAs).
You also have to meet a five-year aging period. A qualified distribution is any
distribution made after the five-taxable-year period beginning with the first
taxable year for which you made any contribution to any Roth IRA (whether or
not the one from which the distribution is being made).
NONQUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Nonqualified distributions from
Roth IRAs are distributions that do not meet both the qualifying event and
five-year aging period tests described above. If you receive such a
distribution, part of it may be taxable. For purposes of determining the
correct tax treatment of distributions (other than the withdrawal of excess
contributions and the earnings on them), there is a set order in which
contributions (including conversion contributions) and earnings are considered
to be distributed from your Roth IRA. The order of distributions is as follows:
(1) Regular contributions.
(2) Conversion contributions, on a first-in-first-out basis (generally,
total conversions from the earliest year first). These conversion
contributions are taken into account as follows:
(a) Taxable portion (the amount required to be included in gross income
because of conversion) first, and then the
(b) Nontaxable portion.
(3) Earnings on contributions.
72 Tax information
Rollover contributions from other Roth IRAs are disregarded for this purpose.
To determine the taxable amount distributed, distributions and contributions
are aggregated or grouped together as follows:
(1) All distributions made during the year from all Roth IRAs you maintain --
with any custodian or issuer -- are added together.
(2) All regular contributions made during and for the year (contribu tions made
after the close of the year, but before the due date of your return) are
added together. This total is added to the total undistributed regular
contributions made in prior years.
(3) All conversion contributions made during the year are added together. For
purposes of the ordering rules, in the case of any conversion in which the
conversion distribution is made in 2005 and the conversion contribution is
made in 2006, the conversion contribution is treated as contributed prior to
other conversion contributions made in 2006.
Any recharacterized contributions that end up in a Roth IRA are added to the
appropriate contribution group for the year that the original contribution
would have been taken into account if it had been made directly to the Roth
IRA.
Any recharacterized contribution that ends up in an IRA other than a Roth IRA
is disregarded for the purpose of grouping both contributions and
distributions. Any amount withdrawn to correct an excess contribution
(including the earnings withdrawn) is also disregarded for this purpose.
REQUIRED MINIMUM DISTRIBUTIONS DURING LIFE
Lifetime required minimum distributions do not apply.
REQUIRED MINIMUM DISTRIBUTIONS AT DEATH
Same as traditional IRA under "What are the required minimum distribution
payments after you die?"
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
Distributions to a beneficiary generally receive the same tax treatment as if
the distribution had been made to you.
Borrowing and loans are prohibited transactions.
Same as traditional IRA.
EXCESS CONTRIBUTIONS
Generally the same as traditional IRA, except that regular contributions made
after age 701/2 are not excess contributions.
Excess rollover contributions to Roth IRAs are contributions not eligible to be
rolled over (for example, conversion contributions from a traditional IRA if
your modified adjusted gross income is in excess of $100,000 in the conversion
year).
You can withdraw or recharacterize any contribution to a Roth IRA before the
due date (including extensions) for filing your federal income tax return for
the tax year. If you do this, you must also withdraw or recharacterize any
earnings attributable to the contribution.
EARLY DISTRIBUTION PENALTY TAX
Same as traditional IRA.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
GENERAL
This section of the Prospectus covers some of the special tax rules that apply
to TSA contracts under Section 403(b) of the Internal Revenue Code (TSAs). If
the rules are the same as those that apply to another kind of contract, for
example, traditional IRAs, we will refer you to the same topic under
"traditional IRAs."
PLEASE NOTE: The following discussion reflects our understanding of some of the
current federal income tax rules applicable to Section 403(b) of the Code. The
IRS and Treasury have recently issued Proposed Regulations on Section 403(b) of
the Code. If finalized in their current form, these Proposed Regulations would
affect the establishment and operation of plans and arrangements under Section
403(b) of the Code, and the contracts issued to fund such plans. Please Consult
your tax adviser concerning how these Proposed Regulations could affect you.
Generally there are two types of funding vehicles available for 403(b)
arrangements -- an annuity contract under Section 403(b)(1) of the Code or a
custodial account which invests only in mutual funds and which is treated as an
annuity contract under Section 403(b)(7) of the Code. Both types of 403(b)
arrangements qualify for tax deferral.
PROTECTION PLUS(SM) FEATURE
The Protection Plus(SM) feature is offered for Rollover TSA contracts, subject
to state and contract availability. There is a limit to the amount of life
insurance benefits that TSAs may offer. Although we view the optional
Protection Plus(SM) benefit as an investment protection feature which should
have no adverse tax effect and not as a life insurance benefit, the IRS has not
specifically addressed this question. It is possible that the IRS could take a
contrary position regarding tax qualification or assert that the Protection
Plus(SM) rider is not a permissible part of a TSA contract. If the IRS were to
take the position that the optional Protection Plus(SM) benefit is not part of
the contract, in such a case, the charges for the Protection Plus(SM) rider
could be treated for federal income tax purposes as a partial withdrawal from
the contract. If this were so, such a deemed withdrawal could affect the tax
qualification of the TSA and could be taxable. Were the IRS to take any adverse
position, AXA Equitable would take all reasonable steps to attempt to avoid any
adverse result, which would include amending the contract (with appropriate
notice to you). You should discuss with your tax adviser whether you should
consider purchasing an Accumulator(R) Plus(SM) Rollover TSA contract with the
optional Protection Plus(SM) feature.
CONTRIBUTIONS TO TSAS
There are two ways you can make contributions to establish your Rollover TSA
contract:
o a full or partial direct transfer of assets ("direct transfer") from
Tax information 73
another contract or arrangement that meets the requirements of Section
403(b) of the Internal Revenue Code by means of IRS Revenue Ruling 90-24;
or
o a rollover from another 403(b) arrangement.
If you make a direct transfer, you must fill out our transfer form.
We do not accept after-tax contribution rollovers to the Accumulator(R) Plus(SM)
TSA.
EMPLOYER-REMITTED CONTRIBUTIONS. The Rollover TSA contract does not accept
employer-remitted contributions. However, we provide the following discussion
as part of our description of restrictions on the distribution of funds
directly transferred, which include employer-remitted contributions to other
TSAs.
Employer-remitted contributions to TSAs made through the employer's payroll are
subject to annual limits. (Tax-free direct transfer contributions from another
403(b) arrangement and rollover contributions from another eligible retirement
plan are not subject to these annual contribution limits.) Commonly, some or
all of the contributions made to a TSA are made under a salary reduction
agreement between the employee and the employer. These contributions are called
"salary reduction" or "elective deferral" contributions. However, a TSA can
also be wholly or partially funded through nonelective employer contributions
or after-tax employee contributions. Amounts attributable to salary reduction
contributions to TSAs are generally subject to withdrawal restrictions. Also,
all amounts attributable to investments in a 403(b)(7) custodial account are
subject to withdrawal restrictions discussed below.
ROLLOVER OR DIRECT TRANSFER CONTRIBUTIONS. Once you establish your Rollover
TSA with 403(b)-source funds, you may make subsequent rollover contributions to
your Rollover TSA contract from these sources: qualified plans, governmental
employer 457(b) plans and traditional IRAs, as well as other TSAs and 403(b)
arrangements. All rollover contributions must be pre-tax funds only with
appropriate documentation satisfactory to us.
Generally, you may make a rollover contribution to your TSA when you have a
distributable event from an existing TSA or other eligible retirement plan as a
result of your:
o termination of employment with the employer who provided the
funds for the plan; or
o reaching age 591/2 even if you are still employed; or
o disability (special federal income tax definition).
You can roll over pre-tax funds from a traditional IRA to a TSA at any time.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental 457(b) plan are not subject to the additional
10% federal income tax penalty for premature distributions, but they may become
subject to this penalty if you roll the funds to a different type of eligible
retirement plan and subsequently take a premature distribution.
If the recipient plan separately accounts for funds rolled over from another
eligible retirement plan, the IRS has ruled that an exception is available in
certain situations to withdrawal restrictions that would otherwise apply to the
rollover contribution funds in the recipient plan. We do not currently
separately account for rollover contributions from other eligible retirement
plans.
A transfer occurs when changing the funding vehicle, even if there is no
distributable event. Under a direct transfer, you do not receive a
distribution. We accept direct transfers of TSA funds under Revenue Ruling
90-24 only if:
o you give us acceptable written documentation as to the source of
the funds; and
o the Accumulator(R) Plus(SM) contract receiving the funds has provi
sions at least as restrictive as the source contract.
Before you transfer funds to an Accumulator(R) Plus(SM) Rollover TSA contract,
you may have to obtain your employer's authorization or demonstrate that you do
not need employer authorization. For example, the transferring TSA may be
subject to Title I of ERISA, if the employer makes matching contributions to
salary reduction contributions made by employees. In that case, the employer
must continue to approve distributions from the plan or contract.
Your contribution to the Accumulator(R) Plus(SM) TSA must be net of the required
minimum distribution for the tax year in which we issue the contract if:
o you are or will be at least age 701/2 in the current calendar year,
and
o you have retired from service with the employer who provided the
funds to purchase the TSA you are transferring or rolling over to the
Accumulator(R) Plus(SM) Rollover TSA.
This rule applies regardless of whether the source of funds is a:
o rollover by check of the proceeds from another TSA or eligible
retirement plan; or
o direct rollover from another TSA or eligible retirement plan; or
o direct transfer under Revenue Ruling 90-24 from another TSA.
DISTRIBUTIONS FROM TSAS
GENERAL. Depending on the terms of the employer plan and your employment
status, you may have to get your employer's consent to take a loan or
withdrawal. Your employer will tell us this when you establish the TSA through
a direct transfer.
WITHDRAWAL RESTRICTIONS. If this is a Revenue Ruling 90-24 direct transfer, we
will treat all amounts transferred to this contract and any future earnings on
the amount transferred as not eligible for withdrawal until one of the
following events happens:
o you are severed from employment with the employer who pro-
74 Tax information
vided the funds to purchase the TSA you are transferring to the
Accumulator(R) Plus(SM) Rollover TSA; or
o you reach age 591/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o you take a hardship withdrawal (special federal income tax definition).
If any portion of the funds directly transferred to your TSA contract is
attributable to amounts that you invested in a 403(b)(7) custodial account,
such amounts, including earnings, are subject to withdrawal restrictions. With
respect to the portion of the funds that were never invested in a 403(b)(7)
custodial account, these restrictions apply to the salary reduction (elective
deferral) contributions to a TSA annuity contract you made and any earnings on
them. These restrictions do not apply to the amount directly transferred to
your TSA contract that represents your December 31, 1988, account balance
attributable to salary reduction contributions to a TSA annuity contract and
earnings. To take advantage of this grandfathering you must properly notify us
in writing at our processing office of your December 31, 1988, account balance
if you have qualifying amounts transferred to your TSA contract.
THIS PARAGRAPH APPLIES ONLY TO PARTICIPANTS IN A TEXAS OPTIONAL RETIREMENT
PROGRAM. Texas Law permits withdrawals only after one of the following
distributable events occur:
(1) the requirements for minimum distribution (discussed under "Required minimum
distributions" later in this section) are met; or
(2) death; or
(3) retirement; or
(4) termination of employment in all Texas public institutions of higher
education.
For you to make a withdrawal, we must receive a properly completed written
acknowledgment from the employer. If a distributable event occurs before you
are vested, we will refund to the employer any amounts provided by an
employer's first-year matching contribution. We reserve the right to change
these provisions without your consent, but only to the extent necessary to
maintain compliance with applicable law. Loans are not permitted under Texas
Optional Retirement Programs.
TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSAs are generally not
subject to federal income tax until benefits are distributed. Distributions
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSAs are includable in
gross income as ordinary income. Distributions from TSAs may be subject to 20%
federal income tax withholding. See "Federal and state income tax withholding
and information reporting" later in this section. In addition, TSA
distributions may be subject to additional tax penalties.
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since we currently do not accept
after-tax funds, we do not track your investment in the contract, if any. We
will report all distributions from this Rollover TSA as fully taxable. It is
your responsibility to determine how much of the distribution is taxable.
DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount
received in excess of the investment in the contract is taxable. The amount of
any partial distribution from a TSA prior to the annuity starting date is
generally taxable, except to the extent that the distribution is treated as a
withdrawal of after-tax contributions. Distributions are normally treated as
pro rata withdrawals of any after-tax contributions and earnings on those
contributions.
ANNUITY PAYMENTS. If you elect an annuity payout option, you will recover any
investment in the contract as each payment is received by dividing the
investment in the contract by an expected return determined under an IRS table
prescribed for qualified annuities. The amount of each payment not excluded
from income under this exclusion ratio is fully taxable. The full amount of the
payments received after your investment in the contract is recovered is fully
taxable. If you (and your beneficiary under a joint and survivor annuity) die
before recovering the full investment in the contract, a deduction is allowed
on your (or your beneficiary's) final tax return.
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH. Death benefit distributions from a
TSA generally receive the same tax treatment as distributions during your
lifetime. In some instances, distributions from a TSA made to your surviving
spouse may be rolled over to a traditional IRA or other eligible retirement
plan.
LOANS FROM TSAS. You may take loans from a TSA unless restricted by the
employer (for example, under an employer plan subject to ERISA). If you cannot
take a loan, or cannot take a loan without approval from the employer who
provided the funds, we will have this information in our records based on what
you and the employer who provided the TSA funds told us when you purchased your
contract.
Loans are generally not treated as a taxable distribution. If the amount of the
loan exceeds permissible limits under federal income tax rules when made, the
amount of the excess is treated (solely for tax purposes) as a taxable
distribution. Additionally, if the loan is not repaid at least quarterly,
amortizing (paying down) interest and principal, the amount not repaid when due
will be treated as a taxable distribution. The entire unpaid balance of the
loan is includable in income in the year of the default.
TSA loans are subject to federal income tax limits and may also be subject to
the limits of the plan from which the funds came. Federal income tax rule
requirements apply even if the plan is not subject to ERISA. For example, loans
offered by TSAs are subject to the following conditions:
o The amount of a loan to a participant, when combined with all other loans to
the participant from all qualified plans of the employer, cannot exceed the
lesser of:
Tax information 75
(1) the greater of $10,000 or 50% of the participant's nonforfeitable accrued
benefits; and
(2) $50,000 reduced by the excess (if any) of the highest outstand ing loan
balance over the previous twelve months over the outstanding loan balance of
plan loans on the date the loan was made.
o In general, the term of the loan cannot exceed five years unless the loan is
used to acquire the participant's primary residence. Accumulator(R) Plus(SM)
Rollover TSA contracts have a term limit of 10 years for loans used to
acquire the participant's primary residence.
o All principal and interest must be amortized in substantially level payments
over the term of the loan, with payments being made at least quarterly. In
very limited circumstances, the repayment obligation may be temporarily
suspended during a leave of absence.
The amount borrowed and not repaid may be treated as a distribution if:
o the loan does not qualify under the conditions above;
o the participant fails to repay the interest or principal when due; or
o in some instances, the participant separates from service with the employer
who provided the funds or the plan is terminated.
In this case, the participant may have to include the unpaid amount due as
ordinary income. In addition, the 10% early distribution penalty tax may apply.
The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as
a distribution.
See Appendix VIII later in this Prospectus for any state rules that may affect
loans from a Rollover TSA contract.
TAX-DEFERRED ROLLOVERS AND DIRECT TRANSFERS. You may roll over any "eligible
rollover distribution" from a TSA into another eligible retirement plan which
agrees to accept the rollover. The rollover may be a direct rollover or one you
do yourself within 60 days after you receive the distribution. To the extent
rolled over, a distribution remains tax-deferred.
You may roll over a distribution from a TSA to any of the following: a
qualified plan, a governmental employer 457(b) plan (separate accounting
required) or a traditional IRA. A spousal beneficiary may also roll over death
benefits as above.
The taxable portion of most distributions will be eligible for rollover, except
as specifically excluded under federal income tax rules. Distributions that you
cannot roll over generally include periodic payments for life or for a period
of 10 years or more, hardship withdrawals and required minimum distributions
under federal income tax rules.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling
90-24 are not distributions.
REQUIRED MINIMUM DISTRIBUTIONS
Generally the same as traditional IRA with these differences:
WHEN YOU HAVE TO TAKE THE FIRST REQUIRED MINIMUM DISTRIBUTION. The minimum
distribution rules force TSA participants to start calculating and taking
annual distributions from their TSAs by a required date. Generally, you must
take the first required minimum distribution for the calendar year in which you
turn age 701/2. You may be able to delay the start of required minimum
distributions for all or part of your account balance until after age 701/2, as
follows:
o For TSA participants who have not retired from service with the employer who
provided the funds for the TSA by the calendar year the participant turns
age 701/2, the required beginning date for minimum distributions is extended
to April 1 following the calendar year of retirement.
o TSA plan participants may also delay the start of required mini mum
distributions to age 75 of the portion of their account value attributable
to their December 31, 1986, TSA account balance, even if retired at age
701/2. We will know whether or not you qualify for this exception because it
will only apply to people who establish their Accumulator(R) Plus(SM)
Rollover TSA by direct Revenue Ruling 90-24 transfers. If you do not give us
the amount of your December 31, 1986, account balance that is being
transferred to the Accumulator(R) Plus(SM) Rollover TSA on the form used to
establish the TSA, you do not qualify.
SPOUSAL CONSENT RULES
This will only apply to you if you establish your Accumulator(R) Plus(SM)
Rollover TSA by direct Revenue Ruling 90-24 transfer. Your employer will tell
us on the form used to establish the TSA whether or not you need to get spousal
consent for loans, withdrawals or other distributions. If you do, you will need
such consent if you are married when you request a withdrawal under the TSA
contract. In addition, unless you elect otherwise with the written consent of
your spouse, the retirement benefits payable under the plan must be paid in the
form of a qualified joint and survivor annuity. A qualified joint and survivor
annuity is payable for the life of the annuitant with a survivor annuity for
the life of the spouse in an amount not less than one-half of the amount
payable to the annuitant during his or her lifetime. In addition, if you are
married, the beneficiary must be your spouse, unless your spouse consents in
writing to the designation of another beneficiary.
If you are married and you die before annuity payments have begun, payments
will be made to your surviving spouse in the form of a life annuity unless at
the time of your death a contrary election was in effect. However, your
surviving spouse may elect, before payments begin, to receive payments in any
form permitted under the terms of the TSA contract and the plan of the employer
who provided the funds for the TSA.
EARLY DISTRIBUTION PENALTY TAX
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a TSA before you reach age 591/2. This is in addition to any
income tax. There are exceptions to the extra penalty tax. Some of the
available exceptions to the pre-age 591/2 penalty tax include distributions
made:
76 Tax information
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o to pay for certain extraordinary medical expenses (special federal income
tax definition); or
o in any form of payout after you have separated from service (only if the
separation occurs during or after the calendar year you reach age 55); or
o in a payout in the form of substantially equal periodic payments made at
least annually over your life (or your life expectancy), or over the joint
lives of you and your beneficiary (or your joint life expectancies) using an
IRS-approved distribution method (only after you have separated from service
at any age).
FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING
We must withhold federal income tax from distributions from annuity contracts.
You may be able to elect out of this income tax withholding in some cases.
Generally, we do not have to withhold if your distributions are not taxable.
The rate of withholding will depend on the type of distribution and, in certain
cases, the amount of your distribution. Any income tax withheld is a credit
against your income tax liability. If you do not have sufficient income tax
withheld or do not make sufficient estimated income tax payments, you may incur
penalties under the estimated income tax rules.
You must file your request not to withhold in writing before the payment or
distribution is made. Our processing office will provide forms for this
purpose. You cannot elect out of withholding unless you provide us with your
correct Taxpayer Identification Number and a United States residence address.
You cannot elect out of withholding if we are sending the payment out of the
United States.
You should note the following special situations:
o We might have to withhold and/or report on amounts we pay under a free look
or cancellation.
o We are generally required to withhold on conversion rollovers of traditional
IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA
and is taxable.
o We are required to withhold on the gross amount of a distribution from a
Roth IRA to the extent it is reasonable for us to believe that a
distribution is includable in your gross income. This may result in tax
being withheld even though the Roth IRA distribution is ultimately not
taxable. You can elect out of withholding as described below.
Special withholding rules apply to foreign recipients and United States
citizens residing outside the United States. We do not discuss these rules here
in detail. However we may require additional documentation in the case of
payments made to non United States persons and United States persons living
abroad prior to processing any requested transaction.
Certain states have indicated that state income tax withholding will also apply
to payments from the contracts made to residents. In some states, you may elect
out of state withholding, even if federal withholding applies. Generally, an
election out of federal withholding will also be considered an election out of
state withholding. If you need more information concerning a particular state
or any required forms, call our processing office at the toll-free number.
FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS
We withhold differently on "periodic" and "non-periodic" payments. For a
periodic annuity payment, for example, unless you specify a different number of
withholding exemptions, we withhold assuming that you are married and claiming
three withholding exemptions. If you do not give us your correct Taxpayer
Identification Number, we withhold as if you are single with no exemptions.
Based on the assumption that you are married and claiming three withholding
exemptions, if you receive less than $17,760 in periodic annuity payments in
2005, your payments will generally be exempt from federal income tax
withholding. You could specify a different choice of withholding exemption or
request that tax be withheld. Your withholding election remains effective
unless and until you revoke it. You may revoke or change your withholding
election at anytime.
FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS)
For a non-periodic distribution (total surrender or partial withdrawal), we
generally withhold at a flat 10% rate. We apply that rate to the taxable amount
in the case of nonqualified contracts, and to the payment amount in the case of
traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is
includable in gross income.
You cannot elect out of withholding if the payment is an eligible rollover
distribution from a qualified plan or TSA. If a non-periodic distribution from
a qualified plan or TSA is not an eligible rollover distribution then the 10%
withholding rate applies.
MANDATORY WITHHOLDING FROM TSA AND QUALIFIED PLAN DISTRIBUTIONS
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans and TSAs are subject to mandatory 20%
withholding. The plan administrator is responsible for withholding from
qualified plan distributions. An eligible rollover distribution from a TSA or a
qualified plan can be rolled over to another eligible retirement plan. All
distributions from a TSA or qualified plan are eligible rollover distributions
unless they are on the following list of exceptions:
o any distributions which are required minimum distributions after
age 701/2 or retirement from service with the employer; or
o substantially equal periodic payments made at least annually for
your life (or life expectancy) or the joint lives (or joint life
expectancies) of you and your designated beneficiary; or
o substantially equal periodic payments made for a specified period
of 10 years or more; or
o hardship withdrawals; or
Tax information 77
o corrective distributions that fit specified technical tax rules; or o
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviving spouse;
or
o a qualified domestic relations order distribution to a beneficiary who is
not your current spouse or former spouse.
A death benefit payment to your surviving spouse, or a qualified domestic
relations order distribution to your current or former spouse, may be a
distribution subject to mandatory 20% withholding.
SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS
For QP contracts, your plan administrator or trustee notifies you as to tax
consequences. See Appendix II at the end of this Prospectus.
IMPACT OF TAXES TO AXA EQUITABLE
The contracts provide that we may charge Separate Account No. 49 for taxes. We
do not now, but may in the future set up reserves for such taxes.
78 Tax information
8. More information
- --------------------------------------------------------------------------------
ABOUT SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 49. We
established Separate Account No. 49 in 1996 under special provisions of the New
York Insurance Law. These provisions prevent creditors from any other business
we conduct from reaching the assets we hold in our variable investment options
for owners of our variable annuity contracts. We are the legal owner of all of
the assets in Separate Account No. 49 and may withdraw any amounts that exceed
our reserves and other liabilities with respect to variable investment options
under our contracts. The results of the Separate Account's operations are
accounted for without regard to AXA Equitable's other operations.
The Separate Account is registered under the Investment Company Act of 1940 and
is classified by that act as a "unit investment trust." The SEC, however, does
not manage or supervise AXA Equitable or the Separate Account.
Each subaccount (variable investment option) within the Separate Account
invests solely in class IB/B shares issued by the corresponding portfolio of
its Trust.
We reserve the right subject to compliance with laws that apply:
(1) to add variable investment options to, or to remove variable investment
options from the Separate Account, or to add other separate accounts;
(2) to combine any two or more variable investment options;
(3) to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment option
to another variable investment option;
(4) to operate the Separate Account or any variable investment option as a
management investment company under the Investment Company Act of 1940 (in
which case, charges and expenses that otherwise would be assessed against an
underlying mutual fund would be assessed against the Separate Account or a
variable investment option directly);
(5) to deregister the Separate Account under the Investment Company Act of 1940;
(6) to restrict or eliminate any voting rights as to the Separate Account; and
(7) to cause one or more variable investment options to invest some or all of
their assets in one or more other trusts or investment companies.
ABOUT THE TRUSTS
The Trusts are registered under the Investment Company Act of 1940. They are
classified as "open-end management investment companies," more commonly called
mutual funds. Each Trust issues different shares relating to each portfolio.
The Trusts do not impose sales charges or "loads" for buying and selling their
shares. All dividends and other distributions on the Trusts' shares are
reinvested in full. The Board of Trustees of each Trust may establish
additional portfolios or eliminate existing portfolios at any time. More
detailed information about each Trust, its portfolio investment objectives,
policies, restrictions, risks, expenses, its Rule 12b-1 Plan, and other aspects
of its operations, appears in the prospectuses for each Trust, which generally
accompany this Prospectus, or in their respective SAIs which are available upon
request.
ABOUT OUR FIXED MATURITY OPTIONS
RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE
We can determine the amount required to be allocated to one or more fixed
maturity options in order to produce specified maturity values. For example, we
can tell you how much you need to allocate per $100 of maturity value.
FMO rates are determined daily. The rates in the table below are illustrative
only and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
For example, the rates to maturity for new allocations as of February 15, 2005
and the related price per $100 of maturity value were as shown below:
- ----------------------------------------------------------
Fixed Maturity
Options with
February 15th Rate to Maturity Price
Maturity Date of as of Per $100 of
Maturity Year February 15, 2005 Maturity Value
- ----------------------------------------------------------
2006 3.00% $ 97.09
2007 3.00% $ 94.26
2008 3.00% $ 91.51
2009 3.00% $ 88.84
2010 3.00% $ 86.25
2011 3.00% $ 83.74
2012 3.00% $ 81.30
2013 3.08% $ 78.44
2014 3.22% $ 75.17
2015 3.32% $ 72.12
- ----------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated to
these options.
HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT
We use the following procedure to calculate the market value adjustment (up or
down) we make if you withdraw any of your value from a fixed maturity option
before its maturity date.
(1) We determine the market adjusted amount on the date of the withdrawal as
follows:
(a) We determine the fixed maturity amount that would be payable on the
maturity date, using the rate to maturity for the fixed maturity
option.
More information 79
(b) We determine the period remaining in your fixed maturity option (based
on the withdrawal date) and convert it to fractional years based on a
365-day year. For example, three years and 12 days becomes 3.0329.
(c) We determine the current rate to maturity for your FMO based on the rate
for a new FMO issued on the same date and having the same maturity
date as your FMO; if the same maturity date is not available for
new FMOs, we determine a rate that is between the rates for new FMO
maturities that immediately precede and immediately follow your
FMOs maturity date.
(d) We determine the present value of the fixed maturity amount payable at
the maturity date, using the period determined in (b) and the rate
determined in (c).
(2) We determine the fixed maturity amount as of the current date.
(3) We subtract (2) from the result in (1)(d). The result is the market value
adjustment applicable to such fixed maturity option, which may be positive
or negative.
If you withdraw only a portion of the amount in a fixed maturity option, the
market value adjustment will be a percentage of the market value adjustment
that would have applied if you had withdrawn the entire value in that fixed
maturity option. This percentage is equal to the percentage of the value in the
fixed maturity option that you are withdrawing. Any withdrawal charges that are
deducted from a fixed maturity option will result in a market value adjustment
calculated in the same way. See Appendix III at the end of this Prospectus for
an example.
For purposes of calculating the rate to maturity for new allocations to a fixed
maturity option (see (1)(c) above), we use the rate we have in effect for new
allocations to that fixed maturity option. We use this rate even if new
allocations to that option would not be accepted at that time. This rate will
not be less than 3%. If we do not have a rate to maturity in effect for a fixed
maturity option to which the "current rate to maturity" in (1)(c) would apply,
we will use the rate at the next closest maturity date. If we are no longer
offering new fixed maturity options, the "current rate to maturity" will be
determined by using a widely-published Index. We reserve the right to add up to
0.25% to the current rate in (1)(c) above for purposes of calculating the
market value adjustment only.
INVESTMENTS UNDER THE FIXED MATURITY OPTIONS
Amounts allocated to the fixed maturity options are held in a "nonunitized"
separate account we have established under the New York Insurance Law. This
separate account provides an additional measure of assurance that we will make
full payment of amounts due under the fixed maturity options. Under New York
Insurance Law, the portion of the separate account's assets equal to the
reserves and other contract liabilities relating to the contracts are not
chargeable with liabilities from any other business we may conduct. We own the
assets of the separate account, as well as any favorable investment performance
on those assets. You do not participate in the performance of the assets held
in this separate account. We may, subject to state law that applies, transfer
all assets allocated to the separate account to our general account. We
guarantee all benefits relating to your value in the fixed maturity options,
regardless of whether assets supporting fixed maturity options are held in a
separate account or our general account.
We expect the rates to maturity for the fixed maturity options to be influenced
by, but not necessarily correspond to, among other things, the yields that we
can expect to realize on the separate account's investments from time to time.
Our current plans are to invest in fixed-income obligations, including
corporate bonds, mortgage-backed and asset-backed securities, and government
and agency issues having durations in the aggregate consistent with those of
the fixed maturity options.
Although the above generally describes our plans for investing the assets
supporting our obligations under the fixed maturity options under the
contracts, we are not obligated to invest those assets according to any
particular plan except as we may be required to by state insurance laws. We
will not determine the rates to maturity we establish by the performance of the
nonunitized separate account.
ABOUT THE GENERAL ACCOUNT
Our general account supports all of our policy and contract guarantees,
guaranteed interest option and fixed maturity options as well as our general
obligations. Credits allocated to your account value are funded from our
general account.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations
of all jurisdictions where we are authorized to do business. Because of
exemptions and exclusionary provisions that apply, interests in the general
account have not been registered under the Securities Act of 1933, nor is the
general account an investment company under the Investment Company Act of 1940.
We have been advised that the staff of the SEC has not reviewed the portions of
this prospectus that relate to the general account. The disclosure with regard
to the general account, however, may be subject to certain provisions of the
federal securities laws relating to the accuracy and completeness of statements
made in prospectuses.
ABOUT OTHER METHODS OF PAYMENT
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept initial and subsequent contributions sent by wire to our processing
office by agreement with certain broker-dealers. Such transmittals must be
accompanied by information we require to allocate your contribution. Wire
orders not accompanied by complete information may be retained as described
under "How you can make your contributions" under "Contract features and
benefits" earlier in this Prospectus.
Even if we accept the wire order and essential information, a contract
generally will not be issued until we receive and accept a properly completed
application. In certain cases we may issue a contract based on information
provided through certain broker-dealers with which we have established
electronic facilities. In any such cases, you must sign our Acknowledgement of
Receipt form.
80 More information
Where we require a signed application, the above procedures do not apply and no
financial transactions will be permitted until we receive the signed
application and have issued the contract. Where we issue a contract based on
information provided through electronic facilities, we require an
Acknowledgement of Receipt form, and financial transactions are only permitted
if you request them in writing, sign the request and have it signature
guaranteed, until we receive the signed Acknowledgement of Receipt form. After
your contract has been issued, additional contributions may be transmitted by
wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
After your contract has been issued, additional contributions may be
transmitted by wire.
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY
You may use our automatic investment program, or "AIP," to have a specified
amount automatically deducted from a checking account, money market account, or
credit union checking account and contributed as an additional contribution
into an NQ contract on a monthly or quarterly basis. AIP is not available for
Rollover IRA, Roth Conversion IRA, QP contracts or Rollover TSA contracts, nor
is it available with GPB Option 2. Please see Appendix VIII later in this
Prospectus to see if the automatic investment program is available in your
state.
The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP
additional contributions may be allocated to any of the variable investment
options and available fixed maturity options. You choose the day of the month
you wish to have your account debited. However, you may not choose a date later
than the 28th day of the month.
You may cancel AIP at any time by notifying our processing office. We are not
responsible for any debits made to your account before the time written notice
of cancellation is received at our processing office.
DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our business day, generally, is any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions. Our business day generally ends at 4:00 p.m. Eastern Time for
purposes of determining the date when contributions are applied and any other
transaction requests are processed. Contributions will be applied and any other
transaction requests will be processed when they are received along with all
the required information unless another date applies as indicated below.
o If your contribution, transfer, or any other transaction request, containing
all the required information, reaches us on a non-business day or after 4:00
p.m. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then the
transaction will occur on the 1st day of the next month.
o When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
o If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your
contribution will be considered received at the time your broker-dealer
receives your contribution and all information needed to process your
application, along with any required documents, and transmits your order to
us in accordance with our processing procedures. Such arrangements may apply
to initial contributions, subsequent contributions, or both, and may be
commenced or terminated at any time without prior notice. If required by
law, the "closing time" for such orders will be earlier than 4 p.m., Eastern
Time.
CONTRIBUTIONS, CREDITS, AND TRANSFERS
o Contributions and credits allocated to the variable investment options are
invested at the value next determined after the close of the business day.
o Contributions and credits allocated to the guaranteed interest option will
receive the crediting rate in effect on that business day for the specified
time period.
o Contributions and credits allocated to a fixed maturity option will receive
the rate to maturity in effect for that fixed maturity option on that
business day (unless a rate lock-in is applicable).
o Transfers to or from variable investment options will be made at the value
next determined after the close of the business day.
o Transfers to a fixed maturity option will be based on the rate to maturity
in effect for that fixed maturity option on the business day of the
transfer.
o Transfers to the guaranteed interest option will receive the crediting rate
in effect on that business day for the specified time period.
o For the interest sweep option, the first monthly transfer will occur on the
last business day of the month following the month that we receive your
election form at our processing office.
More information 81
ABOUT YOUR VOTING RIGHTS
As the owner of the shares of the Trusts we have the right to vote on certain
matters involving the portfolios, such as:
o the election of trustees;
o the formal approval of independent public accounting firms selected for each
Trust; or
o any other matters described in the prospectus for each Trust or requiring a
shareholders' vote under the Investment Company Act of 1940.
We will give contract owners the opportunity to instruct us how to vote the
number of shares attributable to their contracts if a shareholder vote is
taken. If we do not receive instructions in time from all contract owners, we
will vote the shares of a portfolio for which no instructions have been
received in the same proportion as we vote shares of that portfolio for which
we have received instructions. We will also vote any shares that we are
entitled to vote directly because of amounts we have in a portfolio in the same
proportions that contract owners vote.
The Trusts sell their shares to AXA Equitable separate accounts in connection
with AXA Equitable's variable annuity and/or life insurance products, and to
separate accounts of insurance companies, both affiliated and unaffiliated with
AXA Equitable. EQ Advisors Trust and AXA Premier VIP Trust also sell their
shares to the trustee of a qualified plan for AXA Equitable. We currently do
not foresee any disadvantages to our policyowners arising out of these
arrangements. However, the Board of Trustees or Directors of each Trust intends
to monitor events to identify any material irreconcilable conflicts that may
arise and to determine what action, if any, should be taken in response. If we
believe that a Board's response insufficiently protects our policyowners, we
will see to it that appropriate action is taken to do so.
SEPARATE ACCOUNT NO. 49 VOTING RIGHTS
If actions relating to the Separate Account require contract owner approval,
contract owners will be entitled to one vote for each unit they have in the
variable investment options. Each contract owner who has elected a variable
annuity payout option may cast the number of votes equal to the dollar amount
of reserves we are holding for that annuity in a variable investment option
divided by the annuity unit value for that option. We will cast votes
attributable to any amounts we have in the variable investment options in the
same proportion as votes cast by contract owners.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this Prospectus are created under applicable
federal securities laws. To the extent that those laws or the regulations
published under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
ABOUT LEGAL PROCEEDINGS
AXA Equitable and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings would be considered material with respect
to a contract owner's interest in Separate Account No. 49, nor would any of
these proceedings be likely to have a material adverse effect upon the Separate
Account, our ability to meet our obligations under the contracts, or the
distribution of the contracts.
ABOUT OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The consolidated financial statements of AXA Equitable at December 31, 2004 and
2003, and for the three years ended December 31, 2004 incorporated in this
Prospectus by reference to the 2004 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent registered
public accounting firm, given on the authority of said firm as experts in
auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 49, as well as consolidated
financial statements of AXA Equitable, are in the SAI. The SAI is available
free of charge. You may request one by writing to our processing office or
calling 1-800-789-7771.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING
You can transfer ownership of an NQ contract at any time before annuity
payments begin. We will continue to treat you as the owner until we receive
written notification of any change at our processing office. You cannot assign
your NQ contract as collateral or security for a loan. Loans are also not
available under your NQ contract. In some cases, an assignment or change of
ownership may have adverse tax consequences. See "Tax information" earlier in
this Prospectus.
For NQ contracts only, subject to regulatory approval, if you elected the
Guaranteed minimum death benefit, Guaranteed minimum income benefit, Protection
Plus(SM) death benefit, Guaranteed principal benefit option 2 and/or the
Principal Protector(SM) ("Benefit"), generally the Benefit will automatically
terminate if you change ownership of the contract or if you assign the owner's
right to change the beneficiary or person to whom annuity payments will be
made. However, the Benefit will not terminate if the ownership of the contract
is transferred to: (i) a family member (as defined in the contract); (ii) a
trust created for the benefit of a family member or members; (iii) a trust
qualified under section 501(c) of the Internal Revenue Code; or (iv) a
successor by operation of law, such as an executor or guardian. Please speak
with your financial professional for further information. See Appendix VIII
later in this Prospectus for any state variations with regard to terminating
any benefits under your contract.
You cannot assign or transfer ownership of a Rollover IRA, Roth Conversion IRA,
QP or Rollover TSA contract except by surrender to us. If your individual
retirement annuity contract is held in your custodial individual retirement
account, you may only assign or transfer ownership of such an IRA contract to
yourself. Loans are not available and you cannot assign Rollover IRA, Roth
Conversion IRA and QP contracts as security for a loan or other obligation. If
the employer that provided the funds does not restrict them, loans are
available under a Rollover TSA contract.
82 More information
For limited transfers of ownership after the owner's death see "Beneficiary
continuation option" in "Payment of death benefit" earlier in this Prospectus.
You may direct the transfer of the values under your Rollover IRA, Roth
Conversion IRA, QP or Rollover TSA contract to another similar arrangement
under federal income tax rules. In the case of such a transfer, we will impose
a withdrawal charge, if one applies.
DISTRIBUTION OF THE CONTRACTS
The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and
AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The
Distributors serve as principal underwriters of Separate Account No. 49. The
offering of the contracts is intended to be continuous.
AXA Advisors (the successor to EQ Financial Consultants, Inc.), an affiliate of
AXA Equitable, and AXA Distributors, an indirect wholly owned subsidiary of AXA
Equitable, are registered with the SEC as broker-dealers and are members of the
National Association of Securities Dealers, Inc. ("NASD"). Their principal
business address is 1290 Avenue of the Americas, New York, NY 10104. Both
broker-dealers also act as distributors for other AXA Equitable annuity
products. AXA Distributors is a successor by merger to all of the functions,
rights and obligations of Equitable Distributors, Inc. ("EDI"). Like AXA
Distributors, EDI was owned by Equitable Holdings, LLC.
The contracts are sold by financial professionals of AXA Advisors and its
affiliates and by financial professionals of both affiliated and unaffiliated
broker-dealers that have entered into selling agreements with the Distributors
("Selling broker-dealers"). Affiliated broker-dealers include MONY Securities
Corporation ("MSC")* and Advest, Inc. The Distributors, MSC and Advest are all
under the common control of AXA Financial, Inc.
AXA Equitable pays sales compensation to both Distributors. In general,
broker-dealers receiving sales compensation will pay all or a portion of it to
its individual financial representatives (or to its Selling broker-dealers) as
commissions related to the sale of contracts.
Sales compensation paid to AXA Advisors will generally not exceed 8.5% of the
total contributions made under the contracts. AXA Advisors, in turn, may pay
its financial professionals (or Selling broker-dealers) either a portion of the
contribution-based compensation or a reduced portion of the contribution-based
compensation in combination with ongoing annual compensation ("asset-based
compensation") up to 0.60% of the account value of the contract sold, based on
the financial professional's choice. Contribution-based compensation, when
combined with asset-based compensation, could exceed 8.5% of the total
contributions made under the contracts.
Sales compensation paid to AXA Distributors will generally not exceed 6.75% of
the total contributions made under the contracts. AXA Distributors passes all
sales compensation it receives through to the Selling broker-dealer. The
Selling broker-dealer may elect to receive reduced contribution-based
compensation in combination with asset-based compensation of up to 1.25% of the
account value of all or a portion of the contracts sold through the
broker-dealer. Contribution-based compensation, when combined with asset-based
compensation, could exceed 6.75% of the total contributions made under the
contracts. The sales compensation we pay varies among broker-dealers. AXA
Distributors may also receive compensation and reimbursement for its marketing
services under the terms of its distribution agreement with AXA Equitable.
The Distributors may also pay certain affiliated and/or unaffiliated
broker-dealers and other financial intermediaries additional compensation for
certain services and/or in recognition of certain expenses that may be incurred
by them or on their behalf (commonly referred to as "marketing allowances").
Services for which such payments are made may include, but are not limited to,
the preferred placement of AXA Equitable and/or Accumulator(R) Plus(SM) on a
company and/or product list; sales personnel training; due diligence and
related costs; marketing and related services; conferences; and/or other
support services, including some that may benefit the contract owner. Payments
may be based on the amount of assets or purchase payments attributable to
contracts sold through a broker-dealer. We may also make fixed payments to
broker-dealers in connection with the initiation of a new relationship or the
introduction of a new product. These payments may serve as an incentive for
Selling broker-dealers to promote the sale of our products. Additionally, as an
incentive for financial professionals of Selling broker-dealers to promote the
sale of our products, we may increase the sales compensation paid to the
Selling broker-dealer for a period of time (commonly referred to as
"compensation enhancements"). These types of payments are made out of the
Distributors' assets. Not all Selling broker-dealers receive additional
compensation. For more information about any such arrangements, ask your
financial professional.
The Distributors will receive 12b-1 fees from certain portfolios for providing
certain distribution and/or shareholder support services. In connection with
portfolios offered through unaffiliated insurance trusts, the Distributors may
also receive other payments from the portfolio advisers and/or their affiliates
for administrative costs, as well as payments for sales meetings and/or seminar
sponsorships.
In an effort to promote the sale of our products, AXA Advisors may provide its
financial professionals and managerial personnel with a higher percentage of
sales commissions and/or compensation for the sale of an affiliated variable
product than it would the sale of an unaffiliated product. Such practice is
known as providing "differential compensation." Other forms of compensation
financial professionals may receive include health and retirement benefits. In
addition, managerial personnel may receive expense reimbursements, marketing
allowances and commission-based payments known as "overrides." For tax reasons,
AXA Advisors financial professionals qualify for health and retirement benefits
based solely on their sales of our affiliated products.
These payments and differential compensation (together, the "payments") can
vary in amount based on the applicable product and/or entity or individual
involved. As with any incentive, such payments may cause the financial
professional to show preference in recommending
- ----------------------
* On or about June 6, 2005, MSC financial professionals are expected to
become financial professionals of AXA Advisors. From that date forward,
former MSC financial professionals will be compensated by AXA Advisors, and
the Distributors will replace MSC as the principal underwriters of its
affiliated products.
More information 83
the purchase or sale of our products. However, under applicable rules of the
NASD, AXA Advisors may only recommend to you products that they reasonably
believe are suitable for you based on facts that you have disclosed as to your
other security holdings, financial situation and needs. In making any
recommendation, financial professionals may nonetheless face conflicts of
interest because of the differences in compensation from one product category
to another, and because of differences in compensation between products in the
same category.
In addition, AXA Advisors financial professionals who meet specified production
levels for the sale of both affiliated and unaffiliated products may qualify,
under sales incentive programs, to receive non-cash compensation such as stock
options awards and/or stock appreciation rights, expense-paid trips,
expense-paid educational seminars and merchandise.
Although AXA Equitable takes all of its costs into account in establishing the
level of fees and expenses in our products, any compensation paid will not
result in any separate charge to you under your contract. All payments made
will be in compliance with all applicable NASD rules and other laws and
regulations.
84 More information
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
AXA Equitable's Annual Report on Form 10-K for the year ended December 31, 2004
is considered to be a part of this Prospectus because it is incorporated by
reference.
After the date of this Prospectus and before we terminate the offering of the
securities under this Prospectus, all documents or reports we file with the SEC
under the Securities Exchange Act of 1934 ("Exchange Act"), will be considered
to become part of this Prospectus because they are incorporated by reference.
Any statement contained in a document that is, or becomes part of this
Prospectus, will be considered changed or replaced for purposes of this
Prospectus if a statement contained in this Prospectus changes or is replaced.
Any statement that is considered to be a part of this Prospectus because of its
incorporation will be considered changed or replaced for the purpose of this
Prospectus if a statement contained in any other subsequently filed document
that is considered to be part of this Prospectus changes or replaces that
statement. After that, only the statement that is changed or replaced will be
considered to be part of this Prospectus.
We file our Exchange Act documents and reports, including our Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR
under CIK No. 0000727920. The SEC maintains a website that contains reports,
proxy and information statements, and other information regarding registrants
that file electronically with the SEC. The address of the website is
www.sec.gov.
Upon written or oral request, we will provide, free of charge, to each person
to whom this Prospectus is delivered, a copy of any or all of the documents
considered to be part of this Prospectus because they are incorporated herein.
This does not include exhibits not specifically incorporated by reference into
the text of such documents. Requests for documents should be directed to AXA
Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New
York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234).
Incorporation of certain documents by reference 85
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account No. 49 with the same daily asset charges of
1.50%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER
- --------------------------------------------------------------------------------
31, 2004
For the years
--------------------------
ending December 31,
2004 2003
- --------------------------------------------------------------------------------
AXA Aggressive Allocation
- --------------------------------------------------------------------------------
Unit value $ 11.75 $ 10.67
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 5,787 212
- --------------------------------------------------------------------------------
AXA Conservative Allocation
- --------------------------------------------------------------------------------
Unit value $ 10.77 $ 10.31
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,987 213
- --------------------------------------------------------------------------------
AXA Conservative-Plus Allocation
- --------------------------------------------------------------------------------
Unit value $ 11.05 $ 10.41
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 6,175 444
- --------------------------------------------------------------------------------
AXA Moderate Allocation
- --------------------------------------------------------------------------------
Unit value $ 11.26 $ 10.51
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 30,895 2,029
- --------------------------------------------------------------------------------
AXA Moderate-Plus Allocation
- --------------------------------------------------------------------------------
Unit value $ 11.74 $ 10.67
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 23,331 995
- --------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- --------------------------------------------------------------------------------
Unit value $ 11.78 $ 10.67
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 658 70
- --------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- --------------------------------------------------------------------------------
Unit value $ 10.41 $ 10.17
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 4,559 446
- --------------------------------------------------------------------------------
AXA Premier VIP Health Care
- --------------------------------------------------------------------------------
Unit value $ 11.70 $ 10.59
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,001 124
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AXA Premier VIP High Yield
- --------------------------------------------------------------------------------
Unit value $ 11.34 $ 10.59
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 6,690 712
- --------------------------------------------------------------------------------
AXA Premier VIP International Equity
- --------------------------------------------------------------------------------
Unit value $ 13.05 $ 11.24
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,692 191
- --------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- --------------------------------------------------------------------------------
Unit value $ 11.43 $ 10.58
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 886 108
- --------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 10.99 $ 10.46
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,909 136
- --------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- --------------------------------------------------------------------------------
Unit value $ 12.48 $ 11.07
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,322 116
- --------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 11.59 $ 10.53
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,441 274
- --------------------------------------------------------------------------------
A-1 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST
TIME AFTER DECEMBER 31, 2004 (CONTINUED)
- --------------------------------------------------------------------------------
For the years
ending December 31,
--------------------
2004 2003
- --------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- --------------------------------------------------------------------------------
Unit value $ 12.48 $ 11.00
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,655 288
- --------------------------------------------------------------------------------
AXA Premier VIP Technology
- --------------------------------------------------------------------------------
Unit value $ 10.66 $ 10.31
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,826 104
- --------------------------------------------------------------------------------
EQ/Alliance Common Stock
- --------------------------------------------------------------------------------
Unit value $ 12.28 $ 10.93
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 10,684 698
- --------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- --------------------------------------------------------------------------------
Unit value $ 12.10 $ 10.93
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 5,753 452
- --------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- --------------------------------------------------------------------------------
Unit value $ 10.14 $ 10.10
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,082 216
- --------------------------------------------------------------------------------
EQ/Alliance International
- --------------------------------------------------------------------------------
Unit value $ 13.03 $ 11.19
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,946 147
- --------------------------------------------------------------------------------
EQ/Alliance Large Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 11.05 $ 10.35
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 987 80
- --------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- --------------------------------------------------------------------------------
Unit value $ 10.42 $ 10.20
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,713 207
- --------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 12.08 $ 10.76
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,272 157
- --------------------------------------------------------------------------------
EQ/Bear Stearns Small Company Growth
- --------------------------------------------------------------------------------
Unit value $ 7.56 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 91 --
- --------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- --------------------------------------------------------------------------------
Unit value $ 12.22 $ 10.94
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 7,621 544
- --------------------------------------------------------------------------------
EQ/Boston Advisors Equity Income
- --------------------------------------------------------------------------------
Unit value $ 5.61 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 538 --
- --------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- --------------------------------------------------------------------------------
Unit value $ 10.71 $ 10.49
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 333 6
- --------------------------------------------------------------------------------
EQ/Capital Guardian Growth
- --------------------------------------------------------------------------------
Unit value $ 10.82 $ 10.41
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 464 83
- --------------------------------------------------------------------------------
EQ/Capital Guardian International
- --------------------------------------------------------------------------------
Unit value $ 12.51 $ 11.18
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 3,446 181
- --------------------------------------------------------------------------------
EQ/Capital Guardian Research
- --------------------------------------------------------------------------------
Unit value $ 11.72 $ 10.72
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,784 143
- --------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- --------------------------------------------------------------------------------
Unit value $ 11.62 $ 10.79
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 5,095 368
- --------------------------------------------------------------------------------
Appendix I: Condensed financial information A-2
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- --------------------------------------------------------------------------------
For the years
ending December 31,
----------------------
2004 2003
- --------------------------------------------------------------------------------
EQ/Equity 500 Index
- --------------------------------------------------------------------------------
Unit value $ 11.69 $ 10.77
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 8,691 620
- --------------------------------------------------------------------------------
EQ/Evergreen Omega
- --------------------------------------------------------------------------------
Unit value $ 11.27 $ 10.69
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,795 120
- --------------------------------------------------------------------------------
EQ/FI Mid Cap
- --------------------------------------------------------------------------------
Unit value $ 12.96 $ 11.34
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 5,395 415
- --------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- --------------------------------------------------------------------------------
Unit value $ 12.83 $ 11.05
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 4,167 314
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 190 --
- --------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- --------------------------------------------------------------------------------
Unit value $ 10.46 $ 10.20
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 6,436 460
- --------------------------------------------------------------------------------
EQ/JP Morgan Value Opportunities
- --------------------------------------------------------------------------------
Unit value $ 11.98 $ 10.97
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 815 68
- --------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 11.56 $ 10.47
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,141 54
- --------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- --------------------------------------------------------------------------------
Unit value $ 12.61 $ 10.94
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 5,755 337
- --------------------------------------------------------------------------------
EQ/Marsico Focus
- --------------------------------------------------------------------------------
Unit value $ 11.51 $ 10.58
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 7,104 642
- --------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- --------------------------------------------------------------------------------
Unit value $ 11.90 $ 10.92
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 6,079 371
- --------------------------------------------------------------------------------
EQ/Mercury International Value
- --------------------------------------------------------------------------------
Unit value $ 13.30 $ 11.10
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,381 55
- --------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- --------------------------------------------------------------------------------
Unit value $ 11.36 $ 10.24
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 800 49
- --------------------------------------------------------------------------------
EQ/MFS Investors Trust
- --------------------------------------------------------------------------------
Unit value $ 11.60 $ 10.57
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 742 69
- --------------------------------------------------------------------------------
EQ/Money Market
- --------------------------------------------------------------------------------
Unit value $ 9.89 $ 9.97
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 5,781 1,312
- --------------------------------------------------------------------------------
EQ/Montag & Caldwell Growth
- --------------------------------------------------------------------------------
Unit value $ 4.39 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 144 --
- --------------------------------------------------------------------------------
EQ/Small Company Index
- --------------------------------------------------------------------------------
Unit value $ 12.43 $ 10.72
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,712 208
- --------------------------------------------------------------------------------
EQ/Small Company Value
- --------------------------------------------------------------------------------
Unit value $ 22.23 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 190 --
- --------------------------------------------------------------------------------
A-3 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- --------------------------------------------------------------------------------
For the years
ending December 31,
----------------------------
2004 2003
- --------------------------------------------------------------------------------
<
EQ/TCW Equity
- --------------------------------------------------------------------------------
Unit value $ 16.58 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 92 --
- --------------------------------------------------------------------------------
EQ/UBS Growth and Income
- --------------------------------------------------------------------------------
Unit value $ 5.11 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 140 --
- --------------------------------------------------------------------------------
EQ/Van Kampen Emerging Markets Equity
- --------------------------------------------------------------------------------
Unit value $ 14.00 $ 11.49
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,669 209
- --------------------------------------------------------------------------------
EQ/Wells Fargo Montgomery Small Cap
- --------------------------------------------------------------------------------
Unit value $ 11.37 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 13 --
- --------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity
- --------------------------------------------------------------------------------
Unit value $ 10.37 $ 10.16
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 958 32
- --------------------------------------------------------------------------------
U.S. Real Estate -- Class II
- --------------------------------------------------------------------------------
Unit value $ 14.74 $ 11.00
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,998 109
- --------------------------------------------------------------------------------
Appendix I: Condensed financial information A-4
Appendix II: Purchase considerations for QP contracts
- --------------------------------------------------------------------------------
Trustees who are considering the purchase of an Accumulator(R) Plus(SM) QP
contract should discuss with their tax advisers whether this is an appropriate
investment vehicle for the employer's plan. Trustees should consider whether
the plan provisions permit the investment of plan assets in the QP contract,
the distribution of such an annuity and the payment of death benefits in
accordance with the requirements of the federal income tax rules. The QP
contract and this Prospectus should be reviewed in full, and the following
factors, among others, should be noted. Assuming continued plan qualification
and operation, earnings on qualified plan assets will accumulate value on a
tax-deferred basis even if the plan is not funded by the Accumulator(R) Plus(SM)
QP contract or another annuity. Therefore, you should purchase an
Accumulator(R) Plus(SM) QP contract to fund a plan for the contract's features
and benefits other than tax deferral, after considering the relative costs and
benefits of annuity contracts and other types of arrangements and funding
vehicles. This QP contract accepts transfer contributions only and not regular,
ongoing payroll contributions. For 401(k) plans under defined contribution
plans, no employee after-tax contributions are accepted.
We will not accept defined benefit plans. For defined contribution plans, we
will only accept transfers from another defined contribution plan or a change
of investment vehicles in the plan. Only one additional transfer contribution
may be made per contract year. If overfunding of a plan occurs or amounts
attributable to an excess contribution must be withdrawn, withdrawals from the
QP contract may be required. A withdrawal charge and/or market value adjustment
may apply.
AXA Equitable will not perform or provide any plan recordkeeping services with
respect to the QP contracts. The plan's administrator will be solely
responsible for performing or providing for all such services. There is no loan
feature offered under the QP contracts, so if the plan provides for loans and a
participant/employee takes a loan from the plan, other plan assets must be used
as the source of the loan and any loan repayments must be credited to other
investment vehicles and/or accounts available under the plan.
Given that required minimum distributions must generally commence from the plan
for annuitants after age 701/2, trustees should consider that:
o the QP contract may not be an appropriate purchase for annuitants approaching
or over age 701/2;
o provisions in the Treasury Regulations on required minimum distributions will
require, beginning 2006, that the actuarial present value of additional
annuity contract benefits be added to the dollar amount credited for
purposes of calculating required minimum distributions. This could increase
the amounts required to be distributed from the contract; and
o the Guaranteed minimum income benefit may not be an appropriate feature for
annuitants who are older than 601/2 when the contract is issued.
Finally, because the method of purchasing the QP contract, including the large
initial contribution and the features of the QP contract may appeal more to
plan participants/employees who are older and tend to be highly paid, and
because certain features of the QP contract are available only to plan
participants/employees who meet certain minimum and/or maximum age
requirements, plan trustees should discuss with their advisers whether the
purchase of the QP contract would cause the plan to engage in prohibited
discrimination in contributions, benefits or otherwise.
B-1 Appendix II: Purchase considerations for QP contracts
Appendix III: Market value adjustment example
- --------------------------------------------------------------------------------
The example below shows how the market value adjustment would be determined and
how it would be applied to a withdrawal, assuming that $100,000 was allocated
on February 15, 2005 to a fixed maturity option with a maturity date of
February 15, 2014 (nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value of $183,914 on the maturity date. We
further assume that a withdrawal of $50,000 is made four years later on
February 15, 2009.
- ----------------------------------------------------------------------------------
Hypothetical assumed
rate to maturity on
February 15, 2009
5.00% 9.00%
AS OF FEBRUARY 15, 2009 (BEFORE WITHDRAWAL)
- ----------------------------------------------------------------------------------
(1) Market adjusted amount $144,082 $ 119,503
- ----------------------------------------------------------------------------------
(2) Fixed maturity amount $131,104 $ 131,104
- ----------------------------------------------------------------------------------
(3) Market value adjustment:
(1) - (2) $ 12,978 $ (11,601)
- ----------------------------------------------------------------------------------
ON FEBRUARY 15, 2009 (AFTER WITHDRAWAL)
- ----------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with withdrawal:
(3) x [$50,000/(1)] $ 4,504 $ (4,854)
- ----------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount: [$50,000 - (4)] $ 45,496 $ 54,854
- ----------------------------------------------------------------------------------
(6) Fixed maturity amount: (2) - (5) $ 85,608 $ 76,250
- ----------------------------------------------------------------------------------
(7) Maturity value $120,091 $ 106,965
- ----------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,082 $ 69,503
- ----------------------------------------------------------------------------------
You should note that under this example if a withdrawal is made when rates have
increased from 7.00% to 9.00% (right column), a portion of a negative market
value adjustment is realized. On the other hand, if a withdrawal is made when
rates have decreased from 7.00% to 5.00% (left column), a portion of a positive
market value adjustment is realized. The market value is computed differently
if you withdraw amounts on a date other than the anniversary of the
establishment of the fixed maturity option.
Appendix III: Market value adjustment example C-1
Appendix IV: Enhanced death benefit example
- --------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the enhanced death benefit.
The following illustrates the enhanced death benefit calculation. Assuming
$100,000 is allocated to the variable investment options (with no allocation to
the EQ/Alliance Intermediate Government Securities, EQ/Money Market, EQ/PIMCO
Real Return, EQ/Short Duration Bond, the guaranteed interest option, the fixed
maturity options or the Special 10 year fixed maturity option), no additional
contributions, no transfers, no withdrawals and no loans under a Rollover TSA
contract, the enhanced death benefit for an annuitant age 45 would be
calculated as follows:
- ---------------------------------------------------------------------------------------------------
6% Roll up to age 85 Annual Ratchet to age 85
End of Contract Year Account Value enhanced benefit base enhanced benefit base
- ---------------------------------------------------------------------------------------------------
1 109,200 $106,000 109,200
- ---------------------------------------------------------------------------------------------------
2 120,120 $112,360 120,120
- ---------------------------------------------------------------------------------------------------
3 134,534 $119,102 134,534
- ---------------------------------------------------------------------------------------------------
4 107,628 $126,248 134,534
- ---------------------------------------------------------------------------------------------------
5 118,390 $133,823 134,534
- ---------------------------------------------------------------------------------------------------
6 132,597 $141,852 134,534
- ---------------------------------------------------------------------------------------------------
7 132,597 $150,363 134,534
- ---------------------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%.
We are using these rates solely to illustrate how the benefit is determined.
The return rates bear no relationship to past or future investment results.
ANNUAL RATCHET TO AGE 85
(1) At the end of contract years 1 through 3, the enhanced death benefit is the
current account value.
(2) At the end of contract years 4 through 7, the enhanced death benefit is the
enhanced death benefit at the end of the prior year since it is equal to or
higher than the current account value.
GREATER OF 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85
The enhanced death benefit under this option for each year shown would be the
greater of the amounts shown under the 6% Roll up to age 85 or the Annual
Ratchet to age 85.*
* At the end of contract years 4 through 7, the death benefit will be the
enhanced death benefit. At the end of contract years 1, 2 and 3, the death
benefit will be the current account value.
D-1 Appendix IV: Enhanced death benefit example
Appendix V: Hypothetical Illustrations
- --------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM
BENEFITS
The following tables illustrate the changes in account value, cash value and
the values of the "greater of 6% Roll up to age 85 or the Annual Ratchet to age
85" guaranteed minimum death benefit, the Protection Plus(SM) benefit and the
Guaranteed minimum income benefit under certain hypothetical circumstances for
an Accumulator(R) Plus(SM) contract. The table illustrates the operation of a
contract based on a male, issue age 60, who makes a single$100,000 contribution
and takes no withdrawals. The amounts shown are for the beginning of each
contract year and assume that all of the account value is invested in
portfolios that achieve investment returns at constant gross annual rates of 0%
and 6% (i.e., before any investment management fees, 12b-1 fees or other
expenses are deducted from the underlying portfolio assets). After the
deduction of the arithmetic average of the investment management fees, 12b-1
fees and other expenses of all of the underlying Portfolios (as described
below), the corresponding net annual rates of return would be (2.83)%, 3.17%
for the Accumulator(R) Plus(SM) contract, at the 0% and 6% gross annual rates,
respectively. These net annual rates of return reflect the trust and separate
account level charges but they do not reflect the charges we deduct from your
account value annually for the optional Guaranteed minimum death benefit,
Protection Plus(SM) benefit and the Guaranteed minimum income benefit features,
as well as the annual administrative charge. If the net annual rates of return
did reflect these charges, the net annual rates of return would be lower;
however, the values shown in the following tables reflect all contract charges.
The values shown under "Lifetime annual guaranteed minimum income benefit"
reflect the lifetime income that would be guaranteed if the Guaranteed minimum
income benefit is selected at that contract anniversary. An "N/A" in these
columns indicates that the benefit is not exercisable in that year. A "0" under
any of the death benefit and/or "Lifetime annual guaranteed minimum income
benefit" columns indicates that the contract has terminated due to insufficient
account value and, consequently, the guaranteed benefit has no value.
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in all tables reflect (1) investment management
fees equivalent to an effective annual rate of 0.69%, and (2) an assumed
average asset charge for all other expenses of the underlying portfolios
equivalent to an effective annual rate of 0.39% and (3) 12b-1 fees equivalent
to an effective annual rate of 0.25%. These rates are the arithmetic average
for all portfolios that are available as investment options. In other words,
they are based on the hypothetical assumption that account values are allocated
equally among the variable investment options. The actual rates associated with
any contract will vary depending upon the actual allocation of policy values
among the investment options. These rates do not reflect expense limitation
arrangements in effect with respect to certain of the underlying portfolios as
described in the footnotes to the fee table for the underlying portfolios in
"Fee Table" earlier in this Prospectus. With these arrangements, the charges
shown above would be lower. This would result in higher values than those shown
in the following tables.
Because your circumstances will no doubt differ from those in the illustrations
that follow, values under your contract will differ, in most cases
substantially. Upon request, we will furnish you with a personalized
illustration.
Appendix V: Hypothetical Illustrations E-1
Variable deferred annuity
Accumulator(R) Plus(SM)
$100,000 Single contribution and no withdrawals
Male, issue age 60
Benefits:
Greater of 6% Roll up to age 85 or the Annual Ratchet to age 85 Guaranteed
minimum death benefit
Protection Plus
Guaranteed minimum income benefit
Greater of 6%
Roll up to age 85
or the Annual
Ratchet to age 85
Guaranteed Minimum
Death Benefit
-------------------
Account Value Cash Value
------------------- ------------------
Age Contract Year 0% 6% 0% 6% 0% 6%
- ------ -------------- --------- --------- -------- --------- --------- ---------
60 1 104,000 104,000 96,000 96,000 100,000 100,000
61 2 99,378 105,596 91,378 97,596 106,000 106,000
62 3 94,823 107,158 87,823 100,158 112,360 112,360
63 4 90,328 108,679 83,328 101,679 119,102 119,102
64 5 85,887 110,154 79,887 104,154 126,248 126,248
65 6 81,491 111,575 76,491 106,575 133,823 133,823
66 7 77,135 112,936 73,135 108,936 141,852 141,852
67 8 72,810 114,229 69,810 111,229 150,363 150,363
68 9 68,510 115,445 68,510 115,445 159,385 159,385
69 10 64,226 116,576 64,226 116,576 168,948 168,948
74 15 42,724 120,589 42,724 120,589 226,090 226,090
79 20 20,318 120,699 20,318 120,699 302,560 302,560
84 25 0 114,802 0 114,802 0 404,893
89 30 0 115,121 0 115,121 0 429,187
94 35 0 118,604 0 118,604 0 429,187
95 36 0 119,360 0 119,360 0 429,187
Lifetime Annual Guaranteed
Minimum Income Benefit
----------------------------------
Total Death Benefit
with Protection Guaranteed Hypothetical
Plus Income Income
------------------- ----------------- ----------------
Age Contract Year 0% 6% 0% 6% 0% 6%
- ------ -------------- --------- --------- -------- -------- -------- -------
60 1 100,000 100,000 N/A N/A N/A N/A
61 2 108,400 108,400 N/A N/A N/A N/A
62 3 117,304 117,304 N/A N/A N/A N/A
63 4 126,742 126,742 N/A N/A N/A N/A
64 5 136,747 136,747 N/A N/A N/A N/A
65 6 147,352 147,352 N/A N/A N/A N/A
66 7 158,593 158,593 N/A N/A N/A N/A
67 8 170,508 170,508 N/A N/A N/A N/A
68 9 183,139 183,139 N/A N/A N/A N/A
69 10 196,527 196,527 N/A N/A N/A N/A
74 15 276,527 276,527 14,266 14,266 14,266 14,266
79 20 383,584 383,584 20,393 20,393 20,393 20,393
84 25 0 493,179 0 34,821 0 34,821
89 30 0 517,472 N/A N/A N/A N/A
94 35 0 517,472 N/A N/A N/A N/A
95 36 0 517,472 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for
individual contract years. We can make no representation that these
hypothetical investment results can be achieved for any one year or continued
over any period of time. In fact, for any given period of time, the investment
results could be negative.
E-2 Appendix V: Hypothetical Illustrations
Appendix VI: Guaranteed principal benefit example
- --------------------------------------------------------------------------------
For purposes of these examples, we assume that there is an initial contribution
of $100,000, made to the contract on February 15, 2005. We also assume that no
additional contributions, no transfers among options and no withdrawals from
the contract are made. For GPB Option 1, the example also assumes that a 10
year fixed maturity option is chosen. The hypothetical gross rates of return
with respect to amounts allocated to the variable investment options are 0%, 6%
and 10%. The numbers below reflect the deduction of all applicable separate
account and contract charges, and also reflect the charge for GPB Option 2.
Also, for any given performance of your variable investment options, GPB Option
1 produces higher account values than GPB Option 2 unless investment
performance has been significantly positive. The examples should not be
considered a representation of past or future expenses. Similarly, the annual
rates of return assumed in the example are not an estimate or guarantee of
future investment performance.
- ------------------------------------------------------------------------------------------------------------------------
Assuming 100% in
Assuming 100% in Under GPB Under GPB variable invest-
FMO Option 1 Option 2 ment options
- ------------------------------------------------------------------------------------------------------------------------
Amount allocated to FMO on February 15, 2005 based
upon a 3.32% rate to maturity 104,000 75,005 41,600 --
- ------------------------------------------------------------------------------------------------------------------------
Initial account value allocated to the variable invest-
ment options on February 15, 2005 0 28,995 62,400 104,000
- ------------------------------------------------------------------------------------------------------------------------
Account value in the fixed maturity option on February
15, 2015 144,197 104,000 57,679 0
- ------------------------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding together
the value at the maturity date of the applicable fixed
maturity option plus the value of amounts in the vari-
able investment options on February 15, 2015,
assuming a 0% gross rate of return) 144,197 125,759 100,039** 78,047
- ------------------------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding together
the value at the maturity date of the applicable fixed
maturity option plus the value of amounts in the vari-
able investment options on February 15, 2015,
assuming a 6% gross rate of return) 144,197 143,615 135,964** 142,091
- ------------------------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding together
the value at the maturity date of the applicable fixed
maturity option plus the value of amounts in the vari-
able investment options on February 15, 2015,
assuming a 10% gross rate of return) 144,197 161,951 172,959** 207,857
- ------------------------------------------------------------------------------------------------------------------------
** Since the annuity account value is greater than the alternate benefit under
GPB Option 2, GPB Option 2 will not affect the annuity account value.
Appendix VI: Guaranteed principal benefit example F-1
Appendix VII: Protection Plus(SM) example
- --------------------------------------------------------------------------------
The following illustrates the calculation of a death benefit that includes
Protection Plus for an annuitant age 45. The example assumes a contribution of
$100,000 and no additional contributions. Where noted, a single withdrawal in
the amount shown is also assumed. The calculation is as follows:
No Withdrawal $3000 withdrawal $6000 withdrawal
- ---------------------------------------------------------------------------------------------------------------
A Initial Contribution 100,000 100,000 100,000
-----------------------------------------------------------------------------------------------------------
B Death Benefit: prior to withdrawal.* 104,000 104,000 104,000
-----------------------------------------------------------------------------------------------------------
Protection Plus Earnings: Death Benefit less net
C contributions (prior to the withdrawal in D). 4,000 4,000 4,000
B minus A.
-----------------------------------------------------------------------------------------------------------
D Withdrawal 0 3,000 6,000
-----------------------------------------------------------------------------------------------------------
Excess of the withdrawal over the Protection Plus
E earnings 0 0 2,000
greater of D minus C or zero
-----------------------------------------------------------------------------------------------------------
F Net Contributions (adjusted for the withdrawal in D) 100,000 100,000 98,000
A minus E
-----------------------------------------------------------------------------------------------------------
G Death Benefit (adjusted for the withdrawal in D) 104,000 101,000 98,000
B minus D
-----------------------------------------------------------------------------------------------------------
H Death Benefit less Net Contributions 4,000 1,000 0
G minus F
-----------------------------------------------------------------------------------------------------------
I Protection Plus Factor 40% 40% 40%
-----------------------------------------------------------------------------------------------------------
J Protection Plus Benefit 1,600 400 0
H times I
-----------------------------------------------------------------------------------------------------------
K Death Benefit: Including Protection Plus 105,600 101,400 98,000
G plus J
-----------------------------------------------------------------------------------------------------------
* The Death Benefit is the greater of the Account Value or any applicable
death benefit.
G-1 Appendix VII: Protection Plus(SM) example
Appendix VIII: State contract availability and/or variations of certain
features and benefits
- --------------------------------------------------------------------------------
The following information is a summary of the states where the Accumulator(R)
Plus(SM) contract or certain features and/or benefits are either not available
as of the date of this Prospectus or vary from the contract's features and
benefits as previously described in this Prospectus.
STATES WHERE CERTAIN ACCUMULATOR(R) PLUS(SM) FEATURES AND/OR BENEFITS ARE NOT
AVAILABLE OR HAS CERTAIN VARIATIONS TO FEATURES AND/OR BENEFITS:
- ---------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- ---------------------------------------------------------------------------------------------------------------
CALIFORNIA See "Contract features and benefits"--"Your right to If you reside in the state of
cancel within a certain number of days" California and you are age 60 and
older at the time the contract is
issued, you may return your vari-
able annuity contract within 30
days from the date that you
receive it and receive a refund as
described below.
If you allocate your entire
initial contribution to the money mar-
ket account (and/or guaranteed
interest option, if available), the
amount of your refund will be
equal to your contribution less
interest, unless you make a
transfer, in which case the amount of
your refund will be equal to your
account value on the date we
receive your request to cancel at
our processing office. This
amount could be less than your
initial contribution. If you allo-
cate any portion of your initial
contribution to the variable
investment options (other than the
money market account)
and/or fixed maturity options,
your refund will be equal to your
account value on the date we
receive your request to cancel at
our processing office.
- ------------------------------------------------------------------------------------------------------------------
FLORIDA See "Contract features and benefits" in "Credits" The following information replaces
the second bullet to the final
set of bullets in this section:
o You may annuitize your contract
after thirteen months, how-
ever, if you elect to receive
annuity payments within five years
of the contract date, we will
recover the credit that applies to
any contribution made in that five
years. If you start receiving
annuity payments after five years
from the contract date and
within three years of making any
contribution, we will recover
the credit that applies to any
contribution made within the
prior three years.
See "Transfers of ownership, collateral assignments, The second paragraph in this
loans and borrowing" in "More information" section is deleted.
- ---------------------------------------------------------------------------------------------------------------------
MARYLAND Fixed maturity options Not Available
Guaranteed principal benefit option1 and Guaranteed Not Available
principal benefit option 2
- ---------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS Automatic investment program Not Available
Annual administrative charge The annual administrative charge
will not be deducted from
amounts allocated to the
Guaranteed interest option.
See "How you can purchase and contribute to your Additional contributions are
contract" in "Contract features and benefits" limited to the first two years after
the contract issue date only.
See "Disability, terminal illness, or confinement to Item (i) is deleted in its entirety.
nursing home" under "Withdrawal charge" in
"Charges and expenses"
- ----------------------------------------------------------------------------------------------------------------------
Appendix VIII: State contract availability and/or
variations of certain features and benefits H-1
- --------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- --------------------------------------------------------------------------------------------------------
NEW YORK Greater of the 6% roll up or Annual Ratchet Not Available (you have a choice
Guaranteed minimum death benefit of the standard death benefit
or the Annual Ratchet to age 85
guaranteed minimum death
benefit), as described earlier in
this Prospectus.
Principal Protector(SM) Not Available
Protection Plus(SM) Not Available
Variable Immediate Annuity payout options -- Life Not Available
annuity contracts
Fixed maturity options Not Available
Guaranteed principal benefit option1 and Guaranteed Not Available
principal benefit option 2
"Indication of Intent" The "Indication of Intent"
approach to first year contributions in
connection with the contribution
crediting rate is not available.
See "Contract features and benefits" in "Credits" The following information is added
as the third bullet to the final
set of bullets in this section:
o Where annuity payments may begin
after the first contract
year, if you elect to receive
annuity payments, we will not
recover the credit on any
contributions. See "The amount
applied to purchase an annuity
payout option" in "Accessing
your money" later in the
Prospectus for more information on
the effect of annuitization in New
York.
See "Termination of your contract" in "Determining If your account value in the
your contract's value" variable investment options is
insufficient to pay the annual
administrative charge, or either
enhanced death benefit charge, and you have
no account value in the guar-
anteed interest option, your
contract will terminate without
value, and you will lose any
applicable benefits. See "Charges
and expenses" earlier in this
Prospectus.
See "The amount applied to purchase an annuity Regardless of the form of annuity
payout option" in "Accessing your money" chosen, the amount applied to
the annuity benefit is the greater
of the cash value or 95% of
what the account value would be if
no withdrawal charge
applied. The income provided,
however, will never be less than
what would be provided by applying
the account value to the
guaranteed annuity purchase
factors. The guaranteed annuity
purchase factors we use to
determine your annuity benefit are
lower than those we use under
other contracts.
See "Annuity maturity date" in "Accessing your Your contract has a maturity date
money" by which you must either take
a lump sum withdrawal or select an
annuity payout option. The
maturity date is the contract date
that follows the annuitant's
90th birthday.
See "Charges and expenses" With regard to the Annual
administrative, either enhanced
death benefit and Guaranteed minimum
income benefit charges,
respectively, we will deduct the
related charge, as follows for
each: we will deduct this charge
from your value in the variable
investment options on a pro rata
basis. If the contract is surren-
dered or annuitized or a death
benefit is paid, we will deduct a
pro rata portion of the charge for
that year.
- --------------------------------------------------------------------------------------------------------------
H-2 Appendix VIII: State contract availability and/or variations of certain
features and benefits
- ---------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- ---------------------------------------------------------------------------------------------------------------
NEW YORK, If your account value in the
CONTINUED variable investment options is
insufficient to pay the applicable
charge, and you have no account
value in the guaranteed interest
option, your contract will termi-
nate without value and you will
lose any applicable guaranteed
benefits. Please see "Termination
of your contract" in "Determin-
ing your contract's value" earlier
in this Prospectus.
- --------------------------------------------------------------------------------------------------------------
Oregon Fixed maturity options Not Available
Guaranteed principal benefit option1 and Guaranteed Not Available
principal benefit option 2
Principal Protector(SM) Not Available
See "How you can purchase and contribute to your o Subsequent contributions are not
contract" in "Contract features and benefits" permitted. This is a single
premium product.
o Section 1035 exchanges,
rollovers, multiple assignments
and/or transfers are permitted
provided that all documentation
is complete and received with
the application.
See "Indication of intent" in "Contract features and Since Oregon does not permit
benefits" additional contributions, the
indication of intent approach to first
year contributions is applicable
in Oregon only to the extent that
all necessary documentation for
multiple transfers and/or
exchanges is complete and received
with the application.
See "Lifetime required minimum distribution with- We will not impose a withdrawal
drawals" in "Accessing your money" charge on minimum distribu-
tion withdrawals even if you are
not enrolled in our automatic
RMD service except if, when added
to a lump sum withdrawal
previously taken in the same
contract year, the minimum
distribution withdrawals exceed the 10%
free withdrawal amount. Such
minimum distribution withdrawals
must be based solely on your
Accumulator(R) Plus(SM) contract's
account value.
See "Selecting an annuity payout option" in "Access- The annuity commencement date may
ing your money" not be earlier than eight
years from the contract issue date.
See "Disability, terminal illness, or confinement to Item (1) is deleted in its
nursing home" under "Withdrawal charge" in entirety.
"Charges and expenses"
See "Transfers of ownership, collateral assignments, The second paragraph in this
loans and borrowing" in "More information" section is deleted.
- -------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA Contribution age limitations The following contribution limits
apply:
Maximum
Issue age Contribution age
--------- ----------------
0-75 77
76 78
77 79
78-80 80
See "Annuity maturity date" in "Accessing your The maturity date by which you
money" must take a lump sum with-
drawal or select an annuity payout
option is as follows:
Maximum
Issue age Annuitization age
--------- -----------------
0-75 85
76 86
77 87
78-80 88
- --------------------------------------------------------------------------------------------------------------------
Appendix VIII: State contract availability and/or
variations of certain features and benefits H-3
- -----------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- -----------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA Loans under Rollover TSA contracts Taking a loan in excess of the Internal Revenue Code
CONTINUED limits may result in adverse tax consequences. Please
consult your tax adviser before taking a loan that
exceeds the Internal Revenue Code limits.
- -----------------------------------------------------------------------------------------------------------------------
PUERTO RICO IRA, Roth IRA and Rollover TSA contracts Not Available
Beneficiary continuation option (IRA) Not Available
- -----------------------------------------------------------------------------------------------------------------------
TEXAS See "Annual administrative charge" in "Charges and The annual administrative charge will not
expenses" be deducted from amounts allocated to
the Guaranteed interest option.
- -----------------------------------------------------------------------------------------------------------------------
UTAH See "Transfers of ownership, collateral assignments, The second paragraph in this section is
loans and borrowing" in "More information" deleted.
- -----------------------------------------------------------------------------------------------------------------------
VERMONT Loans under Rollover TSA contracts Taking a loan in excess of the Internal
Revenue Code limits may result in
adverse tax consequences.
Please consult your tax adviser before
taking a loan that exceeds the Internal
Revenue Code limits.
- -----------------------------------------------------------------------------------------------------------------------
WASHINGTON Guaranteed interest option Not Available
Investment simplifier -- Fixed-dollar option and Inter- Not Available
est sweep option
Fixed maturity options Not Available
Guaranteed Principal Benefit Options 1 and 2 Not Available
Income Manager(R) payout option Not Available
Protection Plus(SM) Not Available
See "Guaranteed minimum death benefit" in "Con- You have a choice of the standard death
tract features and benefits" benefit, the Annual Ratchet to age 85 enhanced
death benefit, or the Greater of 4%
Roll up to age 85 or the Annual Ratchet
to age 85 enhanced death benefit.
See "Annual administrative charge" in "Charges and The annual administrative charge will be
expenses" deducted from the value in the variable
investment options on a pro rata basis.
See "Withdrawal charge" in "Charges and expenses" The 10% free withdrawal amount applies
to full surrenders.
See "Disability, terminal illness, or confinement to The annuitant has qualified to receive
nursing home" under "Withdrawal charge" in Social Security disability benefits as
"Charges and expenses" certified by the Social Security Administration
or a statement from an independent
U.S. licensed physician
stating that the annuitant meets
the definition of total disability for
at least 6 continuous months prior to
the notice of claim. Such disability must be
re-certified every 12 months.
- ------------------------------------------------------------------------------------------------------------------------------
H-4 Appendix VIII: State contract availability and/or variations of certain
features and benefits
Appendix IX: Contract Variations
- --------------------------------------------------------------------------------
Although this Prospectus is primarily designed for potential purchasers of the
contract, you may be receiving it as a current contract owner. If you are a
current contract owner, you should note that your contract's options, features
and charges may vary from what is described in this Prospectus depending on the
date on which you purchased your contract. You may not change your contract or
its features after issue. This Appendix reflects contract variations that
differ from what is described in this Prospectus but may have been in effect at
the time your contract was issued.
In addition, options and/or features may vary among states in light of
applicable regulations or state approvals. Any such state variations are
generally not included here but instead included in Appendix VIII earlier in
this section. For more information about state variations applicable to you, as
well as particular features, charges and options available under your contract
based upon when you purchased it, please contact your financial
professional and/or refer to your contract.
Approximate Time Period Feature/Benefit Variation
- -----------------------------------------------------------------------------------------------------------------------------
September 2003 - January 2005 Guaranteed interest option Your lifetime minimum interest rate is either
1.5% or 3.0% (depending on the state where
your contract was issued).
- -----------------------------------------------------------------------------------------------------------------------------
September 2003 - July 2004 Principal Protector(SM) benefit Unavailable.
- -----------------------------------------------------------------------------------------------------------------------------
September 2003 - December 2004 Termination of guaranteed benefits Your guaranteed benefits will not automatically
terminate if you change ownership of your NQ
contract.
- -----------------------------------------------------------------------------------------------------------------------------
September 2003 - January 2004 Guaranteed minimum income benefit:
The effective annual interest credited to the
o Benefit base crediting rate applicable benefit base is 5%.*
Guaranteed minimum income benefit charge:
o Fee table 0.55%.*
- -----------------------------------------------------------------------------------------------------------------------------
September 2003 - January 2004 Greater of the 6% Roll up to age 85 or the
Annual Ratchet to age 85 enhanced death
benefit:
o Benefit base crediting rate The effective annual interest credited to the
applicable benefit base is 5%.*
o Fee table Greater of the 5% Roll up to age 85 or the
Annual Ratchet to age 85 enhanced death
benefit charge: 0.50%.*
- -----------------------------------------------------------------------------------------------------------------------------
September 2003 - January 2004 Effect of withdrawals on your Greater of the Withdrawals will reduce each of the benefit
6% Roll up to age 85 or the Annual Ratchet bases on a pro rata basis only.*
to age 85 enhanced death benefit
- -----------------------------------------------------------------------------------------------------------------------------
* Contract owners who elected the Guaranteed minimum income benefit and/or the
Greater of the 5% Roll up to age 85 or the Annual Ratchet to age 85 enhanced
death benefit had a limited opportunity to change to the new versions of
these benefits, as they are described in "Contract features and benefits"
and "Accessing your money," earlier in this Prospectus.
Appendix IX: Contract Variations I-1
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Unit Values 2
Name Change 2
Custodian and Independent Registered Public Accounting Firm 2
Distribution of the Contracts 2
Financial Statements 2
How to obtain an Accumulator(R) Plus(SM) Statement of Additional Information for
Separate Account No. 49
Send this request form to:
Accumulator(R) Plus(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
Please send me an Accumulator(R) Plus(SM) SAI for Separate Account No. 49 dated
May 1, 2005.
- --------------------------------------------------------------------------------
Name
- --------------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
City State Zip
(SAI 10AMLF(05/03))
X00995/Plus '02, ML and '04 Series
AXA Equitable Life Insurance Company
SUPPLEMENT DATED MAY 1, 2005 TO THE MAY 1, 2005 PROSPECTUS FOR THE
ACCUMULATOR(R) PLUS(SM)
- --------------------------------------------------------------------------------
This Supplement modifies certain information in the above-referenced Prospectus
and Supplements to Prospectus and Statements of Additional Information, dated
May 1, 2005 as previously supplemented (the "Prospectuses"). You should read
this Supplement in conjunction with the Prospectuses and retain it for future
reference. Unless otherwise indicated, all other information included in the
Prospectuses remains unchanged. The terms and section headings we use in this
Supplement have the same meaning as in the Prospectuses. We will send you
another copy of any prospectus or supplement without charge upon request.
Please contact the customer service group referenced in your prospectus.
TEMPORARY LIBERALIZATION PERIOD FOR ALLOCATIONS TO THE GUARANTEED INTEREST
OPTION ("GIO")
Please note the following information is to be read in conjunction with the
section "Self-directed allocation" in "Allocating your contributions" under
"Contract features and benefits":
Except in the state of New York, the limit on allocations to the Guaranteed
Interest Option which had been temporarily changed from 25% to 100% has been
extended through October 16, 2005.
At the end of this liberalization period, the 25% limit on GIO contributions
will be re-imposed, but customers may leave existing GIO assets in the GIO.
This liberalization applies to new contributions only. Transfers to the GIO
continue to be restricted as before.
If your instructions to us indicate an allocation percentage to the GIO that is
greater than 25%, we will continue to honor that allocation until the end of
the liberalization period. However, after the end of the liberalization period
it will become an invalid allocation and we will no longer be able to honor it.
This could cause a delay in crediting your subsequent contributions to the
contract. Therefore, before making any new contributions on or after October
17, 2005, you should review your allocation instructions and ensure that your
GIO allocation is 25% or less before sending your additional contributions.
AXA Equitable Life Insurance Company
1290 Avenue of the Americas
New York, NY 10104
212-554-1234
Form No. IM-04-06 Supp (5/05)
Accum 04/New/Inforce Biz Catalog no. 133772 (5/05)
AR/Mail x01061
Accumulator(R) Advisor(SM)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2005
Please read and keep this Prospectus for future reference. It contains
important information that you should know before purchasing or taking any
other action under your contract. You should read the prospectuses for each
Trust, which contain important information about the portfolios.
- --------------------------------------------------------------------------------
WHAT IS THE ACCUMULATOR(R) ADVISOR(SM)?
Accumulator(R) Advisor(SM) is a deferred annuity contract issued by AXA
Equitable Life Insurance Company. It provides for the accumulation of retirement
savings and for income. The contract offers death benefit protection. It also
offers a number of payout options. You invest to accumulate value on a
tax-deferred basis in one or more of our variable investment options and the
fixed maturity options ("investment options"). This contract may not currently
be available in all states. Certain features and benefits described in this
Prospectus may vary in your state; all features and benefits may not be
available in all contracts or all states.
Variable investment options
o AXA Aggressive Allocation(1) o EQ/Caywood-Scholl High Yield Bond(3)
o AXA Conservative Allocation(1) o EQ/Equity 500 Index
o AXA Conservative-Plus Allocation(1) o EQ/Evergreen Omega
o AXA Moderate Allocation(1) o EQ/FI Mid Cap
o AXA Moderate-Plus Allocation(1) o EQ/FI Small/Mid Cap Value
o AXA Premier VIP Aggressive Equity o EQ/International Growth(3)
o AXA Premier VIP Core Bond o EQ/J.P. Morgan Core Bond
o AXA Premier VIP Health Care o EQ/JP Morgan Value Opportunities
o AXA Premier VIP High Yield o EQ/Janus Large Cap Growth
o AXA Premier VIP International Equity o EQ/Lazard Small Cap Value
o AXA Premier VIP Large Cap Core o EQ/Long Term Bond(3)
Equity o EQ/Lord Abbett Growth and Income(3)
o AXA Premier VIP Large Cap Growth o EQ/Lord Abbett Large Cap Core(3)
o AXA Premier VIP Large Cap Value o EQ/Lord Abbett Mid Cap Value(3)
o AXA Premier VIP Small/Mid Cap o EQ/Marsico Focus
Growth o EQ/Mercury Basic Value Equity
o AXA Premier VIP Small/Mid Cap Value o EQ/Mercury International Value
o AXA Premier VIP Technology o EQ/Mergers and Acquisitions(3)
o EQ/Alliance Common Stock o EQ/MFS Emerging Growth Companies
o EQ/Alliance Growth and Income o EQ/MFS Investors Trust
o EQ/Alliance Intermediate Government o EQ/Money Market
Securities o EQ/Montag & Caldwell Growth(2)
o EQ/Alliance International o EQ/PIMCO Real Return(3)
o EQ/Alliance Large Cap Growth(2) o EQ/Short Duration Bond(3)
o EQ/Alliance Quality Bond o EQ/Small Company Index
o EQ/Alliance Small Cap Growth o EQ/Small Company Value(2)
o EQ/Bear Stearns Small Company o EQ/TCW Equity(2)
Growth(2) o EQ/UBS Growth and Income(2)
o EQ/Bernstein Diversified Value o EQ/Van Kampen Comstock(3)
o EQ/Boston Advisors Equity Income(2) o EQ/Van Kampen Emerging Markets
o EQ/Calvert Socially Responsible Equity(2)
o EQ/Capital Guardian Growth o EQ/Van Kampen Mid Cap Growth(3)
o EQ/Capital Guardian International o EQ/Wells Fargo Montgomery
o EQ/Capital Guardian Research Small Cap(3)
o EQ/Capital Guardian U.S. Equity
(1) The "The AXA Allocation" portfolio.
(2) This is the option's new name, effective on or about May 9, 2005, subject
to regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former
name.
(3) Available on or about May 9, 2005, subject to regulatory approval. Please
see "Portfolios of the Trusts" in "Contract features and benefits" later in
this Prospectus for more information on the new investment option.
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of Separate Account No. 45 and
Separate Account No. 49. Each variable investment option, in turn, invests in a
corresponding securities portfolio of EQ Advisors Trust or AXA Premier VIP
Trust (the "Trusts"). Your investment results in a variable investment option
will depend on the investment performance of the related portfolio.
You may allocate amounts to the fixed maturity options, which is discussed
later in this Prospectus.
TYPES OF CONTRACTS. We offer the contracts for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only.
o An individual retirement annuity ("IRA"), either traditional IRA ("Rollover
IRA") or Roth IRA ("Roth Conversion IRA").
o An annuity that is an investment vehicle for a qualified defined contribution
plan ("QP"). Effective May 1, 2003, we no longer offer the contracts for use
as an investment vehicle for a defined benefit qualified plan.
A contribution of at least $10,000 is required to purchase a contract.
Registration statements relating to this offering have been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2005, is a part of one of the registration
statements. The SAI is available free of charge. You may request one by writing
to our processing office or calling 1-800-789-7771. The SAI has been
incorporated by reference into this Prospectus. This Prospectus and the SAI can
also be obtained from the SEC's website at www.sec.gov. The table of contents
for the SAI appears at the back of this Prospectus.
The SEC has not approved or disapproved these securities or determined if this
Prospectus is accurate or complete. Any representation to the contrary is a
criminal offense. The contracts are not insured by the FDIC or any other
agency. They are not deposits or other obligations of any bank and are not bank
guaranteed. They are subject to investment risks and possible loss of
principal.
Although this Prospectus is primarily designed for potential purchasers of the
contract, you may have previously purchased a contract and be receiving this
Prospectus as a current contract owner. If you are a current contract owner,
you should note that the options, features and charges of the contract may have
varied over time (and, as noted above, may vary depending on your state) and
you may not change your contract or its features as issued. For more
information about the particular options, features and charges applicable to
you, please contact your financial professional and/or refer to your contract.
X001011
Contents of this Prospectus
- --------------------------------------------------------------------------------
ACCUMULATOR(R) ADVISOR(SM)
- --------------------------------------------------------------------------------
Index of key words and phrases 4
Who is AXA Equitable? 5
How to reach us 6
Accumulator(R) Advisor(SM) at a glance -- key features 8
- --------------------------------------------------------------------------------
FEE TABLE 10
- --------------------------------------------------------------------------------
Example 13
Condensed financial information 16
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 17
- --------------------------------------------------------------------------------
How you can purchase and contribute to your contract 17
Owner and annuitant requirements 19
How you can make your contributions 19
What are your investment options under the contract? 19
Portfolios of the Trusts 20
Allocating your contributions 24
Your right to cancel within a certain number of days 25
- --------------------------------------------------------------------------------
2. DETERMINING YOUR CONTRACT'S VALUE 26
- --------------------------------------------------------------------------------
Your account value and cash value 26
Your contract's value in the variable investment options 26
Your contract's value in the fixed maturity options 26
Termination of your contract 26
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 27
- --------------------------------------------------------------------------------
Transferring your account value 27
Disruptive transfer activity 27
Dollar cost averaging 28
Rebalancing your account value 28
- ----------------------
"We," "our," and "us" refer to AXA Equitable.
When we address the reader of this Prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the contract owner.
When we use the word "contract" it also includes certificates that are issued
under group contracts in some states.
2 Contents of this Prospectus
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 30
- --------------------------------------------------------------------------------
Withdrawing your account value 30
How withdrawals are taken from your account value 31
How withdrawals affect your minimum death benefit 31
Surrendering your contract to receive its cash value 31
When to expect payments 31
Annuity purchase factors 31
Your annuity payout options 31
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 34
- --------------------------------------------------------------------------------
Charges that AXA Equitable deducts 34
Charges that the Trusts deduct 34
Group or sponsored arrangements 34
Other distribution arrangements 34
- --------------------------------------------------------------------------------
6. PAYMENT OF DEATH BENEFIT 36
- --------------------------------------------------------------------------------
Your beneficiary and payment of benefit 36
How death benefit payment is made 36
Beneficiary continuation option 37
- --------------------------------------------------------------------------------
7. TAX INFORMATION 39
- --------------------------------------------------------------------------------
Overview 39
Buying a contract to fund a retirement arrangement 39
Transfers among investment options 39
Taxation of nonqualified annuities 39
Individual retirement arrangements (IRAs) 41
Special rules for contracts funding qualified plans 51
Impact of taxes to AXA Equitable 51
- --------------------------------------------------------------------------------
8. MORE INFORMATION 52
- --------------------------------------------------------------------------------
About Separate Account No. 45 and Separate Account No. 49 52
About the Trusts 52
About our fixed maturity options 52
About the general account 53
About other methods of payment 53
Dates and prices at which contract events occur 54
About your voting rights 54
About legal proceedings 55
About our independent registered public accounting firm 55
Financial statements 55
Transfers of ownership, collateral assignments,
loans and borrowing 55
Distribution of the contracts 55
- --------------------------------------------------------------------------------
9. INCORPORATION OF CERTAIN DOCUMENTS
BY REFERENCE 57
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDICES
- --------------------------------------------------------------------------------
I --Condensed financial information A-1
II --Purchase considerations for QP contracts B-1
III--Market value adjustment example C-1
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Contents of this Prospectus 3
Index of key words and phrases
- --------------------------------------------------------------------------------
This index should help you locate more information on the terms used in this
Prospectus.
Page
account value 26
annuitant 17
annuity maturity date 33
annuity payout options 31
annuity purchase factors 31
automatic Investment program 53
beneficiary 36
Beneficiary Continuation Option ("BCO") 37
business day 54
cash value 26
charges for state premium and other applicable taxes 34
contract date 9
contract date anniversary 9
contract year 9
contributions to Roth IRAs 47
regular contributions 47
rollovers and direct transfers 47
conversion contributions 48
contributions to traditional IRAs 42
regular contributions 42
rollovers and transfers 43
disruptive transfer activity 27
dollar cost averaging 28
EQAccess 6
fixed maturity amount 24
fixed maturity options 24
free look 25
general account 53
IRA cover
IRS cover
investment options cover
lifetime required minimum distribution withdrawals 31
Page
lump sum withdrawals 30
market adjusted amount 24
market timing 27
market value adjustment 24
maturity dates 24
maturity value 24
minimum death benefit 36
Mortality and expense risks and administrative charge 34
NQ cover
portfolio cover
Principal assurance allocation 24
processing office 6
QP cover
rate to maturity 24
Rebalancing 28
Rollover IRA cover
Roth Conversion IRA cover
Roth IRA cover
SAI cover
SEC cover
self-directed allocation 24
Separate Account No. 45 and Separate Account No. 49 52
Substantially equal withdrawals 30
Successor owner and annuitant 36
systematic withdrawals 30
TOPS 6
traditional IRA cover
Trusts cover
unit 26
variable investment options 19
wire transmittals and electronic applications 54
To make this Prospectus easier to read, we sometimes use different words than
in the contract or supplemental materials. This is illustrated below. Although
we use different words, they have the same meaning in this Prospectus as in the
contract or supplemental materials. Your financial professional can provide
further explanation about your contract.
- -----------------------------------------------------------------------------
Prospectus Contract or Supplemental Materials
- -----------------------------------------------------------------------------
fixed maturity options Guarantee Periods (Guaranteed Fixed
Interest Accounts in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
- -----------------------------------------------------------------------------
4 Index of key words and phrases
Who is AXA Equitable?
- --------------------------------------------------------------------------------
We are AXA Equitable Life Insurance Company ("AXA Equitable") (previously, The
Equitable Life Assurance Society of the United States), a New York stock life
insurance corporation. We have been doing business since 1859. AXA Equitable is
a subsidiary of AXA Financial, Inc. AXA, a French holding company for an
international group of insurance and related financial services companies, is
the sole shareholder of AXA Financial, Inc. As the sole shareholder, and under
its other arrangements with AXA Equitable and AXA Equitable's parent, AXA
exercises significant influence over the operations and capital structure of
AXA Equitable and its parent. No company other than AXA Equitable, however, has
any legal responsibility to pay amounts that AXA Equitable owes under the
contract.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$598 billion in assets as of December 31, 2004. For over 100 years AXA
Equitable has been among the largest insurance companies in the United States.
We are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office
is located at 1290 Avenue of the Americas, New York, N.Y. 10104.
Who is AXA Equitable? 5
HOW TO REACH US
You may communicate with our processing office as listed below for the purposes
described. Certain methods of contacting us, such as by telephone or
electronically, may be unavailable or delayed (for example our facsimile
service may not be available at all times and/or we may be unavailable due to
emergency closing). In addition, the level and type of service available may be
restricted based on criteria established by us.
- --------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------
Accumulator(R) Advisor(SM)
P.O. Box 13014
Newark, NJ 07188-0014
- --------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------
Accumulator(R) Advisor(SM)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANS-
FERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR
MAIL:
- --------------------------------------------------------------------------
Accumulator(R) Advisor(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANS-
FERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS
DELIVERY:
- --------------------------------------------------------------------------
Accumulator(R) Advisor(SM)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year and any
calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract
year.
- --------------------------------------------------------------------------
TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND
EQACCESS SYSTEMS:
- --------------------------------------------------------------------------
TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQAccess is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for the fixed maturity options;
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
available through TOPS).
You can also:
o change your allocation percentages and/or transfer among the investment
options;
o elect to receive certain contract statements electronically;
o change your address (not available through TOPS);
o change your TOPS personal identification number (PIN) (available through TOPS
only) and your EQAccess password (available through EQAccess only); and
o access Frequently Asked Questions and Service Forms (not available through
TOPS).
TOPS and EQAccess are normally available seven days a week, 24 hours a day. You
may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our website at www.axaonline.com and
logging in to access your account. All other clients may access EQAccess by
visiting our website at www.axa-equitable.com. Of course, for reasons beyond
our control, these services may sometimes be unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or Internet are genuine. For example, we will require
certain personal identification information before we will act on telephone or
Internet instructions and we will provide written confirmation of your
transfers. If we do not employ reasonable procedures to confirm the genuineness
of telephone or Internet instructions, we may be liable for any losses arising
out of any act or omission that constitutes negligence, lack of good faith, or
willful misconduct. In light of our procedures, we will not be liable for
following telephone or Internet instructions we reasonably believe to be
genuine.
We reserve the right to limit access to these services if we determine that you
engaged in a disruptive transfer activity, such as "market timing" (see
"Disruptive transfer activity" in "Transferring your money among investment
options" later in this Prospectus)
- --------------------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVE:
- --------------------------------------------------------------------------
You may also use our toll-free number (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time.
6 Who is AXA Equitable?
You should send all contributions, notices, and requests to our processing
office at the address above.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
(2) conversion of a traditional IRA contract to a Roth Conversion IRA;
(3) election of the rebalancing program;
(4) tax withholding elections;
(5) election of the beneficiary continuation option;
(6) IRA contribution recharacterizations;
(7) certain Section 1035 exchanges;
(8) direct transfers; and
(9) death claims.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between investment options; and
(4) contract surrender and withdrawal requests.
TO CANCEL OR CHANGE ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) dollar cost averaging;
(2) rebalancing;
(3) substantially equal withdrawals;
(4) systematic withdrawals; and
(5) the date annuity payments are to begin.
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us to
take.
SIGNATURES:
The proper person to sign forms, notices and requests would normally be the
owner. If there are joint owners, all must sign.
Who is AXA Equitable? 7
Accumulator(R) Advisor(SM) at a glance -- key features
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Professional investment Accumulator(R) Advisor(SM) variable investment options invest in different portfolios managed
management by professional investment advisers.
- ------------------------------------------------------------------------------------------------------------------------------------
Fixed maturity options o 10 fixed maturity options with maturities ranging from approximately 1 to 10 years
(subject to state availability).
o Each fixed maturity option offers a guarantee of principal and interest rate if you hold
it to maturity.
----------------------------------------------------------------------------------------------------------
If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a market
value adjustment due to differences in interest rates. If you withdraw or transfer only a portion of a
fixed maturity amount, this may increase or decrease any value that you have left in that fixed maturity
option. If you surrender your contract, a market value adjustment also applies.
- ------------------------------------------------------------------------------------------------------------------------------------
Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract
or receive annuity payments.
o No tax on transfers among investment options inside the contract.
----------------------------------------------------------------------------------------------------------
If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA) or to fund an employer
retirement plan (QP or Qualified Plan), you should be aware that such annuities do not provide tax
deferral benefits beyond those already provided by the Internal Revenue Code. Before purchasing one of
these annuities, you should consider whether its features and benefits beyond tax deferral meet your needs
and goals. You may also want to consider the relative features, benefits and costs of these annuities
compared with any other investment that you may use in connection with your retirement plan or
arrangement. (For more information see "Tax information," later in this Prospectus.)
- ------------------------------------------------------------------------------------------------------------------------------------
Contribution amounts o Initial minimum: $10,000
o Additional minimum: $1,000 (NQ and QP contracts)
$50 (IRA contracts)
Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million.
- ------------------------------------------------------------------------------------------------------------------------------------
Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Contract surrender
You may incur income tax and a tax penalty for certain withdrawals.
- ------------------------------------------------------------------------------------------------------------------------------------
Payout options o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout options
- ------------------------------------------------------------------------------------------------------------------------------------
Additional features o Dollar cost averaging
o Account value rebalancing (quarterly, semiannually and annually)
o Free transfers
- ------------------------------------------------------------------------------------------------------------------------------------
8 Accumulator(R) Advisor(SM) at a glance -- key features
Fees and charges o Daily charges on amounts invested in variable investment options for mortality and expense risks charge and
administrative charge at an annual rate of up to 0.50%.
----------------------------------------------------------------------------------------------------------
The "contract date" is the effective date of a contract. This usually is the business day we receive the
properly completed and signed application, along with any other required documents, and your initial
contribution. Your contract date will be shown in your contract. The 12-month period beginning on your
contract date and each 12-month period after that date is a "contract year." The end of each 12-month
period is your "contract date anniversary." For example if your contract date is May 1, your contract date
anniversary is April 30.
----------------------------------------------------------------------------------------------------------
o We deduct a charge designed to approximate certain taxes that may be imposed on us, such
as premium taxes in your state. This charge is generally deducted from the amount applied to an
annuity payout option.
o Annual expenses of the Trusts' portfolios are calculated as a percentage of the average daily net assets
invested in each portfolio. These expenses include management fees ranging from 0.10% to 1.20% annually,
12b-1 fees of 0.25% annually and other expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant issue ages NQ: 0-83
Rollover IRA: 20-83; Roth Conversion IRA: 20-83; QP: 20-75.
- ------------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the
contract. In some cases, restrictions or exceptions apply. Also, all features
of the contract are not necessarily available in your state or at certain ages.
For more detailed information, we urge you to read the contents of this
Prospectus, as well as your contract. Please feel free to speak with your
financial professional, or call us, if you have any questions.
Currently, you may purchase a contract only if you are a participant in an
account established under a fee-based program sponsored and maintained by a
registered broker-dealer or other financial intermediary we approve (including
AXA Advisors, LLC, one of the distributors of the contracts and an affiliate of
AXA Equitable). We may, in the future, offer this contract through other means.
The fees and expenses of a fee-based program are separate from and in addition
to the fees and expenses of the contract and generally provide for various
brokerage services. If you purchase this contract through a fee-based
arrangement and later terminate the arrangement, your contract will continue in
force. There may be charges associated with the fee-based arrangement should
you decide to no longer participate in the arrangement. Please consult with
your program sponsor for more details about your fee-based program.
OTHER CONTRACTS
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, credits, fees and/or charges that are
different from those in the contracts offered by this Prospectus. Not every
contract is offered through the same distributor. At their sole discretion,
some distributors may eliminate and/or limit the availability of certain
features or options, as well as limit the availability of the contracts, based
on annuitant issue age or other criteria. Upon request, your financial
professional can show you information regarding other AXA Equitable annuity
contracts that he or she distributes. You can also contact us to find out more
about any of the AXA Equitable annuity contracts.
Accumulator(R) Advisor(SM) at a glance -- key features 9
Fee table
- --------------------------------------------------------------------------------
The following tables describe the fees and expenses that you will pay when
buying, owning, and surrendering the contract. Each of the charges and expenses
is more fully described in "Charges and expenses" later in this Prospectus.
Charges designed to approximate certain taxes that may be imposed on us, such
as premium taxes in your state, may also apply. Also, an annuity administrative
fee may apply when your annuity payments are to begin. Charges for certain
features shown in the fee table are mutually exclusive.
This first table describes the fees and expenses that you will pay periodically
during the time that you own the contract, not including underlying Trust
portfolio fees and expenses.
- --------------------------------------------------------------------------------
Charges we deduct from your variable investment options expressed as an
annual percentage of daily net assets
- --------------------------------------------------------------------------------
Mortality and expense risks charge and administrative charge(1) 0.50%
Total annual expenses 0.50%
- --------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net
asset value each day. Therefore, they reduce the investment return of the
Portfolio and the related variable investment option. Actual fees and expenses
are likely to fluctuate from year to year. More detail concerning each
Portfolio's fees and expenses is contained in the Trust prospectus for the
Portfolio.
- ------------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2004 (expenses that are deducted Lowest Highest
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ------ -------
other expenses)(2) 0.55% 7.61%
10 Fee table
This table shows the fees and expenses for 2004 as an annual percentage of each
Portfolio's daily average net assets.
Total Annual Fee Waivers Net Total
Underlying Expenses and/or Annual
Portfolio Before Expense Expenses
Management Other Fees and Expense Reimburse- After Expense
Portfolio Name Fees(3) 12b-1 Fees(4) Expenses(5) Expenses(6) Limitation ments(7) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 0.29% 0.99% 1.63% (0.29)% 1.34%
AXA Conservative Allocation 0.10% 0.25% 0.41% 0.75% 1.51% (0.41)% 1.10%
AXA Conservative-Plus Allocation 0.10% 0.25% 0.30% 0.80% 1.45% (0.30)% 1.15%
AXA Moderate Allocation 0.10% 0.25% 0.16% 0.83% 1.34% (0.16)% 1.18%
AXA Moderate-Plus Allocation 0.10% 0.25% 0.20% 1.02% 1.57% (0.20)% 1.37%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.18% -- 1.05% -- 1.05%
AXA Premier VIP Core Bond 0.60% 0.25% 0.20% -- 1.05% (0.10)% 0.95%
AXA Premier VIP Health Care 1.20% 0.25% 0.40% -- 1.85% 0.00% 1.85%
AXA Premier VIP High Yield 0.58% 0.25% 0.18% -- 1.01% -- 1.01%
AXA Premier VIP International Equity 1.05% 0.25% 0.50% -- 1.80% 0.00% 1.80%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.32% -- 1.47% (0.12)% 1.35%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.26% -- 1.41% (0.06)% 1.35%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.25% -- 1.40% (0.05)% 1.35%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.25% -- 1.60% 0.00% 1.60%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.25% -- 1.60% 0.00% 1.60%
AXA Premier VIP Technology 1.20% 0.25% 0.40% -- 1.85% 0.00% 1.85%
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.47% 0.25% 0.05% -- 0.77% -- 0.77%
EQ/Alliance Growth and Income 0.56% 0.25% 0.05% -- 0.86% -- 0.86%
EQ/Alliance Intermediate Government
Securities 0.50% 0.25% 0.06% -- 0.81% -- 0.81%
EQ/Alliance International 0.73% 0.25% 0.12% -- 1.10% 0.00% 1.10%
EQ/Alliance Large Cap Growth* 0.90% 0.25% 0.05% -- 1.20% (0.10)% 1.10%
EQ/Alliance Quality Bond 0.50% 0.25% 0.06% -- 0.81% -- 0.81%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.06% -- 1.06% -- 1.06%
EQ/Bear Stearns Small Company Growth* 1.00% 0.25% 0.18% -- 1.43% (0.13)% 1.30%
EQ/Bernstein Diversified Value 0.63% 0.25% 0.07% -- 0.95% 0.00% 0.95%
EQ/Boston Advisors Equity Income* 0.75% 0.25% 0.21% -- 1.21% (0.16)% 1.05%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.29% -- 1.19% (0.14)% 1.05%
EQ/Capital Guardian Growth 0.65% 0.25% 0.09% -- 0.99% (0.04)% 0.95%
EQ/Capital Guardian International 0.85% 0.25% 0.17% -- 1.27% (0.07)% 1.20%
EQ/Capital Guardian Research 0.65% 0.25% 0.05% -- 0.95% 0.00% 0.95%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.05% -- 0.95% 0.00% 0.95%
EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.12% -- 0.97% (0.12)% 0.85%
EQ/Equity 500 Index 0.25% 0.25% 0.05% -- 0.55% -- 0.55%
EQ/Evergreen Omega 0.65% 0.25% 0.11% -- 1.01% (0.06)% 0.95%
EQ/FI Mid Cap 0.70% 0.25% 0.06% -- 1.01% (0.01)% 1.00%
EQ/FI Small/Mid Cap Value 0.74% 0.25% 0.08% -- 1.07% 0.00% 1.07%
EQ/International Growth 0.85% 0.25% 0.22% -- 1.32% 0.00% 1.32%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.06% -- 0.75% 0.00% 0.75%
EQ/JP Morgan Value Opportunities 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.08% -- 1.23% (0.08)% 1.15%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.05% -- 1.05% 0.00% 1.05%
EQ/Long Term Bond 0.50% 0.25% 0.25% -- 1.00% 0.00% 1.00%
EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.19% -- 1.14% (0.09)% 1.05%
EQ/Marsico Focus 0.88% 0.25% 0.06% -- 1.19% (0.04)% 1.15%
EQ/Mercury Basic Value Equity 0.58% 0.25% 0.05% -- 0.88% 0.00% 0.88%
EQ/Mercury International Value 0.85% 0.25% 0.15% -- 1.25% 0.00% 1.25%
EQ/Mergers and Acquisitions 0.90% 0.25% 1.21% -- 2.36% (0.91)% 1.45%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.06% -- 0.96% -- 0.96%
EQ/MFS Investors Trust 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Money Market 0.34% 0.25% 0.05% -- 0.64% -- 0.64%
EQ/Montag & Caldwell Growth* 0.75% 0.25% 0.12% -- 1.12% 0.00% 1.12%
EQ/PIMCO Real Return 0.55% 0.25% 0.20% -- 1.00% (0.35)% 0.65%
- ------------------------------------------------------------------------------------------------------------------------------------
Fee table 11
- -------------------------------------------------------------------------------- ---------------------------------------------------
Total Annual Fee Waivers Net Total
Underlying Expenses and/or Annual
Portfolio Before Expense Expenses
Management Other Fees and Expense Reimburse- After Expense
Portfolio Name Fees(3) 12b-1 Fees(4) Expenses(5) Expenses(6) Limitation ments(7) Limitations
- -------------------------------------------------------------------------------- ---------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------- ---------------------------------------------------
EQ/Short Duration Bond 0.45% 0.25% 0.52% -- 1.22% (0.57)% 0.65%
EQ/Small Company Index 0.25% 0.25% 0.13% -- 0.63% 0.00% 0.63%
EQ/Small Company Value* 0.80% 0.25% 0.12% -- 1.17% 0.00% 1.17%
EQ/TCW Equity* 0.80% 0.25% 0.12% -- 1.17% (0.02)% 1.15%
EQ/UBS Growth and Income* 0.75% 0.25% 0.16% -- 1.16% (0.11)% 1.05%
EQ/Van Kampen Comstock 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Van Kampen Emerging Markets Equity* 1.15% 0.25% 0.40% -- 1.80% 0.00% 1.80%
EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.19% -- 1.14% (0.09)% 1.05%
EQ/Wells Fargo Montgomery Small Cap 0.85% 0.25% 6.51% -- 7.61% (6.33)% 1.28%
- -----------------------------------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject to
regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former name.
Notes:
(1) A portion of this charge is for providing the minimum death benefit.
(2) "Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2004 and for the
underlying portfolios.
(3) The management fees for each Portfolio cannot be increased without a vote
of that Portfolio's shareholders. See footnote (7) for any expense
limitation agreement information.
(4) Portfolio shares are all subject to fees imposed under the distribution
plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1
under the Investment Company Act of 1940. The 12b-1 fee will not be
increased for the life of the contracts.
(5) Other expenses shown are those incurred in 2004. The amounts shown as
"Other Expenses" will fluctuate from year to year depending on actual
expenses. See footnote (7) for any expense limitation agreement
information.
(6) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and AXA
Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolio's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocations
as of 12/31/04. A "--" indicates that the listed portfolio does not invest
in underlying portfolios, i.e., it is not an allocation portfolio.
(7) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A "--" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver or reimbursement. AXA Equitable,
the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has
entered into Expense Limitation Agreements with respect to certain
Portfolios, which are effective through April 30, 2006. Under these
agreements AXA Equitable has agreed to waive or limit its fees and assume
other expenses of certain Portfolios, if necessary, in an amount that
limits each affected Portfolio's total Annual Expenses (exclusive of
interest, taxes, brokerage commissions, capitalized expenditures and
extraordinary expenses) to not more than specified amounts. Each Portfolio
may at a later date make a reimbursement to AXA Equitable for any of the
management fees waived or limited and other expenses assumed and paid by
AXA Equitable pursuant to the expense limitation agreement provided that
the Portfolio's current annual operating expenses do not exceed the
operating expense limit determined for such portfolio. See the Prospectus
for each applicable underlying Trust for more information about the
arrangements. In addition, a portion of the brokerage commissions of
certain portfolios of EQ Advisors Trust Portfolio and AXA Premier VIP Trust
Portfolio is used to reduce the applicable Portfolio's expenses. If the
above table reflected both the expense limitation arrangements plus the
portion of the brokerage commissions used to reduce portfolio expenses, the
net expenses would be as shown in the table below:
- ---------------------------------------------------------
Portfolio Name
- ---------------------------------------------------------
AXA Moderate Allocation 1.17%
AXA Premier VIP Aggressive Equity 0.93%
AXA Premier VIP Health Care 1.81%
AXA Premier VIP International Equity 1.75%
AXA Premier VIP Large Cap Core Equity 1.32%
AXA Premier VIP Large Cap Growth 1.30%
AXA Premier VIP Large Cap Value 1.21%
AXA Premier VIP Small/Mid Cap Growth 1.50%
AXA Premier VIP Small/Mid Cap Value 1.54%
AXA Premier VIP Technology 1.75%
EQ/Alliance Common Stock 0.68%
EQ/Alliance Growth and Income 0.80%
EQ/Alliance International 1.08%
EQ/Alliance Large Cap Growth 1.04%
EQ/Alliance Small Cap Growth 0.98%
EQ/Calvert Socially Responsible 1.00%
EQ/Capital Guardian Growth 0.67%
EQ/Capital Guardian International 1.17%
EQ/Capital Guardian Research 0.90%
EQ/Capital Guardian U.S. Equity 0.93%
EQ/Evergreen Omega 0.57%
EQ/FI Mid Cap 0.96%
EQ/FI Small/Mid Cap Value 1.05%
EQ/JP Morgan Value Opportunities 0.76%
- ---------------------------------------------------------
12 Fee table
- ---------------------------------------------------------
Portfolio Name
- ---------------------------------------------------------
EQ/Lazard Small Cap Value 0.86%
EQ/Marsico Focus 1.12%
EQ/Mercury Basic Value Equity 0.86%
EQ/Mercury International Value 1.18%
EQ/MFS Emerging Growth Companies 0.91%
EQ/MFS Investors Trust 0.91%
EQ/Small Company Value 1.16%
EQ/TCW Equity 1.14%
EQ/Van Kampen Emerging Markets Equity 1.75%
EQ/Wells Fargo Montgomery Small Cap 1.26%
- ---------------------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses.
The example below shows the expenses that a hypothetical contract owner would
pay in the situations illustrated.
The fixed maturity options are not covered by the example. A market value
adjustment (up or down) may apply as a result of a withdrawal, transfer or
surrender of amounts from a fixed maturity option.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes that your investment has a 5%
return each year. This example should not be considered a representation of
past or future expenses for each option. Actual expenses may be greater or less
than those shown. Similarly, the annual rate of return assumed in the example
is not an estimate or guarantee of future investment performance. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
Fee table 13
- -------------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of the applicable time period
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 223.65 $ 689.66 $ 1,181.79 $ 2,536.15
AXA Conservative Allocation $ 211.05 $ 651.62 $ 1,118.02 $ 2,407.18
AXA Conservative-Plus Allocation $ 204.75 $ 632.56 $ 1,086.01 $ 2,342.10
AXA Moderate Allocation $ 192.99 $ 596.93 $ 1,026.05 $ 2,219.57
AXA Moderate-Plus Allocation $ 217.35 $ 670.65 $ 1,149.95 $ 2,471.86
AXA Premier VIP Aggressive Equity $ 162.75 $ 504.90 $ 870.52 $ 1,898.07
AXA Premier VIP Core Bond $ 162.75 $ 504.90 $ 870.52 $ 1,898.07
AXA Premier VIP Health Care $ 246.75 $ 759.16 $ 1,297.84 $ 2,768.56
AXA Premier VIP High Yield $ 158.55 $ 492.08 $ 848.77 $ 1,852.68
AXA Premier VIP International Equity $ 241.50 $ 743.39 $ 1,271.56 $ 2,716.19
AXA Premier VIP Large Cap Core Equity $ 206.85 $ 638.92 $ 1,096.69 $ 2,363.84
AXA Premier VIP Large Cap Growth $ 200.55 $ 619.85 $ 1,064.63 $ 2,298.50
AXA Premier VIP Large Cap Value $ 199.50 $ 616.67 $ 1,059.28 $ 2,287.57
AXA Premier VIP Small/Mid Cap Growth $ 220.50 $ 680.16 $ 1,165.88 $ 2,504.05
AXA Premier VIP Small/Mid Cap Value $ 220.50 $ 680.16 $ 1,165.88 $ 2,504.05
AXA Premier VIP Technology $ 246.75 $ 759.16 $ 1,297.84 $ 2,768.56
- -------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 133.35 $ 414.90 $ 717.47 $ 1,576.47
EQ/Alliance Growth and Income $ 142.80 $ 443.88 $ 766.86 $ 1,680.83
EQ/Alliance Intermediate Government Securities $ 137.55 $ 427.79 $ 739.44 $ 1,622.97
EQ/Alliance International $ 168.00 $ 520.92 $ 897.66 $ 1,954.56
EQ/Alliance Large Cap Growth* $ 178.50 $ 552.90 $ 951.76 $ 2,066.68
EQ/Alliance Quality Bond $ 137.55 $ 427.79 $ 739.44 $ 1,622.97
EQ/Alliance Small Cap Growth $ 163.80 $ 508.11 $ 875.95 $ 1,909.39
EQ/Bear Stearns Small Company Growth* $ 202.65 $ 626.21 $ 1,075.33 $ 2,320.32
EQ/Bernstein Diversified Value $ 152.25 $ 472.82 $ 816.07 $ 1,784.25
EQ/Boston Advisors Equity Income* $ 179.55 $ 556.10 $ 957.16 $ 2,077.83
EQ/Calvert Socially Responsible $ 177.45 $ 549.71 $ 946.36 $ 2,055.52
EQ/Capital Guardian Growth $ 156.45 $ 485.66 $ 837.88 $ 1,829.91
EQ/Capital Guardian International $ 185.85 $ 575.25 $ 989.50 $ 2,144.50
EQ/Capital Guardian Research $ 152.25 $ 472.82 $ 816.07 $ 1,784.25
EQ/Capital Guardian U.S. Equity $ 152.25 $ 472.82 $ 816.07 $ 1,784.25
EQ/Caywood-Scholl High Yield Bond $ 154.35 $ 479.24 $ 826.98 $ 1,807.10
EQ/Equity 500 Index $ 110.25 $ 343.81 $ 595.93 $ 1,317.40
EQ/Evergreen Omega $ 158.55 $ 492.08 $ 848.77 $ 1,852.68
EQ/FI Mid Cap $ 158.55 $ 492.08 $ 848.77 $ 1,852.68
EQ/FI Small/Mid Cap Value $ 164.85 $ 511.31 $ 881.38 $ 1,920.70
EQ/International Growth $ 191.10 $ 591.19 $ 1,016.38 $ 2,199.75
EQ/J.P. Morgan Core Bond $ 131.25 $ 408.45 $ 706.47 $ 1,553.15
EQ/JP Morgan Value Opportunities $ 152.25 $ 472.82 $ 816.07 $ 1,784.25
EQ/Janus Large Cap Growth $ 181.65 $ 562.48 $ 967.95 $ 2,100.10
EQ/Lazard Small Cap Value $ 162.75 $ 504.90 $ 870.52 $ 1,898.07
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
If you annuitize at the end
of the applicable time period
- -------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 223.65 $ 689.66 $ 1,181.79 $ 2,536.15
AXA Conservative Allocation $ 211.05 $ 651.62 $ 1,118.02 $ 2,407.18
AXA Conservative-Plus Allocation $ 204.75 $ 632.56 $ 1,086.01 $ 2,342.10
AXA Moderate Allocation $ 192.99 $ 596.93 $ 1,026.05 $ 2,219.57
AXA Moderate-Plus Allocation $ 217.35 $ 670.65 $ 1,149.95 $ 2,471.86
AXA Premier VIP Aggressive Equity $ 162.75 $ 504.90 $ 870.52 $ 1,898.07
AXA Premier VIP Core Bond $ 162.75 $ 504.90 $ 870.52 $ 1,898.07
AXA Premier VIP Health Care $ 246.75 $ 759.16 $ 1,297.84 $ 2,768.56
AXA Premier VIP High Yield $ 158.55 $ 492.08 $ 848.77 $ 1,852.68
AXA Premier VIP International Equity $ 241.50 $ 743.39 $ 1,271.56 $ 2,716.19
AXA Premier VIP Large Cap Core Equity $ 206.85 $ 638.92 $ 1,096.69 $ 2,363.84
AXA Premier VIP Large Cap Growth $ 200.55 $ 619.85 $ 1,064.63 $ 2,298.50
AXA Premier VIP Large Cap Value $ 199.50 $ 616.67 $ 1,059.28 $ 2,287.57
AXA Premier VIP Small/Mid Cap Growth $ 220.50 $ 680.16 $ 1,165.88 $ 2,504.05
AXA Premier VIP Small/Mid Cap Value $ 220.50 $ 680.16 $ 1,165.88 $ 2,504.05
AXA Premier VIP Technology $ 246.75 $ 759.16 $ 1,297.84 $ 2,768.56
- -------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 133.35 $ 414.90 $ 717.47 $ 1,576.47
EQ/Alliance Growth and Income $ 142.80 $ 443.88 $ 766.86 $ 1,680.83
EQ/Alliance Intermediate Government Securities $ 137.55 $ 427.79 $ 739.44 $ 1,622.97
EQ/Alliance International $ 168.00 $ 520.92 $ 897.66 $ 1,954.56
EQ/Alliance Large Cap Growth* $ 178.50 $ 552.90 $ 951.76 $ 2,066.68
EQ/Alliance Quality Bond $ 137.55 $ 427.79 $ 739.44 $ 1,622.97
EQ/Alliance Small Cap Growth $ 163.80 $ 508.11 $ 875.95 $ 1,909.39
EQ/Bear Stearns Small Company Growth* $ 202.65 $ 626.21 $ 1,075.33 $ 2,320.32
EQ/Bernstein Diversified Value $ 152.25 $ 472.82 $ 816.07 $ 1,784.25
EQ/Boston Advisors Equity Income* $ 179.55 $ 556.10 $ 957.16 $ 2,077.83
EQ/Calvert Socially Responsible $ 177.45 $ 549.71 $ 946.36 $ 2,055.52
EQ/Capital Guardian Growth $ 156.45 $ 485.66 $ 837.88 $ 1,829.91
EQ/Capital Guardian International $ 185.85 $ 575.25 $ 989.50 $ 2,144.50
EQ/Capital Guardian Research $ 152.25 $ 472.82 $ 816.07 $ 1,784.25
EQ/Capital Guardian U.S. Equity $ 152.25 $ 472.82 $ 816.07 $ 1,784.25
EQ/Caywood-Scholl High Yield Bond $ 154.35 $ 479.24 $ 826.98 $ 1,807.10
EQ/Equity 500 Index $ 110.25 $ 343.81 $ 595.93 $ 1,317.40
EQ/Evergreen Omega $ 158.55 $ 492.08 $ 848.77 $ 1,852.68
EQ/FI Mid Cap $ 158.55 $ 492.08 $ 848.77 $ 1,852.68
EQ/FI Small/Mid Cap Value $ 164.85 $ 511.31 $ 881.38 $ 1,920.70
EQ/International Growth $ 191.10 $ 591.19 $ 1,016.38 $ 2,199.75
EQ/J.P. Morgan Core Bond $ 131.25 $ 408.45 $ 706.47 $ 1,553.15
EQ/JP Morgan Value Opportunities $ 152.25 $ 472.82 $ 816.07 $ 1,784.25
EQ/Janus Large Cap Growth $ 181.65 $ 562.48 $ 967.95 $ 2,100.10
EQ/Lazard Small Cap Value $ 162.75 $ 504.90 $ 870.52 $ 1,898.07
- -------------------------------------------------------------------------------------------------------
If you do not surrender your contract at
of the applicable time period
- -------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 223.65 $ 689.66 $ 1,181.79 $ 2,536.15
AXA Conservative Allocation $ 211.05 $ 651.62 $ 1,118.02 $ 2,407.18
AXA Conservative-Plus Allocation $ 204.75 $ 632.56 $ 1,086.01 $ 2,342.10
AXA Moderate Allocation $ 192.99 $ 596.93 $ 1,026.05 $ 2,219.57
AXA Moderate-Plus Allocation $ 217.35 $ 670.65 $ 1,149.95 $ 2,471.86
AXA Premier VIP Aggressive Equity $ 162.75 $ 504.90 $ 870.52 $ 1,898.07
AXA Premier VIP Core Bond $ 162.75 $ 504.90 $ 870.52 $ 1,898.07
AXA Premier VIP Health Care $ 246.75 $ 759.16 $ 1,297.84 $ 2,768.56
AXA Premier VIP High Yield $ 158.55 $ 492.08 $ 848.77 $ 1,852.68
AXA Premier VIP International Equity $ 241.50 $ 743.39 $ 1,271.56 $ 2,716.19
AXA Premier VIP Large Cap Core Equity $ 206.85 $ 638.92 $ 1,096.69 $ 2,363.84
AXA Premier VIP Large Cap Growth $ 200.55 $ 619.85 $ 1,064.63 $ 2,298.50
AXA Premier VIP Large Cap Value $ 199.50 $ 616.67 $ 1,059.28 $ 2,287.57
AXA Premier VIP Small/Mid Cap Growth $ 220.50 $ 680.16 $ 1,165.88 $ 2,504.05
AXA Premier VIP Small/Mid Cap Value $ 220.50 $ 680.16 $ 1,165.88 $ 2,504.05
AXA Premier VIP Technology $ 246.75 $ 759.16 $ 1,297.84 $ 2,768.56
- -------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 133.35 $ 414.90 $ 717.47 $ 1,576.47
EQ/Alliance Growth and Income $ 142.80 $ 443.88 $ 766.86 $ 1,680.83
EQ/Alliance Intermediate Government Securities $ 137.55 $ 427.79 $ 739.44 $ 1,622.97
EQ/Alliance International $ 168.00 $ 520.92 $ 897.66 $ 1,954.56
EQ/Alliance Large Cap Growth* $ 178.50 $ 552.90 $ 951.76 $ 2,066.68
EQ/Alliance Quality Bond $ 137.55 $ 427.79 $ 739.44 $ 1,622.97
EQ/Alliance Small Cap Growth $ 163.80 $ 508.11 $ 875.95 $ 1,909.39
EQ/Bear Stearns Small Company Growth* $ 202.65 $ 626.21 $ 1,075.33 $ 2,320.32
EQ/Bernstein Diversified Value $ 152.25 $ 472.82 $ 816.07 $ 1,784.25
EQ/Boston Advisors Equity Income* $ 179.55 $ 556.10 $ 957.16 $ 2,077.83
EQ/Calvert Socially Responsible $ 177.45 $ 549.71 $ 946.36 $ 2,055.52
EQ/Capital Guardian Growth $ 156.45 $ 485.66 $ 837.88 $ 1,829.91
EQ/Capital Guardian International $ 185.85 $ 575.25 $ 989.50 $ 2,144.50
EQ/Capital Guardian Research $ 152.25 $ 472.82 $ 816.07 $ 1,784.25
EQ/Capital Guardian U.S. Equity $ 152.25 $ 472.82 $ 816.07 $ 1,784.25
EQ/Caywood-Scholl High Yield Bond $ 154.35 $ 479.24 $ 826.98 $ 1,807.10
EQ/Equity 500 Index $ 110.25 $ 343.81 $ 595.93 $ 1,317.40
EQ/Evergreen Omega $ 158.55 $ 492.08 $ 848.77 $ 1,852.68
EQ/FI Mid Cap $ 158.55 $ 492.08 $ 848.77 $ 1,852.68
EQ/FI Small/Mid Cap Value $ 164.85 $ 511.31 $ 881.38 $ 1,920.70
EQ/International Growth $ 191.10 $ 591.19 $ 1,016.38 $ 2,199.75
EQ/J.P. Morgan Core Bond $ 131.25 $ 408.45 $ 706.47 $ 1,553.15
EQ/JP Morgan Value Opportunities $ 152.25 $ 472.82 $ 816.07 $ 1,784.25
EQ/Janus Large Cap Growth $ 181.65 $ 562.48 $ 967.95 $ 2,100.10
EQ/Lazard Small Cap Value $ 162.75 $ 504.90 $ 870.52 $ 1,898.07
- -------------------------------------------------------------------------------------------------------
14 Fee table
- -------------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of the applicable time period
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 157.50 $ 488.87 $ 843.32 $ 1,841.30
EQ/Lord Abbett Growth and Income $ 166.95 $ 517.72 $ 892.24 $ 1,943.28
EQ/Lord Abbett Large Cap Core $ 166.95 $ 517.72 $ 892.24 $ 1,943.28
EQ/Lord Abbett Mid Cap Value $ 172.20 $ 533.72 $ 919.33 $ 1,999.54
EQ/Marsico Focus $ 177.45 $ 549.71 $ 946.36 $ 2,055.52
EQ/Mercury Basic Value Equity $ 144.90 $ 450.32 $ 777.81 $ 1,703.89
EQ/Mercury International Value $ 183.75 $ 568.87 $ 978.73 $ 2,122.32
EQ/Mergers and Acquisitions $ 300.30 $ 919.01 $ 1,562.68 $ 3,287.75
EQ/MFS Emerging Growth Companies $ 153.30 $ 476.03 $ 821.52 $ 1,795.68
EQ/MFS Investors Trust $ 152.25 $ 472.82 $ 816.07 $ 1,784.25
EQ/Money Market $ 119.70 $ 372.93 $ 645.79 $ 1,424.07
EQ/Montag & Caldwell Growth* $ 170.10 $ 527.32 $ 908.50 $ 1,977.07
EQ/PIMCO Real Return $ 157.50 $ 488.87 $ 843.32 $ 1,841.30
EQ/Short Duration Bond $ 180.60 $ 559.29 $ 962.56 $ 2,088.97
EQ/Small Company Index $ 118.65 $ 369.70 $ 640.26 $ 1,412.27
EQ/Small Company Value* $ 175.35 $ 543.31 $ 935.56 $ 2,033.16
EQ/TCW Equity* $ 175.35 $ 543.31 $ 935.56 $ 2,033.16
EQ/UBS Growth and Income* $ 174.30 $ 540.12 $ 930.15 $ 2,021.97
EQ/Van Kampen Comstock $ 166.95 $ 517.72 $ 892.24 $ 1,943.28
EQ/Van Kampen Emerging Markets Equity* $ 241.50 $ 743.39 $ 1,271.56 $ 2,716.19
EQ/Van Kampen Mid Cap Growth $ 172.20 $ 533.72 $ 919.33 $ 1,999.54
EQ/Wells Fargo Montgomery Small Cap $ 851.55 $ 2,465.89 $ 3,968.73 $ 7,287.21
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
If you annuitize at the end
of the applicable time period
- -------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 157.50 $ 488.87 $ 843.32 $ 1,841.30
EQ/Lord Abbett Growth and Income $ 166.95 $ 517.72 $ 892.24 $ 1,943.28
EQ/Lord Abbett Large Cap Core $ 166.95 $ 517.72 $ 892.24 $ 1,943.28
EQ/Lord Abbett Mid Cap Value $ 172.20 $ 533.72 $ 919.33 $ 1,999.54
EQ/Marsico Focus $ 177.45 $ 549.71 $ 946.36 $ 2,055.52
EQ/Mercury Basic Value Equity $ 144.90 $ 450.32 $ 777.81 $ 1,703.89
EQ/Mercury International Value $ 183.75 $ 568.87 $ 978.73 $ 2,122.32
EQ/Mergers and Acquisitions $ 300.30 $ 919.01 $ 1,562.68 $ 3,287.75
EQ/MFS Emerging Growth Companies $ 153.30 $ 476.03 $ 821.52 $ 1,795.68
EQ/MFS Investors Trust $ 152.25 $ 472.82 $ 816.07 $ 1,784.25
EQ/Money Market $ 119.70 $ 372.93 $ 645.79 $ 1,424.07
EQ/Montag & Caldwell Growth* $ 170.10 $ 527.32 $ 908.50 $ 1,977.07
EQ/PIMCO Real Return $ 157.50 $ 488.87 $ 843.32 $ 1,841.30
EQ/Short Duration Bond $ 180.60 $ 559.29 $ 962.56 $ 2,088.97
EQ/Small Company Index $ 118.65 $ 369.70 $ 640.26 $ 1,412.27
EQ/Small Company Value* $ 175.35 $ 543.31 $ 935.56 $ 2,033.16
EQ/TCW Equity* $ 175.35 $ 543.31 $ 935.56 $ 2,033.16
EQ/UBS Growth and Income* $ 174.30 $ 540.12 $ 930.15 $ 2,021.97
EQ/Van Kampen Comstock $ 166.95 $ 517.72 $ 892.24 $ 1,943.28
EQ/Van Kampen Emerging Markets Equity* $ 241.50 $ 743.39 $ 1,271.56 $ 2,716.19
EQ/Van Kampen Mid Cap Growth $ 172.20 $ 533.72 $ 919.33 $ 1,999.54
EQ/Wells Fargo Montgomery Small Cap $ 851.55 $ 2,465.89 $ 3,968.73 $ 7,287.21
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end
of the applicable time period
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 157.50 $ 488.87 $ 843.32 $ 1,841.30
EQ/Lord Abbett Growth and Income $ 166.95 $ 517.72 $ 892.24 $ 1,943.28
EQ/Lord Abbett Large Cap Core $ 166.95 $ 517.72 $ 892.24 $ 1,943.28
EQ/Lord Abbett Mid Cap Value $ 172.20 $ 533.72 $ 919.33 $ 1,999.54
EQ/Marsico Focus $ 177.45 $ 549.71 $ 946.36 $ 2,055.52
EQ/Mercury Basic Value Equity $ 144.90 $ 450.32 $ 777.81 $ 1,703.89
EQ/Mercury International Value $ 183.75 $ 568.87 $ 978.73 $ 2,122.32
EQ/Mergers and Acquisitions $ 300.30 $ 919.01 $ 1,562.68 $ 3,287.75
EQ/MFS Emerging Growth Companies $ 153.30 $ 476.03 $ 821.52 $ 1,795.68
EQ/MFS Investors Trust $ 152.25 $ 472.82 $ 816.07 $ 1,784.25
EQ/Money Market $ 119.70 $ 372.93 $ 645.79 $ 1,424.07
EQ/Montag & Caldwell Growth* $ 170.10 $ 527.32 $ 908.50 $ 1,977.07
EQ/PIMCO Real Return $ 157.50 $ 488.87 $ 843.32 $ 1,841.30
EQ/Short Duration Bond $ 180.60 $ 559.29 $ 962.56 $ 2,088.97
EQ/Small Company Index $ 118.65 $ 369.70 $ 640.26 $ 1,412.27
EQ/Small Company Value* $ 175.35 $ 543.31 $ 935.56 $ 2,033.16
EQ/TCW Equity* $ 175.35 $ 543.31 $ 935.56 $ 2,033.16
EQ/UBS Growth and Income* $ 174.30 $ 540.12 $ 930.15 $ 2,021.97
EQ/Van Kampen Comstock $ 166.95 $ 517.72 $ 892.24 $ 1,943.28
EQ/Van Kampen Emerging Markets Equity* $ 241.50 $ 743.39 $ 1,271.56 $ 2,716.19
EQ/Van Kampen Mid Cap Growth $ 172.20 $ 533.72 $ 919.33 $ 1,999.54
EQ/Wells Fargo Montgomery Small Cap $ 851.55 $ 2,465.89 $ 3,968.73 $ 7,287.21
- -------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject to
regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former name.
Fee table 15
CONDENSED FINANCIAL INFORMATION
Please see Appendix I at the end of this Prospectus for the unit values and the
number of units outstanding as of the end of the periods shown for each of the
variable investment options available as of December 31, 2004.
16 Fee table
1. Contract features and benefits
- --------------------------------------------------------------------------------
HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT
You may purchase a contract by making payments to us that we call
"contributions." We require a minimum contribution amount of $10,000 to
purchase a contract. You may make additional contributions of at least $1,000
each for NQ and QP contracts and $50 each for IRA contracts, subject to
limitations noted below. The following table summarizes our rules regarding
contributions to your contract. All ages in the table refer to the age of the
annuitant named in the contract.
We may refuse to accept any contribution if the sum of all contributions under
all Accumulator(R) series contracts with the same annuitant would then total
more than $1,500,000. We may also refuse to accept any contribution if the sum
of all contributions under all AXA Equitable annuity accumulation contracts
that you own would then total more than $2,500,000. We may accept less than the
minimum initial contribution under a contract if an aggregate amount of
contracts purchased at the same time by an individual (including spouse) meets
the minimum.
- --------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining
contract benefits. The annuitant is not necessarily the contract owner.
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Available
Contract for annuitant Limitations on
type issue ages Source of contributions contributions
- ------------------------------------------------------------------------------------------------------------------------------------
NQ 0 through 83 o After-tax money. o No additional contribution may be made
after attainment of age 84, or, if later, the
o Paid to us by check or transfer of contract first contract anniversary.
value in a tax-deferred exchange under
Section 1035 of the Internal Revenue Code.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover IRA 20 through 83 o Eligible rollover distributions from TSA con- o No rollover or direct transfer contributions
tracts or other 403(b) arrangements, may be made after attainment of age 84, or,
qualified plans, and governmental employer if later, the first contract anniversary.
457(b) plans.
o Contributions after age 70-1/2 must be net of
o Rollovers from another traditional individual required minimum distributions.
retirement arrangement.
o Although we accept regular IRA contribu-
o Direct custodian-to-custodian transfers from tions under Rollover IRA contracts, we intend
another traditional individual retirement that this contract be used primarily for
arrangement. rollover and direct transfer contributions.
Regular IRA contributions are limited to
o Regular IRA contributions. $4,000 for 2005; same for 2006.
o Additional "catch-up" contributions. o Additional catch-up contributions of up to
$500 can be made for the calendar year
2005 ($1,000 for 2006) where the owner is
at least age 50 but under age 70-1/2 at any
time during the calendar year for which the
contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 17
- ------------------------------------------------------------------------------------------------------------------------------------
Available
Contract for annuitant Limitations on
type issue ages Source of contributions contributions
- ------------------------------------------------------------------------------------------------------------------------------------
Roth Conversion 20 through 83 o Rollovers from another Roth IRA. o No rollover or direct transfer contributions
IRA may be made after attainment of age 84, or,
o Conversion rollovers from a traditional IRA. if later, the first contract anniversary.
o Direct transfers from another Roth IRA. o Conversion rollovers after age 70-1/2 must be
net of required minimum distributions for the
o Regular Roth IRA contributions. traditional IRA you are rolling over.
o Additional catch-up contributions o You cannot roll over funds from a traditional
IRA if your adjusted gross income is
$100,000 or more.
o Although we accept regular Roth IRA contri-
butions under Roth IRA contracts, we intend
that this contract be used primarily for
rollover and direct transfer contributions.
Regular Roth IRA contributions are limited to
$4,000 for 2005; same for 2006.
o Additional catch-up contributions of up to
$500 can be made for the calendar year
2005 ($1,000 for 2006) where the owner is
at least age 50 at any time during the calen-
dar year for which the contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
QP 20 through 75 o Only transfer contributions from an existing o We do not accept regular ongoing payroll
defined contribution qualified plan trust. contributions.
o The plan must be qualified under Section o Only one additional transfer contribution
401(a) of the Internal Revenue Code. may be made during a contract year.
o For 401(k) plans, transferred contributions o No additional transfer contributions may be
may only include employee pre-tax made after attainment of age 76, or, if
contributions. later, the first contract anniversary.
o Contributions after age 70-1/2 must be net of
any required minimum distributions.
o A separate QP contract must be established
for each plan participant.
o We do not accept employer remitted
contributions.
o We do not accept contributions from defined
benefit plans.
See Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts.
- ------------------------------------------------------------------------------------------------------------------------------------
See "Tax information," later in this Prospectus for a more detailed discussion
of sources of contributions and certain contribution limitations. For
information on when contributions are credited under your contract see "Dates
and prices at which contract events occur" in "More information" later in this
Prospectus.
18 Contract features and benefits
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from the owner. A joint
owner may also be named. Only natural persons can be joint owners. This means
that an entity such as a corporation cannot be a joint owner. In general, we
will not permit a contract to be owned by a minor unless it is pursuant to the
Uniform Gifts to Minors or the Uniform Transfers to Minors Act in your state.
Under all IRA contracts, the owner and annuitant must be the same person. In
some cases, an IRA contract may be held in a custodial individual retirement
account for the benefit of the individual annuitant.
Under QP contracts, the owner must be the trustee of the qualified plan and the
annuitant must be the plan participant/employee. See Appendix II at the end of
this Prospectus for more information on QP contracts.
- --------------------------------------------------------------------------------
A "participant" is an individual who is currently, or was formerly,
participating in an eligible employer's qualified plan.
- --------------------------------------------------------------------------------
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be by check drawn on a U.S. bank, in
U.S. dollars, and made payable to AXA Equitable. We may also apply
contributions made pursuant to a Section 1035 tax-free exchange or a direct
transfer. We do not accept third-party checks endorsed to us except for
rollover contributions, tax-free exchanges or trustee checks that involve no
refund. All checks are subject to our ability to collect the funds. We reserve
the right to reject a payment if it is received in an unacceptable form.
For your convenience, we will accept initial and additional contributions by
wire transmittal from certain broker-dealers who have agreements with us for
this purpose, including circumstances under which such contributions are
considered received by us when your order is taken by such broker-dealers.
Methods of payment are discussed in detail in "More information" later in this
Prospectus.
Your initial contribution must generally be accompanied by an application and
any other form we need to process the payments. If any information is missing
or unclear, we will try to obtain that information. If we are unable to obtain
all of the information we require within five business days after we receive an
incomplete application or form, we will inform the financial professional
submitting the application on your behalf. We will then return the contribution
to you unless you specifically direct us to keep your contribution until we
receive the required information.
- --------------------------------------------------------------------------------
Our "business day" is generally any day the New York Stock Exchange is open for
trading and generally ends at 4:00 p.m. Eastern Time. A business day does not
include a day we choose not to open due to emergency conditions. We may also
close early due to emergency conditions.
- --------------------------------------------------------------------------------
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
Your investment options are the variable investment options and the fixed
maturity options.
VARIABLE INVESTMENT OPTIONS
Your investment results in any of the variable investment options will depend
on the investment performance of the underlying portfolios. You can lose your
principal when investing in the variable investment options. In periods of poor
market performance, the net return, after charges and expenses, may result in
negative yields, including for the EQ/Money Market variable investment option.
Listed below are the currently available portfolios, their investment
objectives and their advisers.
- --------------------------------------------------------------------------------
You can choose from among variable investment options and the fixed maturity
options.
- --------------------------------------------------------------------------------
Contract features and benefits 19
PORTFOLIOS OF THE TRUSTS
You should note that some portfolios have objectives and strategies that are
substantially similar to those of certain funds that are purchased directly
rather than under a variable insurance product such as the Accumulator(R)
Advisor(SM) contract. These portfolios may even have the same manager(s) and/or
a similar name. However, there are numerous factors that can contribute to
differences in performance between two investments, particularly over short
periods of time. Such factors include the timing of stock purchases and sales;
differences in fund cash flows; and specific strategies employed by the
portfolio manager.
AXA Equitable serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. As such, AXA Equitable oversees
the activities of the investment advisers with respect to the Trusts and is
responsible for retaining or discontinuing the services of those advisers. The
advisers for these Portfolios, listed in the chart below, are those who make
the investment decisions for each Portfolio.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o AXA Equitable
ALLOCATION greater emphasis on current income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o AXA Equitable
ALLOCATION with a greater emphasis on capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
EQUITY o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of risk. o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o AIM Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of current o Alliance Capital Management L.P.
income and capital appreciation. o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P., through
INTERNATIONAL EQUITY its Bernstein Investment Research and
Management Unit
o J.P. Morgan Investment Management Inc.
o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P., through
CORE EQUITY its Bernstein Investment Research and
Management Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
20 Contract features and benefits
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital o Alliance Capital Management L.P.
GROWTH o RCM Capital Management LLC
o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE o Institutional Capital Corporation
o MFS Investment Management
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management LLC
CAP VALUE o TCW Investment Management Company
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
GOVERNMENT SECURITIES relative stability of principal.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE LARGE CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH(1)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
moderate risk to capital.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BEAR STEARNS Seeks to achieve capital appreciation. o Bear Stearns Asset Management Inc.
SMALL COMPANY GROWTH(7)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment
Research and Management Unit
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BOSTON ADVISORS EQUITY Seeks a combination of growth and income to achieve an o Boston Advisors, Inc.
INCOME(4) above-average and consistent total return.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN GROWTH Seeks long-term growth of capital. o Capital Guardian Trust Company
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 21
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. o Caywood-Scholl Capital Management
YIELD BOND
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates o Alliance Capital Management L.P.
the total return performance of the S&P 500 Index,
including reinvestment of dividends, at a risk level
consistent with that of the S&P 500 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA Seeks long-term capital growth. o Evergreen Investment Management
Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o SSgA Funds Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent with mod- o J.P. Morgan Investment Management Inc.
erate risk to capital and maintenance of liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JP MORGAN VALUE Long-term capital appreciation. o J.P. Morgan Investment Management Inc.
OPPORTUNITIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LONG TERM BOND Seeks to maximize income and capital appreciation o Boston Advisors, Inc.
through investment in long-maturity debt obligations.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT GROWTH AND Capital appreciation and growth of income without o Lord, Abbett & Co. LLC
INCOME excessive fluctuation in market value.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT LARGE CAP Capital appreciation and growth of income with reason- o Lord, Abbett & Co. LLC
CORE able risk.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT MID CAP VALUE Capital appreciation. o Lord, Abbett & Co, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers
VALUE International Limited
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERGERS AND ACQUISITIONS Seeks to achieve capital appreciation. o GAMCO Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary objec- o MFS Investment Management
tive to seek reasonable current income.
- ------------------------------------------------------------------------------------------------------------------------------------
22 Contract features and benefits
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve o Alliance Capital Management L.P.
its assets and maintain liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. o Montag & Caldwell, Inc.
GROWTH(5)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PIMCO REAL RETURN Seeks maximum real return consistent with preservation o Pacific Investment Management Company,
of real capital and prudent investment management. LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SHORT DURATION BOND Seeks current income with reduced volatility of principal. o Boston Advisors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o Alliance Capital Management L. P.
deduction of portfolio expenses) the total return of the
Russell 2000 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY VALUE(8) Seeks to maximize capital appreciation. o GAMCO Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/TCW EQUITY(3) Seeks to achieve long-term capital appreciation. o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/UBS GROWTH AND INCOME(6) Seeks to achieve total return through capital appreciation o UBS Global Asset Management
with income as a secondary consideration. (Americas) Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN COMSTOCK Capital growth and income. o Morgan Stanley Investment
Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN EMERGING Seeks long-term capital appreciation. o Morgan Stanley Investment
MARKETS EQUITY(2) Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN MID CAP Capital growth. o Morgan Stanley Investment
GROWTH Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/WELLS FARGO MONTGOMERY Seeks long-term capital appreciation. o Wells Capital Management Inc.
SMALL CAP
- ------------------------------------------------------------------------------------------------------------------------------------
* This portfolio information reflects the portfolio's name change effective on
or about May 9, 2005, subject to regulatory approval. The table below
reflects the portfolio name in effect until on or about May 9, 2005. The
number in the "FN" column corresponds with the number contained in the chart
above.
- ----------------------------------------------------
FN Portfolio Name until May 9, 2005
- ----------------------------------------------------
(1) EQ/Alliance Premier Growth
(2) EQ/Emerging Markets Equity
(3) EQ/Enterprise Equity
(4) EQ/Enterprise Equity Income
(5) EQ/Enterprise Growth
(6) EQ/Enterprise Growth and Income
(7) EQ/Enterprise Small Company Growth
(8) EQ/Enterprise Small Company Value
- ----------------------------------------------------
You should consider the investment objectives, risks and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may
call one of our customer service representatives 1-800-789-7771.
Contract features and benefits 23
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied: (i) the fixed maturity option's
maturity date is within the current calendar year; or (ii) the rate to maturity
is 3%. This means that at points in time there may be no fixed maturity options
available. You can allocate your contributions to one or more of these fixed
maturity options. This limit includes any maturities that have had any
allocation or transfers even if the entire amount is withdrawn or transferred
during the contract year. These amounts become part of a non-unitized Separate
Account. They will accumulate interest at the "rate to maturity" for each fixed
maturity option. The total amount you allocate to and accumulate in each fixed
maturity option is called the "fixed maturity amount." The fixed maturity
options are not available in all states. Fixed maturity options are not
available in Maryland.
- --------------------------------------------------------------------------------
Fixed maturity options range from one to ten years to maturity
- --------------------------------------------------------------------------------
The rate to maturity you will receive for each fixed maturity option is the
rate to maturity in effect for new contributions allocated to that fixed
maturity option on the date we apply your contribution. This rate will never be
less than 3%.
On the maturity date of a fixed maturity option your fixed maturity amount,
assuming you have not made any withdrawals or transfers, will equal your
contribution to that fixed maturity option plus interest, at the rate to
maturity for that contribution, to the date of the calculation. This is the
fixed maturity option's "maturity value." Before maturity, the current value we
will report for your fixed maturity amounts will reflect a market value
adjustment. Your current value will reflect the market value adjustment that we
would make if you were to withdraw all of your fixed maturity amounts on the
date of the report. We call this your "market adjusted amount."
FIXED MATURITY OPTIONS AND MATURITY DATES. We currently offer fixed maturity
options ending on February 15th for each of the maturity years 2005 through
2013. Not all of these fixed maturity options will be available for annuitant
ages 76 and older. See "Allocating your contributions" below. As fixed maturity
options expire, we expect to add maturity years so that generally 10 fixed
maturity options are available at any time.
YOUR CHOICES AT THE MATURITY DATE. We will notify you on or before December
31st of the year before each of your fixed maturity options is scheduled to
mature. At that time, you may choose to have one of the following take place on
the maturity date, as long as none of the conditions listed above or in
"Allocating your contributions," below would apply:
(a) transfer the maturity value into another available fixed maturity option,
or into any of the variable investment options; or
(b) withdraw the maturity value.
If we do not receive your choice on or before the fixed maturity option's
maturity date, we will automatically transfer your maturity value into the next
available fixed maturity option with the earliest maturity date. As of February
15, 2005 the next available maturity date was February 15, 2012.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender of your contract or when we make deductions for charges) from a fixed
maturity option before it matures we will make a market value adjustment, which
will increase or decrease any fixed maturity amount you have in that fixed
maturity option. The amount of the adjustment will depend on two factors:
(a) the difference between the rate to maturity that applies to the amount
being withdrawn and the rate to maturity in effect at that time for new
allocations to that same fixed maturity option, and
(b) the length of time remaining until the maturity date.
In general, if interest rates rise from the time that you originally allocate
an amount to a fixed maturity option to the time that you take a withdrawal,
the market value adjustment will be negative. Likewise, if interest rates drop
at the end of that time, the market value adjustment will be positive. Also,
the amount of the market value adjustment, either up or down, will be greater
the longer the time remaining until the fixed maturity option's maturity date.
Therefore, it is possible that the market value adjustment could greatly reduce
your value in the fixed maturity options, particularly in the fixed maturity
options with later maturity dates.
We provide an illustration of the market adjusted amount of specified maturity
values, an explanation of how we calculate the market value adjustment, and
information concerning our general account and investments purchased with
amounts allocated to the fixed maturity options, in "More information" later in
this Prospectus. Appendix III at the end of this Prospectus provides an example
of how the market value adjustment is calculated.
ALLOCATING YOUR CONTRIBUTIONS
You may choose either of two ways to allocate your contributions under your
contract: self-directed and principal assurance. Subsequent contributions are
allocated according to instructions on file unless you provide new
instructions.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options and fixed maturity options. Allocations must be in whole
percentages and you may change your allocations at any time. The total of your
allocations must equal 100%. If the annuitant is age 76 or older, you may
allocate contributions to fixed maturity options if their maturities are five
years or less. Also, you may not allocate amounts to fixed maturity options
with maturity dates that are later than the February 15th immediately following
the date annuity payments are to begin.
PRINCIPAL ASSURANCE ALLOCATION
You can elect this allocation program with a minimum initial contribution of
$10,000. You select a fixed maturity option and we specify the portion of your
initial contribution to be allocated to that fixed maturity option in an amount
that will cause the maturity value to equal the amount of your entire initial
contribution on the fixed maturity option's
24 Contract features and benefits
maturity date. The maturity date you select generally may not be later than 10
years or earlier than 7 years from your contract date. If you make any
withdrawals or transfers from the fixed maturity option before the option's
maturity date, the amount in the fixed maturity option will be adjusted and may
no longer grow to equal your initial contribution under the principal assurance
allocation. Principal assurance will not be available if none of those maturity
dates is available. You allocate the rest of your contribution to the variable
investment options however you choose.
For example, if your initial contribution is $10,000, and on February 15, 2005
you chose the fixed maturity option with a maturity date of February 15, 2015
since the rate to maturity was 3.64% on February 15, 2005, we would have
allocated $6,993 to that fixed maturity option and the balance to your choice
of variable investment options. On the maturity date your value in the fixed
maturity option would be $10,000.
The principal assurance allocation is only available for annuitant ages 75 or
younger when the contract is issued. If you anticipate taking required minimum
distributions, you should consider whether your values in the variable
investment options are sufficient to meet your required minimum distributions.
See "Tax information" later in this Prospectus.
The principal assurance allocation feature is not available in Maryland.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
If for any reason you are not satisfied with your contract, you may return it
to us for a refund. To exercise this cancellation right you must mail the
contract, with a signed letter of instruction electing this right, to our
processing office within 10 days after you receive it. If state law requires,
this "free look" period may be longer.
For California residents only, if you are age 60 and older at the time the
contract is issued, you may return your variable annuity contract within 30
days from the date that you receive it and receive a refund as described below.
If you allocate your entire initial contribution to the money market account
and/or the principal assurance allocation feature, if available, the amount of
your refund will be equal to your contribution less interest, unless you make a
transfer, in which case the amount of your refund will be equal to your account
value on the date we receive your request to cancel at our processing office.
This amount could be less than your initial amount. If you allocate any portion
of your initial contribution to the variable investment options (other than the
money market account) and/or fixed maturity options, your refund will be equal
to your account value on the date we receive your request to cancel at our
processing office.
Generally, your refund will equal your account value under the contract on the
day we receive notification of your decision to cancel the contract and will
reflect (i) any investment gain or loss in the variable investment options
(less the daily charges we deduct), and (ii) any positive or negative market
value adjustments in the fixed maturity options through the date we receive
your contract. Some states require that we refund the full amount of your
contribution (not reflecting (i) and (ii) above). For any IRA contract returned
to us within seven days after you receive it, we are required to refund the
full amount of your contribution.
We may require that you wait six months before you may apply for a contract
with us again if:
o you cancel your contract during the free look period; or
o you change your mind before you receive your contract whether we have
received your contribution or not.
Please see "Tax information" later in this Prospectus for possible consequences
of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA contract, you may
cancel your Roth Conversion IRA contract and return to a Rollover IRA contract.
Our processing office or your financial professional can provide you with the
cancellation instructions
Please note that if you are holding your traditional or Roth individual
retirement annuity contract in a custodial individual retirement account, your
contract and your account must match: you cannot hold a Roth individual
retirement annuity in a traditional individual retirement account and vice
versa.
Contract features and benefits 25
2. Determining your contract's value
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the values you have in: (i) the variable
investment options and (ii) the market adjusted amounts in the fixed maturity
options.
Your contract also has a "cash value." At any time before annuity payments
begin, your contract's cash value is equal to the account value. Please see
"Surrendering your contract to receive its cash value" in "Accessing your
money" later in this Prospectus.
YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS
Each variable investment option invests in shares of a corresponding portfolio.
Your value in each variable investment option is measured by "units." The value
of your units will increase or decrease as though you had invested it in the
corresponding portfolio's shares directly. Your value, however, will be reduced
by the charges that we deduct under the contract.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
The unit value for each variable investment option depends on the investment
performance of that option less daily charges for mortality and expense risks
and administrative expenses.
On any day, your value in any variable investment option equals the number of
units credited to that option, adjusted for any units purchased for or deducted
from your contract under that option, multiplied by that day's value for one
unit. The number of your contract units in any variable investment option does
not change unless they are:
(i) increased to reflect additional contributions;
(ii) decreased to reflect a withdrawal; and/or
(iii) increased to reflect a transfer into, or decreased to reflect a transfer
out of, a variable investment option.
A description of how unit values are calculated is found in the SAI.
YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS
Your value in each fixed maturity option at any time before the maturity date
is the market adjusted amount in each option. This is equivalent to your fixed
maturity amount increased or decreased by the market value adjustment. Your
value, therefore, may be higher or lower than your contributions (less
withdrawals) accumulated at the rate to maturity. At the maturity date, your
value in the fixed maturity option will equal its maturity value, provided
there have been no withdrawals or transfers.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose all of your rights under your contract and any
applicable guaranteed benefits.
26 Determining your contract's value
3. Transferring your money among investment options
- --------------------------------------------------------------------------------
TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer
some or all of your account value among the investment options, subject to the
following:
o You may not transfer to a fixed maturity option that matures in the current
calendar year, or that has a rate to maturity of 3% or less.
o If the annuitant is 76 or older, you must limit your transfers to fixed
maturity options to those with maturities of five years or less. Also, the
maturity dates may be no later than the February 15th immediately following
the date annuity payments are to begin.
o If you make transfers out of a fixed maturity option other than at its
maturity date the transfer may cause a market value adjustment.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency, or dollar amount of transfers.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value to be
transferred, and
(3) the investment options to and from which you are transferring.
We will confirm all transfers in writing.
DISRUPTIVE TRANSFER ACTIVITY
You should note that the contract is not designed for professional "market
timing" organizations, or other organizations or individuals engaging in a
market timing strategy. The contract is not designed for programmed transfers,
frequent transfers or transfers that are large in relation to the total assets
of the underlying portfolio.
Frequent transfers, including market timing and other program trading or
short-term trading strategies, may be disruptive to the underlying portfolios
in which the variable investment options invest. Disruptive transfer activity
may adversely affect performance and the interests of long-term investors by
requiring a portfolio to maintain larger amounts of cash or to liquidate
portfolio holdings at a disadvantageous time or price. For example, when market
timing occurs, a portfolio may have to sell its holdings to have the cash
necessary to redeem the market timer's investment. This can happen when it is
not advantageous to sell any securities, so the portfolio's performance may be
hurt. When large dollar amounts are involved, market timing can also make it
difficult to use long-term investment strategies because a portfolio cannot
predict how much cash it will have to invest. In addition, disruptive transfers
or purchases and redemptions of portfolio investments may impede efficient
portfolio management and impose increased transaction costs, such as brokerage
costs, by requiring the portfolio manager to effect more frequent purchases and
sales of portfolio securities. Similarly, a portfolio may bear increased
administrative costs as a result of the asset level and investment volatility
that accompanies patterns of excessive or short-term trading. Portfolios that
invest a significant portion of their assets in foreign securities or the
securities of small- and mid-capitalization companies tend to be subject to the
risks associated with market timing and short-term trading strategies to a
greater extent than portfolios that do not. Securities trading in overseas
markets present time zone arbitrage opportunities when events affecting
portfolio securities values occur after the close of the overseas market but
prior to the close of the U.S. markets. Securities of small- and
mid-capitalization companies present arbitrage opportunities because the market
for such securities may be less liquid than the market for securities of larger
companies, which could result in pricing inefficiencies. Please see the
prospectuses for the underlying portfolios for more information on how
portfolio shares are priced.
We currently use the procedures described below to discourage disruptive
transfer activity. You should understand, however, that these procedures are
subject to the following limitations: (1) they primarily rely on the policies
and procedures implemented by the underlying portfolios; (2) they do not
eliminate the possibility that disruptive transfer activity, including market
timing, will occur or that portfolio performance will be affected by such
activity; and (3) the design of market timing procedures involves inherently
subjective judgments, which we seek to make in a fair and reasonable manner
consistent with the interests of all policy and contract owners.
The AXA Premier VIP Trust and EQ Advisors Trust (the "affiliated trusts") have
adopted policies and procedures designed to discourage disruptive transfers by
contract owners investing in the portfolios of the affiliated trusts. The
affiliated trusts discourage frequent purchases and redemptions of portfolio
shares and will not make special arrangements to accommodate such transactions.
As a general matter, the affiliated trusts reserve the right to refuse or limit
any purchase or exchange order by a particular investor (or group of related
investors) if the transaction is deemed harmful to the portfolio's other
investors or would disrupt the management of the portfolio. The affiliated
trusts monitor aggregate inflows and outflows for each portfolio on a daily
basis. On any day when a portfolio's net inflows or outflows exceed an
established monitoring threshold, the affiliated trust obtains from us contract
owner trading activity. The affiliated trusts currently consider transfers into
and out of (or vice versa) the same variable investment option within a five
business day period as potentially disruptive transfer activity. When a
contract owner is identified as having engaged in a potentially disruptive
transfer for the first time, a letter is sent to the contract owner explaining
that there is a policy against disruptive transfer activity and that if such
activity continues certain transfer privileges may be eliminated. If and when
the contract owner is identified a second time as engaged in potentially
disruptive transfer activity, we currently prohibit the use of voice, fax and
automated
Transferring your money among investment options 27
transaction services. We currently apply such action for the remaining life of
each affected contract. We or the affiliated trusts may change the definition
of potentially disruptive transfer activity, the monitoring procedures and
thresholds, any notification procedures, and the procedures to restrict this
activity. Any new or revised policies and procedures will apply to all contract
owners uniformly. We do not permit exceptions to our policies restricting
disruptive transfer activity.
We may also offer investment options with underlying portfolios that are not
part of the AXA Premier VIP Trust or EQ Advisors Trust (the "unaffiliated
trusts"). Each unaffiliated trust may have its own policies and procedures
regarding disruptive transfer activity, which may be different than those
applied by the affiliated trusts. In most cases, the unaffiliated trust
reserves the right to reject a transfer that it believes, in its sole
discretion, is disruptive (or potentially disruptive) to the management of one
of its portfolios. Please see the prospectus for the underlying trust for
information regarding the policies and procedures, if any, employed by that
trust and any associated risks of investing in that trust. If an unaffiliated
trust advises us that there may be disruptive transfer activity from our
contract owners, we will work with the unaffiliated trust to review contract
owner trading activity. If the underlying trust determines that the trading
activity of a particular contract owner is disruptive, we will take action to
limit the disruptive trading activity of that contract owner as discussed
above.
Contract owners should note that it is not always possible for us and the
underlying trusts to identify and prevent disruptive transfer activity. Our
ability to monitor potentially disruptive transfer activity is limited in
particular with respect to certain group contracts. Group annuity contracts may
be owned by retirement plans on whose behalf we provide transfer instructions
on an omnibus (aggregate) basis, which may mask the disruptive transfer
activity of individual plan participants, and/or interfere with our ability to
restrict communication services. In addition, because we do not monitor for all
frequent trading at the separate account level, contract owners may engage in
frequent trading which may not be detected, for example, due to low net inflows
or outflows on the particular day(s). Therefore, no assurance can be given that
we or the trusts will successfully impose restrictions on all disruptive
transfers. Because there is no guarantee that disruptive trading will be
stopped, some contract owners/ participants may be treated differently than
others, resulting in the risk that some contract owners/participants may be
able to engage in frequent transfer activity while others will bear the effect
of that frequent transfer activity. The potential affects of frequent transfer
activity are discussed above.
DOLLAR COST AVERAGING
Dollar cost averaging allows you to gradually transfer amounts from the
EQ/Money Market option to the other variable investment options by periodically
transferring approximately the same dollar amount to the other variable
investment options you select. This will cause you to purchase more units if
the unit's value is low and fewer units if the unit's value is high. Therefore,
you may get a lower average cost per unit over the long term. This plan of
investing, however, does not guarantee that you will earn a profit or be
protected against losses. You may not make transfers to the fixed maturity
options.
If your value in the EQ/Money Market option is at least $5,000, you may choose,
at any time, to have a specified dollar amount of your value transferred from
that option to the other variable investment options. You can select to have
transfers made on a monthly, quarterly or annual basis. The transfer date will
be the same calendar day of the month as the contract date, but not later than
the 28th day of the month. You can also specify the number of transfers or
instruct us to continue making the transfers until all amounts in the EQ/ Money
Market option have been transferred out.
The minimum amount that we will transfer each time is $250. The maximum amount
we will transfer is equal to your value in the EQ/ Money Market option at the
time the program is elected, divided by the number of transfers scheduled to be
made.
If, on any transfer date, your value in the EQ/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The dollar cost averaging program will then end. You may
change the transfer amount once each contract year, or cancel this program at
any time.
----------------------------------
You may not elect dollar cost averaging if you are participating in the
rebalancing program. There is no charge for the dollar cost averaging feature.
REBALANCING YOUR ACCOUNT VALUE
We currently offer a rebalancing program that you can use to automatically
reallocate your account value among the variable investment options. You must
tell us:
(a) the percentage you want invested in each variable investment option (whole
percentages only), and
(b) how often you want the rebalancing to occur (quarterly, semiannually or
annually on a contract year basis).
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options so that the percentage of your account value that
you specify is invested in each option at the end of each rebalancing date.
Your entire account value in the variable investment options must be included
in the rebalancing program.
- --------------------------------------------------------------------------------
Rebalancing does not assure a profit or protect against loss. You should
periodically review your allocation percentages as your needs change. You may
want to discuss the rebalancing program with your financial professional before
electing the program.
- --------------------------------------------------------------------------------
You may elect the rebalancing program at any time. You may also change your
allocation instructions or cancel the program at any time. If you request a
transfer while the rebalancing program is in effect, we will process the
transfer as requested; your rebalancing allocations will not be changed and the
rebalancing program will remain in effect unless you request that it be
canceled in writing.
28 Transferring your money among investment options
You may not elect the rebalancing program if you are participating in the
dollar cost averaging program. Rebalancing is not available for amounts you
have allocated in the fixed maturity options. There is no charge for the
rebalancing feature.
Transferring your money among investment options 29
4. Accessing your money
- --------------------------------------------------------------------------------
WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your account value before annuity payments
begin. The table below shows the methods available under each type of contract.
More information follows the table. If you request to withdraw more than 90% of
a contract's current cash value, after a withdrawal, we will treat it as a
request to surrender the contract for its cash value. See "Surrendering your
contract to receive its cash value" below. For the tax consequences of
withdrawals, see "Tax information" later in this Prospectus.
Please see "Termination of your contract" in "Determining your contract value"
earlier in the Prospectus and "How withdrawals affect your minimum death
benefit" below for more information on how withdrawals could potentially cause
your contract to terminate.
- --------------------------------------------------------------------------------
Method of withdrawal
Lifetime
required
Substan- minimum
Contract Lump sum Systematic tially equal distribution
- --------------------------------------------------------------------------------
NQ Yes Yes No No
- --------------------------------------------------------------------------------
Rollover IRA Yes Yes Yes Yes
- --------------------------------------------------------------------------------
Roth Conversion
IRA Yes Yes Yes No
- --------------------------------------------------------------------------------
QP Yes No No Yes
- --------------------------------------------------------------------------------
We impose no withdrawal charge for withdrawals from the Accumulator(R)
Advisor(SM) variable annuity contract. However, withdrawals, including
withdrawals made to pay all or part of any fee that may be associated with the
fee-based program, may be subject to income tax and a 10% penalty tax, as
described in "Tax information" later in this Prospectus. In addition, the
fee-based program sponsor may apply a charge if you decide to no longer
participate in the program. You should consult with your program sponsor for
more details about your particular fee-based arrangement.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time. The
minimum amount you may withdraw is $300.
SYSTEMATIC WITHDRAWALS
(All contracts except QP)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value.
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 1.2% monthly, 3.6% quarterly and 15.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would
be less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
We will make the withdrawals on any day of the month that you select as long as
it is not later than the 28th day of the month. If you do not select a date, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59-1/2 and 70-1/2.
You may change the payment frequency, or amount or the percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
lump sum withdrawal. You can cancel the systematic withdrawal option at any
time.
SUBSTANTIALLY EQUAL WITHDRAWALS
(All IRA contracts)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus. We use one of the
IRS-approved methods for doing this; this is not the exclusive method of
meeting this exception. After consultation with your tax adviser, you may
decide to use another method which would require you to compute amounts
yourself and request lump sum withdrawals. In such a case, a withdrawal charge
may apply. Once you begin to take substantially equal withdrawals, you should
not stop them or change the pattern of your withdrawals until after the later
of age 59-1/2 or five full years after the first withdrawal. If you stop or
change the withdrawals or take a lump sum withdrawal, you may be liable for the
10% federal tax penalty that would have otherwise been due on prior withdrawals
made under this option and for any interest on the delayed payment of the
penalty.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may change, without penalty, from one of the
IRS-approved methods of calculating fixed payments to another IRS-approved
method (similar to the required minimum distribution rules) of calculating
payments which vary each year.
You may elect to take substantially equal withdrawals at any time before age
59-1/2. We will make the withdrawal on any day of the month that you select as
long as it is not later than the 28th day of the month. You may not elect to
receive the first payment in the same contract year in which you took a lump
sum withdrawal. We will calculate the amount of your substantially equal
withdrawals using the IRS-approved method we offer. The payments will be made
monthly, quarterly or annually as you select. These payments will continue
until we receive written notice from you to cancel this option or you take a
lump sum withdrawal. You may elect to start receiving substantially
30 Accessing your money
equal withdrawals again, but the payments may not restart in the same contract
year in which you took a lump sum withdrawal. We will calculate the new
withdrawal amount.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA and QP contracts only -- See "Tax information" later in this
Prospectus)
We offer our "automatic required minimum distribution (RMD) service" to help
you meet lifetime required minimum distributions under federal income tax
rules. This is not the exclusive way for you to meet these rules. After
consultation with your tax adviser, you may decide to compute required minimum
distributions yourself and request lump sum withdrawals. In such a case, a
withdrawal charge may apply. Before electing this account based withdrawal
option, you should consider whether annuitization might be better in your
situation. Also, please refer to "Tax information" later in this Prospectus for
considerations on annuity contracts funding qualified plans and IRAs.
You may elect this option in the year in which you reach age 70-1/2 or in any
later year. The minimum amount we will pay out is $250 or, if less, your
account value. If your account value is less than $500 after the withdrawal, we
will treat it as a request to surrender the contract for its cash value. See
"Surrendering your contract to receive its cash value" below. Currently,
minimum distribution withdrawal payments will be made annually. See "Required
minimum distributions" in "Tax information" later in this Prospectus for your
specific type of retirement arrangement.
- --------------------------------------------------------------------------------
For Rollover IRA contracts, we will send a form outlining the distribution
options available in the year you reach age 70-1/2 (if you have not begun your
annuity payments before that time).
- --------------------------------------------------------------------------------
HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your value in the variable investment options. If there is
insufficient value or no value in the variable investment options, any
additional amount of the withdrawal required or the total amount of the
withdrawal will be withdrawn from the fixed maturity options in order of the
earliest maturity date(s) first. A market value adjustment may apply to
withdrawals from the fixed maturity options.
HOW WITHDRAWALS AFFECT YOUR MINIMUM DEATH BENEFIT
Withdrawals will reduce your minimum death benefit on a pro rata basis.
Reduction on a pro rata basis means that we calculate the percentage of your
current account value that is being withdrawn and we reduce your current
benefit by that same percentage. For example, if your account value is $30,000
and you withdraw $12,000, you have withdrawn 40% of your account value. If your
minimum death benefit was $40,000 before the withdrawal, it would be reduced by
$16,000 ($40,000 x .40) and your new minimum death benefit after the withdrawal
would be $24,000 ($40,000 - $16,000).
SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time while the
annuitant is living and before you begin to receive annuity payments. For a
surrender to be effective, we must receive your written request and your
contract at our processing office. We will determine your cash value on the
date we receive the required information. All benefits under the contract will
terminate as of that date.
You may receive your cash value in a single sum payment or apply it to one or
more of the annuity payout options. See "Your annuity payout options" below.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments out of the variable investment
options within seven calendar days after the date of the transaction to which
the request relates. These transactions may include applying proceeds to a
variable annuity, payment of a death benefit, payment of any amount you
withdraw and, upon surrender, payment of the cash value. We may postpone such
payments or applying proceeds for any period during which:
(1) the New York Stock Exchange is closed or restricts trading,
(2) sales of securities or determination of the fair value of a variable
investment option's assets is not reasonably practicable because of an
emergency, or
(3) the SEC, by order, permits us to defer payment to protect people remaining
in the variable investment options.
We can defer payment of any portion of your value in the fixed maturity options
(other than for death benefits) for up to six months while you are living. We
also may defer payments for a reasonable amount of time (not to exceed 10 days)
while we are waiting for a contribution check to clear.
All payments are made by check and are mailed to you (or the payee named in a
tax-free exchange) by U.S. mail, unless you request that we use an express
delivery service at your expense.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the annuity payout options. The annuity payout options are
discussed under "Your annuity payout options" below. The guaranteed annuity
purchase factors are those factors specified in your contract. The current
annuity purchase factors are those factors that are in effect at any given
time. Annuity purchase factors are based on interest rates, mortality tables,
frequency of payments, the form of annuity benefit, and the annuitant's (and
any joint annuitant's) age and sex in certain instances.
YOUR ANNUITY PAYOUT OPTIONS
Accumulator(R) Advisor(SM) offers you several choices of annuity payout options.
Some enable you to receive fixed annuity payments, which can be either level or
increasing, and others enable you to receive variable annuity payments.
Accessing your money 31
You can choose from among the annuity payout options listed below. Restrictions
may apply, depending on the type of contract you own or the annuitant's age at
contract issue.
- -------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period
certain
Life annuity with refund
certain
Period certain annuity
- -------------------------------------------------------------------
Variable Immediate Annuity Life annuity (not
payout options available in New York)
Life annuity with period
certain
- -------------------------------------------------------------------
Income Manager(R) payout options Life annuity with a
(available for annuitants period certain
age 83 or less at Period certain annuity
contract issue)
- -------------------------------------------------------------------
o Life annuity: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment before the
annuitant's death. Because there is no continuation of benefits following the
annuitant's death with this payout option, it provides the highest monthly
payment of any of the life annuity options, so long as the annuitant is
living.
o Life annuity with period certain: An annuity that guarantees payments for the
rest of the annuitant's life. If the annuitant dies before the end of a
selected period of time ("period certain"), payments continue to the
beneficiary for the balance of the period certain. The period certain cannot
extend beyond the annuitant's life expectancy. A fixed life annuity with a
period certain is the form of annuity under the contract that you will
receive if you do not elect a different payout option. In this case, the
period certain will be based on the annuitant's age and will not exceed 10
years.
o Life annuity with refund certain: An annuity that guarantees payments for the
rest of the annuitant's life. If the annuitant dies before the amount applied
to purchase the annuity option has been recovered, payments to the
beneficiary will continue until that amount has been recovered. This payout
option is available only as a fixed annuity.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15 or 20 years even if the annuitant dies
before the end of the period certain. The guaranteed period may not exceed
the annuitant's life expectancy. This option does not guarantee payments for
the rest of the annuitant's life. It does not permit any repayment of the
unpaid principal, so you cannot elect to receive part of the payments as a
single sum payment with the rest paid in monthly annuity payments. This
payout option is available only as a fixed annuity.
The life annuity, life annuity with period certain, and life annuity with
refund certain payout options are available on a single life or joint and
survivor life basis. The joint and survivor life annuity guarantees payments
for the rest of the annuitant's life and, after the annuitant's death, payments
continue to the survivor. We may offer other payout options not outlined here.
Your financial professional can provide details.
FIXED ANNUITY PAYOUT OPTIONS
With fixed annuities, we guarantee fixed annuity payments that will be based
either on the tables of guaranteed annuity purchase factors in your contract or
on our then current annuity purchase factors, whichever is more favorable for
you.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS
Variable Immediate Annuities are described in a separate prospectus that is
available from your financial professional. Before you select a Variable
Immediate Annuity payout option, you should read the prospectus which contains
important information that you should know.
Variable Immediate annuities may be funded through your choice of available
variable investment options investing in portfolios of EQ Advisors Trust and
AXA Premier VIP Trust. The contract also offers a fixed income annuity payout
option that can be elected in combination with the variable annuity payout
option. The amount of each variable income annuity payment will fluctuate,
depending upon the performance of the variable investment options, and whether
the actual rate of investment return is higher or lower than an assumed base
rate.
INCOME MANAGER(R) PAYOUT OPTIONS
The Income Manager(R) payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts provide higher or lower
income levels, but do not have all the features of the Income Manager(R) payout
annuity contract. You may request an illustration of the Income Manager(R)
payout annuity contract from your financial professional. Income Manager(R)
payout options are described in a separate prospectus that is available from
your financial professional. Before you select an Income Manager(R) payout
option, you should read the prospectus which contains important information
that you should know.
Both NQ and IRA Income Manager(R) payout options provide guaranteed level
payments. The Income Manager(R) (life annuity with period certain) also
provides guaranteed increasing payments (NQ contracts only).
For QP contracts, if you want to elect an Income Manager(R) payout option, we
will first roll over amounts in such contract to a Rollover IRA contract. You
will be the owner of the Rollover IRA contract. You must be eligible for a
distribution under the QP contracts.
You may choose to apply the account value of your Accumulator(R) Advisor(SM)
contract to an Income Manager(R) payout annuity.
Depending upon your circumstances, an Income Manager(R) contract may be
purchased on a tax-free basis. Please consult your tax adviser. The Income
Manager(R) payout options are not available in all states.
THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION
The amount applied to purchase an annuity payout option varies, depending on
the payout option that you choose and the timing of your purchase as it relates
to any market value adjustments.
If amounts in a fixed maturity option are used to purchase any annuity payout
option, prior to the maturity date, a market value adjustment will apply.
32 Accessing your money
SELECTING AN ANNUITY PAYOUT OPTION
When you select a payout option, we will issue you a separate written agreement
confirming your right to receive annuity payments. We require you to return
your contract before annuity payments begin. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
thirteen months from the Accumulator(R) Advisor(SM) contract date. Except with
respect to the Income Manager(R) annuity payout options, where payments are
made on the 15th day of each month, you can change the date your annuity
payments are to begin anytime before that date as long as you do not choose a
date later than the 28th day of any month.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier.
In no event will you ever receive payments under a fixed option or an initial
payment under a variable option of less than the minimum amounts guaranteed by
the contract.
If, at the time you elect a payout option, the amount to be applied is less
than $2,000 or the initial payment under the form elected is less than $20
monthly, we reserve the right to pay the account value in a single sum rather
than as payments under the payout option chosen.
ANNUITY MATURITY DATE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 90th birthday.
For contracts issued in Pennsylvania, the maturity date is related to the
contract issue date, as follows:
- ------------------------------------------
Maximum
Issue age annuitization age
- ------------------------------------------
0-75 85
76 86
77 87
78-80 88
81-83 90
- ------------------------------------------
Before the last day by which your annuity payments must begin, we will notify
you by letter. Once you have selected an annuity payout option and payments
have begun, no change can be made other than: (i) transfers (if permitted in
the future) among the variable investment options if a Variable Immediate
Annuity payout option is selected; and (ii) withdrawals or contract surrender
if an Income Manager(R) annuity payout option is chosen.
Accessing your money 33
5. Charges and expenses
- --------------------------------------------------------------------------------
CHARGES THAT AXA EQUITABLE DEDUCTS
MORTALITY AND EXPENSE RISKS CHARGE AND ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for mortality and expense risks, including the minimum death
benefit, as well as administrative expenses under the contract. The daily
charge is equivalent to an annual rate of up to 0.50% of the net assets in each
variable investment option.
The mortality risk we assume is the risk that annuitants as a group will live
for a longer time than our actuarial tables predict. If that happens, we would
be paying more in annuity income than we planned. We also assume a risk that
the mortality assumptions reflected in our guaranteed annuity payment tables,
shown in each contract, will differ from actual mortality experience. Lastly,
we assume a mortality risk to the extent that at the time of death, the minimum
death benefit exceeds the account value of the contract. The expense risk we
assume is the risk that it will cost us more to issue and administer the
contracts than we expect.
The administrative charge is to compensate us for administrative expenses under
the contract.
We may reduce or eliminate the mortality and expense risks charge and
administrative charge if we believe that the risks or administrative expenses
for which this charge are imposed are reduced or eliminated. We will not permit
a reduction or elimination of this charge where it would be unfairly
discriminatory.
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state. Generally, we deduct the charge from
the amount applied to provide an annuity payout option. The current charge that
might be imposed varies by jurisdiction and ranges from 0% to 3.5%.
FEE-BASED EXPENSES
The fees and expenses of a fee-based program are separate from and in addition
to the fees and expenses of the contract. Please consult with your program
sponsor for more details about your fee-based program.
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
o Management fees ranging from 0.10% to 1.20%.
o 12b-1 fees of 0.25%.
o Operating expenses, such as trustees' fees, independent public accounting
firms' fees, legal counsel fees, administrative service fees, custodian fees
and liability insurance.
o Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of each Trust are purchased at their net asset value, these fees and
expenses are, in effect, passed on to the variable investment options and are
reflected in their unit values. For more information about these charges,
please refer to the prospectuses for the Trusts.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the mortality and
expense risks charge and administrative charge or change the minimum
contribution requirements. We may offer variable investment options that invest
in shares of either Trust that are not subject to the 12b-1 fee. Group
arrangements include those in which a trustee or an employer, for example,
purchases contracts covering a group of individuals on a group basis. Group
arrangements are not available for IRA contracts. Sponsored arrangements
include those in which an employer allows us to sell contracts to its employees
or retirees on an individual basis.
Our costs for mortality generally vary with the size and stability of the group
or sponsoring organization, among other factors. We take all these factors into
account when reducing charges. To qualify for reduced charges, a group or
sponsored arrangement must meet certain requirements, such as requirements for
size and number of years in existence. Group or sponsored arrangements that
have been set up solely to buy contracts or that have been in existence less
than six months will not qualify for reduced charges.
We also may establish different rates to maturity for the fixed maturity
options under different classes of contracts for group or sponsored
arrangements.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these rules from time to
time. Any variation will reflect differences in costs or services and will not
be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules,
the Employee Retirement Income Security Act of 1974 ("ERISA") or both. We make
no representations with regard to the impact of these and other applicable laws
on such programs. We recommend that employers, trustees and others purchasing
or making contracts available for purchase under such programs seek the advice
of their own legal and benefits advisers.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that result
in savings of sales and administrative expenses, such as sales through persons
who are compensated by clients for recom-
34 Charges and expenses
mending investments and who receive no commission or reduced commissions in
connection with the sale of the contracts. We will not permit a reduction or
elimination of charges where it would be unfairly discriminatory.
Charges and expenses 35
6. Payment of death benefit
- --------------------------------------------------------------------------------
YOUR BENEFICIARY AND PAYMENT OF BENEFIT
You designate your beneficiary when you apply for your contract. You may change
your beneficiary at any time. The change will be effective on the date the
written request for the change is received in our processing office. We are not
responsible for any beneficiary change request that we do not receive. We will
send you a written confirmation when we receive your request.
Under jointly owned contracts, the surviving owner is considered the
beneficiary, and will take the place of any other beneficiary. In a QP
contract, the beneficiary must be the trustee. Where an NQ contract is owned by
a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to
Minors Act, the beneficiary must be the estate of the annuitant. Where an IRA
contract is owned in a custodial individual retirement account, the custodian
must be the beneficiary so that the custodian can reinvest or distribute the
death benefit as the beneficiary of the account desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
minimum death benefit. The minimum death benefit is equal to your total
contributions less withdrawals. See "How withdrawals affect your minimum death
benefit" earlier in this Prospectus. We determine the amount of the death
benefit as of the date we receive satisfactory proof of the annuitant's death,
any required instructions for the method of payment, information and forms
necessary to effect payment.
EFFECT OF THE ANNUITANT'S DEATH
If the annuitant dies before the annuity payments begin, we will pay the death
benefit to your beneficiary.
Generally, the death of the annuitant terminates the contract. However, a
surviving spouse of the deceased owner/annuitant can choose to be treated as
the successor owner/annuitant and continue the contract. Only a spouse who is
the sole primary beneficiary can be a successor owner/annuitant. The successor
owner/annuitant feature is only available under NQ and individually owned IRA
contracts.
For NQ and all types of IRA contracts, a beneficiary may be able to have
limited ownership as discussed under "Beneficiary continuation option" below.
WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT
Under certain conditions the owner can change after the original owner's death
for purposes of federal tax law required distribution from the contract. When
the owner is not the annuitant under an NQ contract and the owner dies before
annuity payments begin unless you specify otherwise, the beneficiary named to
receive the death benefit upon the annuitant's death will become the successor
owner. If you do not want this beneficiary to be the successor owner, you
should name a specific successor owner. You may name a successor owner at any
time during your life by sending satisfactory notice to our processing office.
If the contract is jointly owned and the first owner to die is not the
annuitant, the surviving owner becomes the sole contract owner. This person
will be considered the successor owner for purposes of the distribution rules
described in this section. The surviving owner automatically takes the place of
any other beneficiary designation.
Unless the surviving spouse of the owner who has died (or in the case of a
joint ownership situation, the surviving spouse of the first owner to die) is
the successor owner for this purpose, the entire interest in the contract must
be distributed under the following rules:
o The cash value of the contract must be fully paid to the designated
beneficiary successor owner (new owner) within five years after your death
(or in a joint ownership situation, the death of the first owner to die).
o The successor owner may instead elect to receive the cash value as a life
annuity (or payments for a period certain of not longer than the new owner's
life expectancy). Payments must begin within one year after the non-annuitant
owner's death. Unless this alternative is elected, we will pay any cash value
five years after your death (or the death of the first owner to die).
o A successor owner should name a new beneficiary.
If the surviving spouse is the successor owner or joint owner, the spouse may
elect to continue the contract. No distributions are required as long as the
surviving spouse and annuitant are living. An eligible successor owner,
including a surviving joint owner after the first owner dies, may elect the
beneficiary continuation option for NQ contracts discussed in "Beneficiary
continuation option" below.
HOW DEATH BENEFIT PAYMENT IS MADE
We will pay the death benefit to the beneficiary in the form of the annuity
payout option you have chosen. If you have not chosen an annuity payout option
as of the time of the annuitant's death, the beneficiary will receive the death
benefit in a single sum. However, subject to any exceptions in the contract,
our rules and any applicable requirements under federal income tax rules, the
beneficiary may elect to apply the death benefit to one or more annuity payout
options we offer at the time. See "Your annuity payout options" in "Accessing
your money" earlier in this Prospectus. Please note that any annuity payout
option chosen may not extend beyond the life expectancy of the beneficiary.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may elect to
receive the death benefit or continue the contract as successor
owner/annuitant.
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required instructions,
information and forms necessary to effect the successor
36 Payment of death benefit
owner/annuitant feature, we will increase the account value to equal your
guaranteed minimum death benefit as of the date of your death if such death
benefit is greater than such account value (adjusted for any subsequent
withdrawals). The increase in the account value will be allocated to the
investment options according to the allocation percentages we have on file for
your contract. In determining whether the minimum death benefit will continue
to grow, we will use your surviving spouse's age (as of the date we receive
satisfactory proof of your death, any required instructions and the information
and forms necessary to effect the successor owner/annuitant feature).
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole primary beneficiary of the account, the custodian
may request that the spouse be substituted as annuitant after your death.
BENEFICIARY CONTINUATION OPTION
This feature permits a designated individual, on the contract owner's death, to
maintain a contract in the deceased contract owner's name and receive
distributions under the contract, instead of receiving the death benefit in a
single sum. We make this option available to beneficiaries under traditional
IRA, Roth IRA and NQ contracts, subject to state availability. Please speak
with your financial professional for further information.
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. The beneficiary continuation option must be elected by September 30th of
the year following the calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this option. If the election is made, then, as of the
date we receive satisfactory proof of death, any required instructions,
information and forms necessary to effect the beneficiary continuation option
feature, we will increase the account value to equal the applicable death
benefit if such death benefit is greater than such account value. Where an IRA
contract is owned in a custodial individual retirement account, the custodian
may reinvest the death benefit in an individual retirement annuity contract,
using the account beneficiary as the annuitant. Please speak with your
financial professional for further information.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy (determined in the calendar year after your death
and determined on a term certain basis). These payments must begin no later
than December 31st of the calendar year after the year of your death. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70-1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed later in this Prospectus in
"Tax information" under "Individual retirement arrangements (IRAs)," the
beneficiary may choose the "5-year rule" option instead of annual payments over
life expectancy. The 5-year rule is always available to beneficiaries under
Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may
take withdrawals as desired, but the entire account value must be fully
withdrawn by December 31st of the calendar year which contains the fifth
anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA contracts:
o The contract continues in your name for the benefit of your beneficiary.
o This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals for
this purpose.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's own
life expectancy, if payments over life expectancy are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o Any minimum death benefit feature will no longer be in effect.
o The beneficiary may choose at any time to withdraw all or a portion of the
account value.
o Any partial withdrawal must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking required minimum distributions based on
the remaining life expectancy of the deceased beneficiary or to receive any
remaining interest in the contract in a lump sum. The option elected will be
processed when we receive satisfactory proof of death, any required
instructions for the method of payment and any required information and forms
necessary to effect payment.
BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known
as Inherited annuity, may only be elected when the NQ contract owner dies
before the annuity commencement date, whether or not the owner and the
annuitant are the same person. If the owner and annuitant are different and the
owner dies before the annuitant, for purposes of this discussion, "beneficiary"
refers to the successor owner. For a discussion of successor owner, see "When
an NQ contract owner dies before the annuitant" earlier in this section. This
feature must be elected within 9 months following the date of your death and
before any inconsistent election is made. Beneficiaries who do not make a
timely election will not be eligible for this option.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy, determined on a term certain basis and in the
year payments start. These payments must begin no later than one year after the
date of your death and are referred to as "scheduled payments." The beneficiary
may choose the "5-year rule" instead of scheduled payments over life
expectancy. If the beneficiary chooses the 5-year rule, there will be no
scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals
as desired, but the entire account value must be fully withdrawn by the fifth
anniversary of your death.
Under the beneficiary continuation option for NQ contracts (regardless of
whether the owner and the annuitant are the same person):
Payment of death benefit 37
o This feature is only available if the beneficiary is an individual. It is not
available for any entity such as a trust, even if all of the beneficiaries of
the trust are individuals.
o The contract continues in your name for the benefit of your beneficiary.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the respective
beneficiary's own life expectancy, if scheduled payments are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o Any minimum death benefit feature will no longer be in effect.
o If the beneficiary chooses the "5-year rule," withdrawals may be made at any
time. If the beneficiary instead chooses scheduled payments, the beneficiary
must also choose between two potential withdrawal options at the time of
election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary
cannot later withdraw funds in addition to the scheduled payments the
beneficiary is receiving; "Withdrawal Option 1" permits total surrender only.
"Withdrawal Option 2" permits the beneficiary to take withdrawals, in
addition to scheduled payments, at any time. However, the scheduled payments
under "Withdrawal Option 1" are afforded favorable tax treatment as "annuity
payments." See "Taxation of nonqualified annuities" in "Tax Information"
later in this Prospectus.
o Any partial withdrawals must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract on the beneficiary's death.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking scheduled payments based on the
remaining life expectancy of the deceased beneficiary (if scheduled payments
were chosen) or to receive any remaining interest in the contract in a lump
sum. We will pay any remaining interest in the contract in a lump sum if your
beneficiary elects the 5-year rule. The option elected will be processed when
we receive satisfactory proof of death, any required instructions for the
method of payment and any required information and forms necessary to effect
payment.
If you are both the owner and annuitant:
o As of the date we receive satisfactory proof of death, any required
instructions, information and forms necessary to effect the beneficiary
continuation option feature, we will increase the annuity account value to
equal the applicable death benefit if such death benefit is greater than such
account value.
If the owner and annuitant are not the same person:
o If the beneficiary continuation option is elected, the beneficiary
automatically becomes the new annuitant of the contract, replacing the
existing annuitant.
o The annuity account value will not be reset to the death benefit amount.
If a contract is jointly owned:
o The surviving owner supersedes any other named beneficiary and may elect the
beneficiary continuation option.
o If the deceased joint owner was also the annuitant, see "If you are both the
owner and annuitant" earlier in this section.
o If the deceased joint owner was not the annuitant, see "If the owner and
annuitant are not the same person" earlier in this section.
38 Payment of death benefit
7. Tax information
- --------------------------------------------------------------------------------
OVERVIEW
In this part of the Prospectus, we discuss the current federal income tax rules
that generally apply to Accumulator(R) Advisor(SM) contracts owned by United
States individual taxpayers. The tax rules can differ, depending on the type of
contract, whether NQ, traditional IRA, Roth IRA or QP. Therefore, we discuss
the tax aspects of each type of contract separately.
Federal income tax rules include the United States laws in the Internal Revenue
Code, and Treasury Department Regulations and Internal Revenue Service ("IRS")
interpretations of the Internal Revenue Code. These tax rules may change
without notice. We cannot predict whether, when or how these rules could
change. Any change could affect contracts purchased before the change. Congress
may also consider proposals in the future to comprehensively reform or overhaul
the United States tax and retirement systems, which if enacted, could affect
the tax benefits of a contract.
We cannot provide detailed information on all tax aspects of the contracts.
Moreover, the tax aspects that apply to a particular person's contract may vary
depending on the facts applicable to that person. We do not discuss state
income and other state taxes, federal income tax and withholding rules for
non-U.S. taxpayers or federal gift and estate taxes. Transfers of the contract,
rights or values under the contract, or payments under the contract, for
example, amounts due to beneficiaries, may be subject to federal or state gift,
estate, or inheritance taxes. You should not rely only on this document, but
should consult your tax adviser before your purchase.
President Bush signed the Economic Growth and Tax Relief Reconciliation Act of
2001 ("EGTRRA") on June 7, 2001. Many of the provisions of EGTRRA became
effective on January 1, 2002, and are phased in during the first decade of the
twenty-first century. In the absence of future legislation, all of the
amendments made by EGTRRA will no longer apply after December 31, 2010, and the
law in effect in 2001 will apply again. In general, EGTRRA liberalizes
contributions which can be made to all types of tax-favored retirement plans.
In addition to increasing amounts which can be contributed and permitting
individuals over age 50 to make additional contributions, EGTRRA also permits
rollover contributions to be made between different types of tax-favored
retirement plans. Please discuss with your tax adviser how EGTRRA affects your
personal financial situation.
BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT
Generally, there are two types of funding vehicles that are available for
Individual Retirement Arrangements ("IRAs"): an IRA annuity contract such as
this one, or an IRA custodial account. Annuity contracts can also be purchased
in connection with retirement plans qualified under Code Section 401 ("QP
contracts"). How these arrangements work, including special rules applicable to
each, are described in the specific sections for each type of arrangement
below. You should be aware that the funding vehicle for a qualified arrangement
does not provide any tax deferral benefit beyond that already provided by the
Code for all permissible funding vehicles. Before choosing an annuity contract,
therefore, you should consider the annuity's features and benefits, such as the
guaranteed minimum death benefit, selection of investment funds and fixed
maturity options and choices of pay-out options available in Accumulator(R)
Advisor(SM), as well as the features and benefits of other permissible funding
vehicles and the relative costs of annuities and other arrangements. You should
be aware that cost may vary depending on the features and benefits made
available and the charges and expenses of the investment options or funds that
you elect.
Beginning in 2006, certain provisions of the Treasury Regulations on required
minimum distributions concerning the actuarial present value of additional
contract benefits could increase the amount required to be distributed from
annuity contracts funding qualified plans and IRAs. You should consider the
potential implication of these Regulations before you purchase this annuity
contract or purchase additional features under this annuity contract. See also
Appendix II for a discussion of QP contracts at the end of this Prospectus.
TRANSFERS AMONG INVESTMENT OPTIONS
You can make transfers among investment options inside the contract without
triggering taxable income.
TAXATION OF NONQUALIFIED ANNUITIES
CONTRIBUTIONS
You may not deduct the amount of your contributions to a nonqualified annuity
contract.
CONTRACT EARNINGS
Generally, you are not taxed on contract earnings until you receive a
distribution from your contract, whether as a withdrawal or as an annuity
payment. However, earnings are taxable, even without a distribution:
o if a contract fails investment diversification requirements as specified in
federal income tax rules (these rules are based on or are similar to those
specified for mutual funds under the securities laws);
o if you transfer a contract, for example, as a gift to someone other than your
spouse (or former spouse);
o if you use a contract as security for a loan (in this case, the amount
pledged will be treated as a distribution); and
o if the owner is other than an individual (such as a corporation, partnership,
trust or other non-natural person).
All nonqualified deferred annuity contracts that AXA Equitable and its
affiliates issue to you during the same calendar year are linked
Tax information 39
together and treated as one contract for calculating the taxable amount of any
distribution from any of those contracts.
ANNUITY PAYMENTS
Once annuity payments begin, a portion of each payment is taxable as ordinary
income. You get back the remaining portion without paying taxes on it. This is
your "investment in the contract." Generally, your investment in the contract
equals the contributions you made, less any amounts you previously withdrew
that were not taxable.
For fixed annuity payments, the tax-free portion of each payment is determined
by (1) dividing your investment in the contract by the total amount you are
expected to receive out of the contract, and (2) multiplying the result by the
amount of the payment. For variable annuity payments, your tax-free portion of
each payment is your investment in the contract divided by the number of
expected payments.
Once you have received the amount of your investment in the contract, all
payments after that are fully taxable. If payments under a life annuity stop
because the annuitant dies, there is an income tax deduction for any
unrecovered investment in the contract.
PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN
If you make withdrawals before annuity payments begin under your contract, they
are taxable to you as ordinary income if there are earnings in the contract.
This includes withdrawals to pay all or a part of any fee that may be
associated with the fee-based program. See "Withdrawing your account value" in
"Accessing your money" earlier in this Prospectus. Generally, earnings are your
account value less your investment in the contract. If you withdraw an amount
which is more than the earnings in the contract as of the date of the
withdrawal, the balance of the distribution is treated as a return of your
investment in the contract and is not taxable.
CONTRACTS PURCHASED THROUGH EXCHANGES
You may purchase your NQ contract through an exchange of another contract.
Normally, exchanges of contracts are taxable events. The exchange will not be
taxable under Section 1035 of the Internal Revenue Code if:
o The contract that is the source of the funds you are using to purchase the NQ
contract is another nonqualified deferred annuity contract or life insurance
or endowment contract.
o The owner and the annuitant are the same under the source contract and the
Accumulator(R) Advisor(SM) NQ contract. If you are using a life insurance or
endowment contract the owner and the insured under the life insurance or
endowment contract must be the same as the owner and annuitant, respectively
under the Accumulator(R) Advisor(SM) contract.
The tax basis, also referred to as your tax basis in the contract, of the
source contract carries over to the Accumulator(R) Advisor(SM) NQ contract.
An owner may direct the proceeds of a partial withdrawal from one nonqualified
deferred annuity contract to a different insurer to purchase a new nonqualified
deferred annuity contract on a tax-deferred basis. Special forms, agreement
between the carriers, and provision of cost basis information may be required
to process this type of exchange.
SURRENDERS
If you surrender or cancel the contract, the distribution is taxable as
ordinary income (not capital gain) to the extent it exceeds your investment in
the contract.
DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH
For the rules applicable to death benefits, see "Payment of death benefit"
earlier in this Prospectus. The tax treatment of a death benefit taken as a
single sum is generally the same as the tax treatment of a withdrawal from or
surrender of your contract. The tax treatment of a death benefit taken as
annuity payments is generally the same as the tax treatment of annuity payments
under your contract.
BENEFICIARY CONTINUATION OPTION
We have received a private letter ruling from the IRS regarding certain tax
consequences of scheduled payments under the beneficiary continuation option
for NQ contracts. See the discussion "Beneficiary continuation option for NQ
contracts only" in "Payment of death benefit" earlier in this Prospectus. Among
other things, the IRS rules that:
o scheduled payments under the beneficiary continuation option for NQ contracts
satisfy the death of owner rules of Section 72(s)(2) of the Code, regardless
of whether the beneficiary elects Withdrawal Option 1 or Withdrawal Option 2;
o scheduled payments, any additional withdrawals under Withdrawal Option 2, or
contract surrenders under Withdrawal Option 1 will only be taxable to the
beneficiary when amounts are actually paid, regardless of the Withdrawal
Option selected by the beneficiary;
o a beneficiary who irrevocably elects scheduled payments with Withdrawal
Option 1 will receive "excludable amount" tax treatment on scheduled
payments. See "Annuity payments" earlier in this section. If the beneficiary
elects to surrender the contract before all scheduled payments are paid, the
amount received upon surrender is a non-annuity payment taxable to the extent
it exceeds any remaining investment in the contract.
The ruling specifically does not address the taxation of any payments received
by a beneficiary electing Withdrawal Option 2 (whether scheduled payments or
any withdrawal that might be taken). Before electing the beneficiary
continuation option feature, the individuals you designate as beneficiary or
successor owner should discuss with their tax advisers the consequences of such
elections.
The tax treatment of a withdrawal after the death of the owner taken as a
single sum or taken as withdrawals under the 5-year rule is generally the same
as the tax treatment of a withdrawal from or surrender of your contract.
EARLY DISTRIBUTION PENALTY TAX
If you take distributions before you are age 59-1/2 a penalty tax of 10% of the
taxable portion of your distribution applies in addition to the
40 Tax information
income tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax
include distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o in the form of substantially equal periodic annuity payments for your life
(or life expectancy), or the joint lives (or joint life expectancy) of you
and a beneficiary, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If
you were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. The IRS has said that the owners of variable annuities will
not be treated as owning the separate account assets provided the underlying
portfolios are restricted to variable life and annuity assets. The variable
annuity owners must have the right only to choose among the portfolios, and
must have no right to direct the particular investment decisions within the
portfolios.
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some
issues that remain unclear. For example, the IRS has not issued any guidance as
to whether having a larger number of portfolios available, or an unlimited
right to transfer among them, could cause you to be treated as the owner. We do
not know whether the IRS will ever provide such guidance or whether such
guidance, if unfavorable, would apply retroactively to your contract.
Furthermore, the IRS could reverse its current guidance at any time. We reserve
the right to modify your contract as necessary to prevent you from being
treated as the owner of the assets of Separate Accounts 45 and 49.
SPECIAL RULES FOR NQ CONTRACTS ISSUED IN PUERTO RICO
Income from NQ contracts we issue is U.S. source. A Puerto Rico resident is
subject to U.S. taxation on such U.S. source income. Only Puerto Rico source
income of Puerto Rico residents is excludable from U.S. taxation. Income from
NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable
portion of amounts distributed from a contract may differ in the two
jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax
returns, showing different amounts of income from the contract for each tax
return. Puerto Rico generally provides a credit against Puerto Rico tax for
U.S. tax paid. Depending on your personal situation and the timing of the
different tax liabilities, you may not be able to take full advantage of this
credit.
INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS)
GENERAL
"IRA" stands for individual retirement arrangement. There are two basic types
of such arrangements, individual retirement accounts and individual retirement
annuities. In an individual retirement account, a trustee or custodian holds
the assets funding the account for the benefit of the IRA owner. The assets
typically include mutual funds and/or individual stocks and/or securities in a
custodial account and bank certificates of deposit in a trusteed account. In an
individual retirement annuity, an insurance company issues an annuity contract
that serves as the IRA.
There are two basic types of IRAs, as follows:
o "traditional IRAs," typically funded on a pre-tax basis, including SEP-IRAs
and SIMPLE IRAs issued and funded in connection with employer-sponsored
retirement plans; and
o Roth IRAs, funded on an after-tax basis.
Regardless of the type of IRA, your ownership interest in the IRA cannot be
forfeited. You or your beneficiaries who survive you are the only ones who can
receive the IRA's benefits or payments. All types of IRAs qualify for tax
deferral, regardless of the funding vehicle selected.
You can hold your IRA assets in as many different accounts and annuities as you
would like, as long as you meet the rules for setting up and making
contributions to IRAs. However, if you own multiple IRAs, you may be required
to combine IRA values or contributions for tax purposes. For further
information about individual retirement arrangements, you can read Internal
Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)").
This publication is usually updated annually, and can be obtained from any IRS
district office or the IRS website (www.irs.gov).
AXA Equitable designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may purchase
the contract as a traditional IRA ("Rollover IRA") or Roth IRA ("Roth
Conversion IRA"). This Prospectus contains the information that the IRS
requires you to have before you purchase an IRA. The first section covers some
of the special tax rules that apply to traditional IRAs. The next section
covers Roth IRAs. The disclosure generally assumes direct ownership of the
individual retirement annuity contract. For contracts owned in a custodial
individual retirement account, the disclosure will apply only if you terminate
your account or transfer ownership of the contract to yourself.
We have received an opinion letter from the IRS approving the respective forms
of the Accumulator(R) Advisor(SM) traditional and Roth IRA contracts, as amended
to reflect recent tax law changes, for use as a traditional IRA and Roth IRA,
respectively. This IRS approval is a determination only as to the form of the
annuity. It does not represent a determination of the merits of the annuity as
an investment. The contracts submitted for IRS approval do not include every
feature possibly available under the Accumulator(R) Advisor(SM) traditional and
Roth IRA contracts.
Your right to cancel within a certain number of days
You can cancel any version of the Accumulator(R) Advisor(SM) IRA contract
(traditional IRA or Roth IRA) by following the directions in "Your right to
cancel within a certain number of days" under "Contract features and benefits"
earlier in this Prospectus. If you cancel a traditional IRA or Roth IRA
contract, we may have to withhold tax, and we must report the transaction to
the IRS. A contract cancellation could have an unfavorable tax impact.
Tax information 41
Traditional individual retirement annuities (traditional IRAs)
Contributions to traditional IRAs. Individuals may make three different types
of contributions to a traditional IRA:
o regular contributions out of earned income or compensation;
o tax-free "rollover" contributions; or
o direct custodian-to-custodian transfers from other traditional IRAs
("direct transfers").
Regular contributions to traditional IRAs
Limits on contributions. The "maximum regular contribution amount" for any
taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $4,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for each of the taxable years 2005
and 2006. When your earnings are below $4,000, your earned income or
compensation for the year is the most you can contribute. This limit does not
apply to rollover contributions or direct custodian-to-custodian transfers into
a traditional IRA. You cannot make regular traditional IRA contributions for
the tax year in which you reach age 70-1/2 or any tax year after that.
If you reach age 50 before the close of the taxable year for which you are
making a regular contribution to your IRA, you may be eligible to make an
additional "catch up contribution" of up to $500 to your traditional IRA for
2005. This amount increases to $1,000 for the taxable year 2006.
Special rules for spouses. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to traditional IRAs
(and Roth IRAs discussed below). Even if one spouse has no compensation or
compensation under $4,000, married individuals filing jointly can contribute up
to $8,000 for each of the taxable years 2005 and 2006 to any combination of
traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the
ability to contribute to traditional IRAs and vice versa. The maximum amount
may be less if earned income is less and the other spouse has made IRA
contributions. No more than a combined total of $4,000 can be contributed
annually to either spouse's traditional and Roth IRAs. Each spouse owns his or
her traditional IRAs and Roth IRAs even if the other spouse funded the
contributions. A working spouse age 70-1/2 or over can contribute up to the
lesser of $4,000 or 100% of "earned income" to a traditional IRA for a
nonworking spouse until the year in which the nonworking spouse reaches age
70-1/2. Catch-up contributions may be made as described above for spouses who
are at least age 50 but under age 70-1/2 at any time during the taxable year
for which the contribution is made.
Deductibility of contributions. The amount of traditional IRA contributions
that you can deduct for a taxable year depends on whether you are covered by an
employer-sponsored tax-favored retirement plan, as defined under special
federal income tax rules. Your Form W-2 will indicate whether or not you are
covered by such a retirement plan.
If you are not covered by a retirement plan during any part of the year, you
can make fully deductible contributions to your traditional IRAs for the
taxable year up to the maximum amount discussed earlier in this section under
"Limits on contributions". That is, for each of the taxable years 2005 and
2006, your fully deductible contribution can be up to $4,000, or if less, your
earned income. The dollar limit is $4,500 for people eligible to make age
50 - 70-1/2 catch-up contributions for 2005 and $5,000 for 2006, respectively.
If you are covered by a retirement plan during any part of the year, and your
adjusted gross income (AGI) is below the lower dollar figure in a phase-out
range, you can make fully deductible contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls within a phase-out range, you can make partially deductible
contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls above the higher figure in the phase-out range, you may not deduct
any of your regular contributions to your traditional IRAs.
If you are single and covered by a retirement plan during any part of the
taxable year, the deduction for traditional IRA contributions phases out with
AGI between $50,000 and $60,000 in 2005 and later years.
If you are married and file a joint return, and you are covered by a retirement
plan during any part of the taxable year, the deduction for traditional IRA
contributions phases out with AGI between $70,000 and $80,000 in 2005 and AGI
between $75,000 and $85,000 in 2006. In 2007, the deduction will phase out for
AGI between $80,000 and $100,000.
Married individuals filing separately and living apart at all times are not
considered married for purposes of this deductible contribution calculation.
Generally, the active participation in an employer-sponsored retirement plan of
an individual is determined independently for each spouse. Where spouses have
"married filing jointly" status, however, the maximum deductible traditional
IRA contribution for an individual who is not an active participant (but whose
spouse is an active participant) is phased out for taxpayers with an AGI
between $150,000 and $160,000.
To determine the deductible amount of the contribution for 2005, for example,
you determine AGI and subtract $50,000 if you are single, or $70,000 if you are
married and file a joint return with your spouse. The resulting amount is your
excess AGI. You then determine the limit on the deduction for traditional IRA
contributions using the following formula:
($10,000-excess AGI) times the maximum Equals the adjusted
-------------------- x regular = deductible
divided by $10,000 contribution contribution
for the year limit
Additional "Saver's Credit" for contributions to a
traditional IRA or Roth IRA
You may be eligible for a nonrefundable income tax credit for contributions you
make to a traditional IRA or Roth IRA. The final year this credit is available
is 2006. If you qualify, you may take this credit even
42 Tax information
though your traditional IRA contribution is already fully or partially
deductible. To take advantage of this "saver's credit" you must be 18 or over
before the end of the taxable year for which the contribution is made. You
cannot be a full-time student or claimed as a dependent on another's tax
return, and your adjusted gross income cannot exceed $50,000. The amount of the
tax credit you can get varies from 10% of your contribution to 50% of your
contribution and depends on your income tax filing status and your adjusted
gross income. The maximum annual contribution eligible for the saver's credit
is $2,000. If you and your spouse file a joint return, and each of you
qualifies, each is eligible for a maximum annual contribution of $2,000. Your
saver's credit may also be reduced if you take or have taken a taxable
distribution from any plan eligible for a saver's credit contribution -- even
if you make a contribution to one plan and take the distribution from another
plan -- during the "testing period." The "testing period" begins two years
before the year for which you make the contribution and ends when your tax
return is due for the year for which you make the contribution.
Saver's-credit-eligible contributions may be made to a 401(k) plan, 403(b) TSA,
governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA, as well as a
traditional IRA or Roth IRA.
Nondeductible regular contributions. If you are not eligible to deduct part or
all of the traditional IRA contribution, you may still make nondeductible
contributions on which earnings will accumulate on a tax-deferred basis. The
combined deductible and nondeductible contributions to your traditional IRA (or
the nonworking spouse's traditional IRA) may not, however, exceed the maximum
dollar per person limit for the applicable taxable year ($4,000 for 2005 and
2006). The dollar limit is $4,500 in 2005 and $5,000 in 2006 for people
eligible to make ages 50 - 70-1/2 catch-up contributions. See "Excess
contributions" later in this section. You must keep your own records of
deductible and nondeductible contributions in order to prevent double taxation
on the distribution of previously taxed amounts. See "Withdrawals, payments and
transfers of funds out of traditional IRAs" later in this section.
If you are making nondeductible contributions in any taxable year, or you have
made nondeductible contributions to a traditional IRA in prior years and are
receiving distributions from any traditional IRA, you must file the required
information with the IRS. Moreover, if you are making nondeductible traditional
IRA contributions, you must retain all income tax returns and records
pertaining to such contributions until interests in all traditional IRAs are
fully distributed.
When you can make regular contributions. If you file your tax returns on a
calendar year basis like most taxpayers, you have until the April 15 return
filing deadline (without extensions) of the following calendar year to make
your regular traditional IRA contributions for a tax year.
Rollover and transfer contributions to traditional IRAs
Rollover contributions may be made to a traditional IRA from these "eligible
retirement plans":
o qualified plans;
o governmental employer 457(b) plans;
o TSAs (including Internal Revenue Code Section 403(b)(7) custo
dial accounts); and
o other traditional IRAs.
Direct transfer contributions may only be made from one traditional IRA to
another. Any amount contributed to a traditional IRA after you reach age 70-1/2
must be net of your required minimum distribution for the year in which the
rollover or direct transfer contribution is made.
Rollovers from "eligible retirement plans" other than
traditional IRAs
Your plan administrator will tell you whether or not your distribution is
eligible to be rolled over. Spousal beneficiaries and spousal alternate payees
under qualified domestic relations orders may roll over funds on the same basis
as the plan participant.
There are two ways to do rollovers:
o Do it yourself:
You actually receive a distribution that can be rolled over and you roll it
over to a traditional IRA within 60 days after the date you receive the
funds. The distribution from your eligible retirement plan will be net of
20% mandatory federal income tax withholding. If you want, you can replace
the withheld funds yourself and roll over the full amount.
o Direct rollover:
You tell the trustee or custodian of the eligible retirement plan to send
the distribution directly to your traditional IRA issuer. Direct rollovers
are not subject to mandatory federal income tax withholding.
All distributions from a TSA, qualified plan or governmental employer 457(b)
plan are eligible rollover distributions, unless the distributions are:
o "required minimum distributions" after age 70-1/2 or retirement
from service with the employer; or
o substantially equal periodic payments made at least annually for
your life (or life expectancy) or the joint lives (or joint life
expectancies) of you and your designated beneficiary; or
o substantially equal periodic payments made for a specified period
of 10 years or more; or
o hardship withdrawals; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o death benefit payments to a beneficiary who is not your surviving
spouse; or
o qualified domestic relations order distributions to a beneficiary
who is not your current spouse or former spouse.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to
Tax information 43
another because the funds will generally be subject to the rules of the
recipient plan. For example, funds in a governmental employer 457(b) plan are
not subject to the additional 10% federal income tax penalty for premature
distributions, but they may become subject to this penalty if you roll the
funds to a different type of eligible retirement plan such as a traditional
IRA, and subsequently take a premature distribution.
Rollovers of after-tax contributions from eligible retirement plans other than
traditional IRAs
Any after-tax contributions you have made to a qualified plan or TSA (but not a
governmental employer 457(b) plan) may be rolled over to a traditional IRA
(either in a direct rollover or a rollover you do yourself). When the recipient
plan is a traditional IRA, you are responsible for recordkeeping and
calculating the taxable amount of any distributions you take from that
traditional IRA. See "Taxation of Payments" later in this section under
"Withdrawals, payments and transfers of funds out of traditional IRAs."
After-tax contributions in a traditional IRA cannot be rolled over from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan.
Rollovers from traditional IRAs to traditional IRAs
You may roll over amounts from one traditional IRA to one or more of your other
traditional IRAs if you complete the transaction within 60 days after you
receive the funds. You may make such a rollover only once in every 12-month
period for the same funds. Trustee-to-trustee or custodian-to-custodian direct
transfers are not rollover transactions. You can make these more frequently
than once in every 12-month period.
SPOUSAL ROLLOVERS AND DIVORCE-RELATED DIRECT TRANSFERS
The surviving spouse beneficiary of a deceased individual can roll over funds
from, or directly transfer funds from, an inherited traditional IRA to one or
more other traditional IRAs. Also, in some cases, traditional IRAs can be
transferred on a tax-free basis between spouses or former spouses as a result
of a court-ordered divorce or separation decree.
Excess contributions
Excess contributions to IRAs are subject to a 6% excise tax for the year in
which made and for each year after until withdrawn. The following are excess
contributions to IRAs:
o regular contributions of more than the maximum regular contri
bution amount for the applicable taxable year; or
o regular contributions to a traditional IRA made after you reach
age 70-1/2; or
o rollover contributions of amounts, which are not eligible to be
rolled over, for example, minimum distributions required to be made after
age 70-1/2.
You can avoid the excise tax by withdrawing an excess contribution (rollover or
regular) before the due date (including extensions) for filing your federal
income tax return for the year. If it is an excess regular traditional IRA
contribution, you cannot take a tax deduction for the amount withdrawn. You do
not have to include the excess contribution withdrawn as part of your income.
It is also not subject to the 10% additional penalty tax on early
distributions, discussed later in this section under "Early distribution
penalty tax." You do have to withdraw any earnings that are attributed to the
excess contribution. The withdrawn earnings would be included in your gross
income and could be subject to the 10% penalty tax.
Even after the due date for filing your return, you may withdraw an excess
rollover contribution, without income inclusion or 10% penalty, if:
(1) the rollover was from an eligible retirement plan to a traditional IRA;
(2) the excess contribution was due to incorrect information that the plan
provided; and
(3) you took no tax deduction for the excess contribution.
Recharacterizations
Amounts that have been contributed as traditional IRA funds may subsequently be
treated as Roth IRA funds. Special federal income tax rules allow you to change
your mind again and have amounts that are subsequently treated as Roth IRA
funds, once again treated as traditional IRA funds. You do this by using the
forms we prescribe. This is referred to as having "recharacterized" your
contribution.
Withdrawals, payments and transfers of funds out of
traditional IRAs
No federal income tax law restrictions on withdrawals. You can withdraw any or
all of your funds from a traditional IRA at any time. You do not need to wait
for a special event like retirement.
Taxation of payments. Earnings in traditional IRAs are not subject to federal
income tax until you or your beneficiary receive them. Taxable payments or
distributions include withdrawals from your contract, surrender of your
contract and annuity payments from your contract. Death benefits are also
taxable.
Except as discussed below, the total amount of any distribution from a
traditional IRA must be included in your gross income as ordinary income. We
report all payments from traditional IRA contracts on IRS Form 1099R as fully
taxable.
If you have ever made nondeductible IRA contributions to any traditional IRA
(it does not have to be to this particular traditional IRA contract), those
contributions are recovered tax free when you get distributions from any
traditional IRA. It is your responsibility to keep permanent tax records of all
of your nondeductible contributions to traditional IRAs so that you can
correctly report the taxable amount of any distribution on your own tax return.
At the end of any year in which you have received a distribution from any
traditional IRA, you calculate the ratio of your total nondeductible
traditional IRA contributions (less any amounts previously withdrawn tax free)
to the total account balances of all traditional IRAs you own at the end of the
year plus all traditional IRA distributions made during the year. Multiply this
by all distributions from the traditional IRA during the year to determine the
nontaxable portion of each distribution.
44 Tax information
A distribution from a traditional IRA is not taxable if:
o the amount received is a withdrawal of excess contributions, as
described under "Excess contributions" earlier in this section; or
o the entire amount received is rolled over to another traditional
IRA or other eligible retirement plan which agrees to accept the funds.
(See "Rollovers from eligible retirement plans other than traditional
IRAs" under "Rollovers and transfer contributions to traditional IRAs"
earlier in this section.)
The following are eligible to receive rollovers of distributions from a
traditional IRA: a qualified plan, a TSA or a governmental employer 457(b)
plan. After-tax contributions in a traditional IRA cannot be rolled from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan. Before you decide to roll over a distribution from a
traditional IRA to another eligible retirement plan, you should check with the
administrator of that plan about whether the plan accepts rollovers and, if so,
the types it accepts. You should also check with the administrator of the
receiving plan about any documents required to be completed before it will
accept a rollover.
Distributions from a traditional IRA are not eligible for favorable ten-year
averaging or long-term capital gain treatment available under limited
circumstances for certain distributions from qualified plans. If you might be
eligible for such tax treatment from your qualified plan, you may be able to
preserve such tax treatment even though an eligible rollover from a qualified
plan is temporarily rolled into a "conduit IRA" before being rolled back into a
qualified plan. See your tax adviser.
Required minimum distributions
Background on Regulations -- Required Minimum Distri-butions. Distributions
must be made from traditional IRAs according to the rules contained in the Code
and Treasury Regulations. Certain provisions of the Treasury Regulations will
require, beginning in 2006, that the actuarial present value of additional
annuity contract benefits be added to the dollar amount credited for purposes
of calculating certain types of required minimum distributions from individual
retirement annuity contracts. This could increase the amount required to be
distributed from these contracts, if you take the annual withdrawals instead of
annuitizing. Please consult your tax adviser concerning applicability of these
complex rules to your situation.
Lifetime required minimum distributions. You must start taking annual
distributions from your traditional IRAs for the year in which you turn 70-1/2.
When you have to take the first lifetime required minimum distribution. The
first required minimum distribution is for the calendar year in which you turn
age 70-1/2. You have the choice to take this first required minimum
distribution during the calendar year you actually reach age 70-1/2, or to
delay taking it until the first three-month period in the next calendar year
(January 1 - April 1). Distributions must start no later than your "Required
Beginning Date," which is April 1st of the calendar year after the calendar
year in which you turn age 70-1/2. If you choose to delay taking the first
annual minimum distribution, then you will have to take two minimum
distributions in that year -- the delayed one for the first year and the one
actually for that year. Once minimum distributions begin, they must be made at
some time each year.
How you can calculate required minimum distributions.
There are two approaches to taking required minimum distributions --
"account-based" or "annuity-based."
ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the
value of your traditional IRA as of December 31st of the past calendar year by
a number corresponding to your age from an IRS table. This gives you the
required minimum distribution amount for that particular IRA for that year. If
your spouse is your sole beneficiary and more than 10 years younger than you,
the dividing number you use may be from another IRS table and may produce a
smaller lifetime required minimum distribution amount. Regardless of the table
used, the required minimum distribution amount will vary each year as the
account value and the divisor change. If you initially choose an account-based
method, you may later apply your traditional IRA funds to a life annuity-based
payout with any certain period not exceeding remaining life expectancy,
determined in accordance with IRS tables.
ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to
do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a designated beneficiary or for a
period certain not extending beyond applicable life expectancies, determined in
accordance with IRS tables
Do you have to pick the same method to calculate your required minimum
distributions for all of your traditional IRAs and other retirement plans? No.
If you want, you can choose a different method for each of your traditional
IRAs and other retirement plans. For example, you can choose an annuity payout
from one IRA, a different annuity payout from a qualified plan and an
account-based annual withdrawal from another IRA.
Will we pay you the annual amount every year from your traditional IRA based on
the method you choose? We will only pay you automatically if you affirmatively
select an annuity payout option or an account-based withdrawal option such as
our "automatic required minimum distribution (RMD) service." Even if you do not
enroll in our service, we will calculate the amount of the required minimum
distribution withdrawal for you, if you so request in writing. However, in that
case you will be responsible for asking us to pay the required minimum
distribution withdrawals to you.
Also, the IRS will let you calculate the required minimum distribution for each
traditional IRA that you maintain, using the method that you picked for that
particular IRA. You can add these required minimum distribution amount
calculations together. As long as the total amount you take out every year
satisfies your overall traditional IRA required minimum distribution amount,
you may choose to take your annual required minimum distribution from any one
or more traditional IRAs that you own.
What if you take more than you need to for any year? The required minimum
distribution amount for your traditional IRAs is calculated on a year-by-year
basis. There are no carry-back or carry-forward provisions. Also, you cannot
apply required minimum
Tax information 45
distribution amounts you take from your qualified plans to the amounts you have
to take from your traditional IRAs and vice versa.
What if you take less than you need to for any year? Your IRA could be
disqualified, and you could have to pay tax on the entire value. Even if your
IRA is not disqualified, you could have to pay a 50% penalty tax on the
shortfall (required amount for traditional IRAs less amount actually taken). It
is your responsibility to meet the required minimum distribution rules. We will
remind you when our records show that you are within the age group which must
take lifetime required minimum distributions. If you do not select a method
with us, we will assume you are taking your required minimum distribution from
another traditional IRA that you own.
What are the required minimum distribution payments after you die? These could
vary depending on whether you die before or after your Required Beginning Date
for lifetime required minimum distribution payments, and the status of your
beneficiary. The following assumes that you have not yet elected an
annuity-based payout at the time of your death. If you elect an annuity-based
payout, payments (if any) after your death must be made at least as rapidly as
when you were alive.
Individual beneficiary. Regardless of whether your death occurs before or after
your Required Beginning Date, an individual death beneficiary calculates annual
post-death required minimum distribution payments based on the beneficiary's
life expectancy using the "term certain method." That is, he or she determines
his or her life expectancy using the IRS-provided life expectancy tables as of
the calendar year after the owner's death and reduces that number by one each
subsequent year.
If you die before your Required Beginning Date, the rules permit any individual
beneficiary, including a spousal beneficiary, to elect instead to apply the
"5-year rule." Under this rule, instead of annual payments having to be made
beginning with the first in the year following the owner's death, the entire
account must be distributed by the end of the calendar year which contains the
fifth anniversary of the owner's death. No distribution is required before that
fifth year.
Spousal beneficiary. If you die after your Required Beginning Date, and your
death beneficiary is your surviving spouse, your spouse has a number of
choices. The revised proposed rules permit Post-death distributions may be made
over your spouse's single life expectancy. Any amounts distributed after that
surviving spouse's death are made over the spouse's life expectancy calculated
in the year of his/her death, reduced by one for each subsequent year. In some
circumstances, your surviving spouse may elect to become the owner of the
traditional IRA and halt distributions until he or she reaches age 70-1/2, or
roll over amounts from your traditional IRA into his/her own traditional IRA or
other eligible retirement plan.
If you die before your Required Beginning Date, and the death beneficiary is
your surviving spouse, the rules permit the spouse to delay starting payments
over his/her life expectancy until the year in which you would have attained
age 70-1/2.
Non-individual beneficiary. If you die after your Required Beginning Date, and
your death beneficiary is a non-individual such as the estate, the rules permit
the beneficiary to calculate post-death required minimum distribution amounts
based on the owner's life expectancy in the year of death. However, note that
we need an individual annuitant to keep an annuity contract in force. If the
beneficiary is not an individual, we must distribute amounts remaining in the
annuity contract after the death of the annuitant.
If you die before your Required Beginning Date for lifetime required minimum
distribution payments, and the death beneficiary is a non-individual such as
the estate, the rules continue to apply the 5-year rule discussed earlier under
"Individual beneficiary." Please note that we need an individual annuitant to
keep an annuity contract in force. If the beneficiary is not an individual, we
must distribute amounts remaining in the annuity contract after the death of
the annuitant.
Successor owner and annuitant
If your spouse is the sole primary beneficiary and elects to become the
successor owner and annuitant, no death benefit is payable until your surviving
spouse's death.
Payments to a beneficiary after your death
IRA death benefits are taxed the same as IRA distributions.
Borrowing and loans are prohibited transactions
You cannot get loans from a traditional IRA. You cannot use a traditional IRA
as collateral for a loan or other obligation. If you borrow against your IRA or
use it as collateral, its tax-favored status will be lost as of the first day
of the tax year in which this prohibited event occurs. If this happens, you
must include the value of the traditional IRA in your federal gross income.
Also, the early distribution penalty tax of 10% may apply if you have not
reached age 59-1/2 before the first day of that tax year.
Early distribution penalty tax
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a traditional IRA made before you reach age 59-1/2 . Some of
the available exceptions to the pre-age 59-1/2 penalty tax include
distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition);
or
o used to pay certain extraordinary medical expenses (special fed
eral income tax definition); or
o used to pay medical insurance premiums for unemployed indi
viduals (special federal income tax definition); or
o used to pay certain first-time home buyer expenses (special fed
eral income tax definition); or
o used to pay certain higher education expenses (special federal
income tax definition); or
o in the form of substantially equal periodic payments made at
least annually over your life (or your life expectancy) or over the
46 Tax information
joint lives of you and your beneficiary (or your joint life expectancies)
using an IRS-approved distribution method.
To meet this last exception, you could elect to apply your contract value to an
Income Manager(R) (life annuity with a period certain) payout annuity contract
(level payments version). You could also elect the substantially equal
withdrawals option. We will calculate the substantially equal annual payments
using your choice of IRS-approved methods we offer. Although substantially
equal withdrawals and Income Manager(R) payments are not subject to the 10%
penalty tax, they are taxable as discussed in "Withdrawals, payments and
transfers of funds out of traditional IRAs" earlier in this section. Once
substantially equal withdrawals or Income Manager(R) annuity payments begin,
the distributions should not be stopped or changed until after the later of
your reaching age 59-1/2 or five years after the date of the first distribution
or the penalty tax, including an interest charge for the prior penalty
avoidance, may apply to all prior distributions under either option. Also, it
is possible that the IRS could view any additional withdrawal or payment you
take from your contract as changing your pattern of substantially equal
withdrawals or Income Manager(R) payments for purposes of determining whether
the penalty applies.
Roth individual retirement annuities (Roth IRAs)
This section of the Prospectus covers some of the special tax rules that apply
to Roth IRAs. If the rules are the same as those that apply to the traditional
IRA, we will refer you to the same topic under "traditional IRAs."
The Accumulator(R) Advisor(SM) Roth Conversion IRA contract is designed to
qualify as a Roth individual retirement annuity under Sections 408A(b) and
408(b) of the Internal Revenue Code.
Contributions to Roth IRAs
Individuals may make four different types of contributions to a Roth IRA:
o regular after-tax contributions out of earnings; or
o taxable rollover contributions from traditional IRAs ("conversion"
contributions); or
o tax-free rollover contributions from other Roth IRAs; or
o tax-free direct custodian-to-custodian transfers from other Roth
IRAs ("direct transfers").
Regular after-tax, direct transfer and rollover contributions may be made to a
Roth Conversion IRA contract. See "Rollovers and direct transfers" later in
this section. If you use the forms we require, we will also accept traditional
IRA funds which are subsequently recharacterized as Roth IRA funds following
special federal income tax rules.
Regular contributions to Roth IRAs
Limits on regular contributions. The "maximum regular contribution amount" for
any taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $4,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for each of the taxable years 2005
and 2006. This limit does not apply to rollover contributions or direct
custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth
IRAs reduce your ability to contribute to traditional IRAs and vice versa. When
your earnings are below $4,000, your earned income or compensation for the year
is the most you can contribute. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to Roth IRAs and
traditional IRAs. See the discussion earlier in this section under traditional
IRAs. If you or your spouse are at least age 50 at any time during the taxable
year for which you are making a regular contribution, additional catch-up
contributions totaling up to $500 can be made for the taxable year 2005. This
amount increases to $1,000 for the taxable year 2006.
With a Roth IRA, you can make regular contributions when you reach age 70-1/2,
as long as you have sufficient earnings. But, you cannot make contributions,
regardless of your age, for any year that:
o your federal income tax filing status is "married filing jointly" and
your modified adjusted gross income is over $160,000; or
o your federal income tax filing status is "single" and your modified
adjusted gross income is over $110,000.
However, you can make regular Roth IRA contributions in reduced amounts when:
o your federal income tax filing status is "married filing jointly" and
your modified adjusted gross income is between $150,000 and $160,000; or
o your federal income tax filing status is "single" and your modified
adjusted gross income is between $95,000 and $110,000.
If you are married and filing separately and your modified adjusted gross
income is between $0 and $10,000 the amount of regular contributions you are
permitted to make is phased out. If your modified adjusted gross income is more
than $10,000 you cannot make regular Roth IRA contributions.
When you can make contributions. Same as traditional IRAs.
Deductibility of contributions. Roth IRA contributions are not tax deductible.
Rollovers and direct transfers
What is the difference between rollover and direct transfer transactions? You
may make rollover contributions to a Roth IRA from only two sources:
o another Roth IRA ("tax-free rollover contribution"); or
o another traditional IRA, including a SEP-IRA or SIMPLE IRA (after
a two-year rollover limitation period for SIMPLE IRA funds), in a taxable
conversion rollover ("conversion contribution").
You may not make contributions to a Roth IRA from a qualified plan under
Section 401(a) of the Internal Revenue Code, a TSA under Sec-
Tax information 47
tion 403(b) of the Internal Revenue Code or any other eligible retirement plan.
You may make direct transfer contributions to a Roth IRA only from another Roth
IRA.
The difference between a rollover transaction and a direct transfer transaction
is the following: in a rollover transaction you actually take possession of the
funds rolled over or are considered to have received them under tax law in the
case of a change from one type of plan to another. In a direct transfer
transaction, you never take possession of the funds, but direct the first Roth
IRA custodian, trustee or issuer to transfer the first Roth IRA funds directly
to the recipient Roth IRA custodian, trustee or issuer. You can make direct
transfer transactions only between identical plan types (for example, Roth IRA
to Roth IRA). You can also make rollover transactions between identical plan
types. However, you can only use rollover transactions between different plan
types (for example, traditional IRA to Roth IRA).
You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to
Roth IRA direct transfer transactions. This can be accomplished on a completely
tax-free basis. However, you may make Roth IRA to Roth IRA rollover
transactions only once in any 12-month period for the same funds.
Trustee-to-trustee or custodian-to-custodian direct transfers can be made more
frequently than once a year. Also, if you send us the rollover contribution to
apply it to a Roth IRA, you must do so within 60 days after you receive the
proceeds from the original IRA to get rollover treatment.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some
cases, Roth IRAs can be transferred on a tax-free basis between spouses or
former spouses as a result of a court-ordered divorce or separation decree.
Conversion contributions to Roth IRAs
In a conversion rollover transaction, you withdraw (or are considered to have
withdrawn) all or a portion of funds from a traditional IRA you maintain and
convert it to a Roth IRA within 60 days after you receive (or are considered to
have received) the traditional IRA proceeds. Unlike a rollover from a
traditional IRA to another traditional IRA, the conversion rollover transaction
is not tax free. Instead, the distribution from the traditional IRA is
generally fully taxable. For this reason, we are required to withhold 10%
federal income tax from the amount converted unless you elect out of such
withholding. If you have ever made nondeductible regular contributions to any
traditional IRA -- whether or not it is the traditional IRA you are converting
- -- a pro rata portion of the distribution is tax free.
There is, however, no early distribution penalty tax on the traditional IRA
withdrawal that you are converting to a Roth IRA, even if you are under age
59-1/2.
You cannot make conversion contributions to a Roth IRA for any taxable year in
which your modified adjusted gross income exceeds $100,000. (For this purpose,
your modified adjusted gross income is calculated without the gross income
stemming from the traditional IRA conversion. Beginning in 2005, modified
adjusted gross income for this purpose will also exclude any lifetime required
minimum distribution from a traditional IRA.) You also cannot make conversion
contributions to a Roth IRA for any taxable year in which your federal income
tax filing status is "married filing separately."
You cannot make conversion contributions to a Roth IRA to the extent that the
funds in your traditional IRA are subject to the annual required minimum
distribution rule applicable to traditional IRAs beginning at age 70-1/2.
You cannot convert and reconvert an amount during the same taxable year, or if
later, during the 30-day period following a recharacterization. If you
reconvert during either of these periods, it will be a failed Roth IRA
conversion.
Recharacterizations
You may be able to treat a contribution made to one type of IRA as having been
made to a different type of IRA. This is called recharacterizing the
contribution.
How to recharacterize. To recharacterize a contribution, you generally must
have the contribution transferred from the first IRA (the one to which it was
made) to the second IRA in a deemed trustee-to-trustee transfer. If the
transfer is made by the due date (including extensions) for your tax return for
the year during which the contribution was made, you can elect to treat the
contribution as having been originally made to the second IRA instead of to the
first IRA. It will be treated as having been made to the second IRA on the date
that it was actually made to the first IRA. You must report the
recharacterization and must treat the contribution as having been made to the
second IRA, instead of the first IRA, on your tax return for the year during
which the contribution was made.
The condition will not be treated as having been made to the second IRA unless
the transfer includes any net income allocable to the contribution. You can
take into account any loss on the contribution while it was in the IRA when
calculating the amount that must be transferred. If there was a loss, the net
income you must transfer may be a negative amount.
No deduction is allowed for the contribution to the first IRA and any net
income transferred with the recharacterized contribution is treated as earned
in the second IRA. The contribution will not be treated as having been made to
the second IRA to the extent any deduction was allowed with respect to the
contribution to the first IRA.
For recharacterization purposes, a distribution from a traditional IRA that is
received in one tax year and rolled over into a Roth IRA in the next year, but
still within 60 days of the distribution from the traditional IRA, is treated
as a contribution to the Roth IRA in the year of the distribution from the
traditional IRA.
Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be
recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or
SIMPLE-IRA).
To recharacterize a contribution, you must use our forms.
The recharacterization of a contribution is not treated as a rollover for
purposes of the 12-month period described above. This rule applies
48 Tax information
even if the contribution would have been treated as a rollover contribution by
the second IRA if it had been made directly to the second IRA rather than as a
result of a recharacterization of a contribution to the first IRA.
Withdrawals, payments and transfers of funds out of Roth IRAs
No federal income tax law restrictions on withdrawals. You can withdraw any or
all of your funds from a Roth IRA at any time; you do not need to wait for a
special event like retirement.
Distributions from Roth IRAs
Distributions include withdrawals from your contract, surrender of your
contract and annuity payments from your contract. Death benefits are also
distributions.
You must keep your own records of regular and conversion contributions to all
Roth IRAs to assure appropriate taxation. You may have to file information on
your contributions to and distributions from any Roth IRA on your tax return.
You may have to retain all income tax returns and records pertaining to such
contributions and distributions until your interests in all Roth IRAs are
distributed.
Like traditional IRAs, taxable distributions from a Roth IRA are not entitled
to the special favorable ten-year averaging and long-term capital gain
treatment available in limited cases to certain distributions from qualified
plans.
The following distributions from Roth IRAs are free of income tax:
o rollovers from a Roth IRA to another Roth IRA;
o direct transfers from a Roth IRA to another Roth IRA;
o qualified distributions from a Roth IRA; and
o return of excess contributions or amounts recharacterized to a
traditional IRA.
Qualified distributions from Roth IRAs. Qualified distributions from Roth IRAs
made because of one of the following four qualifying events or reasons are not
includable in income:
o you are age 59-1/2 or older; or
o you die; or
o you become disabled (special federal income tax definition); or
o your distribution is a "qualified first-time home buyer distribu
tion" (special federal income tax definition; $10,000 lifetime total limit
for these distributions from all of your traditional and Roth IRAs).
You also have to meet a five-year aging period. A qualified distribution is any
distribution made after the five-taxable-year period beginning with the first
taxable year for which you made any contribution to any Roth IRA (whether or
not the one from which the distribution is being made).
Nonqualified distributions from Roth IRAs. Nonqualified distributions from Roth
IRAs are distributions that do not meet both the qualifying event and five-year
aging period tests described above. If you receive such a distribution, part of
it may be taxable. For purposes of determining the correct tax treatment of
distributions (other than the withdrawal of excess contributions and the
earnings on them) there is a set order in which contributions (including
conversion contributions) and earnings are considered to be distributed from
your Roth IRA. The order of distributions is as follows:
(1) Regular contributions.
(2) Conversion contributions, on a first-in-first-out basis (generally, total
conversions from the earliest year first). These conversion contributions
are taken into account as follows:
(a) Taxable portion (the amount required to be included in gross income
because of conversion) first, and then the
(b) Nontaxable portion.
(3) Earnings on contributions.
Rollover contributions from other Roth IRAs are disregarded for this purpose.
To determine the taxable amount distributed, distributions and contributions
are aggregated or grouped together as follows:
(1) All distributions made during the year from all Roth IRAs you maintain --
with any custodian or issuer -- are added together.
(2) All regular contributions made during and for the year (contribu tions made
after the close of the year, but before the due date of your return) are
added together. This total is added to the total undistributed regular
contributions made in prior years.
(3) All conversion contributions made during the year are added together. For
purposes of the ordering rules, in the case of any conversion in which the
conversion distribution is made in 2005 and the conversion contribution is
made in 2006, the conversion contribution is treated as contributed prior
to other conversion contributions made in 2006.
Any recharacterized contributions that end up in a Roth IRA are added to the
appropriate contribution group for the year that the original contribution
would have been taken into account if it had been made directly to the Roth
IRA.
Any recharacterized contribution that ends up in an IRA other than a Roth IRA
is disregarded for the purpose of grouping both contributions and
distributions. Any amount withdrawn to correct an excess contribution
(including the earnings withdrawn) is also disregarded for this purpose.
Required minimum distributions during life
Lifetime required minimum distributions do not apply.
Required minimum distributions at death
Same as traditional IRA under "What are the required minimum distribution
payments after you die?"
Payments to a beneficiary after your death
Distributions to a beneficiary generally receive the same tax treatment as if
the distribution had been made to you.
Tax information 49
Borrowing and loans are prohibited transactions
Same as traditional IRA.
Excess contributions
Generally the same as traditional IRA, except that regular contributions made
after age 70-1/2 are not excess contributions.
Excess rollover contributions to Roth IRAs are contributions not eligible to be
rolled over (for example, conversion contributions from a traditional IRA if
your modified adjusted gross income is in excess of $100,000 in the conversion
year).
You can withdraw or recharacterize any contribution to a Roth IRA before the
due date (including extensions) for filing your federal income tax return for
the tax year. If you do this, you must also withdraw or recharacterize any
earnings attributable to the contribution.
Early distribution penalty tax
Same as traditional IRA.
Federal and state income tax withholding and information reporting
We must withhold federal income tax from distributions from annuity contracts.
You may be able to elect out of this income tax withholding in some cases.
Generally, we do not have to withhold if your distributions are not taxable.
The rate of withholding will depend on the type of distribution and, in certain
cases, the amount of your distribution. Any income tax withheld is a credit
against your income tax liability. If you do not have sufficient income tax
withheld or do not make sufficient estimated income tax payments, you may incur
penalties under the estimated income tax rules.
You must file your request not to withhold in writing before the payment or
distribution is made. Our processing office will provide forms for this
purpose. You cannot elect out of withholding unless you provide us with your
correct Taxpayer Identification Number and a United States residence address.
You cannot elect out of withholding if we are sending the payment out of the
United States.
You should note the following special situations:
o We might have to withhold and/or report on amounts we pay
under a free look or cancellation.
o We are generally required to withhold on conversion rollovers of
traditional IRAs to Roth IRAs, as it is considered a withdrawal from the
traditional IRA and is taxable.
o We are required to withhold on the gross amount of a distribu
tion from a Roth IRA to the extent it is reasonable for us to believe that
a distribution is includable in your gross income. This may result in tax
being withheld even though the Roth IRA distribution is ultimately not
taxable. You can elect out of withholding, as described below.
Special withholding rules apply to foreign recipients and United States
citizens residing outside the United States. We do not discuss these rules here
in detail. However, we may require additional documentation in the case of
payments made to non United States persons and United States persons living
abroad prior to processing any requested transaction.
Certain states have indicated that state income tax withholding will also apply
to payments from the contracts made to residents. In some states, you may elect
out of state withholding, even if federal withholding applies. Generally, an
election out of federal withholding will also be considered an election out of
state withholding. If you need more information concerning a particular state
or any required forms, call our processing office at the toll-free number.
Federal income tax withholding on periodic annuity
payments
We withhold differently on "periodic" and "non-periodic" payments. For a
periodic annuity payment, for example, unless you specify a different number of
withholding exemptions, we withhold assuming that you are married and claiming
three withholding exemptions. If you do not give us your correct Taxpayer
Identification Number, we withhold as if you are single with no exemptions.
Based on the assumption that you are married and claiming three withholding
exemptions, if you receive less than $17,760 in periodic annuity payments in
2005, your payments will generally be exempt from federal income tax
withholding. You could specify a different choice of withholding exemption or
request that tax be withheld. Your withholding election remains effective
unless and until you revoke it. You may revoke or change your withholding
election at any time.
Federal income tax withholding on non-periodic annuity
payments (withdrawals)
For a non-periodic distribution (total surrender or partial withdrawal), we
generally withhold at a flat 10% rate. We apply that rate to the taxable amount
in the case of nonqualified contracts, and to the payment amount in the case of
traditional IRAs and Roth IRAs where it is reasonable to assume an amount is
includable in gross income.
You cannot elect out of withholding if the payment is an eligible rollover
distribution from a qualified plan. If a non-periodic distribution from a
qualified plan is not an eligible rollover distribution then the 10%
withholding rate applies.
Mandatory withholding from qualified plan distributions
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans are subject to mandatory 20% withholding.
The plan administrator is responsible for withholding from qualified plan
distributions. An eligible rollover distribution from a qualified plan can be
rolled over to another eligible retirement plan. All distributions from a
qualified plan are eligible rollover distributions unless they are on the
following list of exceptions:
o any distributions which are required minimum distributions after
age 70-1/2 or retirement from service with the employer; or
o substantially equal periodic payments made at least annually for
your life (or life expectancy) or the joint lives (or joint life
expectancies) of you and your designated beneficiary; or
o substantially equal periodic payments made for a specified period
of 10 years or more; or
o hardship withdrawals; or
50 Tax information
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviv
ing spouse; or
o a qualified domestic relations order distribution to a beneficiary
who is not your current spouse or former spouse.
A death benefit payment to your surviving spouse, or a qualified domestic
relations order distribution to your current or former spouse, may be a
distribution subject to mandatory 20% withholding.
SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS
For QP contracts, your plan administrator or trustee notifies you as to tax
consequences. See Appendix II at the end of this Prospectus.
IMPACT OF TAXES TO AXA EQUITABLE
The contracts provide that we may charge Separate Account No. 45 and Separate
Account No. 49 for taxes. We do not now, but may in the future set up reserves
for such taxes.
Tax information 51
8. More information
- --------------------------------------------------------------------------------
ABOUT SEPARATE ACCOUNT NO. 45 AND SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 49. We
established Separate Account No. 45 in 1994 and Separate Account No. 49 in 1996
under special provisions of the New York Insurance Law. These provisions
prevent creditors from any other business we conduct from reaching the assets
we hold in our variable investment options for owners of our variable annuity
contracts, including these contracts. We are the legal owner of all of the
assets in Separate Account No. 45 and Separate Account No. 49 and may withdraw
any amounts that exceed our reserves and other liabilities with respect to
variable investment options under our contracts. The results of the Separate
Accounts' operations are accounted for without regard to AXA Equitable's other
operations.
Each Separate Account is registered under the Investment Company Act of 1940
and is classified by that act as a "unit investment trust." The SEC, however,
does not manage or supervise AXA Equitable or the Separate Accounts.
Each subaccount (variable investment option) within the Separate Accounts
invests solely in Class IB/B shares issued by the corresponding portfolio of
its Trusts.
We reserve the right subject to compliance with laws that apply:
(1) to add variable investment options to, or to remove variable investment
options from either Separate Account, or to add other separate accounts;
(2) to combine any two or more variable investment options;
(3) to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment option
to another variable investment option;
(4) to operate each Separate Account or any variable investment option as a
management investment company under the Investment Company Act of 1940 (in
which case, charges and expenses that otherwise would be assessed against
an underlying mutual fund would be assessed against each Separate Account
or a variable investment option directly);
(5) to deregister the Separate Accounts under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to the Separate Accounts and
(7) to cause one or more variable investment options to invest some or all of
their assets in one or more other trusts or investment companies.
ABOUT THE TRUSTS
EQ Advisors Trust and AXA Premier VIP Trust are registered under the Investment
Company Act of 1940. They are classified as "open-end management investment
companies," more commonly called mutual funds. Each Trust issues different
shares relating to each portfolio.
AXA Equitable serves as the investment manager of the Trusts. As such, AXA
Equitable oversees the activities of the investment advisers with respect to
the Trusts and is responsible for retaining or discontinuing the services of
those advisers.
The Trusts do not impose sales charges or "loads" for buying and selling their
shares. All dividends and other distributions on the Trusts' shares are
reinvested in full. The Board of Trustees of each Trust may establish
additional portfolios or eliminate existing portfolios at any time. More
detailed information about the Trusts' portfolio investment objectives,
policies, restrictions, risks, expenses, its Rule 12b-1 Plan, and other aspects
of its operations, appear in the prospectuses for each Trust, which are
generally attached at the end of this Prospectus, or in the respective SAIs
which are available upon request.
ABOUT OUR FIXED MATURITY OPTIONS
RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE
We can determine the amount required to be allocated to one or more fixed
maturity options in order to produce specified maturity values. For example, we
can tell you how much you need to allocate per $100 of maturity value.
FMO rates are determined daily. The rates in the table are illustrative only
and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
The rates to maturity for new allocations as of February 15, 2005 and the
related price per $100 of maturity value were as shown below:
- -------------------------------------------------------------
Fixed Maturity
Options with
February 15th Rate to Price
Maturity Date of Maturity as of Per $100 of
Maturity Year February 15, 2005 Maturity Value
- -------------------------------------------------------------
2006 3.00%* $ 97.09
2007 3.00%* $ 94.26
2008 3.00%* $ 91.51
2009 3.00%* $ 88.84
2010 3.00%* $ 86.25
2011 3.00%* $ 83.74
2012 3.19% $ 80.26
2013 3.35% $ 76.81
2014 3.50% $ 73.36
2015 3.64% $ 69.93
- -------------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated to
these options.
HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT
We use the following procedure to calculate the market value adjustment (up or
down) we make if you withdraw all of your value from a fixed maturity option
before its maturity date.
52 More information
(1) We determine the market adjusted amount on the date of the withdrawal as
follows:
(a) We determine the fixed maturity amount that would be payable on the
maturity date, using the rate to maturity for the fixed maturity
option.
(b) We determine the period remaining in your fixed maturity option (based
on the withdrawal date) and convert it to fractional years based on a
365-day year. For example, three years and 12 days becomes 3.0329.
(c) We determine the current rate to maturity that applies on the
withdrawal date to new allocations to the same fixed maturity option.
(d) We determine the present value of the fixed maturity amount payable at
the maturity date, using the period determined in (b) and the rate
determined in (c).
(2) We determine the fixed maturity amount as of the current date.
(3) We subtract (2) from the result in (1)(d). The result is the market value
adjustment applicable to such fixed maturity option, which may be positive
or negative.
- --------------------------------------------------------------------------------
Your market adjusted amount is the present value of the maturity value
discounted at the rate to maturity in effect for new contributions to that same
fixed maturity option on the date of the calculation.
- --------------------------------------------------------------------------------
If you withdraw only a portion of the amount in a fixed maturity option, the
market value adjustment will be a percentage of the market value adjustment
that would have applied if you had withdrawn the entire value in that fixed
maturity option. This percentage is equal to the percentage of the value in the
fixed maturity option that you are withdrawing. See Appendix III at the end of
this Prospectus for an example.
For purposes of calculating the rate to maturity for new allocations to a fixed
maturity option (see (1)(c) above), we use the rate we have in effect for new
allocations to that fixed maturity option. We use this rate even if new
allocations to that option would not be accepted at that time. This rate will
not be less than 3%. If we do not have a rate to maturity in effect for a fixed
maturity option to which the "current rate to maturity" in (1)(c) would apply,
we will use the rate at the next closest maturity date. If we are no longer
offering new fixed maturity options, the "current rate to maturity" will be
determined in accordance with our procedures then in effect. We reserve the
right to add up to 0.25% to the current rate in (1)(c) above for purposes of
calculating the market value adjustment only.
INVESTMENTS UNDER THE FIXED MATURITY OPTIONS
Amounts allocated to the fixed maturity options are held in a "nonunitized"
separate account we have established under the New York Insurance Law. This
separate account provides an additional measure of assurance that we will make
full payment of amounts due under the fixed maturity options. Under New York
Insurance Law, the portion of the separate account's assets equal to the
reserves and other contract liabilities relating to the contracts are not
chargeable with liabilities from any other business we may conduct. We own the
assets of the separate account, as well as any favorable investment performance
on those assets. You do not participate in the performance of the assets held
in this separate account. We may, subject to state law that applies, transfer
all assets allocated to the separate account to our general account. We
guarantee all benefits relating to your value in the fixed maturity options,
regardless of whether assets supporting fixed maturity options are held in a
separate account or our general account.
We have no specific formula for establishing the rates to maturity for the
fixed maturity options. We expect the rates to be influenced by, but not
necessarily correspond to, among other things, the yields that we can expect to
realize on the separate account's investments from time to time. Our current
plans are to invest in fixed-income obligations, including corporate bonds,
mortgage-backed and asset-backed securities, and government and agency issues
having durations in the aggregate consistent with those of the fixed maturity
options.
Although the above generally describes our plans for investing the assets
supporting our obligations under the fixed maturity options under the
contracts, we are not obligated to invest those assets according to any
particular plan except as we may be required to by state insurance laws. We
will not determine the rates to maturity we establish by the performance of the
nonunitized separate account.
ABOUT THE GENERAL ACCOUNT
Our general account supports all of our policy and contract guarantees,
including those that apply to the fixed maturity options, as well as our
general obligations.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations
of all jurisdictions where we are authorized to do business. Because of
exemptions and exclusionary provisions that apply, interests in the general
account have not been registered under the Securities Act of 1933, nor is the
general account an investment company under the Investment Company Act of 1940.
However, the market value adjustment interests under the contracts are
registered under the Securities Act of 1933.
We have been advised that the staff of the SEC has not reviewed the portions of
this Prospectus that relate to the general account (other than market value
adjustment interests). The disclosure with regard to the general account,
however, may be subject to certain provisions of the federal securities laws
relating to the accuracy and completeness of statements made in prospectuses.
ABOUT OTHER METHODS OF PAYMENT
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY
You may use our automatic investment program, or "AIP," to have a specified
amount automatically deducted from a checking account, money market account, or
credit union checking account and contributed as an additional contribution
into an NQ contract on a monthly or quarterly basis. AIP is not available for
Rollover IRA, Roth Conversion IRA or QP contracts.
The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP
additional contributions may be allocated to any of the
More information 53
variable investment options and available fixed maturity options. You choose
the day of the month you wish to have your account debited. However, you may
not choose a date later than the 28th day of the month.
You may cancel AIP at any time by notifying our Processing Office. We are not
responsible for any debits made to your account before the time written notice
of cancellation is received at our processing office.
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept initial and subsequent contributions sent by wire to our processing
office by agreement with certain broker-dealers. Such transmittals must be
accompanied by information we require to allocate your contribution. Wire
orders not accompanied by complete information may be retained as described in
"How you can make your contributions" under "Contract features and benefits"
earlier in this Prospectus.
Even if we accept the wire order and essential information, a contract
generally will not be issued until we receive and accept a properly completed
application. In certain cases we may issue a contract based on information
provided through certain broker-dealers with which we have established
electronic facilities. In any such cases, you must sign our Acknowledgment of
Receipt form.
Where we require a signed application, the above procedures do not apply and no
financial transactions will be permitted until we receive the signed
application and have issued the contract. Where we issue a contract based on
information provided through electronic facilities, we require an
Acknowledgment of Receipt form, and financial transactions are only permitted
if you request them in writing, sign the request and have it signature
guaranteed, until we receive the signed Acknowledgment of Receipt form. After
your contract has been issued, additional contributions may be transmitted by
wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
After your contract has been issued, additional contributions may be
transmitted by wire.
DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this Prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our business day, generally, is any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions. Our business day generally ends at 4:00 p.m. Eastern Time for
purposes of determining the date when contributions are applied and any other
transaction requests are processed. Contributions will be applied and any other
transaction requests will be processed when they are received along with all
the required information unless another date applies as indicated below.
o If your contribution, transfer or any other transaction request, containing
all the required information, reaches us on a non-business day or after 4:00
p.m. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then the
transaction will occur on the 1st day of the next month.
o When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
o If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your contribution
will be considered received at the time your broker-dealer receives your
contribution and all information needed to process your application, along
with any required documents, and transmits your order to us in accordance
with our processing procedures. Such arrangements may apply to initial
contributions, subsequent contributions, or both, and may be commenced or
terminated at any time without prior notice. If required by law, the "closing
time" for such orders will be earlier than 4 p.m., Eastern Time.
CONTRIBUTIONS AND TRANSFERS
o Contributions allocated to the variable investment options are invested at
the unit value next determined after the close of the business day.
o Contributions allocated to a fixed maturity option will receive the rate to
maturity in effect for that fixed maturity option on that business day.
o Transfers to or from variable investment options will be made at the unit
value next determined after the close of the business day.
ABOUT YOUR VOTING RIGHTS
As the owner of the shares of the Trusts, we have the right to vote on certain
matters involving the portfolios, such as:
o the election of trustees;
o the formal approval of independent public accounting firms selected for each
Trust; or
o any other matters described in each prospectus for the Trusts or requiring a
shareholders' vote under the Investment Company Act of 1940.
54 More information
We will give contract owners the opportunity to instruct us how to vote the
number of shares attributable to their contracts if a shareholder vote is
taken. If we do not receive instructions in time from all contract owners, we
will vote the shares of a portfolio for which no instructions have been
received in the same proportion as we vote shares of that portfolio for which
we have received instructions. We will also vote any shares that we are
entitled to vote directly because of amounts we have in a portfolio in the same
proportions that contract owners vote.
VOTING RIGHTS OF OTHERS
Currently, we control the Trusts. Their shares are sold to our separate
accounts and an affiliated qualified plan trust. In addition, shares of the
Trusts are held by separate accounts of insurance companies both affiliated and
unaffiliated with us. Shares held by these separate accounts will probably be
voted according to the instructions of the owners of insurance policies and
contracts issued by those insurance companies. While this will dilute the
effect of the voting instructions of the contract owners, we currently do not
foresee any disadvantages because of this. The Board of Trustees of each Trust
intends to monitor events in order to identify any material irreconcilable
conflicts that may arise and to determine what action, if any, should be taken
in response. If we believe that a response to any of those events
insufficiently protects our contract owners, we will see to it that appropriate
action is taken.
SEPARATE ACCOUNT NO. 45 AND SEPARATE ACCOUNT NO. 49 VOTING RIGHTS
If actions relating to the Separate Accounts require contract owner approval,
contract owners will be entitled to one vote for each unit they have in the
variable investment options. Each contract owner who has elected a variable
annuity payout option may cast the number of votes equal to the dollar amount
of reserves we are holding for that annuity in a variable investment option
divided by the annuity unit value for that option. We will cast votes
attributable to any amounts we have in the variable investment options in the
same proportion as votes cast by contract owners.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this Prospectus are created under applicable
federal securities laws. To the extent that those laws or the regulations
published under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
ABOUT LEGAL PROCEEDINGS
AXA Equitable and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings would be considered material with respect
to a contract owner's interest in Separate Account No. 45 or Separate Account
No. 49, nor would any of these proceedings be likely to have a material adverse
effect upon the Separate Accounts, our ability to meet our obligations under
the contracts, or the distribution of the contracts.
ABOUT OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The consolidated financial statements of AXA Equitable at December 31, 2004 and
2003, and for the three years ended December 31, 2004, incorporated in this
Prospectus by reference to the 2004 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent registered
public accounting firm, given on the authority of said firm as experts in
auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 45 and Separate Account No.
49, as well as the consolidated financial statements of AXA Equitable, are in
the applicable SAI. The SAI is available free of charge. You may request one by
writing to our processing office or calling 1-800-789-7771.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING
You can transfer ownership of an NQ contract at any time before annuity
payments begin. We will continue to treat you as the owner until we receive
notification of any change at our processing office. You cannot assign your NQ
contract as collateral or security for a loan. Loans are also not available
under your NQ contract. In some cases, an assignment or change of ownership may
have adverse tax consequences. See "Tax information" earlier in this
Prospectus.
Loans are not available and you cannot assign IRA contracts as security for a
loan or other obligation. If your individual retirement annuity contract is
held in your custodial individual retirement account, you may only assign or
transfer ownership of such an IRA contract to yourself.
For limited transfers of ownership after the owner's death see "Beneficiary
continuation option" in "Payment of death benefit" earlier in this Prospectus.
You may direct the transfer of the values under your IRA contract to another
similar arrangement under federal income tax rules.
DISTRIBUTION OF THE CONTRACTS
The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and
AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). AXA
Advisors serves as the principal underwriter of Separate Account No. 45, and
AXA Distributors serves as the principal underwriter of Separate Account No.
49. The offering of the contracts is intended to be continuous.
AXA Advisors (the successor to EQ Financial Consultants, Inc.), an affiliate of
AXA Equitable, and AXA Distributors, an indirect wholly owned subsidiary of AXA
Equitable, are registered with the SEC as broker-dealers and are members of the
National Association of Securities Dealers, Inc. ("NASD"). Their principal
business address is 1290 Avenue of the Americas, New York, NY 10104. Both
broker-dealers also act as distributors for other AXA Equitable annuity
products. AXA Distributors is a successor by merger to all of the functions,
rights and
More information 55
obligations of Equitable Distributors, Inc. ("EDI"). Like AXA Distributors, EDI
was owned by Equitable Holdings, LLC.
The contracts are sold by financial professionals of AXA Advisors and its
affiliates and by financial professionals of both affiliated and unaffiliated
broker-dealers that have entered into selling agreements with the Distributors
("Selling broker-dealers"). Affiliated broker-dealers include MONY Securities
Corporation ("MSC")* and Advest, Inc. The Distributors, MSC and Advest are all
under the common control of AXA Financial, Inc.
AXA Equitable does not pay sales commissions to the Distributors in connection
with the sale of contracts.
The Distributors may pay certain affiliated and/or unaffiliated broker-dealers
and other financial intermediaries compensation for certain services and/or in
recognition of certain expenses that may be incurred by them or on their behalf
(commonly referred to as "marketing allowances"). Services for which such
payments are made may include, but are not limited to, the preferred placement
of AXA Equitable and/or our products on a company and/or product list; sales
personnel training; due diligence and related costs; marketing and related
services; conferences; and/or other support services, including some that may
benefit the contract owner. Payments may be based on the amount of assets or
purchase payments attributable to contracts sold through a broker-dealer. We
may also make fixed payments to broker-dealers in connection with the
initiation of a new relationship or the introduction of a new product. These
payments may serve as an incentive for Selling broker-dealers to promote the
sale of our products. Additionally, as an incentive for financial professionals
of Selling broker-dealers to promote the sale of our products, we may increase
the sales compensation paid to the Selling broker-dealer for a period of time
(commonly referred to as "compensation enhancements"). These types of payments
are made out of the Distributors' assets. Not all Selling broker-dealers
receive additional compensation. For more information about any such
arrangements, ask your financial professional.
The Distributors will receive 12b-1 fees from certain portfolios for providing
certain distribution and/or shareholder support services. In connection with
portfolios offered through unaffiliated insurance trusts, the Distributors may
also receive other payments from the portfolio advisers and/or their affiliates
for administrative costs, as well as payments for sales meetings and/or seminar
sponsorships.
In an effort to promote the sale of our products, AXA Advisors may provide its
financial professionals and managerial personnel with a higher percentage of
sales commissions and/or compensation for the sale of an affiliated variable
product than it would the sale of an unaffiliated product. Such practice is
known as providing "differential compensation." Other forms of compensation
financial professionals may receive include health and retirement benefits. In
addition, managerial personnel may receive expense reimbursements, marketing
allowances and commission-based payments known as "overrides." For tax reasons,
AXA Advisors financial professionals qualify for health and retirement benefits
based solely on their sales of our affiliated products.
These payments and differential compensation (together, the "payments") can
vary in amount based on the applicable product and/or entity or individual
involved. As with any incentive, such payments may cause the financial
professional to show preference in recommending the purchase or sale of our
products. However, under applicable rules of the NASD, AXA Advisors may only
recommend to you products that they reasonably believe are suitable for you
based on facts that you have disclosed as to your other security holdings,
financial situation and needs. In making any recommendation, financial
professionals may nonetheless face conflicts of interest because of the
differences in compensation from one product category to another, and because
of differences in compensation between products in the same category.
In addition, AXA Advisors financial professionals who meet specified production
levels for the sale of both affiliated and unaffiliated products may qualify,
under sales incentive programs, to receive non-cash compensation such as stock
options awards and/or stock appreciation rights, expense-paid trips,
expense-paid educational seminars and merchandise.
Although AXA Equitable takes all of its costs into account in establishing the
level of fees and expenses in our products, any compensation paid will not
result in any separate charge to you under your contract. All payments made
will be in compliance with all applicable NASD rules and other laws and
regulations.
- ----------------------
* On or about June 6, 2005, MSC financial professionals are expected to become
financial professionals of AXA Advisors. From that date forward, former MSC
financial professionals will be compensated by AXA Advisors, and the
Distributors will replace MSC as the principal underwriters of its affiliated
products.
56 More information
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
AXA Equitable's annual report on Form 10-K for the year ended December 31,
2004, is considered to be a part of this Prospectus because it is incorporated
by reference.
After the date of this Prospectus and before we terminate the offering of the
securities under this Prospectus, all documents or reports we file with the SEC
under the Securities Exchange Act of 1934 ("Exchange Act") will be considered
to become part of this Prospectus because they are incorporated by reference.
Any statement contained in a document that is, or becomes part of this
Prospectus, will be considered changed or replaced for purposes of this
Prospectus if a statement contained in this Prospectus changes or is replaced.
Any statement that is considered to be a part of this Prospectus because of its
incorporation will be considered changed or replaced for the purpose of this
Prospectus if a statement contained in any other subsequently filed document
that is considered to be part of this Prospectus changes or replaces that
statement. After that, only the statement that is changed or replaced will be
considered to be part of this Prospectus.
We file our Exchange Act documents and reports, including our Annual Report on
Form 10-K and Quarterly Report on Form 10-Q, electronically according to EDGAR
under CIK No. 0000727920. The SEC maintains a website that contains reports,
proxy and information statements, and other information regarding registrants
that file electronically with the SEC. The address of the website is
www.sec.gov.
Upon written or oral request, we will provide, free of charge, to each person
to whom this Prospectus is delivered, a copy of any or all of the documents
considered to be part of this Prospectus because they are incorporated herein.
This does not include exhibits not specifically incorporated by reference into
the text of such documents. Requests for documents should be directed to AXA
Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New
York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234).
Incorporation of certain documents by reference 57
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Accounts 45 and 49 with the same daily asset charges of
0.50%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004
- ------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
------------------------------------------------------------
2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.70 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
AXA Conservative Allocation
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.37 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
AXA Conservative-Plus Allocation
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.47 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
AXA Moderate Allocation
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 52.05 $ 48.11 $ 40.59 $ 46.74 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 1 3 3 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
AXA Moderate-Plus Allocation
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.71 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 63.39 $ 56.83 $ 41.54 $ 58.69 $ 78.83
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.49 $ 11.11 $ 10.76 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 1 2 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.33 $ 10.16 $ 7.97 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 34.38 $ 31.80 $ 26.08 $ 27.00 $ 26.95
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2 2 2 2 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.35 $ 10.52 $ 7.87 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- 1 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.72 $ 9.83 $ 7.71 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 1 2 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
A-1 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
------------------------------------------------------------
2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.44 $ 8.90 $ 6.84 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2 2 3 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.84 $ 10.40 $ 7.98 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.70 $ 8.72 $ 6.25 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 1 3 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.92 $ 10.40 $ 7.43 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- 1 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.36 $ 8.96 $ 5.71 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 14 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 304.68 $ 268.33 $ 180.32 $ 271.84 $ 306.09
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 13 7 7 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 31.15 $ 27.85 $ 21.46 $ 27.40 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 5 6 5 4 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 20.98 $ 20.69 $ 20.36 $ 18.84 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 7 4 10 8 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Alliance International
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.45 $ 12.29 $ 9.14 $ 10.22 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 4 5 4 3 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 6.60 $ 6.12 $ 4.99 $ 7.29 $ 9.63
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 1 4 3 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Quality Bond
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 17.51 $ 16.96 $ 16.46 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 6 6 6 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 16.41 $ 14.47 $ 10.32 $ 14.86 $ 17.22
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 4 4 11 4 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Bear Stearns Small Company Growth
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.04 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-2
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
-------------------------------------------------------------
2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 15.30 $ 13.56 $ 10.58 $ 12.31 $ 12.01
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 9 6 15 10 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Boston Advisors Equity Income
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 5.96 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.50 $ 8.25 $ 6.48 $ 8.85 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Growth
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.75 $ 12.14 $ 9.84 $ 13.43 $ 17.87
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 1 1 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.22 $ 9.92 $ 7.52 $ 8.90 $ 11.30
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 176 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.87 $ 10.76 $ 8.22 $ 10.97 $ 11.25
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- 6 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.65 $ 10.71 $ 7.89 $ 10.39 $ 10.66
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 16 17 13 1 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 28.13 $ 25.65 $ 20.16 $ 26.11 $ 29.88
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 62 62 1 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.77 $ 8.23 $ 5.99 $ 7.92 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.56 $ 10.01 $ 7.01 $ 8.64 $ 10.03
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 465 576 582 6 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 15.38 $ 13.12 $ 9.89 $ 11.66 $ 11.27
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 332 407 416 13 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.70 $ 14.19 $ 13.80 $ 12.65 $ 11.78
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 5 1 1 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/JP Morgan Value Opportunities
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.10 $ 12.78 $ 10.13 $ 12.57 $ 13.56
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
A-3 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
------------------------------------------------------------
2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 6.25 $ 5.60 $ 4.47 $ 6.45 $ 8.42
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3 11 13 10 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 17.65 $ 15.15 $ 11.08 $ 12.93 $ 11.04
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 12 16 7 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.36 $ 13.06 $ 10.01 $ 11.37 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3 3 2 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 21.32 $ 19.38 $ 14.84 $ 17.90 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 189 187 185 1 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Mercury International Value
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 18.04 $ 14.90 $ 11.70 $ 14.10 $ 18.06
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3 -- 8 -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.09 $ 12.58 $ 9.77 $ 14.96 $ 22.79
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.45 $ 8.53 $ 7.02 $ 8.94 $ 10.69
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 19 21 13 2 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Money Market
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 34.45 $ 34.36 $ 34.34 $ 34.09 $ 33.08
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2 2 1 19 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- 124 --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Montag & Caldwell Growth
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 4.67 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Index
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 15.24 $ 13.02 $ 8.97 $ 11.40 $ 11.22
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- 1 1 1 --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Value
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 26.24 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/TCW Equity
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 19.57 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
EQ/UBS Growth and Income
- ------------------------------------------------------------------------------------------------------------------------
Unit value $ 5.44 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-4
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
------------------------------------------------------------------
2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Van Kampen Emerging Markets Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.34 $ 9.21 $ 5.94 $ 6.34 $ 6.72
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 12 11 11 2 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
A-5 Appendix I: Condensed financial information
Appendix II: Purchase considerations for QP contracts
- --------------------------------------------------------------------------------
Trustees who are considering the purchase of an Accumulator(R) Advisor(SM) QP
contract in conjunction with a fee-based program should discuss with their tax
advisers whether this is an appropriate investment vehicle for the employer's
plan. Trustees should consider whether the plan provisions permit the
investment of plan assets in the QP contract, the distribution of such an
annuity and the payment of death benefits in accordance with the requirements
of the federal income tax rules. The QP contract and this Prospectus should be
reviewed in full, and the following factors, among others, should be noted.
Assuming continued plan qualification and operation, earnings on qualified plan
assets will accumulate value on a tax-deferred basis even if the plan is not
funded by the Accumulator(R) Advisor(SM) QP contract or another annuity.
Therefore, you should purchase an Accumulator(R) Advisor(SM) QP contract to fund
a plan for the contract's features and benefits other than tax deferral, after
considering the relative costs and benefits of annuity contracts and other
types of arrangements and funding vehicles. This QP contract accepts transfer
contributions only and not regular, ongoing payroll contributions. For 401(k)
plans under defined contribution plans, no employee after-tax contributions are
accepted.
We will not accept defined benefit plans. For defined contribution plans, we
will only accept transfers from another defined contribution plan or a change
of investment vehicles in the plan. Only one additional transfer contribution
may be made per contract year. If overfunding of a plan occurs or amounts
attributable to an excess contribution must be withdrawn, withdrawals from the
QP contract may be required. A market value adjustment may apply.
Further, AXA Equitable will not perform or provide any plan recordkeeping
services with respect to the QP contracts. The plan's administrator will be
solely responsible for performing or providing for all such services. There is
no loan feature offered under the QP contracts, so if the plan provides for
loans and a participant/ employee takes a loan from the plan, other plan assets
must be used as the source of the loan and any loan repayments must be credited
to other investment vehicles and/or accounts available under the plan.
Given that required minimum distributions must generally commence from the plan
for annuitants after age 70-1/2, trustees should consider that:
o the QP contract may not be an appropriate purchase for annuitants approaching
or over age 70-1/2; and,
o provisions in the Treasury Regulations on required minimum distributions will
require, beginning in 2006, that the actuarial present value of additional
annuity contract benefits be added to the dollar amount credited for purposes
of calculating required minimum distributions. This could increase the
amounts required to be distributed from the contract.
Finally, because the method of purchasing the QP contract, including the large
initial contribution, and the features of the QP contract may appeal more to
plan participants/employees who are older and tend to be highly paid, and
because certain features of the QP contract are available only to plan
participants/employees who meet certain minimum and/or maximum age
requirements, plan trustees should discuss with their advisers whether the
purchase of the QP contract would cause the plan to engage in prohibited
discrimination in contributions, benefits or otherwise.
Appendix II: Purchase considerations for QP contracts B-1
Appendix III: Market value adjustment example
- --------------------------------------------------------------------------------
The example below shows how the market value adjustment would be determined and
how it would be applied to a withdrawal, assuming that $100,000 was allocated
on February 15, 2005 to a fixed maturity option with a maturity date of
February 15, 2014 (nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value at the maturity date of $183,846 on the
maturity date. We further assume that a withdrawal of $50,000 is made four
years later on February 15, 2009.
- -----------------------------------------------------------------------------------------------------------------
Hypothetical assumed rate to maturity on February 15, 2009
------------------------------------------------------------
5.00% 9.00%
- -----------------------------------------------------------------------------------------------------------------
As of February 15, 2009 (before withdrawal)
- -----------------------------------------------------------------------------------------------------------------
(1) Market adjusted amount $144,048 $ 119,487
- -----------------------------------------------------------------------------------------------------------------
(2) Fixed maturity amount $131,080 $ 131,080
- -----------------------------------------------------------------------------------------------------------------
(3) Market value adjustment:
(1) - (2) $ 12,968 $ (11,593)
- -----------------------------------------------------------------------------------------------------------------
On February 15, 2009 (after withdrawal)
- -----------------------------------------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with
withdrawal:
(3) x [$50,000/(1)] $ 4,501 $ (4,851)
- -----------------------------------------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount:
[$50,000 - (4)] $ 45,499 $ 54,851
- -----------------------------------------------------------------------------------------------------------------
(6) Fixed maturity amount: (2) - (5) $ 85,581 $ 76,229
- -----------------------------------------------------------------------------------------------------------------
(7) Maturity value $120,032 $ 106,915
- -----------------------------------------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,048 $ 69,487
- -----------------------------------------------------------------------------------------------------------------
You should note that under this example if a withdrawal is made when rates have
increased from 7.00% to 9.00% (right column), a portion of a negative market
value adjustment is realized. On the other hand, if a withdrawal is made when
rates have decreased from 7.00% to 5.00% (left column), a portion of a positive
market value adjustment is realized.
C-1 Appendix III: Market value adjustment example
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Unit Values 2
Custodian and Independent Registered Public Accounting Firm 2
Distribution of the Contracts 2
Financial Statements 2
How to obtain an Accumulator(R) Advisor(SM) Statement of Additional Information
for Separate Account No. 45 and Separate Account No. 49
Send this request form to:
Accumulator(R) Advisor(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me an Accumulator(R) Advisor(SM) SAI dated May 1, 2005.
- --------------------------------------------------------------------------------
Name
- --------------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
City State Zip
(SAI 9AMLF (5/05))
x01011/Advisor
AXA Equitable Life Insurance Company --
SUPPLEMENT DATED MAY 1, 2005, TO THE MAY 1, 2005, ACCUMULATOR(R) ADVISOR(SM)
PROSPECTUS AND STATEMENTS OF ADDITIONAL INFORMATION ("SAI"):
- --------------------------------------------------------------------------------
This supplement is for the Accumulator(R) Advisor(SM) product that is
distributed through AXA Advisors, LLC, and modifies certain information in the
above-referenced Prospectus and SAI, as supplemented to date (the "Prospectus").
Unless otherwise indicated, all other information included in the Prospectus
remains unchanged. The terms and section headings we use in this supplement have
the same meaning as in the Prospectus.
1. The guaranteed minimum death benefit described in this supplement is
available instead of the minimum death benefit described in the prospectus.
Therefore, all references in the prospectus to "minimum death benefit"
are hereby changed to "guaranteed minimum death benefit." In addition, the
following additions and/or modifications are made to the Prospectus under
the sections indicated below to reflect the guaranteed minimum death benefit
feature.
A. In "Accumulator(R) Advisor(SM) at a glance -- key features"
Under "Tax considerations," the following sentence is added to the end of
the paragraph:
Depending on your personal situation, the contract's guaranteed benefits
may have limited usefulness because of required minimum distributions
("RMDs").
Under "Additional features," a new bullet is added as follows:
o Guaranteed minimum death benefit
In "Contents of this Prospectus" under "Contract features and benefits"
the following is added after "Allocating your contributions":
Guaranteed minimum death benefit
B. In "Contract features and benefits" please note the following changes:
Under "Guaranteed minimum death benefit," the following paragraph is added
after the first paragraph in this section:
If you change ownership of the contract, generally the Guaranteed minimum
death benefit will automatically terminate, except under certain
circumstances. See "Determining your contract`s value," under "Termination
of your contract," later in this Prospectus for more information.
The following new section is added after "Allocating your contributions":
Guaranteed minimum death benefit
A guaranteed minimum death benefit is provided under your contract at no
additional charge.
Guaranteed minimum death benefit applicable for annuitant ages 0 through
79 at issue of NQ contracts; 20 through 79 at issue of Rollover IRA and
Roth Conversion IRA contracts; and 20 through 75 at issue of QP contracts.
Annual ratchet to age 80. On the contract date, your guaranteed minimum
death benefit equals your initial contribution. Then, on each contract
date anniversary, we will determine your guaranteed minimum death benefit
by comparing your current guaranteed minimum death benefit to your account
value on that contract date anniversary. If your account value is higher
than your guaranteed minimum death benefit, we will increase your
guaranteed minimum death benefit to equal your account value. On the other
hand, if your account value on the contract date anniversary is less than
your guaranteed minimum death benefit, we will not adjust your guaranteed
minimum death benefit either up or down. If you make additional
contributions, we will increase your current guaranteed minimum death
benefit by the dollar amount of the contribution on the date the
contribution is allocated to your investment options. If you take a
withdrawal from your contract, we will adjust your guaranteed minimum
death benefit on the date you take the withdrawal.
x01008/SA45
IM-02-14 (5/05) Cat. No. 131982(5/05)
Guaranteed minimum death benefit applicable for annuitant ages 80 through
83 at issue of NQ, Rollover IRA and Roth Conversion IRA contracts.
On the contract date, your guaranteed minimum death benefit equals your
initial contribution. Thereafter, it will be increased by the dollar
amount of any additional contributions. We will adjust your guaranteed
minimum death benefit if you take any withdrawals.
Please see, "Termination of your contract" in "Determining your contract
value" earlier in the Prospectus and "How withdrawals affect your
guaranteed minimum death benefit" in "Accessing your money" later in the
Prospectus for information on how withdrawals affect your guaranteed
minimum death benefit.
See Appendix IV for an example of how we calculate the guaranteed minimum
death benefit.
C. In "More information," under "Transfers of ownership, collateral
assignments, loans and borrowing," the following paragraph is added after
the first paragraph in this section:
For NQ contracts only, subject to regulatory approval, generally the
Guaranteed minimum death benefit (the "Benefit") will automatically
terminate if you change ownership of the contract or if you assign the
owner's right to change the beneficiary or person to whom annuity payments
will be made. If this occurs the Benefit will be replaced with the minimum
death benefit, and all provisions in the Prospectus regarding the minimum
death benefit apply. See "Your beneficiary and payment of death benefit"
in "Payment of death benefit." However, the Benefit will not terminate if
the ownership of the contract is transferred to: (i) a family member (as
defined in the contract); (ii) a trust created for the benefit of a family
member or members; (iii) a trust qualified under section 501(c) of the
Internal Revenue Code; or (iv) a successor by operation of law, such as an
executor or guardian. Please speak with your financial professional for
further information.
If you are receiving this supplement as an in-force customer, this
provision may not apply to you. Please refer to your contract or speak
with your financial professional.
D. In "Accessing your money" under "How withdrawals affect your minimum death
benefit," all references to "minimum death benefit" are replaced by
"guaranteed minimum death benefit."
E. In "Accessing your money" under "Withdrawing your account value," the
second paragraph is deleted in its entirety and replaced with the
following:
Please see "Termination of your contract" in "Determining your contract
value" earlier in the Prospectus and "How withdrawals affect your
guaranteed minimum death benefit" below for more information on how
withdrawals affect your guaranteed minimum death benefit and could
potentially cause your contract to terminate.
F. In "Accessing your money" under "Lifetime required minimum distribution
withdrawals" the first paragraph is deleted in its entirety and replaced
with the following:
We offer our "automatic required minimum distribution (RMD) service" to
help you meet lifetime required minimum distributions under federal income
tax rules. This is not the exclusive way for you to meet these rules.
After consultation with your tax adviser, you may decide to compute
required minimum distributions yourself and request lump sum withdrawals.
Before electing this account based withdrawal option, you should consider
whether annuitization might be better in your situation. If you have
certain additional benefits in your contract, such as the Guaranteed
minimum death benefit, amounts withdrawn from the contract to meet RMDs
will reduce the benefit base and may limit the utility of the benefit.
Also, please refer to "Tax information" later in the Prospectus for
considerations on annuity contracts funding qualified plans, and IRAs.
G. In "Charges and expenses," under "Group or sponsored arrangements" the
second sentence is deleted and replaced with the following:
We may also change the guaranteed minimum death benefit or offer variable
investment options that invest in shares of either Trust that are not
subject to the 12b-1 fee.
H. In "Payment of death benefit" under "Your beneficiary and payment of
benefit," the third paragraph is deleted in its entirety and replaced
with the following:
The death benefit is equal to your account value (without adjustment for
any otherwise applicable negative market value adjustment) or, if greater,
the guaranteed minimum death benefit. We determine the amount of the death
benefit (other than the guaranteed minimum death benefit) as of the date
we receive satisfactory proof of the annuitant's death, any required
instructions for payment, information and forms necessary to effect
payment. The amount of the guaranteed minimum death benefit will be the
guaranteed minimum death benefit as of the date of the annuitant's death
adjusted for any subsequent withdrawals.
2
I. An Appendix IV is added as follows:
Appendix IV: Guaranteed minimum death benefit example
The death benefit under the contracts is equal to the account value or, if
greater, the guaranteed minimum death benefit.
The following illustrates the guaranteed minimum death benefit
calculation. Assuming $100,000 is allocated to the variable investment
options (with no allocation to the EQ/Money Market option, AXA Premier VIP
Core Bond option, EQ/Alliance Intermediate Government Securities option,
EQ/Alliance Quality Bond option or the fixed maturity options), no
additional contributions, no transfers, no withdrawals and no loans under
a Rollover TSA contract, the guaranteed minimum death benefit for an
annuitant age 45 would be calculated as follows:
- -----------------------------------------------------------------
End of Annual ratchet to age 80
contract guaranteed minimum
year Account value death benefit
- -----------------------------------------------------------------
1 $105,000 $105,000 (1)
2 $115,500 $115,500 (1)
3 $129,360 $129,360 (1)
4 $103,488 $129,360 (2)
5 $113, 837 $129,360 (2)
6 $127,497 $129,360 (2)
7 $127,497 $129,360 (2)
- -----------------------------------------------------------------
The account values for contract years 1 through 7 are based on
hypothetical rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%,
12.00% and 0.00%. We are using these rates solely to illustrate how the
benefit is determined. The return rates bear no relationship to past or
future investment results.
Annual ratchet to age 80
(1) At the end of contract years 1 through 3, the guaranteed minimum
death benefit is equal to the current account value.
(2) At the end of contract years 4 through 7, the guaranteed minimum
death benefit is equal to the guaranteed minimum death benefit
at the end of the prior year since it is equal to or higher than the
current account value."
3
Accumulator(R)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2005
Please read and keep this Prospectus for future reference. It contains important
information that you should know before taking any action under your contract.
You should read the prospectuses for each Trust, which contain important
information about the portfolios.
- --------------------------------------------------------------------------------
WHAT IS THE ACCUMULATOR(R)?
Accumulator(R) is a deferred annuity contract issued by AXA Equitable Life
Insurance Company. It provides for the accumulation of retirement savings and
for income. The contract offers income and death benefit protection. It also
offers a number of payout options. You invest to accumulate value on a
tax-deferred basis in one or more of our variable investment options or fixed
maturity options ("investment options").
This contract is no longer available for new purchasers. This Prospectus is
designed for current contract owners.
- --------------------------------------------------------------------------------
Variable investment options
- --------------------------------------------------------------------------------
o AXA Aggressive Allocation(1) o EQ/Caywood-Scholl High Yield Bond(3)
o AXA Conservative Allocation(1) o EQ/Equity 500 Index
o AXA Conservative-Plus Allocation(1) o EQ/Evergreen Omega
o AXA Moderate Allocation(1) o EQ/FI Mid Cap
o AXA Moderate-Plus Allocation(1) o EQ/FI Small/Mid Cap Value
o AXA Premier VIP Aggressive Equity o EQ/International Growth(3)
o AXA Premier VIP Core Bond o EQ/J.P. Morgan Core Bond
o AXA Premier VIP Health Care o EQ/JP Morgan Value Opportunities
o AXA Premier VIP High Yield o EQ/Janus Large Cap Growth
o AXA Premier VIP International Equity o EQ/Lazard Small Cap Value
o AXA Premier VIP Large Cap Core o EQ/Long Term Bond(3)
Equity o EQ/Lord Abbett Growth and Income(3)
o AXA Premier VIP Large Cap Growth o EQ/Lord Abbett Large Cap Core(3)
o AXA Premier VIP Large Cap Value o EQ/Lord Abbett Mid Cap Value(3)
o AXA Premier VIP Small/Mid Cap o EQ/Marsico Focus
Growth o EQ/Mercury Basic Value Equity
o AXA Premier VIP Small/Mid Cap Value o EQ/Mercury International Value
o AXA Premier VIP Technology o EQ/Mergers and Acquisitions(3)
o EQ/Alliance Common Stock o EQ/MFS Emerging Growth Companies
o EQ/Alliance Growth and Income o EQ/MFS Investors Trust
o EQ/Alliance Intermediate Government o EQ/Money Market
Securities o EQ/Montag & Caldwell Growth(2)
o EQ/Alliance International o EQ/PIMCO Real Return(3)
o EQ/Alliance Large Cap Growth(2) o EQ/Short Duration Bond(3)
o EQ/Alliance Quality Bond o EQ/Small Company Index
o EQ/Alliance Small Cap Growth o EQ/Small Company Value(2)
o EQ/Bear Stearns Small Company o EQ/TCW Equity(2)
Growth(2) o EQ/UBS Growth and Income(2)
o EQ/Bernstein Diversified Value o EQ/Van Kampen Comstock(3)
o EQ/Boston Advisors Equity Income(2) o EQ/Van Kampen Emerging Markets
o EQ/Calvert Socially Responsible Equity(2)
o EQ/Capital Guardian Growth o EQ/Van Kampen Mid Cap Growth(3)
o EQ/Capital Guardian International o EQ/Wells Fargo Montgomery Small
o EQ/Capital Guardian Research Cap(3)
o EQ/Capital Guardian U.S. Equity
(1) The "AXA Allocation" portfolios.
(2) This is the option's new name, effective on or about May 9, 2005, subject
to regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former
name.
(3) Available on or about May 9, 2005, subject to regulatory approval. Please
see "Portfolios of the Trusts" in "Contract features and benefits" later
in this Prospectus for more information on the new investment option.
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of Separate Account No. 45 and
Separate Account No. 49. Each variable investment option, in turn, invests in a
corresponding securities portfolio of EQ Advisors Trust or AXA Premier VIP
Trust (the "Trusts"). Your investment results in a variable investment option
will depend on the investment performance of the related portfolio.
You may also alllocate amounts to the fixed maturity options, which is
discussed later in this Prospectus.
TYPES OF CONTRACTS. Contracts were offered for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only.
o An individual retirement annuity ("IRA"), either traditional IRA or Roth IRA.
We offer "Rollover IRA" and "Roth Conversion IRA."
o An annuity that is an investment vehicle for a qualified defined contribution
plan ("QP").
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") --
("Rollover TSA").
A contribution of at least $5,000 was required to purchase an NQ, Rollover IRA,
Roth Conversion IRA, QP or Rollover TSA contract.
Registration statements relating to this offering have been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2005, is a part of one of the registration
statements. The SAI is available free of charge. You may request one by writing
to our processing office or calling 1-800-789-7771. The SAI has been
incorporated by reference into this prospectus. This Prospectus and the SAI can
also be obtained from the SEC's website at www.sec.gov. The table of contents
for the SAI appears at the back of this Prospectus.
The SEC has not approved or disapproved these securities or determined if this
Prospectus is accurate or complete. Any representation to the contrary is a
criminal offense. The contracts are not insured by the FDIC or any other
agency. They are not deposits or other obligations of any bank and are not bank
guaranteed. They are subject to investment risks and possible loss of
principal.
X01002
Oregon only
Contents of this Prospectus
- --------------------------------------------------------------------------------
ACCUMULATOR(R)
- --------------------------------------------------------------------------------
Index of key words and phrases 4
Who is AXA Equitable? 5
How to reach us 6
Accumulator(R) at a glance -- key features 8
- --------------------------------------------------------------------------------
FEE TABLE 10
- --------------------------------------------------------------------------------
Example 13
Condensed financial Information 16
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 17
- --------------------------------------------------------------------------------
How you can contribute to your contract 17
Owner and annuitant requirements 20
How you can make your contributions 20
What are your investment options under the contract? 20
Portfolios of the Trusts 21
Allocating your contributions 25
Your benefit base 26
Annuity purchase factors 27
Our baseBUILDER option 27
Guaranteed minimum death benefit 29
Your right to cancel within a certain number of days 30
- --------------------------------------------------------------------------------
2. DETERMINING YOUR CONTRACT'S VALUE 31
- --------------------------------------------------------------------------------
Your account value and cash value 31
Your contract's value in the variable investment options 31
Your contract's value in the fixed maturity options 31
Termination of your contract 31
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG
INVESTMENT OPTIONS 32
- --------------------------------------------------------------------------------
Transferring your account value 32
Disruptive transfer activity 32
Rebalancing your account value 33
- ----------------------
"We," "our," and "us" refer to AXA Equitable.
When we address the reader of this Prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the contract owner.
When we use the word "contract" it also includes certificates that are issued
under group contracts in some states.
2 Contents of this Prospectus
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 34
- --------------------------------------------------------------------------------
Withdrawing your account value 34
How withdrawals are taken from your account value 35
How withdrawals affect your guaranteed minimum income benefit
and guaranteed minimum death benefit 35
Loans under Rollover TSA contracts 35
Surrendering your contract to receive its cash value 36
When to expect payments 36
Your annuity payout options 36
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 39
- --------------------------------------------------------------------------------
Charges that AXA Equitable deducts 39
Charges that the Trusts deduct 40
Group or sponsored arrangements 40
Other distribution arrangements 41
- --------------------------------------------------------------------------------
6. PAYMENT OF DEATH BENEFIT 42
- --------------------------------------------------------------------------------
Your beneficiary and payment of benefit 42
How death benefit payment is made 42
Beneficiary continuation option 43
- --------------------------------------------------------------------------------
7. TAX INFORMATION 45
- --------------------------------------------------------------------------------
Overview 45
Contracts that fund a retirement arrangement 45
Transfers among investment options 45
Taxation of nonqualified annuities 45
Individual retirement arrangements (IRAs) 47
Tax-sheltered annuity contracts (TSAs) 56
Federal and state income tax withholding and
information reporting 59
Special rules for contracts funding qualified plans 60
Impact of taxes to AXA Equitable 60
- --------------------------------------------------------------------------------
8. MORE INFORMATION 61
- --------------------------------------------------------------------------------
About Separate Account No. 45 and Separate Account No. 49 61
About the Trusts 61
About our fixed maturity options 61
About the general account 62
About other methods of payment 62
Dates and prices at which contract events occur 63
About your voting rights 63
About legal proceedings 64
About our independent registered public accounting firm 64
Financial statements 64
Transfers of ownership, collateral assignments, loans
and borrowing 64
Distribution of the contracts 64
- --------------------------------------------------------------------------------
9. INCORPORATION OF CERTAIN DOCUMENTS
BY REFERENCE 67
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed financial information A-1
II -- Purchase considerations for QP contracts B-1
III -- Market value adjustment example C-1
IV -- Guaranteed minimum death benefit example D-1
V -- Hypothetical illustrations E-1
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Contents of this Prospectus 3
Index of key words and phrases
- --------------------------------------------------------------------------------
This index should help you locate more information on the terms used in this
Prospectus.
Term Page in
Prospectus
5% Roll up to age 80 29
12 month dollar cost averaging 26
account value 31
administrative charge 39
Annual Ratchet to age 80 29
annuitant 17
annuity maturity date 38
annuity payout options 36
annuity purchase factors 27
automatic investment program 63
baseBUILDER 27
baseBUILDER Benefit charge 40
beneficiary 42
Beneficiary Continuation Option ("BCO") 43
benefit base 26
business day 63
cash value 31
charges for state premium and other applicable taxes 40
contract date 9
contract date anniversary 9
contract year 9
contributions to Roth IRAs 53
regular contributions 53
rollover and direct transfers 53
conversion contributions 54
contributions to traditional IRAs 47
regular contributions 48
rollovers and transfers 49
disability, terminal illness or confinement
to nursing home 40
disruptive transfer activity 32
EQAccess 6
ERISA 36
fixed maturity options 25
free look 30
free withdrawal amount 39
general account 62
guaranteed minimum death benefit 27
guaranteed minimum income benefit 27
IRA cover
IRS cover
Term Page in
Prospectus
investment options cover
lifetime required minimum distribution withdrawals 35
loan reserve account 36
loans under Rollover TSA contracts 35
lump sum withdrawals 34
market adjusted amount 25
market value adjustment 25
market timing 32
maturity dates 25
maturity value 25
Mortality and expense risks charge 39
NQ cover
participant 20
portfolio cover
Principal assurance allocation 25
processing office 6
Protection Plus(SM) 29
Protection Plus(SM) charge 40
QP cover
rate to maturity 25
Rebalancing 33
Rollover IRA cover
Rollover TSA cover
Roth Conversion IRA cover
Roth IRA cover
SAI cover
SEC cover
self-directed allocation 25
Separate Account No. 45 and Separate Account No. 49 61
substantially equal withdrawals 34
Successor owner and annuitant 43
systematic withdrawals 34
TOPS 6
TSA cover
traditional IRA cover
Trusts 61
unit 31
variable investment options 20
wire transmittals and electronic applications 62
withdrawal charge 39
To make this Prospectus easier to read, we sometimes use different words than
in the contract or supplemental materials. This is illustrated below. Although
we use different words, they have the same meaning in this Prospectus as in the
contract or supplemental materials. Your financial professional can provide
further explanation about your contract.
---------------------------------------------------------------------------
Prospectus Contract or Supplemental Materials
---------------------------------------------------------------------------
fixed maturity options Guarantee Periods (Guaranteed Fixed
Interest Accounts in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
baseBUILDER Guaranteed Minimum Income Benefit
- ---------------------------------------------------------------------------
4 Index of key words and phrases
Who is AXA Equitable?
- --------------------------------------------------------------------------------
We are AXA Equitable Life Insurance Company ("AXA Equitable") (previously, The
Equitable Life Assurance Society of the United States), a New York stock life
insurance corporation. We have been doing business since 1859. AXA Equitable is
a subsidiary of AXA Financial, Inc. AXA, a French holding company for an
international group of insurance and related financial services companies, is
the sole shareholder of AXA Financial, Inc. As the sole shareholder, and under
its other arrangements with AXA Equitable and AXA Equitable's parent, AXA
exercises significant influence over the operations and capital structure of
AXA Equitable and its parent. No company other than AXA Equitable, however, has
any legal responsibility to pay amounts that AXA Equitable owes under the
contract.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$598 billion in assets as of December 31, 2004. For over 100 years AXA
Equitable has been among the largest insurance companies in the United States.
We are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office
is located at 1290 Avenue of the Americas, New York, N.Y. 10104.
Who is AXA Equitable? 5
HOW TO REACH US
You may communicate with our processing office as listed below for the purposes
described. Certain methods of contacting us, such as by telephone or
electronically, may be unavailable or delayed (for example our facsimile
service may not be available at all times and/or we may be unavailable due to
emergency closing). In addition, the level and type of service available may be
restricted based on criteria established by us.
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Accumulator(R)
P.O. Box 13014
Newark, NJ 07188-0014
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Accumulator(R)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY
REGULAR MAIL:
- --------------------------------------------------------------------------------
Accumulator(R)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY
EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Accumulator(R)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year and any
calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract
year, including notification of eligibility to exercise the guaranteed
minimum income benefit, if applicable.
- --------------------------------------------------------------------------------
TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND
EQACCESS SYSTEMS:
- --------------------------------------------------------------------------------
TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQAccess is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for the fixed maturity options;
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
available through TOPS).
You can also:
o change your allocation percentages and/or transfer among the investment
options;
o elect to receive certain contract statements electronically;
o change your address (not available through TOPS);
o change your TOPS personal identification number ("PIN") (through TOPS only)
and your EQAccess password (through EQAccess only);
o access Frequently Asked Questions and Service Forms (not available through
TOPS); and
o change your EQAccess password (not available through TOPS).
TOPS and EQAccess are normally available seven days a week, 24 hours a day. You
may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our website at www.axaonline.com and
logging in to access your account All other clients may access EQAccess by
visiting our website at www.axa-equitable.com. Of course, for reasons beyond
our control, these services may sometimes be unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or Internet are genuine. For example, we will require
certain personal identification information before we will act on telephone or
Internet instructions and we will provide written confirmation of your
transfers. If we do not employ reasonable procedures to confirm the genuineness
of telephone or Internet instructions, we may be liable for any losses arising
out of any act or omission that constitutes negligence, lack of good faith, or
willful misconduct. In light of our procedures, we will not be liable for
following telephone or Internet instructions we reasonably believe to be
genuine.
We reserve the right to limit access to these services if we determine that you
engaged in a disruptive transfer activity, such as "market timing" (see
"Disruptive transfer activity" in "Transferring your money among investment
options" later in this Prospectus).
- --------------------------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVE:
- --------------------------------------------------------------------------------
You may also use our toll-free number (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
6 Who is AXA Equitable?
(2) conversion of a traditional IRA to a Roth Conversion IRA;
(3) election of the automatic investment program;
(4) election of the rebalancing program;
(5) requests for loans under Rollover TSA contracts;
(6) spousal consent for loans under Rollover TSA contracts;
(7) requests for withdrawals or surrenders from Rollover TSA
contracts;
(8) tax withholding elections;
(9) election of the beneficiary continuation option;
(10) IRA contribution recharacterizations;
(11) certain Section 1035 exchanges;
(12) direct transfers;
(13) exercise of the Guaranteed minimum income benefit; and
(14) death claims.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between investment options;
(4) contract surrender and withdrawal requests;
(5) general dollar cost averaging; and
(6) 12 month dollar cost averaging.
TO CANCEL OR CHANGE ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) automatic investment program;
(2) general dollar cost averaging;
(3) rebalancing;
(4) 12 month dollar cost averaging;
(5) substantially equal withdrawals;
(6) systematic withdrawals and;
(7) the date annuity payments are to begin.
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us to
take.
SIGNATURES:
The proper person to sign forms, notices and requests would normally be the
owner. If there are joint owners, all must sign.
Who is AXA Equitable? 7
Accumulator(R) at a glance -- key features
- --------------------------------------------------------------------------------
Professional investment Accumulator(R)'s variable investment options invest in different portfolios managed by professional
management investment advisers.
- ------------------------------------------------------------------------------------------------------------------------------------
Fixed maturity options o 10 fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years (subject
to availability).
o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to
maturity.
--------------------------------------------------------------------------------------------------------
If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a
market value adjustment due to differences in interest rates. If you withdraw or transfer only a portion
of a fixed maturity amount, this may increase or decrease any value that you have left in that fixed
maturity option. If you surrender your contract, a market value adjustment also applies.
- ------------------------------------------------------------------------------------------------------------------------------------
Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or receive
annuity payments.
o No tax on transfers among investment options inside the contract.
--------------------------------------------------------------------------------------------------------
Annuity contracts that were purchased as an Individual Retirement Annuity (IRA), Tax Sheltered Annuity
(TSA) or to fund an employer retirement plan (QP or Qualified Plan) do not provide tax deferral benefits
beyond those already provided by the Internal Revenue Code. Before you purchased your contract, you
should have considered its features and benefits beyond tax deferral -- as well as its features,
benefits and costs relative to any other investment that you may have chosen in connection with your
retirement plan or arrangement -- to determine whether it would meet your needs and goals. Depending on
your personal situation, the contract's guaranteed benefits may have limited usefulness because of
required minimum distributions ("RMDs").
- ------------------------------------------------------------------------------------------------------------------------------------
baseBUILDER(R) protection baseBUILDER combines a guaranteed minimum income benefit with a guaranteed minimum death benefit
provided under the contract. The guaranteed minimum income benefit provides income protection for you
during the annuitant's life once you elect to annuitize the contract. The guaranteed minimum death
benefit provides a death benefit for the beneficiary should the annuitant die.
- ------------------------------------------------------------------------------------------------------------------------------------
Contribution amounts o Initial minimum: $5,000
o Additional minimum: $1,000 (NQ, QP and Rollover TSA contracts)
$100 monthly and $300 quarterly under our automatic investment program
(NQ contracts)
$50 (IRA contracts)
Maximum contribution limitations may apply. In general, contributions are limited to $1.5
million.
- ------------------------------------------------------------------------------------------------------------------------------------
Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Loans under Rollover TSA contracts
o Contract surrender
You may incur a withdrawal charge for certain withdrawals or if you surrender your contract. You may
also incur income tax and a tax penalty.
- ------------------------------------------------------------------------------------------------------------------------------------
Payout alternative o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout options
- ------------------------------------------------------------------------------------------------------------------------------------
8 Accumulator(R) at a glance -- key features
Additional features o Guaranteed minimum death benefit even if you do not elect baseBuilder
o Dollar cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually and annually)
o Free transfers
o Waiver of withdrawal charge for disability, terminal illness or confinement to a nursing home
o Protection Plus(SM), an optional death benefit available under certain contracts (subject to state
availability)
- ------------------------------------------------------------------------------------------------------------------------------------
Fees and charges o Daily charges on amounts invested in variable investment options for mortality and expense risks at a
current annual rate of 1.35%.
o Annual 0.30% benefit base charge for the optional baseBUILDER benefit until you exercise your
guaranteed minimum income benefit, elect another annuity payout or the contract date anniversary after
the annuitant reaches age 83, whichever occurs first. The annual benefit base charge is 0.15% if the
5% roll up to age 70, if available, is elected. The benefit base is described under "Your benefit
base" in "Contract features and benefits" later in this Prospectus. If you do not elect baseBUILDER,
you still receive a guaranteed minimum death benefit under your contract at no additional charge.
o An annual charge of 0.20% of the account value for the Protection Plus(SM) optional death benefit.
o No sales charge deducted at the time you make contributions. During the first seven contract years
following a contribution, a charge will be deducted from amounts that you withdraw that exceed 15% of
your account value. We use the account value at the beginning of each contract year to calculate the
15% amount available. The charge begins at 7% in the first contract year following a contribution. It
declines by 1% each year to 1% in the seventh contract year. There is no withdrawal charge in the
eighth and later contract years following a contribution.
--------------------------------------------------------------------------------------------------------
The "contract date" is the effective date of a contract. This usually is the business day we received
the properly completed and signed application, along with any other required documents, and your initial
contribution. Your contract date appears in your contract. The 12-month period beginning on your
contract date and each 12-month period after that date is a "contract year." The end of each 12-month
period is your "contract date anniversary." For example, if your contract date is May 1, your contract
date anniversary is April 30.
-------------------------------------------------------------------------------------------------------
o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium
taxes in your state. This charge is generally deducted from the amount applied to an annuity payout
option.
o We deduct a $350 annuity administrative fee from amounts applied to purchase the Variable Immediate
Annuity payout options.
o Annual expenses of the Trusts' portfolios are calculated as a percentage of the average daily net
assets invested in each portfolio. These expenses include management fees ranging from 0.10% to 1.20%
annually, 12b-1 fees of 0.25% annually and other expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant issue ages NQ: 0-83
Rollover IRA, Roth Conversion
IRA, and Rollover TSA: 20-83
QP: 20-75
- ------------------------------------------------------------------------------------------------------------------------------------
THE ABOVE IS NOT A COMPLETE DESCRIPTION OF ALL MATERIAL PROVISIONS OF THE
CONTRACT. IN SOME CASES, RESTRICTIONS OR EXCEPTIONS APPLY. ALSO, ALL FEATURES
OF THE CONTRACT ARE NOT NECESSARILY AVAILABLE IN YOUR STATE OR AT CERTAIN AGES.
For more detailed information, we urge you to read the contents of this
Prospectus, as well as your contract. Please feel free to speak with your
financial professional, or call us, if you have any questions.
OTHER CONTRACTS
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, credits, fees and/or charges that are
different from those in the contracts offered by this Prospectus. Not every
contract is offered through the same distributor. Upon request, your financial
professional can show you information regarding other AXA Equitable annuity
contracts that he or she distributes. You can also contact us to find out more
about any of the AXA Equitable annuity contracts.
Accumulator(R) at a glance -- key features 9
Fee table
- --------------------------------------------------------------------------------
The following tables describe the fees and expenses that you pay when owning
and surrendering the contract. Each of the charges and expenses is more fully
described in "Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay at the time that
you surrender the contract or if you make certain withdrawals or apply your
cash value to certain payout options or if you purchase a Variable Immediate
Annuity payout option. Charges designed to approximate certain taxes that may
be imposed on us, such as premium taxes in your state, may also apply. Charges
for certain features shown in the fee table are mutually exclusive.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value at the time you request certain transactions
- ------------------------------------------------------------------------------------------------------------------------------------
Maximum withdrawal charge as a percentage of contributions with-
drawn (deducted if you surrender your contract, make certain
withdrawals or apply your cash value to certain payout options).(1) 7.00%
Charge if you elect a Variable Immediate Annuity payout option $350
- ------------------------------------------------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically
during the time that you own the contract, not including the underlying trust
portfolio fees and expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your variable investment options expressed as an
annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Mortality and expense risks 1.10%
Administrative 0.25%
----
Total annual expenses 1.35%
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value each year if you elect the optional benefit
- ------------------------------------------------------------------------------------------------------------------------------------
baseBUILDER benefit charge(2) (calculated as a percentage of the
applicable benefit base. Deducted annually on each contract date
anniversary for which the benefit is in effect) 0.30%
- ------------------------------------------------------------------------------------------------------------------------------------
Protection Plus(SM) benefit charge (calculated as a percentage of
the account value. Deducted annually on each contract date anniver-
sary for which the benefit is in effect) 0.20%
- ------------------------------------------------------------------------------------------------------------------------------------
10 Fee table
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net asset
value each day. Therefore, they reduce the investment return of the Portfolio
and the related variable investment option. Actual fees and expenses are likely
to fluctuate from year to year. More detail concerning each Portfolio's fees and
expenses is contained in the Trust prospectus for the Portfolio.
- -----------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets
- -----------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2004 (expenses that are deducted Lowest Highest
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ---- ----
other expenses)(3) 0.55% 7.61%
This table shows the fees and expenses for 2004 as an annual percentage of each
Portfolio's daily average net assets.
- ----------------------------------------------------------------------------------
Manage- 12b-1 Other
Portfolio Name ment Fees(4) Fees(5) Expenses (6)
- ----------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ----------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 0.29%
AXA Conservative Allocation 0.10% 0.25% 0.41%
AXA Conservative-Plus Allocation 0.10% 0.25% 0.30%
AXA Moderate Allocation 0.10% 0.25% 0.16%
AXA Moderate-Plus Allocation 0.10% 0.25% 0.20%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.18%
AXA Premier VIP Core Bond 0.60% 0.25% 0.20%
AXA Premier VIP Health Care 1.20% 0.25% 0.40%
AXA Premier VIP High Yield 0.58% 0.25% 0.18%
AXA Premier VIP International Equity 1.05% 0.25% 0.50%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.32%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.26%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.25%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.25%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.25%
AXA Premier VIP Technology 1.20% 0.25% 0.40%
- ----------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.47% 0.25% 0.05%
EQ/Alliance Growth and Income 0.56% 0.25% 0.05%
EQ/Alliance Intermediate Government Secu-
rities 0.50% 0.25% 0.06%
EQ/Alliance International 0.73% 0.25% 0.12%
EQ/Alliance Large Cap Growth* 0.90% 0.25% 0.05%
EQ/Alliance Quality Bond 0.50% 0.25% 0.06%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.06%
EQ/Bear Stearns Small Company Growth* 1.00% 0.25% 0.18%
EQ/Bernstein Diversified Value 0.63% 0.25% 0.07%
EQ/Boston Advisors Equity Income* 0.75% 0.25% 0.21%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.29%
EQ/Capital Guardian Growth 0.65% 0.25% 0.09%
EQ/Capital Guardian International 0.85% 0.25% 0.17%
EQ/Capital Guardian Research 0.65% 0.25% 0.05%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.05%
EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.12%
EQ/Equity 500 Index 0.25% 0.25% 0.05%
EQ/Evergreen Omega 0.65% 0.25% 0.11%
EQ/FI Mid Cap 0.70% 0.25% 0.06%
EQ/FI Small/Mid Cap Value 0.74% 0.25% 0.08%
EQ/International Growth 0.85% 0.25% 0.22%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.06%
EQ/JP Morgan Value Opportunities 0.60% 0.25% 0.10%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.08%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.05%
EQ/Long Term Bond 0.50% 0.25% 0.25%
- ----------------------------------------------------------------------------------
This table shows the fees and expenses for 2004 as an annual percentage of each
Portfolio's daily average net assets.
Under- Total Annual
lying Expenses Fee Waivers Net Total
Portfolio (Before and/or Expense Annual Expenses
Fees and Expense Reimburse- After Expense
Portfolio Name Expenses(7) Limitation) ments(8) Limitations
AXA PREMIER VIP TRUST:
- ---------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.99% 1.63% (0.29)% 1.34%
AXA Conservative Allocation 0.75% 1.51% (0.41)% 1.10%
AXA Conservative-Plus Allocation 0.80% 1.45% (0.30)% 1.15%
AXA Moderate Allocation 0.83% 1.34% (0.16)% 1.18%
AXA Moderate-Plus Allocation 1.02% 1.57% (0.20)% 1.37%
AXA Premier VIP Aggressive Equity -- 1.05% -- 1.05%
AXA Premier VIP Core Bond -- 1.05% (0.10)% 0.95%
AXA Premier VIP Health Care -- 1.85% 0.00% 1.85%
AXA Premier VIP High Yield -- 1.01% -- 1.01%
AXA Premier VIP International Equity -- 1.80% 0.00% 1.80%
AXA Premier VIP Large Cap Core Equity -- 1.47% (0.12)% 1.35%
AXA Premier VIP Large Cap Growth -- 1.41% (0.06)% 1.35%
AXA Premier VIP Large Cap Value -- 1.40% (0.05)% 1.35%
AXA Premier VIP Small/Mid Cap Growth -- 1.60% 0.00% 1.60%
AXA Premier VIP Small/Mid Cap Value -- 1.60% 0.00% 1.60%
AXA Premier VIP Technology -- 1.85% 0.00% 1.85%
- ---------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ---------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock -- 0.77% -- 0.77%
EQ/Alliance Growth and Income -- 0.86% -- 0.86%
EQ/Alliance Intermediate Government Secu-
rities -- 0.81% -- 0.81%
EQ/Alliance International -- 1.10% 0.00% 1.10%
EQ/Alliance Large Cap Growth* -- 1.20% (0.10)% 1.10%
EQ/Alliance Quality Bond -- 0.81% -- 0.81%
EQ/Alliance Small Cap Growth -- 1.06% -- 1.06%
EQ/Bear Stearns Small Company Growth* -- 1.43% (0.13)% 1.30%
EQ/Bernstein Diversified Value -- 0.95% 0.00% 0.95%
EQ/Boston Advisors Equity Income* -- 1.21% (0.16)% 1.05%
EQ/Calvert Socially Responsible -- 1.19% (0.14)% 1.05%
EQ/Capital Guardian Growth -- 0.99% (0.04)% 0.95%
EQ/Capital Guardian International -- 1.27% (0.07)% 1.20%
EQ/Capital Guardian Research -- 0.95% 0.00% 0.95%
EQ/Capital Guardian U.S. Equity -- 0.95% 0.00% 0.95%
EQ/Caywood-Scholl High Yield Bond -- 0.97% (0.12)% 0.85%
EQ/Equity 500 Index -- 0.55% -- 0.55%
EQ/Evergreen Omega -- 1.01% (0.06)% 0.95%
EQ/FI Mid Cap -- 1.01% (0.01)% 1.00%
EQ/FI Small/Mid Cap Value -- 1.07% 0.00% 1.07%
EQ/International Growth -- 1.32% 0.00% 1.32%
EQ/J.P. Morgan Core Bond -- 0.75% 0.00% 0.75%
EQ/JP Morgan Value Opportunities -- 0.95% 0.00% 0.95%
EQ/Janus Large Cap Growth -- 1.23% (0.08)% 1.15%
EQ/Lazard Small Cap Value -- 1.05% 0.00% 1.05%
EQ/Long Term Bond -- 1.00% 0.00% 1.00%
- ---------------------------------------------------------------------------------------------------------
Fee table 11
- ---------------------------------------------------------------------------------------------------------
Manage- 12b-1 Other
Portfolio Name ment Fees(4) Fees(5) Expenses (6)
- ---------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ---------------------------------------------------------------------------------------------------------
EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.19%
EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.19%
EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.19%
EQ/Marsico Focus 0.88% 0.25% 0.06%
EQ/Mercury Basic Value Equity 0.58% 0.25% 0.05%
EQ/Mercury International Value 0.85% 0.25% 0.15%
EQ/Mergers and Acquisitions 0.90% 0.25% 1.21%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.06%
EQ/MFS Investors Trust 0.60% 0.25% 0.10%
EQ/Money Market 0.34% 0.25% 0.05%
EQ/Montag & Caldwell Growth* 0.75% 0.25% 0.12%
EQ/PIMCO Real Return 0.55% 0.25% 0.20%
EQ/Short Duration Bond 0.45% 0.25% 0.52%
EQ/Small Company Index 0.25% 0.25% 0.13%
EQ/Small Company Value* 0.80% 0.25% 0.12%
EQ/TCW Equity* 0.80% 0.25% 0.12%
EQ/UBS Growth and Income* 0.75% 0.25% 0.16%
EQ/Van Kampen Comstock 0.65% 0.25% 0.19%
EQ/Van Kampen Emerging Markets Equity* 1.15% 0.25% 0.40%
EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.19%
EQ/Wells Fargo Montgomery Small Cap 0.85% 0.25% 6.51%
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Under- Total Annual
lying Expenses Fee Waivers Net Total
Portfolio (Before and/or Expense Annual Expenses
Fees and Expense Reimburse- After Expense
Portfolio Name Expenses(7) Limitation) ments(8) Limitations
- ---------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ---------------------------------------------------------------------------------------------------------
EQ/Lord Abbett Growth and Income -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Large Cap Core -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Mid Cap Value -- 1.14% (0.09)% 1.05%
EQ/Marsico Focus -- 1.19% (0.04)% 1.15%
EQ/Mercury Basic Value Equity -- 0.88% 0.00% 0.88%
EQ/Mercury International Value -- 1.25% 0.00% 1.25%
EQ/Mergers and Acquisitions -- 2.36% (0.91)% 1.45%
EQ/MFS Emerging Growth Companies -- 0.96% -- 0.96%
EQ/MFS Investors Trust -- 0.95% 0.00% 0.95%
EQ/Money Market -- 0.64% -- 0.64%
EQ/Montag & Caldwell Growth* -- 1.12% 0.00% 1.12%
EQ/PIMCO Real Return -- 1.00% (0.35)% 0.65%
EQ/Short Duration Bond -- 1.22% (0.57)% 0.65%
EQ/Small Company Index -- 0.63% 0.00% 0.63%
EQ/Small Company Value* -- 1.17% 0.00% 1.17%
EQ/TCW Equity* -- 1.17% (0.02)% 1.15%
EQ/UBS Growth and Income* -- 1.16% (0.11)% 1.05%
EQ/Van Kampen Comstock -- 1.09% (0.09)% 1.00%
EQ/Van Kampen Emerging Markets Equity* -- 1.80% 0.00% 1.80%
EQ/Van Kampen Mid Cap Growth -- 1.14% (0.09)% 1.05%
EQ/Wells Fargo Montgomery Small Cap -- 7.61% (6.33)% 1.28%
- ---------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject to
regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former name.
Notes:
(1) Deducted upon a withdrawal of amounts in excess of the 15% free withdrawal
amount, if applicable:
The withdrawal charge percentage we use is determined by the contract year in which Contract
you make the withdrawal or surrender your contract. For each contribution, we con- Year
sider the contract year in which we receive that contribution to be "contract year 1") 1...........7.00%
2...........6.00%
3...........5.00%
4...........4.00%
5...........3.00%
6...........2.00%
7...........1.00%
8+..........0.00%
(2) The baseBUILDER benefit charge is 0.15% if the 5% roll up to age 70 was
elected.
(3) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated
amounts for options added during the fiscal year 2004 and for the underlying
portfolios.
(4) The management fees for each Portfolio cannot be increased without a vote of
that Portfolio's shareholders. See footnote (8) for any expense limitation
agreement information.
(5) Portfolio shares are all subject to fees imposed under the distribution
plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1
under the Investment Company Act of 1940. The 12b-1 fee will not be
increased for the life of the contracts.
(6) Other expenses shown are those incurred in 2004. The amounts shown as "Other
Expenses" will fluctuate from year to year depending on actual expenses. See
footnote (8) for any expense limitation agreement information.
(7) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and AXA
Premier VIP Trust (the "underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolio's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocation
as of 12/31/04. A "--" indicates that the listed portfolio does not invest
in underlying portfolios, i.e., it is not an allocation portfolio.
(8) The amounts shown reflect any fee waivers and/or expense reimbursements that
applied to each Portfolio. A "--" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver or reimbursement. AXA Equitable,
the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has
entered into Expense Limitation Agreements with respect to certain
Portfolios, which are effective through April 30, 2006. Under these
agreements AXA Equitable has agreed to waive or limit its fees and assume
other expenses of certain Portfolios, if necessary, in an amount that limits
each affected Portfolio's total Annual Expenses (exclusive of interest,
taxes, brokerage commissions, capitalized expenditures and extraordinary
expenses) to not more than specified amounts. Each Portfolio may at a later
date make a reimbursement to AXA Equitable for any of the management fees
waived or limited and other expenses assumed and paid by AXA Equitable
pursuant to the expense limitation agreement provided that the Portfolio's
current annual operating expenses do not exceed the operating expense limit
determined for such Portfolio. See the Prospectus for each applicable
underlying Trust for more information about the arrangements. In addition, a
portion of the brokerage commissions of certain portfolios of EQ Advisors
Trust Portfolio and AXA Premier VIP Trust Portfolio is used to reduce the
applicable Portfolio's expenses. If the above table reflected both the
expense limitation arrangements plus the portion of the brokerage
commissions used to reduce portfolio expenses, the net expenses would be as
shown in the table below:
Portfolio Name
- ------------------------------------------------
AXA Moderate Allocation 1.17%
- ------------------------------------------------
AXA Premier VIP Aggressive Equity 0.93%
- ------------------------------------------------
AXA Premier VIP Health Care 1.81%
- ------------------------------------------------
AXA Premier VIP International Equity 1.75%
- ------------------------------------------------
12 Fee table
Portfolio Name
- ------------------------------------------------
AXA Premier VIP Large Cap Core Equity 1.32%
- ------------------------------------------------
AXA Premier VIP Large Cap Growth 1.30%
- ------------------------------------------------
AXA Premier VIP Large Cap Value 1.21%
- ------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth 1.50%
- ------------------------------------------------
AXA Premier VIP Small/Mid Cap Value 1.54%
- ------------------------------------------------
AXA Premier VIP Technology 1.75%
- ------------------------------------------------
EQ/Alliance Common Stock 0.68%
- ------------------------------------------------
EQ/Alliance Growth and Income 0.80%
- ------------------------------------------------
EQ/Alliance International 1.08%
- ------------------------------------------------
EQ/Alliance Large Cap Growth 1.04%
- ------------------------------------------------
EQ/Alliance Small Cap Growth 0.98%
- ------------------------------------------------
EQ/Calvert Socially Responsible 1.00%
- ------------------------------------------------
EQ/Capital Guardian Growth 0.67%
- ------------------------------------------------
EQ/Capital Guardian International 1.17%
- ------------------------------------------------
EQ/Capital Guardian Research 0.90%
- ------------------------------------------------
EQ/Capital Guardian U.S. Equity 0.93%
- ------------------------------------------------
EQ/Evergreen Omega 0.57%
- ------------------------------------------------
EQ/FI Mid Cap 0.96%
- ------------------------------------------------
EQ/FI Small/Mid Cap Value 1.05%
- ------------------------------------------------
EQ/JP Morgan Value Opportunities 0.76%
- ------------------------------------------------
EQ/Lazard Small Cap Value 0.86%
- ------------------------------------------------
EQ/Marsico Focus 1.12%
- ------------------------------------------------
EQ/Mercury Basic Value Equity 0.86%
- ------------------------------------------------
EQ/Mercury International Value 1.18%
- ------------------------------------------------
EQ/MFS Emerging Growth Companies 0.91%
- ------------------------------------------------
EQ/MFS Investors Trust 0.91%
- ------------------------------------------------
EQ/Small Company Value 1.16%
- ------------------------------------------------
EQ/TCW Equity 1.14%
- ------------------------------------------------
EQ/Van Kampen Emerging Markets Equity 1.75%
- ------------------------------------------------
EQ/Wells Fargo Montgomery Small Cap 1.26%
- ------------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses).
The example below shows the expenses that a hypothetical contract owner, who
has elected baseBUILDER and Protection Plus(SM) would pay in the situations
illustrated. Since the Protection Plus(SM) feature only applies under certain
contracts, expenses would be lower for contracts that do not have Protection
Plus(SM).
The fixed maturity options and the 12 month dollar cost averaging program are
not covered by the example. However, the withdrawal charge, the charge for any
optional benefits and the charge if you elect a Variable Immediate Annuity
payout option do apply to the fixed maturity options. A market value adjustment
(up or down) may apply as a result of a withdrawal, transfer, or surrender of
amounts from a fixed maturity option.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes that your investment has a 5%
return each year. This example should not be considered a representation of
past or future expenses for each option. Actual expenses may be greater or less
than those shown. Similarly, the annual rate of return assumed in the example
is not an estimate or guarantee of future investment performance. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
Fee table 13
If you surrender your contract at the end of the
applicable time period
- ---------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
-------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ---------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,065.40 $ 1,614.51 $ 2,188.71 $ 3,939.57
AXA Conservative Allocation $ 1,052.80 $ 1,577.43 $ 2,128.18 $ 3,825.66
AXA Conservative-Plus Allocation $ 1,046.50 $ 1,558.85 $ 2,097.80 $ 3,768.16
AXA Moderate Allocation $ 1,034.74 $ 1,524.11 $ 2,040.87 $ 3,659.88
AXA Moderate-Plus Allocation $ 1,059.10 $ 1,595.98 $ 2,158.49 $ 3,882.79
AXA Premier VIP Aggressive Equity $ 1,004.50 $ 1,434.39 $ 1,893.21 $ 3,375.64
AXA Premier VIP Core Bond $ 1,004.50 $ 1,434.39 $ 1,893.21 $ 3,375.64
AXA Premier VIP Health Care $ 1,088.50 $ 1,682.25 $ 2,298.86 $ 4,144.78
AXA Premier VIP High Yield $ 1,000.30 $ 1,421.89 $ 1,872.55 $ 3,335.50
AXA Premier VIP International Equity $ 1,083.25 $ 1,666.88 $ 2,273.92 $ 4,098.55
AXA Premier VIP Large Cap Core Equity $ 1,048.60 $ 1,565.04 $ 2,107.94 $ 3,787.37
AXA Premier VIP Large Cap Growth $ 1,042.30 $ 1,546.45 $ 2,077.50 $ 3,729.64
AXA Premier VIP Large Cap Value $ 1,041.25 $ 1,543.35 $ 2,072.42 $ 3,719.98
AXA Premier VIP Small/Mid Cap Growth $ 1,062.25 $ 1,605.25 $ 2,173.61 $ 3,911.23
AXA Premier VIP Small/Mid Cap Value $ 1,062.25 $ 1,605.25 $ 2,173.61 $ 3,911.23
AXA Premier VIP Technology $ 1,088.50 $ 1,682.25 $ 2,298.86 $ 4,144.78
- ---------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ---------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 975.10 $ 1,346.64 $ 1,747.87 $ 3,091.12
EQ/Alliance Growth and Income $ 984.55 $ 1,374.90 $ 1,794.78 $ 3,183.46
EQ/Alliance Intermediate Government Securities $ 979.30 $ 1,359.21 $ 1,768.74 $ 3,132.27
EQ/Alliance International $ 1,009.75 $ 1,450.01 $ 1,918.98 $ 3,425.60
EQ/Alliance Large Cap Growth* $ 1,020.25 $ 1,481.19 $ 1,970.35 $ 3,524.74
EQ/Alliance Quality Bond $ 979.30 $ 1,359.21 $ 1,768.74 $ 3,132.27
EQ/Alliance Small Cap Growth $ 1,005.55 $ 1,437.52 $ 1,898.37 $ 3,385.66
EQ/Bear Stearns Small Company Growth* $ 1,044.40 $ 1,552.65 $ 2,087.65 $ 3,748.92
EQ/Bernstein Diversified Value $ 994.00 $ 1,403.11 $ 1,841.50 $ 3,274.96
EQ/Boston Advisors Equity Income* $ 1,021.30 $ 1,484.30 $ 1,975.47 $ 3,534.60
EQ/Calvert Socially Responsible $ 1,019.20 $ 1,478.07 $ 1,965.22 $ 3,514.87
EQ/Capital Guardian Growth $ 998.20 $ 1,415.63 $ 1,862.21 $ 3,315.36
EQ/Capital Guardian International $ 1,027.60 $ 1,502.98 $ 2,006.17 $ 3,593.53
EQ/Capital Guardian Research $ 994.00 $ 1,403.11 $ 1,841.50 $ 3,274.96
EQ/Capital Guardian U.S. Equity $ 994.00 $ 1,403.11 $ 1,841.50 $ 3,274.96
EQ/Caywood-Scholl High Yield Bond $ 996.10 $ 1,409.37 $ 1,851.86 $ 3,295.18
EQ/Equity 500 Index $ 952.00 $ 1,277.33 $ 1,632.43 $ 2,861.77
EQ/Evergreen Omega $ 1,000.30 $ 1,421.89 $ 1,872.55 $ 3,335.50
EQ/FI Mid Cap $ 1,000.30 $ 1,421.89 $ 1,872.55 $ 3,335.50
EQ/FI Small/Mid Cap Value $ 1,006.60 $ 1,440.64 $ 1,903.52 $ 3,395.66
EQ/International Growth $ 1,032.85 $ 1,518.52 $ 2,031.70 $ 3,642.37
EQ/J.P. Morgan Core Bond $ 973.00 $ 1,340.35 $ 1,737.42 $ 3,070.48
EQ/JP Morgan Value Opportunities $ 994.00 $ 1,403.11 $ 1,841.50 $ 3,274.96
EQ/Janus Large Cap Growth $ 1,023.40 $ 1,490.53 $ 1,985.71 $ 3,554.28
- ---------------------------------------------------------------------------------------------------------
If you annuitize at the end of the
applicable time period
- ---------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
-------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ---------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 715.40 $ 1,464.51 $ 2,238.71 $ 4,289.57
AXA Conservative Allocation $ 702.80 $ 1,427.43 $ 2,178.18 $ 4,175.66
AXA Conservative-Plus Allocation $ 696.50 $ 1,408.85 $ 2,147.80 $ 4,118.16
AXA Moderate Allocation $ 684.74 $ 1,374.11 $ 2,090.87 $ 4,009.88
AXA Moderate-Plus Allocation $ 709.10 $ 1,445.98 $ 2,208.49 $ 4,232.79
AXA Premier VIP Aggressive Equity $ 654.50 $ 1,284.39 $ 1,943.21 $ 3,725.64
AXA Premier VIP Core Bond $ 654.50 $ 1,284.39 $ 1,943.21 $ 3,725.64
AXA Premier VIP Health Care $ 738.50 $ 1,532.25 $ 2,348.86 $ 4,494.78
AXA Premier VIP High Yield $ 650.30 $ 1,271.89 $ 1,922.55 $ 3,685.50
AXA Premier VIP International Equity $ 733.25 $ 1,516.88 $ 2,323.92 $ 4,448.55
AXA Premier VIP Large Cap Core Equity $ 698.60 $ 1,415.04 $ 2,157.94 $ 4,137.37
AXA Premier VIP Large Cap Growth $ 692.30 $ 1,396.45 $ 2,127.50 $ 4,079.64
AXA Premier VIP Large Cap Value $ 691.25 $ 1,393.35 $ 2,122.42 $ 4,069.98
AXA Premier VIP Small/Mid Cap Growth $ 712.25 $ 1,455.25 $ 2,223.61 $ 4,261.23
AXA Premier VIP Small/Mid Cap Value $ 712.25 $ 1,455.25 $ 2,223.61 $ 4,261.23
AXA Premier VIP Technology $ 738.50 $ 1,532.25 $ 2,348.86 $ 4,494.78
- ---------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ---------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 625.10 $ 1,196.64 $ 1,797.87 $ 3,441.12
EQ/Alliance Growth and Income $ 634.55 $ 1,224.90 $ 1,844.78 $ 3,533.46
EQ/Alliance Intermediate Government Securities $ 629.30 $ 1,209.21 $ 1,818.74 $ 3,482.27
EQ/Alliance International $ 659.75 $ 1,300.01 $ 1,968.98 $ 3,775.60
EQ/Alliance Large Cap Growth* $ 670.25 $ 1,331.19 $ 2,020.35 $ 3,874.74
EQ/Alliance Quality Bond $ 629.30 $ 1,209.21 $ 1,818.74 $ 3,482.27
EQ/Alliance Small Cap Growth $ 655.55 $ 1,287.52 $ 1,948.37 $ 3,735.66
EQ/Bear Stearns Small Company Growth* $ 694.40 $ 1,402.65 $ 2,137.65 $ 4,098.92
EQ/Bernstein Diversified Value $ 644.00 $ 1,253.11 $ 1,891.50 $ 3,624.96
EQ/Boston Advisors Equity Income* $ 671.30 $ 1,334.30 $ 2,025.47 $ 3,884.60
EQ/Calvert Socially Responsible $ 669.20 $ 1,328.07 $ 2,015.22 $ 3,864.87
EQ/Capital Guardian Growth $ 648.20 $ 1,265.63 $ 1,912.21 $ 3,665.36
EQ/Capital Guardian International $ 677.60 $ 1,352.98 $ 2,056.17 $ 3,943.53
EQ/Capital Guardian Research $ 644.00 $ 1,253.11 $ 1,891.50 $ 3,624.96
EQ/Capital Guardian U.S. Equity $ 644.00 $ 1,253.11 $ 1,891.50 $ 3,624.96
EQ/Caywood-Scholl High Yield Bond $ 646.10 $ 1,259.37 $ 1,901.86 $ 3,645.18
EQ/Equity 500 Index $ 602.00 $ 1,127.33 $ 1,682.43 $ 3,211.77
EQ/Evergreen Omega $ 650.30 $ 1,271.89 $ 1,922.55 $ 3,685.50
EQ/FI Mid Cap $ 650.30 $ 1,271.89 $ 1,922.55 $ 3,685.50
EQ/FI Small/Mid Cap Value $ 656.60 $ 1,290.64 $ 1,953.52 $ 3,745.66
EQ/International Growth $ 682.85 $ 1,368.52 $ 2,081.70 $ 3,992.37
EQ/J.P. Morgan Core Bond $ 623.00 $ 1,190.35 $ 1,787.42 $ 3,420.48
EQ/JP Morgan Value Opportunities $ 644.00 $ 1,253.11 $ 1,891.50 $ 3,624.96
EQ/Janus Large Cap Growth $ 673.40 $ 1,340.53 $ 2,035.71 $ 3,904.28
- ---------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end of the
applicable time period
- ---------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
-------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ---------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 365.40 $ 1,114.51 $ 1,888.71 $ 3,939.57
AXA Conservative Allocation $ 352.80 $ 1,077.43 $ 1,828.18 $ 3,825.66
AXA Conservative-Plus Allocation $ 346.50 $ 1,058.85 $ 1,797.80 $ 3,768.16
AXA Moderate Allocation $ 334.74 $ 1,024.11 $ 1,740.87 $ 3,659.88
AXA Moderate-Plus Allocation $ 359.10 $ 1,095.98 $ 1,858.49 $ 3,882.79
AXA Premier VIP Aggressive Equity $ 304.50 $ 934.39 $ 1,593.21 $ 3,375.64
AXA Premier VIP Core Bond $ 304.50 $ 934.39 $ 1,593.21 $ 3,375.64
AXA Premier VIP Health Care $ 388.50 $ 1,182.25 $ 1,998.86 $ 4,144.78
AXA Premier VIP High Yield $ 300.30 $ 921.89 $ 1,572.55 $ 3,335.50
AXA Premier VIP International Equity $ 383.25 $ 1,166.88 $ 1,973.92 $ 4,098.55
AXA Premier VIP Large Cap Core Equity $ 348.60 $ 1,065.04 $ 1,807.94 $ 3,787.37
AXA Premier VIP Large Cap Growth $ 342.30 $ 1,046.45 $ 1,777.50 $ 3,729.64
AXA Premier VIP Large Cap Value $ 341.25 $ 1,043.35 $ 1,772.42 $ 3,719.98
AXA Premier VIP Small/Mid Cap Growth $ 362.25 $ 1,105.25 $ 1,873.61 $ 3,911.23
AXA Premier VIP Small/Mid Cap Value $ 362.25 $ 1,105.25 $ 1,873.61 $ 3,911.23
AXA Premier VIP Technology $ 388.50 $ 1,182.25 $ 1,998.86 $ 4,144.78
- ---------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ---------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 275.10 $ 846.64 $ 1,447.87 $ 3,091.12
EQ/Alliance Growth and Income $ 284.55 $ 874.90 $ 1,494.78 $ 3,183.46
EQ/Alliance Intermediate Government $ 279.30 $ 859.21 $ 1,468.74 $ 3,132.27
Securities
EQ/Alliance International $ 309.75 $ 950.01 $ 1,618.98 $ 3,425.60
EQ/Alliance Large Cap Growth* $ 320.25 $ 981.19 $ 1,670.35 $ 3,524.74
EQ/Alliance Quality Bond $ 279.30 $ 859.21 $ 1,468.74 $ 3,132.27
EQ/Alliance Small Cap Growth $ 305.55 $ 937.52 $ 1,598.37 $ 3,385.66
EQ/Bear Stearns Small Company Growth* $ 344.40 $ 1,052.65 $ 1,787.65 $ 3,748.92
EQ/Bernstein Diversified Value $ 294.00 $ 903.11 $ 1,541.50 $ 3,274.96
EQ/Boston Advisors Equity Income* $ 321.30 $ 984.30 $ 1,675.47 $ 3,534.60
EQ/Calvert Socially Responsible $ 319.20 $ 978.07 $ 1,665.22 $ 3,514.87
EQ/Capital Guardian Growth $ 298.20 $ 915.63 $ 1,562.21 $ 3,315.36
EQ/Capital Guardian International $ 327.60 $ 1,002.98 $ 1,706.17 $ 3,593.53
EQ/Capital Guardian Research $ 294.00 $ 903.11 $ 1,541.50 $ 3,274.96
EQ/Capital Guardian U.S. Equity $ 294.00 $ 903.11 $ 1,541.50 $ 3,274.96
EQ/Caywood-Scholl High Yield Bond $ 296.10 $ 909.37 $ 1,551.86 $ 3,295.18
EQ/Equity 500 Index $ 252.00 $ 777.33 $ 1,332.43 $ 2,861.77
EQ/Evergreen Omega $ 300.30 $ 921.89 $ 1,572.55 $ 3,335.50
EQ/FI Mid Cap $ 300.30 $ 921.89 $ 1,572.55 $ 3,335.50
EQ/FI Small/Mid Cap Value $ 306.60 $ 940.64 $ 1,603.52 $ 3,395.66
EQ/International Growth $ 332.85 $ 1,018.52 $ 1,731.70 $ 3,642.37
EQ/J.P. Morgan Core Bond $ 273.00 $ 840.35 $ 1,437.42 $ 3,070.48
EQ/JP Morgan Value Opportunities $ 294.00 $ 903.11 $ 1,541.50 $ 3,274.96
EQ/Janus Large Cap Growth $ 323.40 $ 990.53 $ 1,685.71 $ 3,554.28
- ---------------------------------------------------------------------------------------------------------
14 Fee table
If you surrender your contract at the end of the
applicable time period
- ---------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
-------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ---------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value $ 1,004.50 $ 1,434.39 $ 1,893.21 $ 3,375.64
EQ/Long Term Bond $ 999.25 $ 1,418.76 $ 1,867.38 $ 3,325.43
EQ/Lord Abbett Growth and Income $ 1,008.70 $ 1,446.89 $ 1,913.83 $ 3,415.63
EQ/Lord Abbett Large Cap Core $ 1,008.70 $ 1,446.89 $ 1,913.83 $ 3,415.63
EQ/Lord Abbett Mid Cap Value $ 1,013.95 $ 1,462.49 $ 1,939.55 $ 3,465.38
EQ/Marsico Focus $ 1,019.20 $ 1,478.07 $ 1,965.22 $ 3,514.87
EQ/Mercury Basic Value Equity $ 986.65 $ 1,381.18 $ 1,805.18 $ 3,203.87
EQ/Mercury International Value $ 1,025.50 $ 1,496.75 $ 1,995.95 $ 3,573.93
EQ/Mergers and Acquisitions $ 1,142.05 $ 1,838.05 $ 2,550.15 $ 4,602.75
EQ/MFS Emerging Growth Companies $ 995.05 $ 1,406.24 $ 1,846.68 $ 3,285.08
EQ/MFS Investors Trust $ 994.00 $ 1,403.11 $ 1,841.50 $ 3,274.96
EQ/Money Market $ 961.45 $ 1,305.72 $ 1,679.79 $ 2,956.22
EQ/Montag & Caldwell Growth* $ 1,011.85 $ 1,456.25 $ 1,929.27 $ 3,445.51
EQ/PIMCO Real Return $ 999.25 $ 1,418.76 $ 1,867.38 $ 3,325.43
EQ/Short Duration Bond $ 1,022.35 $ 1,487.42 $ 1,980.59 $ 3,544.44
EQ/Small Company Index $ 960.40 $ 1,302.57 $ 1,674.53 $ 2,945.77
EQ/Small Company Value* $ 1,017.10 $ 1,471.84 $ 1,954.96 $ 3,495.10
EQ/TCW Equity* $ 1,017.10 $ 1,471.84 $ 1,954.96 $ 3,495.10
EQ/UBS Growth and Income* $ 1,016.05 $ 1,468.72 $ 1,949.83 $ 3,485.20
EQ/Van Kampen Comstock $ 1,008.70 $ 1,446.89 $ 1,913.83 $ 3,415.63
EQ/Van Kampen Emerging Markets Equity* $ 1,083.25 $ 1,666.88 $ 2,273.92 $ 4,098.55
EQ/Van Kampen Mid Cap Growth $ 1,013.95 $ 1,462.49 $ 1,939.55 $ 3,465.38
EQ/Wells Fargo Montgomery Small Cap $ 1,693.30 $ 3,344.41 $ 4,828.49 $ 8,103.57
- ---------------------------------------------------------------------------------------------------------
If you annuitize at the end of the
applicable time period
- ---------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
-------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ---------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value $ 654.50 $ 1,284.39 $ 1,943.21 $ 3,725.64
EQ/Long Term Bond $ 649.25 $ 1,268.76 $ 1,917.38 $ 3,675.43
EQ/Lord Abbett Growth and Income $ 658.70 $ 1,296.89 $ 1,963.83 $ 3,765.63
EQ/Lord Abbett Large Cap Core $ 658.70 $ 1,296.89 $ 1,963.83 $ 3,765.63
EQ/Lord Abbett Mid Cap Value $ 663.95 $ 1,312.49 $ 1,989.55 $ 3,815.38
EQ/Marsico Focus $ 669.20 $ 1,328.07 $ 2,015.22 $ 3,864.87
EQ/Mercury Basic Value Equity $ 636.65 $ 1,231.18 $ 1,855.18 $ 3,553.87
EQ/Mercury International Value $ 675.50 $ 1,346.75 $ 2,045.95 $ 3,923.93
EQ/Mergers and Acquisitions $ 792.05 $ 1,688.05 $ 2,600.15 $ 4,952.75
EQ/MFS Emerging Growth Companies $ 645.05 $ 1,256.24 $ 1,896.68 $ 3,635.08
EQ/MFS Investors Trust $ 644.00 $ 1,253.11 $ 1,891.50 $ 3,624.96
EQ/Money Market $ 611.45 $ 1,155.72 $ 1,729.79 $ 3,306.22
EQ/Montag & Caldwell Growth* $ 661.85 $ 1,306.25 $ 1,979.27 $ 3,795.51
EQ/PIMCO Real Return $ 649.25 $ 1,268.76 $ 1,917.38 $ 3,675.43
EQ/Short Duration Bond $ 672.35 $ 1,337.42 $ 2,030.59 $ 3,894.44
EQ/Small Company Index $ 610.40 $ 1,152.57 $ 1,724.53 $ 3,295.77
EQ/Small Company Value* $ 667.10 $ 1,321.84 $ 2,004.96 $ 3,845.10
EQ/TCW Equity* $ 667.10 $ 1,321.84 $ 2,004.96 $ 3,845.10
EQ/UBS Growth and Income* $ 666.05 $ 1,318.72 $ 1,999.83 $ 3,835.20
EQ/Van Kampen Comstock $ 658.70 $ 1,296.89 $ 1,963.83 $ 3,765.63
EQ/Van Kampen Emerging Markets Equity* $ 733.25 $ 1,516.88 $ 2,323.92 $ 4,448.55
EQ/Van Kampen Mid Cap Growth $ 663.95 $ 1,312.49 $ 1,989.55 $ 3,815.38
EQ/Wells Fargo Montgomery Small Cap $ 1,343.30 $ 3,194.41 $ 4,878.49 $ 8,453.57
- ---------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end of the
applicable time period
- ---------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
-------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ---------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value $ 304.50 $ 934.39 $ 1,593.21 $ 3,375.64
EQ/Long Term Bond $ 299.25 $ 918.76 $ 1,567.38 $ 3,325.43
EQ/Lord Abbett Growth and Income $ 308.70 $ 946.89 $ 1,613.83 $ 3,415.63
EQ/Lord Abbett Large Cap Core $ 308.70 $ 946.89 $ 1,613.83 $ 3,415.63
EQ/Lord Abbett Mid Cap Value $ 313.95 $ 962.49 $ 1,639.55 $ 3,465.38
EQ/Marsico Focus $ 319.20 $ 978.07 $ 1,665.22 $ 3,514.87
EQ/Mercury Basic Value Equity $ 286.65 $ 881.18 $ 1,505.18 $ 3,203.87
EQ/Mercury International Value $ 325.50 $ 996.75 $ 1,695.95 $ 3,573.93
EQ/Mergers and Acquisitions $ 442.05 $ 1,338.05 $ 2,250.15 $ 4,602.75
EQ/MFS Emerging Growth Companies $ 295.05 $ 906.24 $ 1,546.68 $ 3,285.08
EQ/MFS Investors Trust $ 294.00 $ 903.11 $ 1,541.50 $ 3,274.96
EQ/Money Market $ 261.45 $ 805.72 $ 1,379.79 $ 2,956.22
EQ/Montag & Caldwell Growth* $ 311.85 $ 956.25 $ 1,629.27 $ 3,445.51
EQ/PIMCO Real Return $ 299.25 $ 918.76 $ 1,567.38 $ 3,325.43
EQ/Short Duration Bond $ 322.35 $ 987.42 $ 1,680.59 $ 3,544.44
EQ/Small Company Index $ 260.40 $ 802.57 $ 1,374.53 $ 2,945.77
EQ/Small Company Value* $ 317.10 $ 971.84 $ 1,654.96 $ 3,495.10
EQ/TCW Equity* $ 317.10 $ 971.84 $ 1,654.96 $ 3,495.10
EQ/UBS Growth and Income* $ 316.05 $ 968.72 $ 1,649.83 $ 3,485.20
EQ/Van Kampen Comstock $ 308.70 $ 946.89 $ 1,613.83 $ 3,415.63
EQ/Van Kampen Emerging Markets Equity* $ 383.25 $ 1,166.88 $ 1,973.92 $ 4,098.55
EQ/Van Kampen Mid Cap Growth $ 313.95 $ 962.49 $ 1,639.55 $ 3,465.38
EQ/Wells Fargo Montgomery Small Cap $ 993.30 $ 2,844.41 $ 4,528.49 $ 8,103.57
- ---------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject to
regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former name.
Fee table 15
CONDENSED FINANCIAL INFORMATION
Please see Appendix I at the end of this Prospectus for the unit values and the
number of units outstanding as of the end of the periods shown for each of the
variable investment options available as of December 31, 2004.
16 Fee table
1. Contract features and benefits
- --------------------------------------------------------------------------------
HOW YOU CAN CONTRIBUTE TO YOUR CONTRACT
The following table summarizes our rules regarding contributions to your
contract. All ages in the table refer to the age of the annuitant named in the
contract. Initial contribution amounts are provided for informational purposes
only. This contract is no longer available to new purchasers.
We may refuse to accept any contribution if the sum of all contributions under
all Accumulator(R) series contracts with the same annuitant would then total
more than $1,500,000. We reserve the right to limit aggregate contributions
made after the first contract year to 150% of first-year contributions. We may
also refuse to accept any contribution if the sum of all contributions under
all AXA Equitable annuity accumulation contracts that you own would then total
more than $2,500,000.
- --------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining
contract benefits. The annuitant is not necessarily the contract owner.
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant Minimum
Contract type issue ages contributions Source of contributions Limitations on contributions
- ------------------------------------------------------------------------------------------------------------------------------------
NQ 0 through 83 o $5,000 (initial) o After-tax money. o No additional contributions
o $1,000 (additional) may be made after attain-
o Paid to us by check or ment of age 84, or, if
transfer of contract value later, the first contract
in a tax-deferred exchange anniversary.
under Section 1035 of the
Internal Revenue Code.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover IRA 20 through 83 o $5,000 (initial) o Eligible rollover distribu- o No additional contributions
o $50 (additional) tions from TSA contracts or may be made after attain-
other 403(b) arrangements, ment of age 84, or, if
qualified plans, and govern- later, the first contract
mental employer 457(b) plan. anniversary.
o Rollovers from another
traditional individual o Contributions after age
retirement arrangement. 70-1/2 must be net of
required minimum
o Direct custodian-to- distributions.
custodian transfers from
another traditional indi- o Although we accept regular
vidual retirement IRA contributions (limited
arrangement. to $4,000 for 2005; same for
2006) under rollover IRA
o Regular IRA contributions. contracts, we intend that
this contract be used prima-
o Additional "catch-up" rily for rollover and direct
contributions. transfer contributions.
o Additional catch-up contri-
butions of up to $500 can be
made for the calendar year
2005 ($1,000 for 2006) where
the owner is at least age 50
but under age 70-1/2 at any
time during the calendar
year for which the
contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 17
- ----------------------------------------------------------------------------------------------------------------------------------
Annuitant Minimum
Contract type issue ages contributions Source of contributions Limitations on contributions
- ----------------------------------------------------------------------------------------------------------------------------------
Roth Conversion 20 through 83 o $5,000 (initial) o Rollovers from another o No additional
IRA Roth IRA. contributions may be made
o $50 (additional) after attainment of age
o Conversion rollovers from 84, or, if later, the
a traditional IRA. first contract
anniversary.
o Direct transfers from
another Roth IRA. o Conversion rollovers after
age 70-1/2 must be net of
o Regular Roth IRA required minimum distribu-
contributions. tions for the traditional
IRA you are rolling over.
o Additional catch-up
contributions. o You cannot roll over funds
from a traditional IRA if
your adjusted gross income
is $100,000 or more.
o Although we accept regular
Roth IRA contributions
(limited to $4,000 for
2005; same for 2006) under
Roth IRA contracts, we
intend that this contract
be used primarily for
rollover and direct
transfer contributions.
o Additional catch-up
contributions of up to
$500 can be made for the
calendar year 2005 ($1,000
for 2006) where the owner
is at least age 50 at any
time during the calendar
year for which the
contribution is made.
- ----------------------------------------------------------------------------------------------------------------------------------
Rollover TSA 20 through 83 o $5,000 (initial) o Direct transfers of o No additional
o $1,000 (additional) pre-tax funds from another contributions may be made
contract or arrangement after attainment of age
under Section 403(b) of 84, or, if later, the
the Internal Revenue Code, first contract
complying with IRS Revenue anniversary.
Ruling 90-24.
o Rollover or direct
o Eligible rollover transfer contributions
distributions of pre-tax after age 70-1/2 must be
funds from other 403(b) net of any required
plans, qualified plans. minimum distributions.
Subsequent contributions
may also be rollovers o We do not accept employer
from, governmental remitted contributions.
employer 457(b) plans and
Traditional IRAs.
- ----------------------------------------------------------------------------------------------------------------------------------
18 Contract features and benefits
- ----------------------------------------------------------------------------------------------------------------------------------
Annuitant Minimum
Contract type issue ages contributions Source of contributions Limitations on contributions
- ----------------------------------------------------------------------------------------------------------------------------------
QP 20 through 75 o $5,000 (initial) o Only transfer o We do not accept regular
o $1,000 (additional) contributions from an ongoing payroll
existing defined contributions.
contribution qualified
plan trust. o Only one additional
transfer contribution may
o The plan must be qualified be made during a contract
under Section 401(a) of year.
the Internal Revenue Code.
o No additional transfer
o For 401(k) plans, trans- contributions may be
ferred contributions may made after attainment of
only include employee pre- age 76, or, if later, the
tax contributions. first contract
anniversary.
o Contributions after age
70-1/2 must be net of any
required minimum
distributions.
o A separate QP contract
must be established for
each plan participant.
o We do not accept employer
remitted contributions.
o We do not accept contribu-
tions from defined benefit
plans.
See Appendix II at the end of this Prospectus for a discussion of purchase considerations
of QP contracts.
- --------------------------------------------------------------------------------
See "Tax information" later in this Prospectus for a more detailed discussion of
sources of contributions and certain contribution limitations.
For information on when contributions are credited under your contract see
"Dates and prices at which contract events occur" in "More information" later
in this Prospectus.
Contract features and benefits 19
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from the owner. A joint
owner may also be named. Only natural persons can be joint owners. This means
that an entity such as a corporation cannot be a joint owner. In general, we
will not permit a contract to be owned by a minor unless it is pursuant to the
Uniform Gift to Minors Act or the Uniform Transfers to Minors Act in your
state.
Under all IRA and Rollover TSA contracts, the owner and annuitant must be the
same person. In some cases, an IRA contract may be held in a custodial
individual retirement account for the benefit of the individual annuitant.
Under QP contracts, the owner must be the trustee of the qualified plan and the
annuitant must be the plan participant/employee. See Appendix II at the end of
this Prospectus for more information on QP contracts.
- --------------------------------------------------------------------------------
A "participant" is an individual who is currently, or was formerly,
participating in an eligible employer's qualified plan or TSA plan.
- --------------------------------------------------------------------------------
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be by check drawn on a U.S. bank, in
U.S. dollars, and made payable to AXA Equitable. We may also apply
contributions made pursuant to a Section 1035 tax-free exchange or a direct
transfer. We do not accept third-party checks endorsed to us except for
rollover contributions, tax-free exchanges or trustee checks that involve no
refund. All checks are subject to our ability to collect the funds. We reserve
the right to reject a payment if it is received in an unacceptable form.
For your convenience, we will accept contributions by wire transmittal from
certain broker-dealers who have agreements with us for this purpose, including
circumstances under which such contributions are considered received by us when
your order is taken by such broker-dealers. Additional contributions may also
be made under our automatic investment program. These methods of payment are
discussed in detail in "More information" later in this Prospectus.
- --------------------------------------------------------------------------------
Our "business day" is generally any day the New York Stock Exchange is open for
trading and generally ends at 4:00 p.m. Eastern Time. A business day does not
include a day we choose not to open due to emergency conditions. We may also
close early due to emergency conditions.
- --------------------------------------------------------------------------------
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
Your investment options are the variable investment options and the fixed
maturity options.
VARIABLE INVESTMENT OPTIONS
Your investment results in any one of the variable investment options will
depend on the investment performance of the underlying portfolios. You can lose
your principal when investing in the variable investment options. In periods of
poor market performance, the net return, after charges and expenses, may result
in negative yields, including for the EQ/Money Market variable investment
option. Listed below are the currently available portfolios, their investment
objectives and their advisers.
- --------------------------------------------------------------------------------
You can choose from among the variable investment options and the fixed
maturity options.
- --------------------------------------------------------------------------------
20 Contract features and benefits
PORTFOLIOS OF THE TRUSTS
You should note that some portfolios have objectives and strategies that are
substantially similar to those of certain funds that are purchased directly
rather than under a variable insurance product such as the Accumulator(R)
contract. These portfolios may even have the same manager(s) and/or a similar
name. However, there are numerous factors that can contribute to differences in
performance between two investments, particularly over short periods of time.
Such factors include the timing of stock purchases and sales; differences in
fund cash flows; and specific strategies employed by the portfolio manager.
AXA Equitable serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. As such, AXA Equitable oversees
the activities of the investment advisers with respect to the Trusts and is
responsible for retaining or discontinuing the services of those advisers. The
advisers for these Portfolios, listed in the chart below, are those who make the
investment decisions for each Portfolio.
- -----------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- -----------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o AXA Equitable
ALLOCATION greater emphasis on current income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o AXA Equitable
ALLOCATION with a greater emphasis on capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
EQUITY o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of risk. o Pacific Investment Management
Company LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o AIM Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of o Alliance Capital Management L.P.
current income and capital appreciation. o Pacific Investment Management
Company LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P.,
INTERNATIONAL EQUITY through its Bernstein Investment
Research and Management Unit
o J.P. Morgan Investment Management Inc.
o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.,
CORE EQUITY through its Bernstein Investment
Research and Management Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH o RCM Capital Management LLC
o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 21
Portfolios of the Trusts (continued)
- -----------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- -----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE o Institutional Capital Corporation
o MFS Investment Management
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management
CAP VALUE LLC
o TCW Investment Management Company
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- -----------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent o Alliance Capital Management L.P.
GOVERNMENT SECURITIES with relative stability of principal.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE LARGE CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH(1)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent o Alliance Capital Management L.P.
with moderate risk to capital.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BEAR STEARNS Seeks to achieve capital appreciation. o Bear Stearns Asset Management Inc.
SMALL COMPANY GROWTH(7)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment
Research and Management Unit
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BOSTON ADVISORS EQUITY Seeks a combination of growth and income to achieve o Boston Advisors, Inc.
INCOME(4) an above-average and consistent total return.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN GROWTH Seeks long-term growth of capital. o Capital Guardian Trust Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------------
22 Contract features and benefits
Portfolios of the Trusts (continued)
- -----------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. o Caywood-Scholl Capital Management
YIELD BOND
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates o Alliance Capital Management L.P.
the total return performance of the S&P 500 Index,
including reinvestment of dividends, at a risk level
consistent with that of the S&P 500 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA Seeks long-term capital growth. o Evergreen Investment Management
Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o SSgA Funds Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent o J.P. Morgan Investment Management Inc.
with moderate risk to capital and maintenance
of liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JP MORGAN VALUE Long-term capital appreciation. o J.P. Morgan Investment Management Inc.
OPPORTUNITIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LONG TERM BOND Seeks to maximize income and capital appreciation o Boston Advisors, Inc.
through investment in long-maturity debt obligations.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT GROWTH AND Capital appreciation and growth of income without o Lord, Abbett & Co. LLC
INCOME excessive fluctuation in market value.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT LARGE CAP Capital appreciation and growth of income with o Lord, Abbett & Co. LLC
CORE reasonable risk.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT MID CAP VALUE Capital appreciation. o Lord, Abbett & Co, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers
VALUE International Limited
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERGERS AND ACQUISITIONS Seeks to achieve capital appreciation. o GAMCO Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary o MFS Investment Management
objective to seek reasonable current income.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, o Alliance Capital Management L.P.
preserve its assets and maintain liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. o Montag & Caldwell, Inc.
GROWTH(5)
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 23
Portfolios of the Trusts (continued)
- -----------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/PIMCO REAL RETURN Seeks maximum real return consistent with preservation o Pacific Investment Management
of real capital and prudent investment management. Company, LLC
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/SHORT DURATION BOND Seeks current income with reduced volatility of principal. o Boston Advisors, Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o Alliance Capital Management L. P.
deduction of portfolio expenses) the total return of the
Russell 2000 Index.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY VALUE(8) Seeks to maximize capital appreciation. o GAMCO Investors, Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/TCW EQUITY(3) Seeks to achieve long-term capital appreciation. o TCW Investment Management Company
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/UBS GROWTH AND INCOME(6) Seeks to achieve total return through capital o UBS Global Asset Management
appreciation with income as a secondary consideration. (Americas) Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN COMSTOCK Capital growth and income. o Morgan Stanley Investment
Management Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN EMERGING Seeks long-term capital appreciation. o Morgan Stanley Investment
MARKETS EQUITY(2) Management Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN MID CAP Capital growth. o Morgan Stanley Investment
GROWTH Management Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/WELLS FARGO MONTGOMERY Seeks long-term capital appreciation. o Wells Capital Management Inc.
SMALL CAP
- -----------------------------------------------------------------------------------------------------------------------------------
* This portfolio information reflects the portfolio's name change effective on
or about May 9, 2005, subject to regulatory approval. The table below
reflects the portfolio name in effect until on or about May 9, 2005. The
number in the "FN" column corresponds with the number contained in the chart
above.
- -------------------------------------------------
FN Portfolio Name until May 9, 2005
- -------------------------------------------------
(1) EQ/Alliance Premier Growth
(2) EQ/Emerging Markets Equity
(3) EQ/Enterprise Equity
(4) EQ/Enterprise Equity Income
(5) EQ/Enterprise Growth
(6) EQ/Enterprise Growth and Income
(7) EQ/Enterprise Small Company Growth
(8) EQ/Enterprise Small Company Value
- -------------------------------------------------
You should consider the investment objectives, risks and charges and expenses of
the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may call
one of our customer service representatives at 1-800-789-7771.
24 Contract features and benefits
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied: (i) the fixed maturity option's
maturity date is within the current calendar year; or (ii) the rate to maturity
is 3%. This means that at points in time there may be no fixed maturity options
available. You can allocate your contributions to one or more of these fixed
maturity options. These amounts become part of a non-unitized Separate Account.
They will accumulate interest at the "rate to maturity" for each fixed maturity
option. The total amount you allocate to and accumulate in each fixed maturity
option is called the "fixed maturity amount." The fixed maturity options are not
available in all states. Check with your financial professional to see if fixed
maturity options are available in your state.
- --------------------------------------------------------------------------------
Fixed maturity options generally range from one to ten years to maturity.
- --------------------------------------------------------------------------------
The rate to maturity you will receive for each fixed maturity option is the
rate to maturity in effect for new contributions allocated to that fixed
maturity option on the date we apply your contribution.
On the maturity date of a fixed maturity option your fixed maturity amount,
assuming you have not made any withdrawals or transfers, will equal your
contribution to that fixed maturity option plus interest, at the rate to
maturity for that contribution, to the date of the calculation. This is the
fixed maturity option's "maturity value." Before maturity, the current value we
will report for your fixed maturity amounts will reflect a market value
adjustment. Your current value will reflect the market value adjustment that we
would make if you were to withdraw all of your fixed maturity amounts on the
date of the report. We call this your "market adjusted amount."
FIXED MATURITY OPTIONS AND MATURITY DATES. We currently offer fixed maturity
options ending on February 15th for each of the maturity years 2005 through
2015. Not all of these fixed maturity options will be available for annuitant
ages 76 and older. See "Allocating your contributions" below. As fixed maturity
options expire, we expect to add maturity years so that generally 10 fixed
maturity options are available at any time.
YOUR CHOICES AT THE MATURITY DATE. We will notify you on or before December
31st of the year before each of your fixed maturity options is scheduled to
mature. At that time, you may choose to have one of the following take place on
the maturity date, as long as none of the restrictive conditions listed above
or in "Allocating your contributions," below would apply:
(a) transfer the maturity value into another available fixed maturity option or
into any of the variable investment options; or
(b) withdraw the maturity value (there may be a withdrawal charge).
If we do not receive your choice on or before the fixed maturity option's
maturity date, we will automatically transfer your maturity value into the next
available fixed maturity option with the earliest maturity date. As of February
15, 2005 the next available maturity date was February 15, 2012.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender of your contract, or when we make deductions for charges) from a
fixed maturity option before it matures we will make a market value adjustment,
which will increase or decrease any fixed maturity amount you have in that
fixed maturity option. The amount of the adjustment will depend on two factors:
(a) the difference between the rate to maturity that applies to the amount being
withdrawn and the rate to maturity in effect at that time for new
allocations to that same fixed maturity option, and
(b) the length of time remaining until the maturity date.
In general, if interest rates rise from the time that you originally allocate
an amount to a fixed maturity option to the time that you take a withdrawal,
the market value adjustment will be negative. Likewise, if interest rates drop
at the end of that time, the market value adjustment will be positive. Also,
the amount of the market value adjustment, either up or down, will be greater
the longer the time remaining until the fixed maturity option's maturity date.
Therefore, it is possible that the market value adjustment could greatly reduce
your value in the fixed maturity options, particularly in the fixed maturity
options with later maturity dates.
We provide an illustration of the market adjusted amount of specified maturity
values, an explanation of how we calculate the market value adjustment and
information concerning our general account and investments purchased with
amounts allocated to the fixed maturity options, in "More information" later in
this Prospectus. Appendix III at the end of this Prospectus provides an example
of how the market value adjustment is calculated.
ALLOCATING YOUR CONTRIBUTIONS
You may choose from among three ways to allocate your contributions under your
contract: self-directed, principal assurance (at contract issue only), or
dollar cost averaging. We allocate subsequent contributions according to
instructions on file unless you provide new instructions.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options and fixed maturity options. Allocations must be in whole
percentages and you may change your allocations at any time. The total of your
allocations must equal 100%. If the annuitant is age 76 or older, you may
allocate contributions to fixed maturity options if their maturities are five
years or less. Also, you may not allocate amounts to fixed maturity options
with maturity dates that are later than the February 15th immediately following
the date annuity payments are to begin.
PRINCIPAL ASSURANCE ALLOCATION
Principal assurance allocation is only available at contract issue. If you
chose this allocation program, you selected a fixed maturity option. We
specified a portion of your initial contribution and allocated it to that fixed
maturity option in an amount that will cause the maturity value to equal the
amount of your entire initial contribution on the fixed maturity option's
maturity date. The maturity date you selected generally could not be later than
10 years, or earlier than 7 years from your contract date. If you were to make
any withdrawals or transfers
Contract features and benefits 25
from the fixed maturity option before the option's maturity date, the amount in
the fixed maturity option will be adjusted and may no longer grow to equal your
initial contribution under the principal assurance allocation. Principal
assurance was not available if none of those maturity dates were available at
the time your contract was issued. You allocated the remainder of your initial
contribution to the variable investment options however you chose.
For example, if your initial contribution was $10,000, and on February 15, 2005
you chose the fixed maturity option with a maturity date of February 15, 2015
since the rate to maturity was 3.64% on February 15, 2005, we would have
allocated $6,993 to that fixed maturity option and the balance to your choice
of variable investment options. On the maturity date your value in the fixed
maturity option would be $10,000.
The principal assurance allocation was only available for annuitant ages 75 or
younger when the contract was issued. If you anticipated taking required
minimum distributions, you should have considered whether your values in the
variable investment options would be sufficient to meet your required minimum
distributions. See "Tax information" later in this Prospectus.
You could not have elected principal assurance if you participated in the 12
month dollar cost averaging program at application.
DOLLAR COST AVERAGING
We offer two dollar cost averaging programs. You may only participate in one
program at a time. Each program allows you to gradually allocate amounts to the
variable investment options by periodically transferring approximately the same
dollar amount to the variable investment options you select. This will cause
you to purchase more units if the unit value is low and fewer units if the unit
value is high. Therefore, you may get a lower average cost per unit over the
long term. These plans of investing, however, do not guarantee that you will
earn a profit or be protected against losses. You may not make transfers to the
fixed maturity options.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
12 MONTH DOLLAR COST AVERAGING PROGRAM. You may dollar cost average from the
EQ/Money Market option into any of the other variable investment options. You
may elect to participate in the 12 month dollar cost averaging program at any
time subject to the age limitation on contributions described in Section 1 of
this Prospectus. Contributions into the account for 12 month dollar cost
averaging may not be transfers from other investment options. You must have
allocated your entire initial contribution into the EQ/Money Market option if
you selected the 12 month dollar cost averaging program at application to
purchase an Accumulator(R) contract; thereafter initial allocations to any new
12 month dollar cost averaging program time period must be at least $2,000 and
any subsequent contribution to that same time period must be at least $250. You
may only have one time period in effect at any time. We will transfer your
value in the EQ/Money Market option into the other variable investment options
that you select over the next 12 months or such other period we may offer. Once
the time period then in effect has run, you may then select to participate in
the dollar cost averaging program for an additional time period. At that time,
you may also select a different allocation for transfers to the variable
investment options, or, if you wish, we will continue to use the selection that
you have previously made.
Currently, the transfer date will be the same day of the month as the contract
date, but not later than the 28th. For a 12 month dollar cost averaging program
selected after application, the first transfer date and each subsequent
transfer date for the time period selected will be one month from the date the
first contribution is made into the 12 month dollar cost averaging program, but
not later than the 28th of the month. All amounts will be transferred out by
the end of the time period then in effect. Under this program we will not
deduct the mortality and expense risks, administrative, and distribution
charges from assets in the EQ/Money Market option.
You may not transfer amounts to the EQ/Money Market option established for this
program that are not part of the 12 month dollar cost averaging program. The
only amounts that should be transferred from the EQ/Money Market option are
your regularly scheduled transfers to the other variable investment options. If
you request to transfer or withdraw any other amounts from the EQ/Money Market
option, we will transfer all of the value that you have remaining in the
account for 12 month dollar cost averaging to the investment options according
to the allocation percentages we have on file for you. You may ask us to cancel
your participation at any time.
GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market
option is at least $5,000, you may choose, at any time, to have a specified
dollar amount or percentage of your value transferred from that option to the
other variable investment options. You can select to have transfers made on a
monthly, quarterly, or annual basis. The transfer date will be the same
calendar day of the month as the contract date, but not later than the 28th day
of the month. You can also specify the number of transfers or instruct us to
continue making the transfers until all amounts in the EQ/Money Market option
have been transferred out.
The minimum amount that we will transfer each time is $250. The maximum amount
we will transfer is equal to your value in the EQ/Money Market option at the
time the program is elected, divided by the number of transfers scheduled to be
made.
If, on any transfer date, your value in the EQ/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The general dollar cost averaging program will then end.
You may change the transfer amount once each contract year or cancel this
program at any time.
----------------------------------
You may not elect general dollar cost averaging or 12 month dollar cost
averaging if you are participating in the rebalancing program. See "Transfers
among investment options" later in this Prospectus. You could not elect the 12
month dollar cost averaging program if you elected the principal assurance
program at application.
YOUR BENEFIT BASE
The benefit base is used to calculate both the guaranteed minimum income
benefit and the 5% roll up to age 80 guaranteed minimum death benefit. Your
benefit base is not an account value or a cash
26 Contract features and benefits
value. See "Our baseBUILDER option" and "Guaranteed minimum death benefit"
below. The benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
o daily interest; less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death benefit" in "Accessing your
money" later in this Prospectus); less
o a deduction for any withdrawal charge remaining when you exercise your
guaranteed minimum income benefit.
The effective annual interest rate credited to the benefit base is:
o 5% for the benefit base with respect to the variable investment options
(other than the AXA Premier VIP Core Bond, EQ/Alliance Intermediate
Government Securities, EQ/Money Market, EQ/PIMCO Real Return,EQ/Alliance
Quality Bond and EQ/Short Duration Bond options) and the 12-Month dollar cost
averaging; and
o 3% for the benefit base with respect to the AXA Premier VIP Core Bond,
EQ/Alliance Intermediate Government Securities, EQ/Money Market, EQ/PIMCO
Real Return, EQ/Alliance Quality Bond and EQ/Short Duration Bond options, the
fixed maturity options and the loan reserve account under Rollover TSA (if
applicable).
No interest is credited to the benefit base after the contract date anniversary
following the annuitant's 80th birthday.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the guaranteed minimum income benefit and annuity payout
options. The guaranteed minimum income benefit is discussed under "Our
baseBUILDER option" and annuity payout options are discussed under "Your
annuity payout options" in "Accessing your money" later in this Prospectus. The
guaranteed annuity purchase factors are those factors specified in your
contract. The current annuity purchase factors are those factors that are in
effect at any given time. Annuity purchase factors are based on interest rates,
mortality tables, frequency of payments, the form of annuity benefit and the
annuitant's (and any joint annuitant's) age and sex in certain instances.
OUR BASEBUILDER OPTION
The following section provides information about the baseBUILDER option, which
was only available at the time you purchased your contract, if the annuitant
was age 20 through 75. The baseBUILDER option combines a guaranteed minimum
income benefit with the guaranteed minimum death benefit that was provided
under your contract. For Rollover IRA and Rollover TSA contracts where the
annuitant was between ages 20 and 60 at contract issue, we offered an
additional guaranteed minimum death benefit of a 5% roll up to age 70. If you
elected the baseBUILDER option at purchase, you pay an additional charge that
is described under "baseBUILDER benefit charge" in "Charges and expenses" later
in this Prospectus. If you purchased your contract to fund a Charitable
Remainder Trust, the guaranteed minimum income benefit was, generally, not
available to you. Subject to our rules, the baseBUILDER benefit might have been
available for certain split-funded Charitable Remainder Trusts.
The guaranteed minimum income benefit component of the baseBUILDER option is
described below. Whether you elected the baseBUILDER option or not, the
guaranteed minimum death benefit was provided under the contract. The
guaranteed minimum death benefit is described under "Guaranteed minimum death
benefit" below in this section.
The guaranteed minimum income benefit guarantees you a minimum amount of
lifetime income under our Income Manager(R) contract. Only a life with a period
certain Income Manager(R) payout annuity contract is available. You choose
whether you want the option to be paid on a single or joint life basis at the
time you exercise the option. The maximum period certain available under the
Income Manager(R) payout option is 10 years. This period may be shorter,
depending on the annuitant's age, as follows:
- ---------------------------------------------------
Level Payments
- ---------------------------------------------------
Period certain years
- ---------------------------------------------------
Annuitant's
Age at exercise IRAs NQ
60 to 75 10 10
76 9 10
77 8 10
78 7 10
79 7 10
80 7 10
81 7 9
82 7 8
83 7 7
- ---------------------------------------------------
We may also make other forms of payout options available. For a description of
payout options, see "Your annuity payout options" in "Accessing your money"
later in this Prospectus.
- --------------------------------------------------------------------------------
The guaranteed minimum income benefit, which is also known as a living benefit,
should be regarded as a safety net only. It provides income protection if you
elect an income payout while the annuitant is alive.
- --------------------------------------------------------------------------------
When you exercise the guaranteed minimum income benefit, the annual lifetime
income that you will receive will be the greater of (i) your guaranteed minimum
income benefit which is calculated by applying your benefit base, less any
applicable withdrawal charge remaining, at guaranteed annuity purchase factors
or (ii) the income provided by applying your account value at our then current
annuity purchase factors. For Rollover TSA only, we will subtract from the
benefit base or account value any outstanding loan, including interest accrued
but not paid. You may also elect to receive monthly or quarterly payments as an
alternative. The payments will be less than 1/12 or 1/4 of the annual payments
respectively, due to the effect of interest compounding. The benefit base is
applied only to the baseBUILDER guaranteed purchase annuity factors in your
contract and not to any
Contract features and benefits 27
other guaranteed or current annuity purchase rates. The amount of income you
actually receive will be determined when we receive your request to exercise
the benefit.
When you elect to receive annual lifetime income, your contract will terminate
and you will receive a new contract for the annuity payout option. For a
discussion of when your payments will begin and end, see "Exercise of
guaranteed minimum income benefit" below.
The guaranteed minimum income benefit provides a form of insurance and is based
on conservative actuarial factors. The guaranteed annuity purchase factors we
use to determine your Income Manager(R) benefit under baseBUILDER are more
conservative than the guaranteed annuity purchase factors we use for the Income
Manager(R) payout annuity option. This means that, assuming the same amount is
applied to purchase the benefit and that we use guaranteed annuity purchase
factors to compute the benefit, each periodic payment under the baseBUILDER
Income Manager(R) will be smaller than each periodic payment under the Income
Manager(R) payout annuity option. Therefore, even if your account value is less
than your benefit base, you may generate more income by applying your account
value to current annuity purchase factors. We will make this comparison for you
when the need arises.
ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. The table below
illustrates the guaranteed minimum income benefit amounts per $100,000 of
initial contribution, for a male annuitant age 60 (at issue) on the contract
date anniversaries indicated, using the guaranteed annuity purchase factors as
of the date of this Prospectus, assuming no additional contributions,
withdrawals or loans under Rollover TSA contracts, and assuming there were no
allocations to the AXA Premier VIP Core Bond, EQ/Alliance Intermediate
Government Securities, EQ/Money Market, EQ/PIMCO Real Return, EQ/Alliance
Quality Bond or EQ/Short Duration Bond options, or the fixed maturity options.
- --------------------------------------------------------------
Guaranteed minimum
income benefit -- annual
Contract Date income payable for life with
Anniversary at exercise 10 year period certain
- --------------------------------------------------------------
7 $ 8,315
10 $10,342
15 $14,925
- --------------------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date
anniversary that you are eligible to exercise the guaranteed minimum income
benefit, we will send you an eligibility notice illustrating how much income
could be provided as of the contract anniversary. You must notify us within 30
days following the contract date anniversary if you want to exercise the
guaranteed minimum income benefit. You must return your contract to us along
with any required information within 30 days following your contract date
anniversary, in order to exercise this benefit. You will begin receiving annual
payments one year after the annuity payout contract is issued. If you choose
monthly or quarterly payments, you will receive your payment one month or one
quarter after the annuity payout contract is issued. Payments are always made
on the 15th of the month and generally begin one payment mode from issue. You
may choose to take a withdrawal prior to exercising the guaranteed minimum
income benefit, which will reduce your payments. You may not partially exercise
this benefit. See "Accessing your money" under "Withdrawing your account value"
later in this Prospectus. Payments end with the last payment before the
annuitant's (or joint annuitant's, if applicable) death.
You will be eligible to exercise the guaranteed minimum income benefit during
your life and the annuitant's life, as follows:
o If the annuitant was at least age 20 and no older than age 44 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 15th contract date anniversary.
o If the annuitant was at least age 45 and no older than age 53 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary after
the annuitant is age 60.
o If the annuitant was at least age 54 and no older than age 75 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 7th contract date anniversary.
Please note:
(i) the latest date you may exercise the guaranteed minimum income benefit is
the contract date anniversary following the annuitant's 83rd birthday;
(ii) if the annuitant was older than age 63 at the time an IRA, QP or Rollover
TSA contract was issued, the baseBUILDER option may not be an appropriate
feature because the minimum distributions required by tax law must begin
before the guaranteed minimum income benefit can be exercised;
(iii) for Accumulator(R) QP contracts, the Plan participant can exercise the
baseBUILDER option only if he or she elects to take a distribution from
the Plan and, in connection with this distribution, the Plan's trustee
changes the ownership of the contract to the participant. This effects a
rollover of the Accumulator(R) QP contract into an Accumulator(R) Rollover
IRA. This process must be completed within the 30-day timeframe following
the contract date anniversary in order for the Plan participant to be
eligible to exercise;
(iv) for Accumulator(R) Rollover TSA contracts, you may exercise the
baseBUILDER option only if you effect a rollover of the TSA contract to an
Accumulator(R) Rollover IRA. This may only occur when you are eligible for
a distribution from the TSA. This process must be completed within the
30-day timeframe following the contract date anniversary in order for you
to be eligible to exercise;
(v) for a successor owner/annuitant the earliest exercise date will be based
on the original contract date and the age of the successor owner/annuitant
as of the Processing Date successor owner/ annuitant takes effect; and
(vi) if you are the owner but not the annuitant and you die prior to exercise,
then the following applies:
28 Contract features and benefits
A successor owner who is not the annuitant may not be able to exercise the
baseBUILDER option without causing a tax problem. You should consider
naming the annuitant as successor owner, or if you do not name a successor
owner, as the sole primary beneficiary. You should carefully review your
successor owner and/or beneficiary designations at least one year prior to
the first contract anniversary on which you could exercise the benefit.
o If the successor owner is the annuitant, the baseBUILDER option continues
only if the benefit could be exercised under the rules described above on
a contract anniversary that is within one year following the owner's
death. This would be the only opportunity for the successor owner to
exercise. If the baseBUILDER option cannot be exercised within this
timeframe, the benefit will terminate and the charge for it will no longer
apply as of the date we receive proof of your death and any required
information.
o If you designate your surviving spouse as successor owner, the baseBUILDER
option continues and your surviving spouse may exercise the benefit
according to the rules described above even if your spouse is not the
annuitant and even if the benefit is exercised more than one year after
your death. If your surviving spouse dies prior to exercise, the rule
described in the previous bullet applies.
o A successor owner or beneficiary that is a trust or other non- natural
person may not exercise the benefit; in this case, the benefit will
terminate and the charge for it will no longer apply as of the date we
receive proof of your death and any required information.
See "When an NQ contract owner dies before the annuitant" under "Payment of
death benefit" later in this Prospectus for more information.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing you money" later in this
Prospectus for more information on these guaranteed benefits.
GUARANTEED MINIMUM DEATH BENEFIT
A guaranteed minimum death benefit was provided as part of the baseBUILDER
benefit. A guaranteed minimum death benefit was also provided under your
contract even if you did not elect baseBUILDER. In this case, the baseBUILDER
benefit charge does not apply.
GUARANTEED MINIMUM DEATH BENEFIT APPLICABLE FOR ANNUITANTS WHO WERE AGES 0
THROUGH 79 AT ISSUE OF NQ CONTRACTS; 20 THROUGH 79 AT ISSUE OF ROLLOVER IRA,
ROTH CONVERSION IRA AND ROLLOVER TSA CONTRACTS; AND 20 THROUGH 75 AT ISSUE OF
QP CONTRACTS.
You must have elected either: the "5% roll up to age 80" or the "annual ratchet
to age 80" guaranteed minimum death benefit when you applied for a contract.
Once you made your election, you cannot change it.
5% ROLL UP TO AGE 80. This guaranteed minimum death benefit is equal to the
benefit base described earlier in "Your benefit base."
ANNUAL RATCHET TO AGE 80. On the contract date, your guaranteed minimum death
benefit equaled your initial contribution. Then, on each contract date
anniversary, we determine your guaranteed minimum death benefit by comparing
your current guaranteed minimum death benefit to your account value on that
contract date anniversary. If your account value is higher than your guaranteed
minimum death benefit, we will increase your guaranteed minimum death benefit
to equal your account value. On the other hand, if your account value on the
contract date anniversary is less than your guaranteed minimum death benefit,
we will not adjust your guaranteed minimum death benefit either up or down. If
you make additional contributions, we will increase your current guaranteed
minimum death benefit by the dollar amount of the contribution on the date the
contribution is allocated to your investment options. If you take a withdrawal
from your contract, we will reduce your guaranteed minimum death benefit on the
date you take the withdrawal.
GUARANTEED MINIMUM DEATH BENEFIT APPLICABLE FOR ANNUITANTS WHO WERE AGES 80
THROUGH 83 AT ISSUE OF NQ, ROLLOVER IRA, ROTH CONVERSION IRA AND ROLLOVER TSA
CONTRACTS.
On the contract date, your guaranteed minimum death benefit equaled your
initial contribution. Thereafter, it is increased by the dollar amount of any
additional contributions. We will reduce your guaranteed minimum death benefit
if you take any withdrawals.
----------------------------------
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for information on these guaranteed benefits.
See Appendix IV at the end of this Prospectus for an example of how we
calculate the guaranteed minimum death benefit.
PROTECTION PLUS(SM)
The following section provides information about the Protection Plus(SM) option,
which was only available at the time you purchased your contract. If Protection
Plus(SM) was not elected when the contract was first issued, neither the owner
nor the successor owner/annuitant can add it subsequently. Protection Plus(SM)
is an additional death benefit as described below. See the appropriate part of
"Tax information" later in this Prospectus for the potential consequences of
having purchased the Protection Plus(SM) feature in an NQ or IRA contract.
If the annuitant was 69 or younger when we issued your contract (or if the
successor owner/annuitant is 69 or younger when he or she becomes the successor
owner/annuitant), the death benefit will be:
the greater of:
o the account value or
o any applicable guaranteed minimum death benefit
Increased by:
40% of the lesser of:
o the total net contributions or
o the death benefit less total net contributions
Contract features and benefits 29
For purposes of calculating your Protection Plus(SM) benefit, the following
applies: (i) "Net contributions" are the total contributions made (or, if
applicable, the total amount that would otherwise have been paid as a death
benefit had the successor owner/annuitant election not been made plus any
subsequent contributions) reduced on a pro rata basis to reflect withdrawals
(including surrender charges and loans). Reduction on a pro rata basis means
that we calculate the percentage of the current account value that is being
withdrawn and we reduce net contributions by that percentage. For example, if
the account value is $30,000 and you withdraw $12,000, you have withdrawn 40%
of your account value. If the contributions aggregated $40,000 before the
withdrawal, it would be reduced by $16,000 ($40,000 x .40) and net
contributions after the withdrawal would be $24,000 ($40,000-$16,000); (ii)
"Death benefit" is equal to the greater of the account value as of the date we
receive satisfactory proof of death or any applicable guaranteed minimum death
benefit as of the date of death.
If the annuitant was age 70 through 75 when we issued your contract (or if the
successor owner/annuitant is between the ages of 70 and 75 when he or she
becomes the successor owner/annuitant under a contract where Protection Plus(SM)
had been elected at issue), the death benefit will be:
the greater of:
o the account value or
o any applicable guaranteed minimum death benefit
Increased by:
25% of the lesser of:
o the total net contributions (as described above) or
o the death benefit (as described above) less total net contributions
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
This is provided for informational purposes only. Since this contract is no
longer available to new purchasers, this cancellation provision is no longer
applicable.
If for any reason you are not satisfied with your contract, you may return it
to us for a refund of the full amount of your contribution. To exercise this
cancellation right you must mail the contract, with a signed letter of
instruction electing this right, to our processing office within 10 days after
you receive it. If state law requires, this "free look" period may be longer.
We may require that you wait six months before you may apply for a contract
with us again if:
o you cancel your contract during the free look period; or
o you change your mind before you receive your contract whether we have
received your contribution or not.
Please see "Tax information" later in this Prospectus for possible consequences
of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA contract, you may
cancel your Roth Conversion IRA contract and return to a Rollover IRA contract.
Our processing office, or your financial professional, can provide you with the
cancellation instructions.
30 Contract features and benefits
2. Determining your contract's value
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the values you have in: (i) the variable
investment options; (ii) market adjusted amounts in the fixed maturity options;
and (iii) the loan reserve account (applies for Rollover TSA contracts only).
Your contract also has a "cash value." At any time before annuity payments
begin, your contract's cash value is equal to the account value, less: (i) any
applicable withdrawal charges and (ii) the amount of any outstanding loan plus
accrued interest (applicable to Rollover TSA contracts only). Please see
"Surrendering your contract to receive its cash value" in "Accessing your
money" later in this Prospectus.
YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS
Each variable investment option invests in shares of a corresponding portfolio.
Your value in each variable investment option is measured by "units." The value
of your units will increase or decrease as though you had invested it in the
corresponding portfolio's shares directly. Your value, however, will be reduced
by the amount of the fees and charges that we deduct under the contract.
The unit value for each variable investment option depends on the investment
performance of that option less daily charges for:
(i) mortality and expense risks;
(ii) administrative expenses; and
(iii) distribution charges.
On any day, your value in any variable investment option equals the number of
units credited to that option, adjusted for any units purchased for or deducted
from your contract under that option, multiplied by that day's value for one
unit. The number of your contract units in any variable investment option does
not change unless they are:
(i) increased to reflect additional contributions;
(ii) decreased to reflect a withdrawal (plus applicable withdrawal charges);
(iii) increased to reflect a transfer into, or decreased to reflect a transfer
out of, a variable investment option; or
(iv) increased or decreased to reflect a transfer of your loan amount from or
to the loan reserve account under a Rollover TSA contract.
In addition, when we deduct the baseBUILDER and/or Protection Plus(SM) benefit
charge, the number of units credited to your contract will be reduced. A
description of how unit values are calculated is found in the SAI.
YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS
Your value in each fixed maturity option at any time before the maturity date
is the market adjusted amount in each option. This is equivalent to your fixed
maturity amount increased or decreased by the market value adjustment. Your
value, therefore, may be higher or lower than your contributions (less
withdrawals) accumulated at the rate to maturity. At the maturity date, your
value in the fixed maturity option will equal its maturity value, provided
there have been no withdrawals or transfers.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose all of your rights under your contract and any
applicable guaranteed benefits.
Determining your contract's value 31
3. Transferring your money among investment options
- --------------------------------------------------------------------------------
TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer
some or all of your account value among the investment options, subject to the
following:
o You may not transfer to a fixed maturity option that matures in the current
calendar year or that has a rate to maturity of 3% or less.
o You may not transfer any amount to the 12-month dollar cost averaging
program.
o If the annuitant is 76 or older, you must limit your transfers to fixed
maturity options to those with maturities of five years or less. As of
February 15, 2005, maturities of less than seven years were not available.
Also, the maturity dates may be no later than the February 15th immediately
following the date annuity payments are to begin.
o If you make transfers out of a fixed maturity option other than at its
maturity date the transfer may cause a market value adjustment.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency, or dollar amount of transfers.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value to be
transferred, and
(3) the investment options to and from which you are transferring.
We will confirm all transfers in writing.
DISRUPTIVE TRANSFER ACTIVITY
You should note that the contract is not designed for professional "market
timing" organizations, or other organizations or individuals engaging in a
market timing strategy. The contract is not designed for programmed transfers,
frequent transfers or transfers that are large in relation to the total assets
of the underlying portfolio.
Frequent transfers, including market timing and other program trading or
short-term trading strategies, may be disruptive to the underlying portfolios
in which the variable investment options invest. Disruptive transfer activity
may adversely affect performance and the interests of long-term investors by
requiring a portfolio to maintain larger amounts of cash or to liquidate
portfolio holdings at a disadvantageous time or price. For example, when market
timing occurs, a portfolio may have to sell its holdings to have the cash
necessary to redeem the market timer's investment. This can happen when it is
not advantageous to sell any securities, so the portfolio's performance may be
hurt. When large dollar amounts are involved, market timing can also make it
difficult to use long-term investment strategies because a portfolio cannot
predict how much cash it will have to invest. In addition, disruptive transfers
or purchases and redemptions of portfolio investments may impede efficient
portfolio management and impose increased transaction costs, such as brokerage
costs, by requiring the portfolio manager to effect more frequent purchases and
sales of portfolio securities. Similarly, a portfolio may bear increased
administrative costs as a result of the asset level and investment volatility
that accompanies patterns of excessive or short-term trading. Portfolios that
invest a significant portion of their assets in foreign securities or the
securities of small- and mid-capitalization companies tend to be subject to the
risks associated with market timing and short-term trading strategies to a
greater extent than portfolios that do not. Securities trading in overseas
markets present time zone arbitrage opportunities when events affecting
portfolio securities values occur after the close of the overseas market but
prior to the close of the U.S. markets. Securities of small- and
mid-capitalization companies present arbitrage opportunities because the market
for such securities may be less liquid than the market for securities of larger
companies, which could result in pricing inefficiencies. Please see the
prospectuses for the underlying portfolios for more information on how
portfolio shares are priced.
We currently use the procedures described below to discourage disruptive
transfer activity. You should understand, however, that these procedures are
subject to the following limitations: (1) they primarily rely on the policies
and procedures implemented by the underlying portfolios; (2) they do not
eliminate the possibility that disruptive transfer activity, including market
timing, will occur or that portfolio performance will be affected by such
activity; and (3) the design of market timing procedures involves inherently
subjective judgments, which we seek to make in a fair and reasonable manner
consistent with the interests of all policy and contract owners.
The AXA Premier VIP Trust and EQ Advisors Trust (the "affiliated trusts") have
adopted policies and procedures designed to discourage disruptive transfers by
contract owners investing in the portfolios of the affiliated trusts. The
affiliated trusts discourage frequent purchases and redemptions of portfolio
shares and will not make special arrangements to accommodate such transactions.
As a general matter, the affiliated trusts reserve the right to refuse or limit
any purchase or exchange order by a particular investor (or group of related
investors) if the transaction is deemed harmful to the portfolio's other
investors or would disrupt the management of the portfolio. The affiliated
trusts monitor aggregate inflows and outflows for each portfolio on a daily
basis. On any day when a portfolio's net inflows or outflows exceed an
established monitoring threshold, the affiliated trust obtains from us contract
owner trading activity. The affiliated trusts currently consider transfers into
and out of (or vice versa) the same variable investment option within a five
business day period as potentially disruptive transfer activity. When a
contract owner is identified as having engaged in a potentially disruptive
transfer for the first time, a letter is sent to the contract owner explaining
that there is a policy against disruptive
32 Transferring your money among investment options
transfer activity and that if such activity continues certain transfer
privileges may be eliminated. If and when the contract owner is identified a
second time as engaged in potentially disruptive transfer activity, we
currently prohibit the use of voice, fax and automated transaction services. We
currently apply such action for the remaining life of each affected contract.
We or the affiliated trusts may change the definition of potentially disruptive
transfer activity, the monitoring procedures and thresholds, any notification
procedures, and the procedures to restrict this activity. Any new or revised
policies and procedures will apply to all contract owners uniformly. We do not
permit exceptions to our policies restricting disruptive transfer activity.
We may also offer investment options with underlying portfolios that are not
part of the AXA Premier VIP Trust or EQ Advisors Trust (the "unaffiliated
trusts"). Each unaffiliated trust may have its own policies and procedures
regarding disruptive transfer activity, which may be different than those
applied by the affiliated trusts. In most cases, the unaffiliated trust
reserves the right to reject a transfer that it believes, in its sole
discretion, is disruptive (or potentially disruptive) to the management of one
of its portfolios. Please see the prospectus for the underlying trust for
information regarding the policies and procedures, if any, employed by that
trust and any associated risks of investing in that trust. If an unaffiliated
trust advises us that there may be disruptive transfer activity from our
contract owners, we will work with the unaffiliated trust to review contract
owner trading activity. If the underlying trust determines that the trading
activity of a particular contract owner is disruptive, we will take action to
limit the disruptive trading activity of that contract owner as discussed
above.
Contract owners should note that it is not always possible for us and the
underlying trusts to identify and prevent disruptive transfer activity. Our
ability to monitor potentially disruptive transfer activity is limited in
particular with respect to certain group contracts. Group annuity contracts may
be owned by retirement plans on whose behalf we provide transfer instructions
on an omnibus (aggregate) basis, which may mask the disruptive transfer
activity of individual plan participants, and/or interfere with our ability to
restrict communication services. In addition, because we do not monitor for all
frequent trading at the separate account level, contract owners may engage in
frequent trading which may not be detected, for example, due to low net inflows
or outflows on the particular day(s). Therefore, no assurance can be given that
we or the trusts will successfully impose restrictions on all disruptive
transfers. Because there is no guarantee that disruptive trading will be
stopped, some contract owners/ participants may be treated differently than
others, resulting in the risk that some contract owners/participants may be
able to engage in frequent transfer activity while others will bear the effect
of that frequent transfer activity. The potential affects of frequent transfer
activity are discussed above.
REBALANCING YOUR ACCOUNT VALUE
We currently offer a rebalancing program that you can use to automatically
reallocate your account value among the variable investment options. You must
tell us:
(a) the percentage you want invested in each variable investment option (whole
percentages only), and
(b) how often you want the rebalancing to occur (quarterly, semiannually or
annually on a contract year basis).
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options so that the percentage of your account value that
you specify is invested in each option at the end of each rebalancing date.
Your entire account value in the variable investment options must be included
in the rebalancing program.
- --------------------------------------------------------------------------------
Rebalancing does not assure a profit or protect against loss. You should
periodically review your allocation percentages as your needs change. You may
want to discuss the rebalancing program with your financial professional before
electing the program.
- --------------------------------------------------------------------------------
You may elect the rebalancing program at any time. You may also change your
allocation instructions or cancel the program at any time. If you request a
transfer while the rebalancing program is in effect we will process the
transfer as requested; your rebalancing allocations will not be changed and the
rebalancing program will remain in effect unless you request that it be
canceled in writing. The rebalancing program will remain in effect unless you
request that it be canceled in writing.
You may not elect the rebalancing program if you are participating in the
general dollar cost averaging or 12 month dollar cost averaging program.
Rebalancing is not available for amounts you have allocated in the fixed
maturity options.
Transferring your money among investment options 33
4. Accessing your money
- --------------------------------------------------------------------------------
WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your account value before annuity payments
begin. The table below shows the methods available under each type of contract.
More information follows the table. If you withdraw more than 90% of a
contract's current cash value, we will treat it as a request to surrender the
contract for its cash value. See "Surrendering your contract to receive its
cash value" below. For the tax consequences of withdrawals, see "Tax
information" later in this Prospectus.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus and "How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death benefit" below for more information
on how withdrawals affect your guaranteed benefits and could potentially cause
your contract to terminate.
- --------------------------------------------------------------------------------
Method of withdrawal
- --------------------------------------------------------------------------------
Lifetime
required
Substantially minimum
Contract Lump sum Systematic equal distribution
- --------------------------------------------------------------------------------
NQ Yes Yes No No
- --------------------------------------------------------------------------------
Rollover IRA Yes Yes Yes Yes
- --------------------------------------------------------------------------------
Roth Conversion
IRA Yes Yes Yes No
- --------------------------------------------------------------------------------
QP Yes No No Yes
- --------------------------------------------------------------------------------
Rollover TSA* Yes Yes No Yes
- --------------------------------------------------------------------------------
* For some Rollover TSA contracts, your ability to take withdrawals, loans or
surrender your contract may be limited. You must provide withdrawal
restriction information when you apply for a contract. See "Tax Sheltered
Annuity contracts (TSAs)" in "Tax information" later in this Prospectus.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time.
(Rollover TSA contracts may have restrictions.) The minimum amount you may
withdraw is $300.
Lump sum withdrawals will be subject to a withdrawal charge if they exceed the
15% free withdrawal amount (see "15% free withdrawal amount" in "Charges and
expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is
outstanding, you may only take lump sum withdrawals as long as the cash value
remaining after any withdrawal equals at least 10% of the outstanding loan plus
accrued interest.
SYSTEMATIC WITHDRAWALS
(All contracts except QP)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value. (Rollover TSA contracts may have
restrictions.)
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 1.2% monthly, 3.6% quarterly and 15.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would
be less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
We will make the withdrawals on any day of the month that you select as long as
it is not later than the 28th day of the month. If you do not select a date, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59-1/2 and 70-1/2.
You may change the payment frequency, the amount or the percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
lump sum withdrawal. You can cancel the systematic withdrawal option at any
time.
Systematic withdrawals are not subject to a withdrawal charge, except to the
extent that, when added to a lump sum withdrawal previously taken in the same
contract year, the systematic withdrawal exceeds the 15% free withdrawal
amount.
SUBSTANTIALLY EQUAL WITHDRAWALS
(All IRA contracts)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus. We use one of the
IRS-approved methods for doing this; this is not the exclusive method of
meeting this exception. After consultation with your tax adviser, you may
decide to use another method which would require you to compute amounts
yourself and request lump sum withdrawals. In such a case, a withdrawal charge
may apply. Once you begin to take substantially equal withdrawals, you should
not stop them or change the pattern of your withdrawals until after the later
of age 59-1/2 or five full years after the first withdrawal. If you stop or
change the withdrawals or take a lump sum withdrawal, you may be liable for the
10% federal tax penalty that would have otherwise been due on prior withdrawals
made under this option and for any interest on the delayed payment of the
penalty.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may change, without penalty, from one of the
IRS-approved methods of calculating fixed payments to another IRS-approved
method (similar to the required minimum distribution rules) of calculating
payments which vary each year.
34 Accessing your money
You may elect to take substantially equal withdrawals at any time before age
59-1/2. We will make the withdrawal on any day of the month that you select as
long as it is not later than the 28th day of the month. You may not elect to
receive the first payment in the same contract year in which you took a lump
sum withdrawal. We will calculate the amount of your substantially equal
withdrawals using the IRS-approved method we offer. The payments will be made
monthly, quarterly or annually as you select. These payments will continue
until we receive written notice from you to cancel this option or you take a
lump sum withdrawal. You may elect to start receiving substantially equal
withdrawals again, but the payments may not restart in the same contract year
in which you took a lump sum withdrawal. We will calculate the new withdrawal
amount.
Substantially equal withdrawals are not subject to a withdrawal charge.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA, QP and Rollover TSA contracts only -- See "Tax information"
later in this Prospectus.)
We offer our "automatic required minimum distribution (RMD) service" to help
you meet lifetime required minimum distributions under federal income tax
rules. This is not the exclusive way for you to meet these rules. After
consultation with your tax adviser, you may decide to compute required minimum
distributions yourself and request lump sum withdrawals. In such a case, a
withdrawal charge may apply. Before electing this account based withdrawal
option, you should consider whether annuitization might be better in your
situation. If you have elected certain additional benefits, such as the
Guaranteed minimum death benefit, amounts withdrawn from the contract to meet
RMDs will reduce the benefit base and may limit the utility of the benefit.
Also, please refer to "Tax information" later in this Prospectus for
considerations on annuity contracts funding qualified plans, TSAs, and IRAs.
You may elect this service in the year in which you reach age 70-1/2 or in any
later year. The minimum amount we will pay out is $250. Currently, minimum
distribution withdrawal payments will be made annually. See "Required minimum
distributions" in "Tax information" later in this Prospectus for your specific
type of retirement arrangement.
Currently, we do not impose a withdrawal charge on minimum distribution
withdrawals if you are enrolled in our "automatic required minimum distribution
(RMD) service" except if when added to a lump sum withdrawal previously taken
in the same contract year, the minimum distribution withdrawal exceeds the 15%
free withdrawal amount.
Under Rollover TSA contracts, you may not elect minimum distribution
withdrawals if a loan is outstanding.
- --------------------------------------------------------------------------------
For Rollover IRA and Rollover TSA contracts, we will send a form outlining the
distribution options available in the year you reach age 70-1/2 (if you have not
begun your annuity payments before that time).
- --------------------------------------------------------------------------------
HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your value in the variable investment options. If there is
insufficient value or no value in the variable investment options, any
additional amount of the withdrawal required or the total amount of the
withdrawal will be withdrawn from the fixed maturity options in order of the
earliest maturity date(s) first. A market value adjustment may apply to
withdrawals from the fixed maturity options.
HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED
MINIMUM DEATH BENEFIT
Withdrawals will reduce your guaranteed benefits on either a dollar-for-dollar
basis or on a pro rata basis as explained below:
INCOME BENEFIT AND DEATH BENEFIT
5% ROLL UP TO AGE 80 -- If you elected the 5% roll up to age 80 guaranteed
minimum death benefit, your benefit base will be reduced on a dollar-for-dollar
basis as long as the sum of your withdrawals in a contract year is 5% or less
of the benefit base on the most recent contract date anniversary. Once you take
a withdrawal that causes the sum of your withdrawals in a contract year to
exceed 5% of the benefit base on the most recent contract date anniversary,
that withdrawal and any subsequent withdrawals in that same contract year will
reduce your benefit base on a pro rata basis. Additional contributions made
during the contract year do not affect the amount of withdrawals that can be
taken on a dollar-for-dollar basis in that contract year.
The timing of your withdrawals and whether they exceed the 5% threshold
described above can have a significant impact on your guaranteed minimum income
benefit or guaranteed minimum death benefit.
ANNUAL RATCHET TO AGE 80 -- If you elected the annual ratchet to age 80
guaranteed minimum death benefit, each withdrawal will reduce your income and
death benefit on a pro rata basis.
ANNUITANT ISSUE AGES 80 THROUGH 83 -- If your contract was issued when the
annuitant was between ages 80 and 83, each withdrawal will always reduce your
current guaranteed minimum death benefit on a pro rata basis.
----------------------------------
Reduction on a dollar-for-dollar basis means that your current benefit will be
reduced by the dollar amount of the withdrawal. Reduction on a pro rata basis
means that we calculate the percentage of your current account value that is
being withdrawn and we reduce your current benefit by that same percentage. For
example, if your account value is $30,000 and you withdraw $12,000, you have
withdrawn 40% of your account value. If your guaranteed minimum death benefit
was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000
x.40) and your new guaranteed minimum death benefit after the withdrawal would
be $24,000 ($40,000 - $16,000).
LOANS UNDER ROLLOVER TSA CONTRACTS
You may take loans from a Rollover TSA unless restricted by the employer who
provided the Rollover TSA funds. If you cannot take a loan, or cannot take a
loan without approval from the employer who provided the funds, we will have
this information in our records based on what you and the employer who provided
the funds told us when
Accessing your money 35
you purchased your contract. The employer must also tell us whether special
employer plan rules of the Employee Retirement Income Security Act of 1974
("ERISA") apply. We will not permit you to take a loan while you are enrolled
in our "automatic required minimum distribution (RMD) service."
You should read the terms and conditions on our loan request form carefully
before taking out a loan. Under Rollover TSA contracts subject to ERISA, you
may only take a loan with the written consent of your spouse. Your contract
contains further details of the loan provision. Also, see "Tax information"
later in this Prospectus for general rules applicable to loans.
We will permit you to have only one loan outstanding at a time. The minimum
loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your
account value, subject to any limits under the federal income tax rules. The
term of a loan is five years. However, if you use the loan to acquire your
primary residence, the term is 10 years. The term may not extend beyond the
earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
(3) the date a death benefit is paid (the outstanding loan will be deducted
from the death benefit amount).
A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the properly completed
loan request form is received. Interest will accrue daily on your outstanding
loan at a rate we set. The loan interest rate will be equal to the Moody's
Corporate Bond Yield Averages for Baa bonds for the calendar month ending two
months before the first day of the calendar quarter in which the rate is
determined.
LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the
amount of your loan to the loan reserve account. Unless you specify otherwise,
we will subtract your loan on a pro rata basis from your value in the variable
investment options. If there is insufficient value or no value in the variable
investment options, any additional amount of the loan will be subtracted from
the fixed maturity options in order of the earliest maturity date(s) first. A
market value adjustment may apply.
We will credit interest to the amount in the loan reserve account at a rate of
2% lower than the loan interest rate that applies for the time your loan is
outstanding. On each contract date anniversary after the date the loan is
processed, we will transfer the amount of interest earned in the loan reserve
account to the variable investment options on a pro rata basis. When you make a
loan repayment, unless you specify otherwise, we will transfer the dollar
amount of the loan repaid from the loan reserve account to the investment
options according to the allocation percentages we have on our records.
SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time while the
annuitant is living and before you begin to receive annuity payments. (Rollover
TSA contracts may have restrictions.) For a surrender to be effective, we must
receive your written request and your contract at our processing office. We
will determine your cash value on the date we receive the required information.
All benefits under the contract will terminate as of that date.
You may receive your cash value in a single sum payment or apply it to one or
more of the annuity payout options. See "Your annuity payout options" below.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments out of the variable investment
options within seven calendar days after the date of the transaction to which
the request relates. These transactions may include applying proceeds to a
variable annuity, payment of a death benefit, payment of any amount you
withdraw (less any withdrawal charge) and, upon surrender, payment of the cash
value. We may postpone such payments or applying proceeds for any period during
which:
(1) the New York Stock Exchange is closed or restricts trading,
(2) sales of securities or determination of the fair value of a variable
investment option's assets is not reasonably practicable because of an
emergency, or
(3) the SEC, by order, permits us to defer payment to protect people remaining
in the variable investment options.
We can defer payment of any portion of your value in the fixed maturity options
(other than for death benefits) for up to six months while you are living. We
also may defer payments for a reasonable amount of time (not to exceed 10 days)
while we are waiting for a contribution check to clear.
All payments are made by check and are mailed to you (or the payee named in a
tax-free exchange) by U.S. mail, unless you request that we use an express
delivery service at your expense.
YOUR ANNUITY PAYOUT OPTIONS
Accumulator(R) offers you several choices of annuity payout options. Some
enable you to receive fixed annuity payments, which can be either level or
increasing, and others enable you to receive variable annuity payments.
You can choose from among the annuity payout options listed below. Restrictions
may apply, depending on the type of contract you own or the annuitant's age
when the contract was issued. In addition, if your are exercising your
guaranteed minimum income benefit under baseBUILDER, your choice of payout
options are those that are available under the baseBUILDER (see "Our
baseBUILDER option" in "Contract features and benefits" earlier in this
Prospectus).
36 Accessing your money
- ----------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period certain
Life annuity with refund certain
Period certain annuity
- ----------------------------------------------------------------------
Variable Immediate Annuity Life annuity
payout options Life annuity with period certain
- ----------------------------------------------------------------------
Income Manager(R) payout options Life annuity with period certain
(available for annuitants age 83 Period certain annuity
or less at contract issue)
- ----------------------------------------------------------------------
o Life annuity: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment before the
annuitant's death. Because there is no continuation of benefits following the
annuitant's death with this payout option, it provides the highest monthly
payment of any of the life annuity options, so long as the annuitant is
living.
o Life annuity with period certain: An annuity that guarantees payments for the
rest of the annuitant's life. If the annuitant dies before the end of a
selected period of time ("period certain"), payments continue to the
beneficiary for the balance of the period certain. The period certain cannot
extend beyond the annuitant's life expectancy. A life annuity with a period
certain is the form of annuity under the contract that you will receive if
you do not elect a different payout option. In this case, the period certain
will be based on the annuitant's age and will not exceed 10 years.
o Life annuity with refund certain: An annuity that guarantees payments for the
rest of the annuitant's life. If the annuitant dies before the amount applied
to purchase the annuity option has been recovered, payments to the
beneficiary will continue until that amount has been recovered. This payout
option is available only as a fixed annuity.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15 or 20 years. This guaranteed period may not
exceed the annuitant's life expectancy. This option does not guarantee
payments for the rest of the annuitant's life. It does not permit any
repayment of the unpaid principal, so you cannot elect to receive part of the
payments as a single sum payment with the rest paid in monthly annuity
payments. This payout option is available only as a fixed annuity.
The life annuity, life annuity with period certain and life annuity with refund
certain payout options are available on a single life or joint and survivor
life basis. The joint and survivor life annuity guarantees payments for the
rest of the annuitant's life and, after the annuitant's death, payments
continue to the survivor. We may offer other payout options not outlined here.
Your financial professional can provide details.
FIXED ANNUITY PAYOUT OPTIONS
With fixed annuities, we guarantee fixed annuity payments will be based either
on the tables of guaranteed annuity purchase factors in your contract or on our
then current annuity purchase factors, whichever is more favorable for you.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS
Variable Immediate Annuities are described in a separate prospectus that is
available from your financial professional. Before you select a Variable
Immediate Annuity payout option, you should read the prospectus which contains
important information that you should know.
Variable Immediate annuities may be funded through your choice of available
variable investment options investing in portfolios of EQ/Advisors Trust and
AXA Premier VIP Trust. The contract also offers a fixed income annuity payout
option that can be elected in combination with the variable annuity payout
option. The amount of each variable income annuity payment will fluctuate,
depending upon the performance of the variable investment options, and whether
the actual rate of investment return is higher or lower than an assumed base
rate.
INCOME MANAGER(R) PAYOUT OPTIONS
The Income Manager(R) payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts may provide higher or
lower income levels but do not have all the features of the Income Manager(R)
payout annuity contract. You may request an illustration of the Income
Manager(R) payout annuity contract from your financial professional. Income
Manager(R) payout options are described in a separate prospectus that is
available from your financial professional. Before you select an Income
Manager(R) payout option, you should read the prospectus which contains
important information that you should know.
Income Manager(R) NQ and IRA payout options provide guaranteed level payments.
The Income Manager(R) (life annuity with period certain) also provides
guaranteed increasing payments (NQ contracts only). You may not elect an Income
Manager(R) payout option without life contingencies unless withdrawal charges
are no longer in effect under your Accumulator(R).
For QP and Rollover TSA contracts, if you want to elect an Income Manager(R)
payout option, we will first roll over amounts in such contract to a Rollover
IRA contract with the plan participant as owner. You must be eligible for a
distribution under the QP or Rollover TSA contract.
You may choose to apply your account value of your Accumulator(R) contract to
an Income Manager(R) payout annuity. In this case, we will consider any amounts
applied as a withdrawal from your Accumulator(R) and we will deduct any
applicable withdrawal charge. For the tax consequences of withdrawals, see "Tax
information" later in this Prospectus.
Depending upon your circumstances, an Income Manager(R) contract may be
purchased on a tax-free basis. Please consult your tax adviser. The Income
Manager(R) payout options are not available in all states.
If you purchase an Income Manager(R) contract in connection with the exercise
of the baseBUILDER benefit option, different payout options may apply, as well
as other various differences. See "Our baseBUILDER option" in "Contract
features and benefits" earlier in this Prospectus, as well as the Income
Manager(R) Prospectus.
Accessing your money 37
THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION
The amount applied to purchase an annuity payout option varies, depending on
the payout option that you choose, and the timing of your purchase as it
relates to any withdrawal charges or market value adjustments.
If amounts in a fixed maturity option are used to purchase any annuity payout
option, prior to the maturity date, a market value adjustment will apply.
For the fixed annuity payout options and Variable Immediate Annuity payout
options, no withdrawal charge is imposed if you select a life annuity, life
annuity with period certain or life annuity with refund certain.
For the fixed annuity payout option, the withdrawal charge applicable under
your Accumulator(R) is imposed if you select a period certain. If the period
certain is more than 5 years, then the withdrawal charge deducted will not
exceed 5% of the account value.
For the Income Manager(R) life contingent payout options, no withdrawal charge
is imposed under the Accumulator(R). If the withdrawal charge that otherwise
would have been applied to your account value under your Accumulator(R) is
greater than 2% of the contributions that remain in your contract at the time
you purchase your payout option, the withdrawal charges under the Income
Manager(R) will apply. The year in which your account value is applied to the
payout option will be "contract year 1."
SELECTING AN ANNUITY PAYOUT OPTION
When you select a payout option, we will issue you a separate written agreement
confirming your right to receive annuity payments. We require you to return
your contract before annuity payments begin. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
thirteen months from the Accumulator(R) contract date. Except with respect to
the Income Manager(R) annuity payout options, where payments are made on the
15th day of each month, you can change the date your annuity payments are to
begin anytime before that date as long as you do not choose a date later than
the 28th day of any month.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier.
In no event will you ever receive payments under a fixed option or an initial
payment under a variable option of less than the minimum amounts guaranteed by
the contract.
If, at the time you elect a payout option, the amount to be applied is less
than $2,000 or the initial payment under the form elected is less than $20
monthly, we reserve the right to pay the account value in a single sum rather
than as payments under the payout option chosen.
ANNUITY MATURITY DATE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 90th birthday.
Before the last day by which your annuity payments must begin, we will notify
you by letter. Once you have selected an annuity payout option and payments
have begun, no change can be made other than: (i) transfers (if permitted in
the future) among the variable investment options if a Variable Immediate
Annuity payout option is selected; and (ii) withdrawals or contract surrender
if an Income Manager(R) annuity payout option is chosen.
38 Accessing your money
5. Charges and expenses
- --------------------------------------------------------------------------------
CHARGES THAT AXA EQUITABLE DEDUCTS
We deduct the following charges each day from the net assets of each variable
investment option. These charges are reflected in the unit values of each
variable investment option:
o A mortality and expense risks charge
o An administrative charge
We deduct the following charges from your account value. When we deduct these
charges from your variable investment options, we reduce the number of units
credited to your contract:
o At the time you make certain withdrawals or surrender your contract -- a
withdrawal charge.
o A charge for baseBUILDER, if you elect this optional benefit.
o At the time annuity payments are to begin -- charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your state.
An annuity administrative fee may also apply.
o A charge for Protection Plus(SM), if you elect this optional benefit.
More information about these charges appears below. We will not increase these
charges for the life of your contract, except as noted. We may reduce certain
charges under group or sponsored arrangements. See "Group or sponsored
arrangements" later in this section.
To help with your retirement planning, we may offer other annuities with
different charges, benefits and features. Please contact your financial
professional for more information.
MORTALITY AND EXPENSE RISKS CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for mortality and expense risks, including the guaranteed
minimum death benefit. The daily charge is equivalent to an annual rate of
1.10% of the net assets in each variable investment option.
The mortality risk we assume is the risk that annuitants as a group will live
for a longer time than our actuarial tables predict. If that happens, we would
be paying more in annuity income than we planned. We also assume a risk that
the mortality assumptions reflected in our guaranteed annuity payment tables,
shown in each contract, will differ from actual mortality experience. Lastly,
we assume a mortality risk to the extent that at the time of death, the
guaranteed minimum death benefit exceeds the cash value of the contract. The
expense risk we assume is the risk that it will cost us more to issue and
administer the contracts than we expect.
ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment
option. The charge, together with the annual administrative charge described
below, is to compensate us for administrative expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
WITHDRAWAL CHARGE
A withdrawal charge applies in two circumstances: (1) if you make one or more
withdrawals during a contract year that, in total, exceed the 15% free
withdrawal amount, described below, or (2) if you surrender your contract to
receive its cash value or apply your cash value to a non-life contingency
payout option.
The withdrawal charge equals a percentage of the contributions withdrawn. The
percentage that applies depends on how long each contribution has been invested
in the contract. We determine the withdrawal charge separately for each
contribution according to the following table:
- -------------------------------------------------------------------
Contract year
- -------------------------------------------------------------------
1 2 3 4 5 6 7 8+
- -------------------------------------------------------------------
Percentage of
contribution 7% 6% 5% 4% 3% 2% 1% 0%
- -------------------------------------------------------------------
For purposes of calculating the withdrawal charge, we treat the contract year
in which we receive a contribution as "contract year 1." Amounts withdrawn up
to the free withdrawal amount are not considered withdrawal of any
contribution. We also treat contributions that have been invested the longest
as being withdrawn first. We treat contributions as withdrawn before earnings
for purposes of calculating the withdrawal charge. However, federal income tax
rules treat earnings under your contract as withdrawn first. See "Tax
information" later in this Prospectus.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and the withdrawal charge from your account
value. Any amount deducted to pay withdrawal charges is also subject to that
same withdrawal charge percentage. We deduct the charge in proportion to the
amount of the withdrawal subtracted from each investment option. The withdrawal
charge helps cover our sales expenses.
15% FREE WITHDRAWAL AMOUNT. Each contract year you can withdraw up to 15% of
your account value without paying a withdrawal charge. The 15% free withdrawal
amount is determined using your account value at the beginning of each contract
year, or in the case of the first contract year, your initial contribution,
minus any other withdrawals made during the contract year. Additional
contributions during the contract year do not increase your 15% free withdrawal
amount. The 15% free withdrawal amount does not apply if you surrender your
contract except where required by law.
For NQ contracts issued to a charitable remainder trust, the free withdrawal
amount will equal the greater of: (1) the current account value less
contributions that have not been withdrawn (earnings in the contract) and (2)
the 15% free withdrawal amount defined above.
Charges and expenses 39
DISABILITY, TERMINAL ILLNESS OR CONFINEMENT TO NURSING HOME. The withdrawal
charge does not apply if:
(i) The annuitant has qualified to receive Social Security disability benefits
as certified by the Social Security Administration; or
(ii) We receive proof satisfactory to us (including certification by a licensed
physician) that the annuitant's life expectancy is six months or less; or
(iii) The annuitant has been confined to a nursing home for more than 90 days
(or such other period, as required in your state) as verified by a
licensed physician. A nursing home for this purpose means one that is (a)
approved by Medicare as a provider of skilled nursing care service, or (b)
licensed as a skilled nursing home by the state or territory in which it
is located (it must be within the United States, Puerto Rico, or U.S.
Virgin Islands) and meets all of the following:
- - its main function is to provide skilled, intermediate or custodial nursing
care;
- - it provides continuous room and board to three or more persons;
- - it is supervised by a registered nurse or licensed practical nurse;
- - it keeps daily medical records of each patient;
- - it controls and records all medications dispensed; and
- - its primary service is other than to provide housing for residents.
We reserve the right to impose a withdrawal charge, in accordance with your
contract and applicable state law, if the conditions described in (i), (ii) and
(iii) above existed at the time a contribution was remitted or if the condition
began within 12 months of the period following remittance. Some states may not
permit us to waive the withdrawal charge in the above circumstances or may
limit the circumstances for which the withdrawal charge may be waived. Your
financial professional can provide more information or you may contact our
processing office.
BASEBUILDER BENEFIT CHARGE
If you elected the baseBUILDER, we deduct a charge annually from your account
value on each contract date anniversary until such time as you exercise the
guaranteed minimum income benefit, elect another annuity payout option, or the
contract date anniversary after the annuitant reaches age 83, whichever occurs
first. The charge is equal to 0.30% of the benefit base in effect on the
contract date anniversary for the 5% roll up to age 80. The annual benefit base
charge is 0.15% if the 5% roll up to age 70 is available and elected.
We will deduct this charge from your value in the variable investment options
on a pro rata basis. If there is not enough value in the variable investment
options, we will deduct all or a portion of the charge first, from the fixed
maturity options, in order of the earliest maturity date(s) first. A market
value adjustment may apply.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
PROTECTION PLUS(SM)
If you elected Protection Plus(SM), we deduct a charge annually from your
account value on each contract date anniversary for which it is in effect. The
charge is equal to 0.20% of the account value on each contract date anniversary.
We will deduct this charge from your value in the variable investment options on
a pro rata basis. If there is not enough value in the variable investment
options, we will deduct all or a portion of the charge from the fixed maturity
options in the order of the earliest maturity date(s) first. A market value
adjustment may apply.
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state. Generally, we deduct the charge from
the amount applied to provide an annuity payout option. The current tax charge
that might be imposed varies by jurisdiction and ranges from 0% to 3.5%.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $350 from the amount to be applied to the Variable Immediate
Annuity payout option.
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
o Management fees ranging from 0.10% to 1.20%.
o 12b-1 fees of 0.25%.
o Operating expenses, such as trustees' fees, independent public accounting
firms' fees, legal counsel fees, administrative service fees, custodian fees
and liability insurance.
o Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of each Trust are purchased at their net asset value, these fees and
expenses are, in effect, passed on to the variable investment options and are
reflected in their unit values. For more information about these charges,
please refer to the prospectuses for the Trusts.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the withdrawal
charge or the mortality and expense risks charge, or change the minimum initial
contribution requirements. We also may change the guaranteed minimum income
benefit and the guaranteed minimum death benefit or offer variable investment
options that invest in shares of either Trust that are not subject to the 12b-1
fee. Group arrangements include those in which a trustee or an employer, for
example, purchases contracts covering a group of individuals on a group basis.
Group arrangements are not available for IRA contracts. Sponsored arrangements
include those in which an employer allows us to sell contracts to its employees
or retirees on an individual basis.
Our costs for sales, administration and mortality generally vary with the size
and stability of the group or sponsoring organization, among other factors. We
take all these factors into account when reducing charges. To qualify for
reduced charges, a group or sponsored arrangement must meet certain
requirements, such as requirements for size and number of years in existence.
Group or sponsored arrangements
40 Charges and expenses
that have been set up solely to buy contracts or that have been in existence
less than six months will not qualify for reduced charges.
We also may establish different rates to maturity for the fixed maturity
options under different classes of contracts for group or sponsored
arrangements.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these rules from time to
time. Any variation will reflect differences in costs or services and will not
be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules,
ERISA or both. We make no representations with regard to the impact of these
and other applicable laws on such programs. We recommend that employers,
trustees and others purchasing or making contracts available for purchase under
such programs seek the advice of their own legal and benefits advisers.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that result
in savings of sales and administrative expenses, such as sales through persons
who are compensated by clients for recommending investments and who receive no
commission or reduced commissions in connection with the sale of the contracts.
We will not permit a reduction or elimination of charges where it would be
unfairly discriminatory.
Charges and expenses 41
6. Payment of death benefit
- --------------------------------------------------------------------------------
YOUR BENEFICIARY AND PAYMENT OF BENEFIT
You designated your beneficiary when you applied for your contract. You may
change your beneficiary at any time. The change will be effective on the date
the written request for the change is received in our processing office. We are
not responsible for any beneficiary change request that we do not receive. We
will send you a written confirmation when we receive your request.
Under jointly owned contracts, the surviving owner is considered the
beneficiary, and will take the place of any other beneficiary. You may be
limited as to the beneficiary you can designate in a Rollover TSA contract. In
a QP contract, the beneficiary must be the trustee. Where an NQ contract is
owned by a minor pursuant to the Uniform Gift to Minors Act or the Uniform
Transfers to Minors Act, the beneficiary must be the estate of the annuitant.
Where an IRA contract is owned in a custodial individual retirement account,
the custodian must be the beneficiary so that the custodian can reinvest or
distribute the death benefit as the beneficiary of the account desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
guaranteed minimum death benefit. The guaranteed minimum death benefit is part
of your contract, whether you select the baseBUILDER benefit or not. We
determine the amount of the death benefit (other than the guaranteed minimum
death benefit) and any amount applicable under the Protection Plus(SM) feature,
as of the date we receive satisfactory proof of the annuitant's death, any
required instructions for the method of payment, information and forms
necessary to effect payment. The amount of the guaranteed minimum death benefit
will be the guaranteed minimum death benefit as of the date of the annuitant's
death adjusted for any subsequent withdrawals (and any associated withdrawal
charges). Under Rollover TSA contracts we will deduct the amount of any
outstanding loan plus accrued interest from the amount of the death benefit.
EFFECT OF THE ANNUITANT'S DEATH
If the annuitant dies before the annuity payments begin, we will pay the death
benefit to your beneficiary.
Generally, the death of the annuitant terminates the contract. However, a
surviving spouse of the deceased owner/annuitant can choose to be treated as
the successor owner/annuitant and continue the contract. Only a spouse who is
the sole primary beneficiary can be a successor owner/annuitant. The successor
owner/annuitant feature is only available under NQ and individually owned IRA
contracts.
For individually owned IRA contracts, a beneficiary may be able to have limited
ownership as discussed under "Beneficiary continuation option" below.
WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT
Under certain conditions the owner changes after the original owner's death for
purpose of receiving federal tax law required distributions from the contract.
When the owner is not the annuitant under an NQ contract and the owner dies
before annuity payments begin, unless you specify otherwise, the beneficiary
named to receive the death benefit upon the annuitant's death will become the
successor owner. If you do not want this beneficiary to be the successor owner,
you should name a specific successor owner. You may name a successor owner at
any time during your life by sending satisfactory notice to our processing
office. If the contract is jointly owned and the first owner to die is not the
annuitant, the surviving owner becomes the sole contract owner. This person
will be considered the successor owner for purposes of the distribution rules
described in this section. The surviving owner automatically takes the place of
any other beneficiary designation.
You should carefully consider the following if you have elected the guaranteed
minimum income benefit and you are the owner, but not the annuitant. Because
the payments under the guaranteed minimum income benefit are based on the life
of the annuitant, and the federal tax law required distributions described
below are based on the life of the successor owner, a successor owner who is
not also the annuitant may not be able to exercise the guaranteed minimum
income benefit, if you die before annuity payments begin. Therefore, one year
before you become eligible to exercise the guaranteed minimum income benefit,
you should consider the effect of your beneficiary designations on potential
payments after your death. For more information, see "Exercise of guaranteed
minimum income benefit" under "Our baseBUILDER option" in "Contract features
and benefits"earlier in this Prospectus.
Unless the surviving spouse of the owner who has died (or in the case of a
joint ownership situation, the surviving spouse of the first owner to die) is
the successor owner for this purpose, the entire interest in the contract must
be distributed under the following rules:
o The cash value of the contract must be fully paid to the successor owner (new
owner) within five years after your death (or in a joint ownership situation,
the death of the first owner to die).
o The successor owner may instead elect to receive the cash value as a life
annuity (or payments for a period certain of not longer than the new owner's
life expectancy). Payments must begin within one year after the non-annuitant
owner's death. Unless this alternative is elected, we will pay any cash value
five years after your death (or the death of the first owner to die).
o A successor owner should name a new beneficiary.
If the surviving spouse is the successor owner or joint owner, the spouse may
elect to continue the contract. No distributions are required as long as the
surviving spouse and annuitant are living.
HOW DEATH BENEFIT PAYMENT IS MADE
We will pay the death benefit to the beneficiary in the form of the annuity
payout option you have chosen. If you have not chosen an
42 Payment of death benefit
annuity payout option as of the time of the annuitant's death, the beneficiary
will receive the death benefit in a single sum. However, subject to any
exceptions in the contract, our rules and any applicable requirements under
federal income tax rules, the beneficiary may elect to apply the death benefit
to one or more annuity payout options we offer at the time. See "Your annuity
payout options" in "Accessing your money" earlier in this Prospectus. Please
note that any annuity payout option chosen may not extend beyond the life
expectancy of the beneficiary.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may elect to
receive the death benefit or continue the contract as successor
owner/annuitant.
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required instructions,
information and forms necessary to effect the successor owner/annuitant feature,
we will increase the account value to equal your guaranteed minimum death
benefit as of the date of your death if such death benefit is greater than such
account value, plus any amount applicable under the Protection Plus(SM) feature
and adjusted for any subsequent withdrawals. The increase in the account value
will be allocated to the investment options according to the allocation
percentages we have on file for your contract. Thereafter, withdrawal charges
will no longer apply to contributions made before your death. Withdrawal charges
will apply if additional contributions are made. These additional contributions
will be considered to be withdrawn only after all other amounts have been
withdrawn. In determining whether the guaranteed minimum death benefit will
continue to grow, we will use your surviving spouse's age (as of the date we
receive satisfactory proof of your death, any required instructions and the
information and forms necessary to effect the successor owner/annuitant
feature).
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole beneficiary of the account, the custodian may
request that the spouse be substituted as annuitant after your death.
BENEFICIARY CONTINUATION OPTION
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. This feature permits a designated individual, upon the contract owner's
death, to maintain the contract in the deceased contract owner's name and
receive distributions under the contract instead of receiving the death benefit
in a lump sum. The beneficiary continuation option must be elected by September
30th of the year following the calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this option. If the election is made, then, as of the
date we receive satisfactory proof of death, any required instructions,
information and forms necessary to effect the beneficiary continuation option
feature, we will increase the account value to equal the applicable death
benefit if such death benefit is greater than such account value plus any
amount applicable under the Protection Plus(SM) feature and adjusted for any
subsequent withdrawals. Where an IRA contract is owned in a custodial
individual retirement account, the custodian may reinvest the death benefit in
an individual retirement annuity contract, using the account beneficiary as the
annuitant. Please speak with your financial professional for further
information.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy (determined in the calendar year after your death
and determined on a term certain basis). These payments must begin no later
than December 31st of the calendar year after the year of your death. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70-1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed later in this Prospectus in
"Tax information" under "Individual retirement arrangements (IRAs)," the
beneficiary may choose the "5-year rule" option instead of annual payments over
life expectancy. The 5-year rule is always available to beneficiaries under
Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may
take withdrawals as desired, but the entire account value must be fully
withdrawn by December 31st of the calendar year which contains the fifth
anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA
contracts:
o The contract continues in your name for the benefit of your beneficiary.
o This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals for
this purpose.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's own
life expectancy, if payments over life expectancy are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the guaranteed minimum income benefit or Protection
Plus(SM) feature under the contract, they will no longer be in effect and
charges for such benefits will stop. Also, any guaranteed minimum death
benefit feature will no longer be in effect.
o The beneficiary may choose at any time to withdraw all or a portion of the
account value and no withdrawal charges, if any, will apply.
o Any partial withdrawal must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking required minimum distributions based on
the remaining life expectancy of the deceased beneficiary or to receive any
remaining interest in the contract in a lump sum. The option elected will be
processed
Payment of death benefit 43
when we receive satisfactory proof of death, any required instructions for
the method of payment and any required information and forms necessary to
effect payment.
44 Payment of death benefit
7. Tax information
- --------------------------------------------------------------------------------
OVERVIEW
In this part of the Prospectus, we discuss the current federal income tax rules
that generally apply to Accumulator(R) contracts owned by United States
individual taxpayers. The tax rules can differ, depending on the type of
contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. Therefore, we
discuss the tax aspects of each type of contract separately.
Federal income tax rules include the United States laws in the Internal Revenue
Code, and Treasury Department Regulations and Internal Revenue Service ("IRS")
interpretations of the Internal Revenue Code. These tax rules may change
without notice. We cannot predict whether, when or how these rules could
change. Any change could affect contracts purchased before the change. Congress
may also consider proposals in the future to comprehensively reform or overhaul
the United States tax and retirement systems, which if enacted, could affect
the tax benefits of a contract.
We cannot provide detailed information on all tax aspects of the contracts.
Moreover, the tax aspects that apply to a particular person's contract may vary
depending on the facts applicable to that person. We do not discuss state
income and other state taxes, federal income tax and withholding rules for
non-U.S. taxpayers or federal gift and estate taxes. Transfers of the contract,
rights or values under the contract, or payments under the contract, for
example, amounts due to beneficiaries, may be subject to federal or state gift,
estate, or inheritance taxes. You should not rely only on this document, but
should consult your tax adviser before your purchase.
President Bush signed the Economic Growth and Tax Relief Reconciliation Act of
2001 ("EGTRRA") on June 7, 2001. Many of the provisions of EGTRRA became to be
effective on January 1, 2002, and are phased in during the first decade of the
twenty-first century. In the absence of future legislation, all of the
amendments made by EGTRRA will no longer apply after December 31, 2010, and the
law in effect in 2001, will apply again. In general, EGTRRA liberalizes
contributions which can be made to all types of tax-favored retirement plans.
In addition to increasing amounts which can be contributed and permitting
individuals over age 50 to make additional contributions, EGTRRA also permits
rollover contributions to be made between different types of tax-favored
retirement plans. Please discuss with your tax adviser how EGTRRA affects your
personal financial situation.
CONTRACTS THAT FUND A RETIREMENT ARRANGEMENT
Generally, there are two types of funding vehicles that are available for
Individual Retirement Arrangements ("IRAs") and Code Section 403(b)
Arrangements ("TSAs"), respectively: an IRA or 403(b) annuity contract such as
this one, or an IRA or 403(b)(7) custodial or other qualified account. Annuity
contracts can also be purchased in connection with retirement plans qualified
under Code Section 401 ("QP contracts"). How these arrangements work, including
special rules applicable to each, are described in the specific sections for
each type of arrangement, below. You should be aware that the funding vehicle
for a qualified arrangement does not provide any tax deferral benefit beyond
that already provided by the Code for all permissible funding vehicles.
Therefore, you should consider the annuity's features and benefits, such as
Accumulator's(R) choice of death benefits and baseBUILDER guaranteed minimum
income benefit, 12 month dollar cost averaging, selection of investment funds
and fixed maturity options and choices of pay-out options, as well as the
features and benefits of other permissible funding vehicles and the relative
costs of annuities and other arrangements. You should be aware that cost may
vary depending on the features and benefits made available and the charges and
expenses of the investment options or funds that you elect.
Beginning in 2006, certain provisions of the Treasury Regulations on required
minimum distributions concerning the actuarial present value of additional
contract benefits could increase, the amount required to be distributed from
annuity contracts funding qualified plans, TSAs and IRAs. You should consider
the potential implication of these Regulations before you purchase additional
features under this annuity contract. See also Appendix II at the end of this
Prospectus for a discussion of QP contracts.
TRANSFERS AMONG INVESTMENT OPTIONS
You can make transfers among investment options inside the contract without
triggering taxable income.
TAXATION OF NONQUALIFIED ANNUITIES
CONTRIBUTIONS
You may not deduct the amount of your contributions to a nonqualified annuity
contract.
CONTRACT EARNINGS
Generally, you are not taxed on contract earnings until you receive a
distribution from your contract, whether as a withdrawal or as an annuity
payment. However, earnings are taxable even without a distribution:
o if a contract fails investment diversification requirements as specified in
federal income tax rules (these rules are based on or are similar to those
specified for mutual funds under the securities laws);
o if you transfer a contract, for example, as a gift to someone other than your
spouse (or former spouse);
o if you use a contract as security for a loan (in this case, the amount
pledged will be treated as a distribution); and
o if the owner is other than an individual (such as a corporation, partnership,
trust or other non-natural person).
Tax information 45
All nonqualified deferred annuity contracts that AXA Equitable and its
affiliates issue to you during the same calendar year are linked together and
treated as one contract for calculating the taxable amount of any distribution
from any of those contracts.
ANNUITY PAYMENTS
Once annuity payments begin, a portion of each payment is taxable as ordinary
income. You get back the remaining portion without paying taxes on it. This is
your "investment in the contract." Generally, your investment in the contract
equals the contributions you made, less any amounts you previously withdrew
that were not taxable.
For fixed annuity payments, the tax-free portion of each payment is determined
by (1) dividing your investment in the contract by the total amount you are
expected to receive out of the contract, and (2) multiplying the result by the
amount of the payment. For variable annuity payments, your tax-free portion of
each payment is your investment in the contract divided by the number of
expected payments.
Once you have received the amount of your investment in the contract, all
payments after that are fully taxable. If payments under a life annuity stop
because the annuitant dies, there is an income tax deduction for any
unrecovered investment in the contract.
PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN
If you make withdrawals before annuity payments begin under your contract, they
are taxable to you as ordinary income if there are earnings in the contract.
Generally, earnings are your account value less your investment in the
contract. If you withdraw an amount which is more than the earnings in the
contract as of the date of the withdrawal, the balance of the distribution is
treated as a return of your investment in the contract and is not taxable.
PROTECTION PLUS(SM) FEATURE
In order to enhance the amount of the death benefit to be paid at the
annuitant's death, you may have purchased a Protection Plus(SM) rider for your
NQ contract. Although we regard this benefit as an investment protection feature
which is part of the contract and which should have no adverse tax effect, it is
possible that the IRS could take a contrary position or assert that the
Protection Plus(SM) rider is not part of the contract. In such a case the
charges for the Protection Plus(SM) rider could be treated for federal income
tax purposes as a partial withdrawal from the contract. If this were so, such a
deemed withdrawal could be taxable and, for contract owners under age 59-1/2,
also subject to a tax penalty. Were the IRS to take this position, AXA Equitable
would take all reasonable steps to attempt to avoid this result, which would
include amending the contract (with appropriate notice to you).
CONTRACTS PURCHASED THROUGH EXCHANGES
The following information applies if you purchased your NQ contract through an
exchange of another contract. Normally, exchanges of contracts are taxable
events. The exchange was not taxable under Section 1035 of the Internal Revenue
Code if:
o the contract that was the source of the funds you used to purchase the NQ
contract was another nonqualified deferred annuity contract or life insurance
or endowment contract.
o the owner and the annuitant were the same under the source contract and the
Accumulator(R) NQ contract. If you used a life insurance or endowment
contract, the owner and the insured must have been the same on both sides of
the exchange transaction.
The tax basis, also referred to as your investment in the contract, of the
source contract carried over to the Accumulator(R) NQ contract.
An owner may direct the proceeds of a partial withdrawal from one nonqualified
deferred annuity contract to a different insurer to purchase a new nonqualified
deferred annuity contract on a tax-deferred basis. Special forms, agreement
between the carriers and provision of cost basis information may be required to
process this type of an exchange.
SURRENDERS
If you surrender or cancel the contract, the distribution is taxable as
ordinary income (not capital gain) to the extent it exceeds your investment in
the contract.
DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH
For the rules applicable to death benefits, see "Payment of death benefit"
earlier in this Prospectus. The tax treatment of a death benefit taken as a
single sum is generally the same as the tax treatment of a withdrawal from or
surrender of your contract. The tax treatment of a death benefit taken as
annuity payments is generally the same as the tax treatment of annuity payments
under your contract.
EARLY DISTRIBUTION PENALTY TAX
If you take distributions before you are age 59-1/2, a penalty tax of 10% of the
taxable portion of your distribution applies in addition to the income tax.
Some of the available exceptions to the pre-age 59-1/2 penalty tax include
distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o in the form of substantially equal periodic annuity payments for your life
(or life expectancy), or the joint lives (or joint life expectancy) of you
and a beneficiary, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If
you were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. The IRS has said that the owners of variable annuities will
not be treated as owning the separate account assets provided the underlying
portfolios are restricted to variable life and annuity assets. The variable
annuity owners must have the right only to choose among the portfolios, and
must have no right to direct the particular investment decisions within the
portfolios.
46 Tax information
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some
issues that remain unclear. For example, the IRS has not issued any guidance as
to whether having a larger number of portfolios available, or an unlimited
right to transfer among them, could cause you to be treated as the owner. We do
not know whether the IRS will ever provide such guidance or whether such
guidance, if unfavorable, would apply retroactively to your contract.
Furthermore, the IRS could reverse its current guidance at any time. We reserve
the right to modify your contract as necessary to prevent you from being
treated as the owner of the assets of Separate Accounts 45 and 49.
SPECIAL RULES FOR NQ CONTRACTS ISSUED IN PUERTO RICO
Income from NQ contracts we issue is U.S. source. A Puerto Rico resident is
subject to U.S. taxation on such U.S. source income. Only Puerto Rico source
income of Puerto Rico residents is excludable from U.S. taxation. Income from
NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable
portion of amounts distributed from a contract may differ in the two
jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax
returns, showing different amounts of income from the contract for each tax
return. Puerto Rico generally provides a credit against Puerto Rico tax for
U.S. tax paid. Depending on your personal situation and the timing of the
different tax liabilities, you may not be able to take full advantage of this
credit.
INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS)
GENERAL
"IRA" stands for individual retirement arrangement. There are two basic types
of such arrangements, individual retirement accounts and individual retirement
annuities. In an individual retirement account, a trustee or custodian holds
the assets funding the account for the benefit of the IRA owner. The assets
typically include mutual funds and/or individual stocks and securities in a
custodial account, and bank certificates of deposit in a trusteed account. In
an individual retirement annuity, an insurance company issues an annuity
contract that serves as the IRA.
There are two basic types of IRAs, as follows:
o Traditional IRAs, typically funded on a pre-tax basis, including SEP-IRAs and
SIMPLE IRAs issued and funded in connection with employer-sponsored
retirement plans; and
o Roth IRAs, funded on an after-tax basis.
Regardless of the type of IRA, your ownership interest in the IRA cannot be
forfeited. You or your beneficiaries who survive you are the only ones who can
receive the IRA's benefits or payments. All types of IRAs qualify for tax
deferral, regardless of the funding vehicle selected.
You can hold your IRA assets in as many different accounts and annuities as you
would like, as long as you meet the rules for setting up and making
contributions to IRAs. However, if you own multiple IRAs, you may be required
to combine IRA values or contributions for tax purposes. For further
information about individual retirement arrangements, you can read Internal
Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)").
This publication is usually updated annually, and can be obtained from any IRS
district office or the IRS website (www.irs.gov).
AXA Equitable designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may have
purchased the contract as either a traditional IRA or Roth IRA. We offered
traditional IRAs in the Rollover IRA contracts. We offered Roth IRAs in the
Roth Conversion IRA contracts. The first part of this section covers some of
the special tax rules that apply to traditional IRAs. The next part of this
section covers Roth IRAs. The disclosure generally assumes direct ownership of
the individual retirement annuity contract. For contracts owned in a custodial
individual retirement account, the disclosure will apply only if you terminate
your account or transfer ownership of the contract to yourself.
We have received an opinion letter from the IRS approving the respective forms
of the Accumulator(R) Select(SM) traditional and Roth IRA contracts, as amended
to reflect recent tax law changes, for use as a traditional IRA and a Roth IRA,
respectively. This IRS approval is a determination only as to the form of the
annuity. It does not represent a determination of the merits of the annuity as
an investment. The contracts submitted for IRS approval do not include every
feature possibly available under the Accumulator(R) Select(SM) traditional and
Roth IRA contracts.
PROTECTION PLUS(SM) FEATURE
The Protection Plus(SM) feature was offered for IRA contracts, subject to state
and contract availability. We have received IRS opinion letters that the
contract with a Protection Plus(SM) feature qualifies as to form for use as a
traditional IRA and Roth IRA, respectively. This IRS approval is a
determination only as to the form of the annuity. It does not represent a
determination of the merits of the annuity as an investment. The contracts
submitted for IRS approval do not include every feature possibly available
under the Accumulator(R) traditional and Roth IRA contracts. You should consult
with your tax adviser for further information.
Your right to cancel within a certain number of days
This is provided for informational purposes only. Since this contract is no
longer available to new purchasers, this cancellation provision is no longer
applicable. You can cancel any version of the Accumulator(R) IRA contract
(traditional IRA or Roth IRA) by following the directions in "Your right to
cancel within a certain number of days" under "Contract features and benefits"
earlier in this Prospectus. If you cancel a traditional IRA or Roth IRA
contract, we may have to withhold tax, and we must report the transaction to
the IRS. A contract cancellation could have an unfavorable tax impact.
Traditional individual retirement annuities (traditional IRAs)
Contributions to traditional IRAs. Individuals may make three different types
of contributions to a traditional IRA:
o regular contributions out of earned income or compensation; or
o tax-free "rollover" contributions; or
o direct custodian-to-custodian transfers from other traditional IRAs ("direct
transfers").
Tax information 47
Regular contributions to traditional IRAs
Limits on contributions. The "maximum regular contribution amount" for any
taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $4,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for each of the taxable years 2005
and 2006. When your earnings are below $4,000 your earned income or
compensation for the year is the most you can contribute. This limit does not
apply to rollover contributions or direct custodian-to-custodian transfers into
a traditional IRA. You cannot make regular traditional IRA contributions for
the tax year in which you reach age 70-1/2 or any tax year after that.
If you reach age 50 before the close of the taxable year for which you are
making a regular contribution to your IRA, you may be eligible to make an
additional "catch-up contribution" of up to $500 to your traditional IRA for
2005. This amount increases to $1,000 for the taxable year 2006.
Special rules for spouses. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to traditional IRAs
(and Roth IRAs discussed below). Even if one spouse has no compensation or
compensation under $4,000, married individuals filing jointly can contribute up
to $8,000 for each of the taxable years 2005 and 2006 to any combination of
traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the
ability to contribute to traditional IRAs and vice versa. The maximum amount
may be less if earned income is less and the other spouse has made IRA
contributions. No more than a combined total of $4,000 can be contributed
annually to either spouse's traditional and Roth IRAs. Each spouse owns his or
her traditional IRAs and Roth IRAs even if the other spouse funded the
contributions. A working spouse age 70-1/2 or over can contribute up to the
lesser of $4,000 or 100% of "earned income" to a traditional IRA for a
nonworking spouse until the year in which the nonworking spouse reaches age
70-1/2. "Catch-up" contributions may be made as described above for spouses who
are at least age 50 but under age 70-1/2 at any time during the taxable year
for which the contribution is made.
Deductibility of contributions. The amount of traditional IRA contributions
that you can deduct for a taxable year depends on whether you are covered by an
employer-sponsored tax-favored retirement plan, as defined under special
federal income tax rules. Your Form W-2 will indicate whether or not you are
covered by such a retirement plan.
If you are not covered by a retirement plan during any part of the year, you
can make fully deductible contributions to your traditional IRAs for the
taxable year up to the maximum amount discussed earlier in this section under
"Limits on contributions". That is, for each of the taxable years 2005 and
2006, your fully deductible contribution can be up to $4,000, or if less, your
earned income. The dollar limit is $4,500 for people eligible to make age
50-701/2 catch-up contributions for 2005, and $5,000 for 2006, respectively.
If you are covered by a retirement plan during any part of the year, and your
adjusted gross income (AGI) is below the lower dollar figure in a phase-out
range, you can make fully deductible contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls within a phase-out range, you can make partially deductible
contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls above the higher figure in the phase-out range, you may not deduct
any of your regular contributions to your traditional IRAs.
If you are single and covered by a retirement plan during any part of the
taxable year, the deduction for traditional IRA contributions phases out with
AGI between $50,000 and $60,000 in 2005 and later years.
If you are married and file a joint return, and you are covered by a retirement
plan during any part of the taxable year, the deduction for traditional IRA
contributions phases out with AGI between $70,000 and $80,000 in 2005 and AGI
between $75,000 and $85,000 in 2006. In 2007, the deduction will phase out for
AGI between $80,000 and $100,000.
Married individuals filing separately and living apart at all times are not
considered married for purposes of this deductible contribution calculation.
Generally, the active participation in an employer-sponsored retirement plan of
an individual is determined independently for each spouse. Where spouses have
"married filing jointly" status, however, the maximum deductible traditional
IRA contribution for an individual who is not an active participant (but whose
spouse is an active participant) is phased out for taxpayers with an AGI
between $150,000 and $160,000.
To determine the deductible amount of the contribution for 2005, for example,
you determine AGI and subtract $50,000 if you are single, or $70,000 if you are
married and file a joint return with your spouse. The resulting amount is your
excess AGI. You then determine the limit on the deduction for traditional IRA
contributions using the following formula:
($10,000-excess AGI) times the maximum Equals the adjusted
------------------ x regular = deductible
divided by $10,000 contribution contribution
for the year limit
Additional "Saver's Credit" for contributions to a
traditional IRA or Roth IRA
You may be eligible for a nonrefundable income tax credit for contributions you
make to a traditional IRA or Roth IRA. The final year this credit is available
is 2006. If you qualify, you may take this credit even though your traditional
IRA contribution is already fully or partially deductible. To take advantage of
this "saver's credit" you must be 18 or over before the end of the taxable year
for which the contribution is made. You cannot be a full-time student or
claimed as a dependent on another's tax return and your adjusted gross income
cannot exceed $50,000. The amount of the tax credit you can get varies from 10%
of your contribution to 50% of your contribution and depends on your income tax
filing status and your adjusted gross income. The maximum
48 Tax information
annual contribution eligible for the saver's credit is $2,000. If you and your
spouse file a joint return and each of you qualifies, each is eligible for a
maximum annual contribution of $2,000. Your saver's credit may also be reduced
if you take or have taken a taxable distribution from any plan eligible for a
saver's credit contribution -- even if you make a contribution to one plan and
take the distribution from another plan -- during the "testing period." The
"testing period" begins two years before the year for which you make the
contribution and ends when your tax return is due for the year for which you
make the contribution. Saver's-credit-eligible contributions may be made to a
401(k) plan, 403(b) TSA, governmental employer 457(b) plan, SIMPLE IRA or
SARSEP IRA, as well as a traditional IRA or Roth IRA.
Nondeductible regular contributions. If you are not eligible to deduct part or
all of the traditional IRA contribution, you may still make nondeductible
contributions on which earnings will accumulate on a tax-deferred basis. The
combined deductible and nondeductible contributions to your traditional IRA (or
the nonworking spouse's traditional IRA) may not, however, exceed the maximum
dollar per person limit for the applicable taxable year ($4,000 for 2005 and
2006). The dollar limit is $4,500 in 2005 and $5,000 in 2006 for people
eligible to make age 50-70-1/2 "catch-up" contributions. See "Excess
contributions" later in this section. You must keep your own records of
deductible and nondeductible contributions in order to prevent double taxation
on the distribution of previously taxed amounts. See "Withdrawals, payments and
transfers of funds out of traditional IRAs" later in this section.
If you are making nondeductible contributions in any taxable year, or you have
made nondeductible contributions to a traditional IRA in prior years and are
receiving distributions from any traditional IRA, you must file the required
information with the IRS. Moreover, if you are making nondeductible traditional
IRA contributions, you must retain all income tax returns and records
pertaining to such contributions until interests in all traditional IRAs are
fully distributed.
When you can make regular contributions. If you file your tax returns on a
calendar year basis like most taxpayers, you have until the April 15 return
filing deadline (without extensions) of the following calendar year to make
your regular traditional IRA contributions for a taxable year.
Rollover and transfer contributions to traditional IRAs
Rollover contributions may be made to a traditional IRA from these "eligible
retirement plans":
o qualified plans;
o governmental employer 457(b) plans;
o TSAs (including Internal Revenue Code Section 403(b)(7) custodial accounts);
and
o other traditional IRAs.
Direct transfer contributions may only be made directly from one traditional
IRA to another.
Any amount contributed to a traditional IRA after you reach age 70-1/2 must be
net of your required minimum distribution for the year in which the rollover or
direct transfer contribution is made.
Rollovers from "eligible retirement plans" other than
traditional IRAs
Your plan administrator will tell you whether or not your distribution is
eligible to be rolled over. Spousal beneficiaries and spousal alternate payees
under qualified domestic relations orders may roll over funds on the same basis
as the plan participant.
There are two ways to do rollovers:
o Do it yourself:
You actually receive a distribution that can be rolled over and you roll it
over to a traditional IRA within 60 days after the date you receive the
funds. The distribution from your eligible retirement plan will be net of
20% mandatory federal income tax withholding. If you want, you can replace
the withheld funds yourself and roll over the full amount.
o Direct rollover:
You tell the trustee or custodian of the eligible retirement plan to send
the distribution directly to your traditional IRA issuer. Direct rollovers
are not subject to mandatory federal income tax withholding.
All distributions from a TSA, qualified plan or governmental employer 457(b)
plan are eligible rollover distributions, unless the distributions are:
o "required minimum distributions" after age 70-1/2 or retirement from service
with the employer; or
o substantially equal periodic payments made at least annually for your life
(or life expectancy) or the joint lives (or joint life expectancies) of you
and your designated beneficiary; or
o substantially equal periodic payments made for a specified period of 10
years or more; or
o hardship withdrawals; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o death benefit payments to a beneficiary who is not your surviving spouse; or
o qualified domestic relations order distributions to a beneficiary who is not
your current spouse or former spouse.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental employer 457(b) plan are not subject to the
additional 10% federal income tax penalty for premature distributions, but they
may become subject to this penalty if you roll the funds to a different type of
eligible retirement plan, such as a traditional IRA, and subsequently take a
premature distribution.
Rollovers of after-tax contributions from eligible retirement plans other than
traditional IRAs
Any after-tax contributions you have made to a qualified plan or TSA (but not a
governmental employer 457(b) plan) may be rolled over to
Tax information 49
a traditional IRA (either in a direct rollover or a rollover you do yourself).
When the recipient plan is a traditional IRA, you are responsible for
recordkeeping and calculating the taxable amount of any distributions you take
from that traditional IRA. See "Taxation of Payments" later in this section
under "Withdrawals, payments and transfers of funds out of traditional IRAs."
After-tax contributions in a traditional IRA cannot be rolled over from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan.
Rollovers from traditional IRAs to traditional IRAs
You may roll over amounts from one traditional IRA to one or more of your other
traditional IRAs if you complete the transaction within 60 days after you
receive the funds. You may make such a rollover only once in every 12-month
period for the same funds. Trustee-to-trustee or custodian-to-custodian direct
transfers are not rollover transactions. You can make these more frequently
than once in every 12-month period.
SPOUSAL ROLLOVERS AND DIVORCE-RELATED DIRECT TRANSFERS
The surviving spouse beneficiary of a deceased individual can roll over funds
from, or directly transfer funds from, an inherited traditional IRA to one or
more other traditional IRAs. Also, in some cases, traditional IRAs can be
transferred on a tax-free basis between spouses or former spouses as a result
of a court-ordered divorce or separation decree.
Excess contributions
Excess contributions to IRAs are subject to a 6% excise tax for the year in
which made and for each year after until withdrawn. The following are excess
contributions to IRAs:
o regular contributions of more than the maximum regular contribution amount
for the applicable taxable year; or
o regular contributions to a traditional IRA made after you reach age 70-1/2;
or
o rollover contributions of amounts which are not eligible to be rolled over,
for example, minimum distributions required to be made after age 70-1/2.
You can avoid the excise tax by withdrawing an excess contribution (rollover or
regular) before the due date (including extensions) for filing your federal
income tax return for the year. If it is an excess regular traditional IRA
contribution, you cannot take a tax deduction for the amount withdrawn. You do
not have to include the excess contribution withdrawn as part of your income.
It is also not subject to the 10% additional penalty tax on early
distributions, discussed later in this section under "Early distribution
penalty tax." You do have to withdraw any earnings that are attributed to the
excess contribution. The withdrawn earnings would be included in your gross
income and could be subject to the 10% penalty tax.
Even after the due date for filing your return, you may withdraw an excess
rollover contribution, without income inclusion or 10% penalty, if:
(1) the rollover was from an eligible retirement plan to a traditional IRA;
(2) the excess contribution was due to incorrect information that the plan
provided; and
(3) you took no tax deduction for the excess contribution.
Recharacterizations
Amounts that have been contributed as traditional IRA funds may subsequently be
treated as Roth IRA funds. Special federal income tax rules allow you to change
your mind again and have amounts that are subsequently treated as Roth IRA
funds, once again treated as traditional IRA funds. You do this by using the
forms we prescribe. This is referred to as having "recharacterized" your
contribution.
Withdrawals, payments and transfers of funds out of
traditional IRAs
No federal income tax law restrictions on withdrawals. You can withdraw any or
all of your funds from a traditional IRA at any time. You do not need to wait
for a special event like retirement.
Taxation of payments. Earnings in traditional IRAs are not subject to federal
income tax until you or your beneficiary receive them. Taxable payments or
distributions include withdrawals from your contract, surrender of your
contract and annuity payments from your contract. Death benefits are also
taxable.
Except as discussed below, the total amount of any distribution from a
traditional IRA must be included in your gross income as ordinary income. We
report all payments from traditional IRA contracts on IRS Form 1099R as fully
taxable.
If you have ever made nondeductible IRA contributions to any traditional IRA
(it does not have to be to this particular traditional IRA contract), those
contributions are recovered tax free when you get distributions from any
traditional IRA. It is your responsibility to keep permanent tax records of all
your nondeductible contributions to traditional IRAs so that you can correctly
report the taxable amount of any distribution on your own tax return. At the
end of any year in which you have received a distribution from any traditional
IRA, you calculate the ratio of your total nondeductible traditional IRA
contributions (less any amounts previously withdrawn tax free) to the total
account balances of all traditional IRAs you own at the end of the year plus
all traditional IRA distributions made during the year. Multiply this by all
distributions from the traditional IRA during the year to determine the
nontaxable portion of each distribution.
A distribution from a traditional IRA is not taxable if:
o the amount received is a withdrawal of excess contributions, as described
under "Excess contributions" earlier in this section; or
o the entire amount received is rolled over to another traditional IRA or other
eligible retirement plan which agrees to accept the funds. (See "Rollovers
from eligible retirement plans other than traditional IRAs" under "Rollover
and transfer contributions to traditional IRAs" earlier in this section.)
The following are eligible to receive rollovers of distributions from a
traditional IRA: a qualified plan, a TSA or a governmental employer 457(b)
plan. After-tax contributions in a traditional IRA cannot be
50 Tax information
rolled from your traditional IRA into, or back into, a qualified plan, TSA or
governmental employer 457(b) plan. Before you decide to roll over a
distribution from a traditional IRA to another eligible retirement plan, you
should check with the administrator of that plan about whether the plan accepts
rollovers and, if so, the types it accepts. You should also check with the
administrator of the receiving plan about any documents required to be
completed before it will accept a rollover.
Distributions from a traditional IRA are not eligible for favorable ten-year
averaging and long-term capital gain treatment available under limited
circumstances for certain distributions from qualified plans. If you might be
eligible for such tax treatment from your qualified plan, you may be able to
preserve such tax treatment even though an eligible rollover from a qualified
plan is temporarily rolled into a "conduit IRA" before being rolled back into a
qualified plan. See your tax
adviser.
Required minimum distributions
Background on Regulations--Required Minimum Distributions. Distributions must
be made from traditional IRAs according to the rules contained in the Code and
Treasury Regulations. Certain provisions of the Treasury Regulations will
require, beginning in 2006, that the actuarial present value of additional
annuity contract benefits be added to the dollar amount credited for purposes
of calculating certain types of required minimum distributions from individual
retirement annuity contracts. This could increase the amount required to be
distributed from these contracts if you take annual withdrawals instead of
annuitizing. Please consult your tax adviser concerning applicability of these
complex rules to your situation.
Lifetime required minimum distributions. You must start taking annual
distributions from your traditional IRAs for the year in which you turn age
70-1/2.
When you have to take the first lifetime required minimum distribution. The
first required minimum distribution is for the calendar year in which you turn
age 70-1/2. You have the choice to take this first required minimum
distribution during the calendar year you actually reach age 70-1/2, or to
delay taking it until the first three-month period in the next calendar year
(January 1 - April 1). Distributions must start no later than your Required
Beginning Date, which is April 1st of the calendar year after the calendar year
in which you turn age 70-1/2. If you choose to delay taking the first annual
minimum distribution, then you will have to take two minimum distributions in
that year -- the delayed one for the first year and the one actually for that
year. Once minimum distributions begin, they must be made at some time each
year.
How you can calculate required minimum distributions.
There are two approaches to taking required minimum distributions --
"account-based" or "annuity-based."
ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the
value of your traditional IRA as of December 31st of the past calendar year by
a number corresponding to your age from an IRS table. This gives you the
required minimum distribution amount for that particular IRA for that year. If
your spouse is your sole beneficiary and more than 10 years younger than you,
the dividing number you use may be from another IRS table and may produce a
smaller lifetime required minimum distribution amount. Regardless of the table
used, the required minimum distribution amount will vary each year as the
account value and the divisor change. If you initially choose an account-based
method, you may later apply your traditional IRA funds to a life annuity-based
payout with any certain period not exceeding remaining life expectancy,
determined in accordance with IRS tables.
ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to
do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a designated beneficiary or for a
period certain not extending beyond applicable life expectancies, determined in
accordance with IRS tables.
Do you have to pick the same method to calculate your required minimum
distributions for all of your traditional IRAs and other retirement plans? No.
If you want, you can choose a different method for each of your traditional
IRAs and other retirement plans. For example, you can choose an annuity payout
from one IRA, a different annuity payout from a qualified plan and an
account-based annual withdrawal from another IRA.
Will we pay you the annual amount every year from your traditional IRA based on
the method you choose? We will only pay you automatically if you affirmatively
select an annuity payout option or an account-based withdrawal option such as
our "automatic required minimum distribution (RMD) service." Even if you do not
enroll in our service we will calculate the amount of the required minimum
distribution withdrawal for you, if you so request in writing. However, in that
case you will be responsible for asking us to pay the required minimum
distribution withdrawal to you.
Also, the IRS will let you calculate the required minimum distribution for each
traditional IRA that you maintain, using the method that you picked for that
particular IRA. You can add these required minimum distribution amount
calculations together. As long as the total amount you take out every year
satisfies your overall traditional IRA required minimum distribution amount,
you may choose to take your annual required minimum distribution from any one
or more traditional IRAs that you own.
What if you take more than you need to for any year? The required minimum
distribution amount for your traditional IRAs is calculated on a year-by-year
basis. There are no carry-back or carry-forward provisions. Also, you cannot
apply required minimum distribution amounts you take from your qualified plans
to the amounts you have to take from your traditional IRAs and vice versa.
What if you take less than you need to for any year? Your IRA could be
disqualified, and you could have to pay tax on the entire value. Even if your
IRA is not disqualified, you could have to pay a 50% penalty tax on the
shortfall (required amount for traditional IRAs less amount actually taken). It
is your responsibility to meet the required minimum distribution rules. We will
remind you when our records show that you are within the age group which must
take lifetime
Tax information 51
required minimum distributions. If you do not select a method with us, we will
assume you are taking your required minimum distribution from another
traditional IRA that you own.
What are the required minimum distribution payments after you die? These could
vary depending on whether you die before or after your Required Beginning Date
for lifetime required minimum distribution payments, and the status of your
beneficiary. The following assumes that you have not yet elected an
annuity-based payout at the time of your death. If you elect an annuity-based
payout, payments (if any) after your death must be made at least as rapidly as
when you were alive.
Individual beneficiary. Regardless of whether your death occurs before or after
your Required Beginning Date, an individual death beneficiary calculates annual
post-death required minimum distribution payments based on the beneficiary's
life expectancy using the "term certain method." That is, he or she determines
his or her life expectancy using the IRS-provided life expectancy tables as of
the calendar year after the owner's death and reduces that number by one each
subsequent year.
If you die before your Required Beginning Date, the rules permit any individual
beneficiary, including a spousal beneficiary, to elect instead to apply the
"5-year rule." Under this rule, instead of annual payments having to be made
beginning with the first in the year following the owner's death, the entire
account must be distributed by the end of the calendar year which contains the
fifth anniversary of the owners death. No distribution is required before that
fifth year.
Spousal beneficiary. If you die after your Required Beginning Date, and your
death beneficiary is your surviving spouse, your spouse has a number of
choices. Post-death distributions may be made over your spouse's single life
expectancy. Any amounts distributed after that surviving spouse's death are
made over the spouse's life expectancy calculated in the year of his/her death,
reduced by one for each subsequent year. In some circumstances, your surviving
spouse may elect to become the owner of the traditional IRA and halt
distributions until he or she reaches age 70-1/2, or roll over amounts from
your traditional IRA into his/her own traditional IRA or other eligible
retirement plan.
If you die before your Required Beginning Date, and the death beneficiary is
your surviving spouse, the rules permit the spouse to delay starting payments
over his/her life expectancy until the year in which you would have attained
age 70-1/2.
Non-individual beneficiary. If you die after your Required Beginning Date, and
your death beneficiary is a non-individual, such as the estate, the rules
permit the beneficiary to calculate post-death required minimum distribution
amounts based on the owner's life expectancy in the year of death. However,
note that we need an individual annuitant to keep an annuity contract in force.
If the beneficiary is not an individual, we must distribute amounts remaining
in the annuity contract after the death of the annuitant.
If you die before your Required Beginning Date for lifetime required minimum
distribution payments, and the death beneficiary is a non-individual, such as
the estate, the rules continue to apply the 5-year rule discussed earlier under
"Individual beneficiary." Please note that we need an individual annuitant to
keep an annuity contract in force. If the beneficiary is not an individual, we
must distribute amounts remaining in the annuity contract after the death of
the annuitant.
Successor owner and annuitant
If your spouse is the sole primary beneficiary and elects to become the
successor owner and annuitant, no death benefit is payable until your surviving
spouse's death.
Payments to a beneficiary after your death
IRA death benefits are taxed the same as IRA distributions.
Borrowing and loans are prohibited transactions
You cannot get loans from a traditional IRA. You cannot use a traditional IRA
as collateral for a loan or other obligation. If you borrow against your IRA or
use it as collateral, its tax-favored status will be lost as of the first day
of the tax year in which this prohibited event occurs. If this happens, you
must include the value of the traditional IRA in your federal gross income.
Also, the early distribution penalty tax of 10% may apply if you have not
reached age 59-1/2 before the first day of that tax year.
Early distribution penalty tax
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a traditional IRA made before you reach age 59-1/2. Some of
the available exceptions to the pre-age 59-1/2 penalty tax include
distributions:
o on or after your death; or
o because you are disabled (special federal income tax definition);
or
o used to pay certain extraordinary medical expenses (special fed-
eral income tax definition); or
o used to pay medical insurance premiums for unemployed indi-
viduals (special federal income tax definition); or
o used to pay certain first-time home buyer expenses (special fed-
eral income tax definition; $10,000 lifetime total limit for these
distributions from all your traditional and Roth IRAs); or
o used to pay certain higher education expenses (special federal
income tax definition); or
o in the form of substantially equal periodic payments made at
least annually over your life (or your life expectancy) or over the joint
lives of you and your beneficiary (or your joint life expectancies) using
an IRS-approved distribution method.
To meet this last exception, you could elect to apply your contract value to an
Income Manager(R) (life annuity with a period certain) payout annuity contract
(level payments version). You could also elect the substantially equal
withdrawals option. We will calculate the substantially equal annual payments,
using your choice of IRS-approved methods we offer. Although substantially
equal withdrawals and Income Manager(R) payments are not subject to the 10%
penalty tax, they are taxable as discussed in "Withdrawals, payments and
transfers of funds out of traditional IRAs" earlier in this section. Once
substan-
52 Tax information
tially equal withdrawals or Income Manager(R) annuity payments begin, the
distributions should not be stopped or changed until after the later of your
reaching age 59-1/2 or five years after the date of the first distribution, or
the penalty tax, including an interest charge for the prior penalty avoidance,
may apply to all prior distributions under either option. Also, it is possible
that the IRS could view any additional withdrawal or payment you take from your
contract as changing your pattern of substantially equal withdrawals or Income
Manager(R) payments for purposes of determining whether the penalty applies.
Roth individual retirement annuities (Roth IRAs)
This section of the Prospectus covers some of the special tax rules that apply
to Roth IRAs. If the rules are the same as those that apply to the traditional
IRA, we will refer you to the same topic under "traditional IRAs."
The Accumulator(R) Roth IRA contract is designed to qualify as a Roth
individual retirement annuity under Sections 408A(b) and 408(b) of the Internal
Revenue Code.
Contributions to Roth IRAs
Individuals may make four different types of contributions to a Roth IRA:
o regular after-tax contributions out of earnings; or
o taxable rollover contributions from traditional IRAs ("conversion"
contributions); or
o tax-free rollover contributions from other Roth IRAs; or
o tax-free direct custodian-to-custodian transfers from other Roth
IRAs ("direct transfers").
Regular after-tax, direct transfer and rollover contributions may be made to a
Roth Conversion IRA or a Flexible Premium Roth IRA contract. If you use the
forms we require, we will also accept traditional IRA funds which are
subsequently recharacterized as Roth IRA funds following special federal income
tax rules.
Regular contributions to Roth IRAs
Limits on regular contributions. The "maximum regular contribution amount" for
any taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
years. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $4,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for each of the taxable years 2005
and 2006. This limit does not apply to rollover contributions or direct
custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth
IRAs reduce your ability to contribute to traditional IRAs and vice versa. When
your earnings are below $4,000, your earned income or compensation for the year
is the most you can contribute. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to Roth IRAs and
traditional IRAs. See the discussion earlier in this section under traditional
IRAs. If you or your spouse are at least age 50 at any time during the taxable
year for which you are making a regular contribution, additional catch-up
contributions totaling up to $500 can be made for the taxable year 2005. This
amount increases to $1,000 for the taxable year 2006.
With a Roth IRA, you can make regular contributions when you reach 701/2, as
long as you have sufficient earnings. But, you cannot make contributions,
regardless of your age, for any year that:
o your federal income tax filing status is "married filing jointly" and your
modified adjusted gross income is over $160,000; or
o your federal income tax filing status is "single" and your modified adjusted
gross income is over $110,000.
However, you can make regular Roth IRA contributions in reduced amounts when:
o your federal income tax filing status is "married filing jointly" and your
modified adjusted gross income is between $150,000 and $160,000; or
o your federal income tax filing status is "single" and your modified adjusted
gross income is between $95,000 and $110,000.
If you are married and filing separately and your modified adjusted gross
income is between $0 and $10,000 the amount of regular contributions you are
permitted to make is phased out. If your modified adjusted gross income is more
than $10,000 you cannot make regular Roth IRA contributions.
When you can make contributions. Same as traditional IRAs.
Deductibility of contributions. Roth IRA contributions are not tax deductible.
Rollovers and direct transfers
What is the difference between rollover and direct transfer transactions? You
may make rollover contributions to a Roth IRA from only two sources:
o another Roth IRA ("tax-free rollover contribution"); or
o another traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two-year
rollover limitation period for SIMPLE IRA funds), in a taxable conversion
rollover ("conversion contribution").
You may not make contributions to a Roth IRA from a qualified plan under
Section 401(a) of the Internal Revenue Code, a TSA under Section 403(b) of the
Internal Revenue Code or any other eligible retirement plan. You may make
direct transfer contributions to a Roth IRA only from another Roth IRA.
The difference between a rollover transaction and a direct transfer transaction
is the following: in a rollover transaction you actually take possession of the
funds rolled over or are considered to have received them under tax law in the
case of a change from one type of plan to another. In a direct transfer
transaction, you never take possession of the funds, but direct the first Roth
IRA custodian, trustee or issuer to transfer the first Roth IRA funds directly
to the recipient Roth IRA custodian, trustee or issuer. You can make direct
transfer transactions only between identical plan types (for example, Roth IRA
to Roth IRA). You
Tax information 53
can also make rollover transactions between identical plan types. However, you
can only use rollover transactions between different plan types (for example,
traditional IRA to Roth IRA).
You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to
Roth IRA direct transfer transactions. This can be accomplished on a completely
tax-free basis. However, you may make Roth IRA to Roth IRA rollover
transactions only once in any 12-month period for the same funds.
Trustee-to-trustee or custodian-to-custodian direct transfers can be made more
frequently than once a year. Also, if you send us the rollover contribution to
apply it to a Roth IRA, you must do so within 60 days after you receive the
proceeds from the original IRA to get rollover treatment.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some
cases, Roth IRAs can be transferred on a tax-free basis between spouses or
former spouses as a result of a court-ordered divorce or separation decree.
Conversion contributions to Roth IRAs
In a conversion rollover transaction, you withdraw (or are considered to have
withdrawn) all or a portion of funds from a traditional IRA you maintain and
convert it to a Roth IRA within 60 days after you receive (or are considered to
have received) the traditional IRA proceeds. Unlike a rollover from a
traditional IRA to another traditional IRA, the conversion rollover transaction
is not tax-free. Instead, the distribution from the traditional IRA is
generally fully taxable. For this reason, we are required to withhold 10%
federal income tax from the amount converted unless you elect out of such
withholding. If you have ever made nondeductible regular contributions to any
traditional IRA -- whether or not it is the traditional IRA you are converting
- -- a pro rata portion of the distribution is tax free.
There is, however, no early distribution penalty tax on the traditional IRA
withdrawal that you are converting to a Roth IRA, even if you are under age
59-1/2.
You cannot make conversion contributions to a Roth IRA for any taxable year in
which your modified adjusted gross income exceeds $100,000. (For this purpose,
your modified adjusted gross income is computed without the gross income
stemming from the traditional IRA conversion. Beginning in 2005, modified
adjusted gross income for this purpose will also exclude any lifetime required
minimum distribution from a traditional IRA.) You also cannot make conversion
contributions to a Roth IRA for any taxable year in which your federal income
tax filing status is "married filing separately."
You cannot make conversion contributions to a Roth IRA to the extent that the
funds in your traditional IRA are subject to the annual required minimum
distribution rule applicable to traditional IRAs beginning at age 70-1/2.
You cannot convert and reconvert an amount during the same taxable year, or if
later, during the 30-day period following a recharacterization. If you
reconvert during either of these periods, it will be a failed Roth IRA
conversion.
Recharacterizations
You may be able to treat a contribution made to one type of IRA as having been
made to a different type of IRA. This is called recharacterizing the
contribution.
How to recharacterize. To recharacterize a contribution, you generally must
have the contribution transferred from the first IRA (the one to which it was
made) to the second IRA in a deemed trustee-to-trustee transfer. If the
transfer is made by the due date (including extensions) for your tax return for
the year during which the contribution was made, you can elect to treat the
contribution as having been originally made to the second IRA instead of to the
first IRA. It will be treated as having been made to the second IRA on the same
date that it was actually made to the first IRA. You must report the
recharacterization and must treat the contribution as having been made to the
second IRA, instead of the first IRA, on your tax return for the year during
which the contribution was made.
The contribution will not be treated as having been made to the second IRA
unless the transfer includes any net income allocable to the contribution. You
can take into account any loss on the contribution while it was in the IRA when
calculating the amount that must be transferred. If there was a loss, the net
income you must transfer may be a negative amount.
No deduction is allowed for the contribution to the first IRA and any net
income transferred with the recharacterized contribution is treated as earned
in the second IRA. The contribution will not be treated as having been made to
the second IRA to the extent any deduction was allowed with respect to the
contribution to the first IRA.
For recharacterization purposes, a distribution from a traditional IRA that is
received in one tax year and rolled over into a Roth IRA in the next year, but
still within 60 days of the distribution from the traditional IRA, is treated
as a contribution to the Roth IRA in the year of the distribution from the
traditional IRA.
Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be
recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or
SIMPLE IRA).
To recharacterize a contribution, you must use our forms.
The recharacterization of a contribution is not treated as a rollover for
purposes of the 12-month limitation period described above. This rule applies
even if the contribution would have been treated as a rollover contribution by
the second IRA if it had been made directly to the second IRA rather than as a
result of a recharacterization of a contribution to the first IRA.
Withdrawals, payments and transfers of funds out of Roth
IRAs
No federal income tax law restrictions on withdrawals. You can withdraw any or
all of your funds from a Roth IRA at any time; you do not need to wait for a
special event like retirement.
54 Tax information
Distributions from Roth IRAs
Distributions include withdrawals from your contract, surrender of your
contract and annuity payments from your contract. Death benefits are also
distributions.
You must keep your own records of regular and conversion contributions to all
Roth IRAs to assure appropriate taxation. You may have to file information on
your contributions to and distributions from any Roth IRA on your tax return.
You may have to retain all income tax returns and records pertaining to such
contributions and distributions until your interests in all Roth IRAs are
distributed.
Like traditional IRAs, taxable distributions from a Roth IRA are not entitled
to the special favorable ten-year averaging and long-term capital gain
treatment available in limited cases to certain distributions from qualified
plans.
The following distributions from Roth IRAs are free of income tax:
o Rollovers from a Roth IRA to another Roth IRA;
o Direct transfers from a Roth IRA to another Roth IRA;
o Qualified distributions from a Roth IRA; and
o Return of excess contributions or amounts recharacterized to a traditional
IRA.
Qualified distributions from Roth IRAs. Qualified distributions from Roth IRAs
made because of one of the following four qualifying events or reasons are not
includable in income:
o you are age 59-1/2; or older or
o you die; or
o you become disabled (special federal income tax definition); or
o your distribution is a "qualified first-time homebuyer distribution" (special
federal income tax definition; $10,000 lifetime total limit for these
distributions from all of your traditional and Roth IRAs).
You also have to meet a five-year aging period. A qualified distribution is any
distribution made after the five-taxable-year period beginning with the first
taxable year for which you made any contribution to any Roth IRA (whether or
not the one from which the distribution is being made).
Nonqualified distributions from Roth IRAs. Nonqualified distributions from Roth
IRAs are distributions that do not meet both the qualifying event and five-year
aging period tests described above. If you receive such a distribution, part of
it may be taxable. For purposes of determining the correct tax treatment of
distributions (other than the withdrawal of excess contributions and the
earnings on them), there is a set order in which contributions (including
conversion contributions) and earnings are considered to be distributed from
your Roth IRA. The order of distributions is as follows:
(1) Regular contributions.
(2) Conversion contributions, on a first-in-first-out basis (generally, total
conversions from the earliest year first). These conversion contributions
are taken into account as follows:
(a) Taxable portion (the amount required to be included in gross income
because of conversion) first, and then the
(b) Nontaxable portion.
(3) Earnings on contributions.
Rollover contributions from other Roth IRAs are disregarded for this purpose.
To determine the taxable amount distributed, distributions and contributions
are aggregated or grouped and added together as follows:
(1) All distributions made during the year from all Roth IRAs you maintain --
with any custodian or issuer -- are added together.
(2) All regular contributions made during and for the year (contributions made
after the close of the year, but before the due date of your return) are
added together. This total is added to the total undistributed regular
contributions made in prior years.
(3) All conversion contributions made during the year are added together. For
purposes of the ordering rules, in the case of any conversion in which the
conversion distribution is made in 2005 and the conversion contribution is
made in 2006, the conversion contribution is treated as contributed prior
to other conversion contributions made in 2006.
Any recharacterized contributions that end up in a Roth IRA are added to the
appropriate contribution group for the year that the original contribution
would have been taken into account if it had been made directly to the Roth
IRA.
Any recharacterized contribution that ends up in an IRA other than a Roth IRA
is disregarded for the purpose of grouping both contributions and
distributions. Any amount withdrawn to correct an excess contribution
(including the earnings withdrawn) is also disregarded for this purpose.
Required minimum distributions during life
Lifetime required minimum distributions do not apply.
Required minimum distributions at death
Same as traditional IRA under "What are the required minimum distribution
payments after you die?"
Tax information 55
Payments to a beneficiary after your death
Distributions to a beneficiary generally receive the same tax treatment as if
the distribution had been made to you.
Borrowing and loans are prohibited transactions
Same as traditional IRA.
Excess contributions
Generally the same as traditional IRA, except that regular contributions made
after age 70-1/2 are not excess contributions.
Excess rollover contributions to Roth IRAs are contributions not eligible to be
rolled over (for example, conversion contributions from a traditional IRA if
your modified adjusted gross income is in excess of $100,000 in the conversion
year).
You can withdraw or recharacterize any contribution to a Roth IRA before the
due date (including extensions) for filing your federal income tax return for
the tax year. If you do this, you must also withdraw or recharacterize any
earnings attributable to the contribution.
Early distribution penalty tax
Same as traditional IRA.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
General
This section of the Prospectus covers some of the special tax rules that apply
to TSA contracts under Section 403(b) of the Internal Revenue Code (TSAs). If
the rules are the same as those that apply to another kind of contract, for
example, traditional IRAs, we will refer you to the same topic under
"traditional IRAs."
PLEASE NOTE: The following discussion reflects our understanding of some of the
current federal income tax rules applicable to Section 403(b) of the Code. The
IRS and Treasury have recently issued Proposed Regulations on Section 403(b) of
the Code. If finalized in their current form, these Proposed Regulations would
affect the establishment and operation of plans and arrangements under Section
403(b) of the Code, and the contracts issued to fund such plans. Please consult
your tax adviser concerning how these Proposed Regulations could affect you.
Generally, there are two types of funding vehicles available for 403(b)
arrangements -- an annuity contract under Section 403(b)(1) of the Internal
Revenue Code or a custodial account that invests only in mutual funds and which
is treated as an annuity contract under Section 403(b)(7) of the Code. Both
types of 403(b) arrangements qualify for tax deferral.
Protection plus(SM) feature
The Protection Plus(SM) feature was offered for Rollover TSA contracts, subject
to state and contract availability. There is a limit to the amount of life
insurance benefits that TSAs may offer. Although we view the optional Protection
Plus(SM) benefit as an investment protection feature which should have no
adverse tax effect and not as a life insurance benefit, the IRS has not
specifically addressed this question. It is possible that the IRS could take a
contrary position regarding tax qualification or assert that the Protection
Plus(SM) rider is not a permissible part of a TSA contract. If the IRS were to
take the position that the optional Protection Plus(SM) benefit is not part of
the contract, in such a case, the charges for the Protection Plus(SM) rider
could be treated for federal income tax purposes as a partial withdrawal from
the contract. If this were so, such a deemed withdrawal could affect the tax
qualification of the TSA and could be taxable. Were the IRS to take any adverse
position, AXA Equitable would take all reasonable steps to attempt to avoid any
adverse result, which would include amending the contract (with appropriate
notice to you). You should consult with your tax adviser for further
information.
Contributions to TSAs
There were two ways you might have contributed to establish this Accumulator(R)
Rollover TSA contract:
o a full or partial direct transfer of assets ("direct transfer") from
another contract or arrangement that met the requirements of Section 403(b)
of the Internal Revenue Code by means of IRS Revenue Ruling 90-24; or
o a rollover from another 403(b) arrangement.
If you made a direct transfer, you filled out our transfer form.
We do not accept after-tax funds in the Rollover TSA.
Employer-remitted contributions. The Accumulator(R) Rollover TSA contract does
not accept employer-remitted contributions. However, we provide the following
discussion as part of our description of restrictions on the distribution of
funds directly transferred, which include employer-remitted contributions to
other TSAs.
Employer-remitted contributions to TSAs made through the employer's payroll are
subject to annual limits. (Tax-free direct transfer contributions from another
403(b) arrangement and rollover contributions from another eligible retirement
plan are not subject to these annual contribution limits.) Commonly, some or
all of the contributions made to a TSA are made under a salary reduction
agreement between the employee and the employer. These contributions are called
"salary reduction" or "elective deferral" contributions. However, a TSA can
also be wholly or partially funded through nonelective employer contributions
or after-tax employee contributions. Amounts attributable to salary reduction
contributions to TSAs are generally subject to withdrawal restrictions. Also,
all amounts attributable to investments in a 403(b)(7) custodial account are
subject to withdrawal restrictions discussed below.
Rollover or direct transfer contributions. Once you establish your Rollover TSA
contract with 403(b)-source funds, you may make subsequent rollover
contributions to your Rollover TSA contract from these sources: qualified
plans, governmental employer 457(b) plans and traditional IRAs, as well as
other TSAs and 403(b) arrangements. All rollover contributions must be pre-tax
funds only with appropriate documentation satisfactory to us.
Generally, you may make a rollover contribution to your TSA when you have a
distributable event from an existing TSA or other eligible retirement plan as a
result of your:
56 Tax information
o termination of employment with the employer who provided the funds for the
plan; or
o reaching age 59-1/2 even if you are still employed; or
o disability (special federal income tax definition).
You can roll over pre-tax funds from a traditional IRA to a TSA at any time.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental employer 457(b) plan are not subject to the
additional 10% federal income tax penalty for premature distributions, but they
may become subject to this penalty if you roll the funds to a different type of
eligible retirement plan and subsequently take a premature distribution.
If the recipient plan separately accounts for funds rolled-over from another
eligible retirement plan, the IRS has ruled that an exception is available in
certain situations to withdrawal restrictions that would otherwise apply to the
rollover contribution funds in the recipient plan. We do not currently
separately account for rollover contributions from other eligible retirement
plans.
A transfer occurs when changing the funding vehicle, even if there is no
distributable event. Under a direct transfer, you do not receive a
distribution. We accept direct transfers of TSA funds under Revenue Ruling
90-24 only if:
o you give us acceptable written documentation as to the source of the funds,
and
o the Accumulator(R) contract receiving the funds has provisions at least as
restrictive as the source contract.
Before you transfer funds to an Accumulator(R) Rollover TSA contract, you may
have to obtain your employer's authorization or demonstrate that you do not
need employer authorization. For example, the transferring TSA may be subject
to Title I of ERISA, if the employer makes matching contributions to salary
reduction contributions made by employees. In that case, the employer must
continue to approve distributions from the plan or contract.
Your contribution to the Accumulator(R) Rollover TSA must be net of the
required minimum distribution for the tax year in which we issue the contract
if:
o you are or will be at least age 70-1/2 in the current calendar year, and
o you have retired from service with the employer who provided the funds to
purchase the TSA you are transferring or rolling over to the Accumulator(R)
Rollover TSA.
This rule applies regardless of whether the source of funds is a:
o rollover by check of the proceeds from another TSA or eligible retirement
plan; or
o direct rollover from another TSA or eligible retirement plan; or
o direct transfer under Revenue Ruling 90-24 from another TSA.
Distributions from TSAs
General. Depending on the terms of the employer plan and your employment
status, you may have to get your employer's consent to take a loan or
withdrawal. Your employer will tell us this when you establish the TSA through
a direct transfer.
Withdrawal restrictions. If this is a Revenue Ruling 90-24 direct transfer, we
will treat all amounts transferred to this contract and any future earnings on
the amount transferred as not eligible for withdrawal until one of the
following events happens:
o you are severed from employment with the employer who provided the funds to
purchase the TSA you are transferring to the Accumulator(R) Rollover TSA; or
o you reach age 59-1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o you take a hardship withdrawal (special federal income tax definition).
If any portion of the funds directly transferred to your TSA contract is
attributable to amounts that you invested in a 403(b)(7) custodial account,
such amounts, including earnings, are subject to withdrawal restrictions. With
respect to the portion of the funds that were never invested in a 403(b)(7)
custodial account, these restrictions apply to the salary reduction (elective
deferral) contributions to a TSA annuity contract you made and any earnings on
them. These restrictions do not apply to the amount directly transferred to
your TSA contract that represents your December 31, 1988, account balance
attributable to salary reduction contributions to a TSA annuity contract and
earnings. To take advantage of this grandfathering you must properly notify us
in writing at our processing office of your December 31, 1988, account balance
if you have qualifying amounts transferred to your TSA contract.
This paragraph applies only to participants in a Texas Optional retirement
program. Texas Law permits withdrawals only after one of the following
distributable events occur:
(1) the requirements for minimum distribution (discussed under "Required
minimum distributions" later in this section) are met; or
(2) death; or
(3) retirement; or
(4) termination of employment in all Texas public institutions of higher
education.
For you to make a withdrawal, we must receive a properly completed written
acknowledgment from the employer. If a distributable event occurs before you
are vested, we will refund to the employer any amounts provided by an
employer's first-year matching contribution. We reserve the right to change
these provisions without your consent,
Tax information 57
but only to the extent necessary to maintain compliance with applicable law.
Loans are not permitted under Texas Optional Retirement Programs.
Tax treatment of distributions. Amounts held under TSAs are generally not
subject to federal income tax until benefits are distributed. Distributions
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSAs are includable in
gross income as ordinary income. Distributions from TSAs may be subject to 20%
federal income tax withholding. See "Federal and state income tax withholding
and information reporting" later in this section. In addition, TSA
distributions may be subject to additional tax penalties.
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since we currently do not accept
after-tax funds, we do not track your investment in the contract, if any. We
will report all distributions from this Rollover TSA as fully taxable. It is
your responsibility to determine how much of the distribution is taxable.
Distributions before annuity payments begin. On a total surrender, the amount
received in excess of the investment in the contract is taxable. The amount of
any partial distribution from a TSA prior to the annuity starting date is
generally taxable, except to the extent that the distribution is treated as a
withdrawal of after-tax contributions. Distributions are normally treated as
pro rata withdrawals of any after-tax contributions and earnings on those
contributions.
Annuity Payments. If you elect an annuity payout option, you will recover any
investment in the contract as each payment is received by dividing the
investment in the contract by an expected return determined under an IRS table
prescribed for qualified annuities. The amount of each payment not excluded
from income under this exclusion ratio is fully taxable. The full amount of the
payments received after your investment in the contract is recovered is fully
taxable. If you (and your beneficiary under a joint and survivor annuity) die
before recovering the full investment in the contract, a deduction is allowed
on your (or your beneficiary's) final tax return.
Payments to a beneficiary after your death. Death benefit distributions from a
TSA generally receive the same tax treatment as distributions during your
lifetime. In some instances, distributions from a TSA made to your surviving
spouse may be rolled over to a traditional IRA or other eligible retirement
plan.
Loans from TSAs. You may take loans from a TSA unless restricted by the
employer (for example, under an employer plan subject to ERISA). If you cannot
take a loan, or cannot take a loan without approval from the employer who
provided the funds, we will have this information in our records based on what
you and the employer who provided the TSA funds told us when you purchased your
contract.
Loans are generally not treated as a taxable distribution. If the amount of the
loan exceeds permissible limits under federal income tax rules when made, the
amount of the excess is treated (solely for tax purposes) as a taxable
distribution. Additionally, if the loan is not repaid at least quarterly,
amortizing (paying down) interest and principal, the amount not repaid when due
will be treated as a taxable distribution. The entire unpaid balance of the
loan is includable in income in the year of the default.
TSA loans are subject to federal income tax limits and may also be subject to
the limits of the plan from which the funds came. Federal income tax rule
requirements apply even if the plan is not subject to ERISA. For example, loans
offered by TSAs are subject to the following conditions:
o The amount of a loan to a participant, when combined with all other loans to
the participant from all qualified plans of the employer, cannot exceed the
lesser of:
(1) the greater of $10,000 or 50% of the participant's nonforfeitable
accrued benefits; and
(2) $50,000 reduced by the excess (if any) of the highest out standing loan
balance over the previous twelve months over the outstanding loan
balance of plan loans on the date the loan was made.
o In general, the term of the loan cannot exceed five years unless the loan is
used to acquire the participant's primary residence. Accumulator(R) Rollover
TSA contracts have a term limit of 10 years for loans used to acquire the
participant's primary residence.
o All principal and interest must be amortized in substantially level payments
over the term of the loan, with payments being made at least quarterly. In
very limited circumstances, the repayment obligation may be temporarily
suspended during a leave of absence.
The amount borrowed and not repaid may be treated as a distribution if:
o the loan does not qualify under the conditions above;
o the participant fails to repay the interest or principal when due; or
o in some instances, the participant separates from service with the employer
who provided the funds or the plan is terminated.
In this case, the participant may have to include the unpaid amount due as
ordinary income. In addition, the 10% early distribution penalty tax may apply.
The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as
a distribution.
Tax-deferred rollovers and direct transfers. You may roll over an "eligible
rollover distribution" from a TSA into another eligible retirement plan which
agrees to accept the rollover. The rollover may be a direct rollover or one you
do yourself within 60 days after you receive the distribution. To the extent
rolled over, a distribution remains tax-deferred.
You may roll over a distribution from a TSA to any of the following: a
qualified plan, a governmental employer 457(b) plan (separate accounting
required) or a traditional IRA. A spousal beneficiary may also roll over death
benefits as above.
58 Tax information
The taxable portion of most distributions will be eligible for rollover, except
as specifically excluded under federal income tax rules. Distributions that you
cannot roll over generally include periodic payments for life or for a period
of 10 years or more, hardship withdrawals and required minimum distributions
under federal income tax rules.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling
90-24 are not distributions.
Required minimum distributions
Generally the same as traditional IRA with these differences:
When you have to take the first required minimum distribution. The minimum
distribution rules force TSA participants to start calculating and taking
annual distributions from their TSAs by a required date. Generally, you must
take the first required minimum distribution for the calendar year in which you
turn age 70-1/2. You may be able to delay the start of required minimum
distributions for all or part of your account balance until after age 70-1/2,
as follows:
o For TSA participants who have not retired from service with the employer who
provided the funds for the TSA by the calendar year the participant turns age
70-1/2, the required beginning date for minimum distributions is extended to
April 1 following the calendar year of retirement.
o TSA plan participants may also delay the start of required mini mum
distributions to age 75 of the portion of their account value attributable to
their December 31, 1986, TSA account balance, even if retired at age 70-1/2.
We will know whether or not you qualify for this exception because it will
only apply to people who establish their Accumulator(R) Rollover TSA by
direct Revenue Ruling 90-24 transfers. If you do not give us the amount of
your December 31, 1986, account balance that is being transferred to the
Accumulator(R) Rollover TSA on the form used to establish the TSA, you do not
qualify.
Spousal consent rules
This only applies to you if you established your Accumulator(R) Rollover TSA by
direct Revenue Ruling 90-24 transfer. Your employer will tell us on the form
used to establish the TSA whether or not you need to get spousal consent for
loans, withdrawals or other distributions. If you do, you will need such
consent if you are married when you request a withdrawal under the TSA
contract. In addition, unless you elect otherwise with the written consent of
your spouse, the retirement benefits payable under the plan must be paid in the
form of a qualified joint and survivor annuity. A qualified joint and survivor
annuity is payable for the life of the annuitant with a survivor annuity for
the life of the spouse in an amount not less than one-half of the amount
payable to the annuitant during his or her lifetime. In addition, if you are
married, the beneficiary must be your spouse, unless your spouse consents in
writing to the designation of another beneficiary.
If you are married and you die before annuity payments have begun, payments
will be made to your surviving spouse in the form of a life annuity unless at
the time of your death a contrary election was in effect. However, your
surviving spouse may elect, before payments begin, to receive payments in any
form permitted under the terms of the TSA contract and the plan of the employer
who provided the funds for the TSA.
Early distribution penalty tax
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a TSA before you reach age 59-1/2. This is in addition to
any income tax. There are exceptions to the extra penalty tax. Some of the
available exceptions to the pre-age 59-1/2 penalty tax include distributions
made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o to pay for certain extraordinary medical expenses (special federal income tax
definition); or
o in any form of payout after you have separated from service (only if the
separation occurs, during or after the calendar year you reach age 55); or
o in a payout in the form of substantially equal periodic payments made at
least annually over your life (or your life expectancy), or over the joint
lives of you and your beneficiary (or your joint life expectancies) using an
IRS-approved distribution method (only after you have separated from service
at any age).
FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING
We must withhold federal income tax from distributions from annuity contracts.
You may be able to elect out of this income tax withholding in some cases.
Generally, we do not have to withhold if your distributions are not taxable.
The rate of withholding will depend on the type of distribution and, in certain
cases, the amount of your distribution. Any income tax withheld is a credit
against your income tax liability. If you do not have sufficient income tax
withheld or do not make sufficient estimated income tax payments, you may incur
penalties under the estimated income tax rules.
You must file your request not to withhold in writing before the payment or
distribution is made. Our processing office will provide forms for this
purpose. You cannot elect out of withholding unless you provide us with your
correct Taxpayer Identification Number and a United States residence address.
You cannot elect out of withholding if we are sending the payment out of the
United States.
You should note the following special situations:
o We might have to withhold and/or report on amounts we pay under a free look
or cancellation.
o We are generally required to withhold on conversion rollovers of traditional
IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA
and is taxable.
o We are required to withhold on the gross amount of a distribution from a
Roth IRA to the extent it is reasonable for us to
Tax information 59
believe that a distribution is includable in your gross income. This may
result in tax being withheld even though the Roth IRA distribution is
ultimately not taxable. You can elect out of withholding as described below.
Special withholding rules apply to foreign recipients and United States
citizens residing outside the United States. We do not discuss these rules here
in detail. However, we may require additional documentation in the case of
payments made to non-United States persons and United States persons living
abroad prior to processing any requested transaction.
Certain states have indicated that state income tax withholding will also apply
to payments from the contracts made to residents. In some states, you may elect
out of state withholding, even if federal withholding applies. Generally, an
election out of federal withholding will also be considered an election out of
state withholding. If you need more information concerning a particular state
or any required forms, call our processing office at the toll-free number.
Federal income tax withholding on periodic annuity
payments
We withhold differently on "periodic" and "non-periodic" payments. For a
periodic annuity payment, for example, unless you specify a different number of
withholding exemptions, we withhold assuming that you are married and claiming
three withholding exemptions. If you do not give us your correct Taxpayer
Identification Number, we withhold as if you are single with no exemptions.
Based on the assumption that you are married and claiming three withholding
exemptions, if you receive less than $17,760 in periodic annuity payments in
2005, your payments will generally be exempt from federal income tax
withholding. You could specify a different choice of withholding exemption or
request that tax be withheld. Your withholding election remains effective
unless and until you revoke it. You may revoke or change your withholding
election at any time.
Federal income tax withholding on non-periodic annuity
payments (withdrawals)
For a non-periodic distribution (total surrender or partial withdrawal), we
generally withhold at a flat 10% rate. We apply that rate to the taxable amount
in the case of nonqualified contracts, and to the payment amount in the case of
traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is
includable in gross income.
You cannot elect out of withholding if the payment is an eligible rollover
distribution from a qualified plan or TSA. If a non-periodic distribution from
a qualified plan or TSA is not an eligible rollover distribution then the 10%
withholding rate applies.
Mandatory withholding from TSA and qualified plan
distributions
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans and TSAs are subject to mandatory 20%
withholding. The plan administrator is responsible for withholding from
qualified plan distributions. An eligible rollover distribution from a TSA or a
qualified plan can be rolled over to another eligible retirement plan. All
distributions from a TSA or qualified plan are eligible rollover distributions
unless they are on the following list of exceptions:
o any distributions which are required minimum distributions after age 70-1/2
or retirement from service with the employer; or
o substantially equal periodic payments made at least annually for your life
(or life expectancy) or the joint lives (or joint life expectancies) of you
and your designated beneficiary; or
o substantially equal periodic payments made for a specified period of 10 years
or more; or
o hardship withdrawals; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviving spouse;
or
o a qualified domestic relations order distribution to a beneficiary who is not
your current spouse or former spouse.
A death benefit payment to your surviving spouse, or a qualified domestic
relations order distribution to your current or former spouse, may be a
distribution subject to mandatory 20% withholding.
SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS
For QP contracts, your plan administrator or trustee notifies you as to tax
consequences. See Appendix II at the end of this Prospectus.
IMPACT OF TAXES TO AXA EQUITABLE
The contracts provide that we may charge Separate Account No. 45 and Separate
Account No. 49 for taxes. We do not now, but may in the future set up reserves
for such taxes.
60 Tax information
8. More information
- --------------------------------------------------------------------------------
ABOUT SEPARATE ACCOUNT NO. 45 AND SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 45 and
in Separate Account No. 49. We established Separate Account No. 45 in 1994 and
Separate Account No. 49 in 1996 under special provisions of the New York
Insurance Law. These provisions prevent creditors from any other business we
conduct from reaching the assets we hold in our variable investment options for
owners of our variable annuity contracts. We are the legal owner of all of the
assets in Separate Account No. 45 and in Separate Account No. 49 and may
withdraw any amounts that exceed our reserves and other liabilities with
respect to variable investment options under our contracts. The results of
Separate Accounts' operations are accounted for without regard to AXA
Equitable's other operations.
Each Separate Account is registered under the Investment Company Act of 1940
and is classified by that act as a "unit investment trust." The SEC, however,
does not manage or supervise AXA Equitable or the Separate Accounts.
Each subaccount (variable investment option) within the Separate Accounts
invests solely in Class IB/B shares issued by the corresponding portfolio of
either Trust.
We reserve the right subject to compliance with laws that apply:
(1) to add variable investment options to, or to remove variable investment
options from either Separate Account, or to add other separate accounts;
(2) to combine any two or more variable investment options;
(3) to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment option
to another variable investment option;
(4) to operate each Separate Account or any variable investment option as a
management investment company under the Investment Company Act of 1940 (in
which case, charges and expenses that otherwise would be assessed against
an underlying mutual fund would be assessed against each Separate Account
or a variable investment option directly);
(5) to deregister the Separate Accounts under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to the Separate Accounts; and
(7) to cause one or more variable investment options to invest some or all of
their assets in one or more other trusts or investment companies.
ABOUT THE TRUSTS
EQ Advisors Trust and AXA Premier VIP Trust are registered under the Investment
Company Act of 1940. They are classified as "open-end management investment
companies," more commonly called mutual funds. Each Trust issues different
shares relating to each portfolio.
AXA Equitable serves as the investment manager of the Trusts. As such, AXA
Equitable oversees the activities of the investment advisers with respect to
the Trusts and is responsible for retaining or discontinuing the services of
those advisers.
The Trusts do not impose sales charges or "loads" for buying and selling their
shares. All dividends and other distributions on the Trusts' shares are
reinvested in full. The Board of Trustees of each Trust may establish
additional portfolios or eliminate existing portfolios at any time. More
detailed information about each Trust, its portfolio investment objectives,
policies, restrictions, risks, expenses, its Rule 12b-1 Plan and other aspects
of its operations, appear in the prospectuses for each Trust, which are
generally attached at the end of this Prospectus, or in the respective SAIs,
which are available upon request.
ABOUT OUR FIXED MATURITY OPTIONS
RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE
We can determine the amount required to be allocated to one or more fixed
maturity options in order to produce specified maturity values. For example, we
can tell you how much you need to allocate per $100 of maturity value.
FMO rates are determined daily. The rates in the table are illustrative only
and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
The rates to maturity for new allocations as of February 15, 2005, and the
related price per $100 of maturity value were as shown below:
- --------------------------------------------------------------
Fixed Maturity
Options with
February 15th Rate to Maturity Price
Maturity Date of as of Per $100 of
Maturity Year February 15, 2005 Maturity Value
- --------------------------------------------------------------
2006 3.00%* $ 97.09
2007 3.00%* $ 94.26
2008 3.00%* $ 91.51
2009 3.00%* $ 88.84
2010 3.00%* $ 86.25
2011 3.00%* $ 83.74
2012 3.19% $ 80.26
2013 3.35% $ 76.81
2014 3.50% $ 73.36
2015 3.64% $ 69.93
*Since these rates to maturity are 3%, no amounts could have been allocated to
these options.
HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT
We use the following procedure to calculate the market value adjustment (up or
down) we make if you withdraw all of your value from a fixed maturity option
before its maturity date.
More information 61
(1) We determine the market adjusted amount on the date of the withdrawal as
follows:
(a) We determine the fixed maturity amount that would be payable on the
maturity date, using the rate to maturity for the fixed maturity
option.
(b) We determine the period remaining in your fixed maturity option (based
on the withdrawal date) and convert it to fractional years based on a
365-day year. For example, three years and 12 days becomes 3.0329.
(c) We determine the current rate to maturity that applies on the
withdrawal date to new allocations to the same fixed maturity option.
(d) We determine the present value of the fixed maturity amount payable at
the maturity date, using the period determined in (b) and the rate
determined in (c).
(2) We determine the fixed maturity amount as of the current date.
(3) We subtract (2) from the result in (1)(d). The result is the market value
adjustment applicable to such fixed maturity option, which may be positive
or negative.
- --------------------------------------------------------------------------------
Your market adjusted amount is the present value of the maturity value
discounted at the rate to maturity in effect for new contributions to that same
fixed maturity option on the date of the calculation.
- --------------------------------------------------------------------------------
If you withdraw only a portion of the amount in a fixed maturity option, the
market value adjustment will be a percentage of the market value adjustment
that would have applied if you had withdrawn the entire value in that fixed
maturity option. This percentage is equal to the percentage of the value in the
fixed maturity option that you are withdrawing. Any withdrawal charges that are
deducted from a fixed maturity option will result in a market value adjustment
calculated in the same way. See Appendix III at the end of this Prospectus for
an example.
For purposes of calculating the rate to maturity for new allocations to a fixed
maturity option (see (1)(c) above), we use the rate we have in effect for new
allocations to that fixed maturity option. We use this rate even if new
allocations to that option would not be accepted at that time. This rate will
not be less than 3%. If we do not have a rate to maturity in effect for a fixed
maturity option to which the "current rate to maturity" in (1)(c) would apply,
we will use the rate at the next closest maturity date. If we are no longer
offering new fixed maturity options, the "current rate to maturity" will be
determined in accordance with our procedures then in effect. We reserve the
right to add up to 0.25% to the current rate in (1)(c) above for purposes of
calculating the market value adjustment only.
INVESTMENTS UNDER THE FIXED MATURITY OPTIONS
Amounts allocated to the fixed maturity options are held in a "nonunitized"
separate account we have established under the New York Insurance Law. This
separate account provides an additional measure of assurance that we will make
full payment of amounts due under the fixed maturity options. Under New York
Insurance Law, the portion of the separate account's assets equal to the
reserves and other contract liabilities relating to the contracts are not
chargeable with liabilities from any other business we may conduct. We own the
assets of the separate account, as well as any favorable investment performance
on those assets. You do not participate in the performance of the assets held
in this separate account. We may, subject to state law that applies, transfer
all assets allocated to the separate account to our general account. We
guarantee all benefits relating to your value in the fixed maturity options,
regardless of whether assets supporting fixed maturity options are held in a
separate account or our general account.
We have no specific formula for establishing the rates to maturity for the
fixed maturity options. We expect the rates to be influenced by, but not
necessarily correspond to, among other things, the yields that we can expect to
realize on the separate account's investments from time to time. Our current
plans are to invest in fixed-income obligations, including corporate bonds,
mortgage-backed and asset-backed securities, and government and agency issues
having durations in the aggregate consistent with those of the fixed maturity
options.
Although the above generally describes our plans for investing the assets
supporting our obligations under the fixed maturity options under the
contracts, we are not obligated to invest those assets according to any
particular plan except as we may be required to by state insurance laws. We
will not determine the rates to maturity we establish by the performance of the
nonunitized separate account.
ABOUT THE GENERAL ACCOUNT
Our general account supports all of our policy and contract guarantees,
including those that apply to the fixed maturity options, as well as our
general obligations.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations
of all jurisdictions where we are authorized to do business. Because of
exemptions and exclusionary provisions that apply, interests in the general
account have not been registered under the Securities Act of 1933, nor is the
general account an investment company under the Investment Company Act of 1940.
However, the market value adjustment interests under the contracts are
registered under the Securities Act of 1933.
We have been advised that the staff of the SEC has not reviewed the portions of
this Prospectus that relate to the general account (other than market value
adjustment interests). The disclosure with regard to the general account,
however, may be subject to certain provisions of the federal securities laws
relating to the accuracy and completeness of statements made in prospectuses.
ABOUT OTHER METHODS OF PAYMENT
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept subsequent contributions sent by wire to our processing office by
agreement with certain broker-dealers. Such transmittals must be accompanied by
information we require to allocate your contribution. Wire orders not
accompanied by complete information may be retained as described under "How you
can make your contributions" in "Contract features and benefits" earlier in
this Prospectus.
62 More information
Even if we accepted the wire order and essential information, a contract
generally was not issued until we received and accepted a properly completed
application. In certain cases, we may have issued a contract based on
information provided through certain broker-dealers with whom we have
established electronic facilities. In any such case, you must have signed our
Acknowledgement of Receipt form.
Where we required a signed application, the above procedures did not apply and
no financial transactions were permitted until we received the signed
application and issued the contract. Where we issued a contract based on
information provided though electronic facilities, we required an
Acknowledgement of Receipt form. Financial transactions were only permitted if
you requested them in writing, signed the request and had it signature
guaranteed, until we received the signed Acknowledgement of Receipt form. After
a contract is issued, additional contributions are allowed by wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY
You may use our automatic investment program, or "AIP," to have a specified
amount automatically deducted from a checking account, money market account or
credit union checking account and contributed as an additional contribution
into an NQ contract on a monthly or quarterly basis. AIP is not available for
Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contracts.
For NQ contracts, the minimum amounts we will deduct are $100 monthly and $300
quarterly. AIP additional contributions may be allocated to any of the variable
investment options and available fixed maturity options. You choose the day of
the month you wish to have your account debited. However, you may not choose a
date later than the 28th day of the month.
You may cancel AIP at any time by notifying our processing office. We are not
responsible for any debits made to your account before the time written notice
of cancellation is received at our processing office.
DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this Prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our business day, generally, is any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions. Our business day generally ends at 4:00 p.m. Eastern Time for
purposes of determining the date when contributions are applied and any other
transaction requests are processed. Contributions will be applied and any other
transaction requests will be processed when they are received along with all
the required information unless another date applies as indicated below.
o If your contribution, transfer or any other transaction request, containing
all the required information, reaches us on a non-business day or after 4:00
p.m. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then the
transaction will occur on the 1st day of the next month.
o When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
o If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your contribution
will be considered received at the time your broker-dealer receives your
contribution and all information needed to process your application, along
with any required documents, and transmits your order to us in accordance
with our processing procedures. Such arrangements may apply to initial
contributions, subsequent contributions, or both, and may be commenced or
terminated at any time without prior notice. If required by law, the "closing
time" for such orders will be earlier than 4 p.m., Eastern Time.
CONTRIBUTIONS AND TRANSFERS
o Contributions allocated to the variable investment options are invested at
the value next determined after the close of the business day.
o Contributions allocated to a fixed maturity option will receive the rate to
maturity in effect for that fixed maturity option on that business day.
o Transfers to or from variable investment options will be made at the value
next determined after the close of the business day.
o Transfers to a fixed maturity option will be based on the rate to maturity in
effect for that fixed maturity option on the business day of the transfer.
ABOUT YOUR VOTING RIGHTS
As the owner of shares of the Trusts, we have the right to vote on certain
matters involving the portfolios, such as:
o the election of trustees;
o the formal approval of independent public accounting firm selected for each
Trust; or
More information 63
o any other matters described in each prospectus for the Trusts or requiring a
shareholders' vote under the Investment Company Act of 1940.
We will give contract owners the opportunity to instruct us how to vote the
number of shares attributable to their contracts if a shareholder vote is
taken. If we do not receive instructions in time from all contract owners, we
will vote the shares of a portfolio for which no instructions have been
received in the same proportion as we vote shares of that portfolio for which
we have received instructions. We will also vote any shares that we are
entitled to vote directly because of amounts we have in a portfolio in the same
proportions that contract owners vote.
VOTING RIGHTS OF OTHERS
Currently, we control the Trusts. Its shares are sold to our separate accounts
and an affiliated qualified plan trust. In addition, shares of the Trusts are
held by separate accounts of insurance companies both affiliated and
unaffiliated with us. Shares held by these separate accounts will probably be
voted according to the instructions of the owners of insurance policies and
contracts issued by those insurance companies. While this will dilute the
effect of the voting instructions of the contract owners, we currently do not
foresee any disadvantages because of this. The Board of Trustees of each Trust
intends to monitor events in order to identify any material irreconcilable
conflicts that may arise and to determine what action, if any, should be taken
in response. If we believe that a response to any of those events
insufficiently protects our contract owners, we will see to it that appropriate
action is taken.
SEPARATE ACCOUNT NO. 45 AND SEPARATE ACCOUNT NO. 49 VOTING RIGHTS
If actions relating to the Separate Accounts require contract owner approval,
contract owners will be entitled to one vote for each unit they have in the
variable investment options. Each contract owner who has elected a variable
annuity payout option may cast the number of votes equal to the dollar amount
of reserves we are holding for that annuity in a variable investment option
divided by the annuity unit value for that option. We will cast votes
attributable to any amounts we have in the variable investment options in the
same proportion as votes cast by contract owners.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this Prospectus are created under applicable
federal securities laws. To the extent that those laws or the regulations
published under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
ABOUT LEGAL PROCEEDINGS
AXA Equitable and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings would be considered material with respect
to a contract owner's interest in Separate Accounts Nos. 45 and 49,
respectively, nor would any of these proceedings be likely to have a material
adverse effect upon either Separate Account, our ability to meet our
obligations under the contracts, or the distribution of the contracts.
ABOUT OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The consolidated financial statements of AXA Equitable at December 31, 2004 and
2003, and for the three years ended December 31, 2004, incorporated in this
Prospectus by reference to the 2004 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent registered
public accounting firm, given on the authority of said firm as experts in
auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 45 and Separate Account No.
49, as well as the consolidated financial statements of AXA Equitable, are in
the applicable SAI. The SAI is available free of charge. You may request one by
writing to our processing office or calling 1-800-789-7771.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING
You can transfer ownership of an NQ contract at any time before annuity
payments begin. We will continue to treat you as the owner until we receive
notification of any change at our processing office. You cannot assign your NQ
contract as collateral or security for a loan. Loans are also not available
under your NQ contract. In some cases, an assignment or change of ownership may
have adverse tax consequences. See "Tax information" earlier in this Prospectus.
You cannot assign or transfer ownership of an IRA, QP or Rollover TSA contract
except by surrender to us. If your individual retirement annuity contract is
held in your custodial individual retirement account, you may only assign or
transfer ownership of such an IRA contract to yourself. Loans are not available
and you cannot assign IRA and QP contracts as security for a loan or other
obligation. If the employer that provided the funds does not restrict them,
loans are available under a Rollover TSA contract.
For limited transfers of ownership after the owner's death see "Beneficiary
continuation option" in "Payment of death benefit" earlier in this Prospectus.
You may direct the transfer of the values under your IRA, QP or Rollover TSA
contract to another similar arrangement under federal income tax rules. In the
case of such a transfer, which involves a surrender of your contract, we will
impose a withdrawal charge, if one applies.
DISTRIBUTION OF THE CONTRACTS
The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and
AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). AXA
Advisors serves as the principal underwriter of Separate Account No. 45, and
AXA Distributors serves as the principal underwriter of Separate Account No.
49. The offering of the contracts is intended to be continuous.
64 More information
AXA Advisors (the successor to EQ Financial Consultants, Inc.), an affiliate of
AXA Equitable, and AXA Distributors, an indirect wholly owned subsidiary of AXA
Equitable, are registered with the SEC as broker-dealers and are members of the
National Association of Securities Dealers, Inc. ("NASD"). Their principal
business address is 1290 Avenue of the Americas, New York, NY 10104. Both
broker-dealers also act as distributors for other AXA Equitable annuity
products. AXA Distributors is a successor by merger to all of the functions,
rights and obligations of Equitable Distributors, Inc. ("EDI"). Like AXA
Distributors, EDI was owned by Equitable Holdings, LLC.
The contracts are sold by financial professionals of AXA Advisors and its
affiliates and by financial professionals of both affiliated and unaffiliated
broker-dealers that have entered into selling agreements with the Distributors
("Selling broker-dealers"). Affiliated broker-dealers include MONY Securities
Corporation ("MSC")* and Advest, Inc. The Distributors, MSC and Advest are all
under the common control of AXA Financial, Inc.
AXA Equitable pays sales compensation to both Distributors. In general,
broker-dealers receiving sales compensation will pay all or a portion of it to
its individual financial representatives (or to its Selling broker-dealers) as
commissions related to the sale of contracts.
Sales compensation paid to AXA Advisors will generally not exceed 8.5% of the
total contributions made under the contracts. AXA Advisors, in turn, may pay
its financial professionals (or Selling broker-dealers) either a portion of the
contribution-based compensation or a reduced portion of the contribution-based
compensation in combination with ongoing annual compensation ("asset-based
compensation") up to 0.60% of the account value of the contract sold, based on
the financial professional's choice. Contribution-based compensation, when
combined with asset-based compensation, could exceed 8.5% of the total
contributions made under the contracts.
Sales compensation paid to AXA Distributors will generally not exceed 7.50% of
the total contributions made under the contracts. AXA Distributors passes all
sales compensation it receives through to the Selling broker-dealer. The
Selling broker-dealer may elect to receive reduced contribution-based
compensation in combination with asset-based compensation of up to 1.25% of the
account value of all or a portion of the contracts sold through the
broker-dealer. Contribution-based compensation, when combined with asset-based
compensation, could exceed 7.50% of the total contributions made under the
contracts. The sales compensation we pay varies among broker-dealers. AXA
Distributors may also receive compensation and reimbursement for its marketing
services under the terms of its distribution agreement with AXA Equitable.
The Distributors may also pay certain affiliated and/or unaffiliated
broker-dealers and other financial intermediaries additional compensation for
certain services and/or in recognition of certain expenses that may be incurred
by them or on their behalf (commonly referred to as "marketing allowances").
Services for which such payments are made may include, but are not limited to,
the preferred placement of AXA Equitable and/or Accumulator(R) on a company
and/or product list; sales personnel training; due diligence and related costs;
marketing and related services; conferences; and/or other support services,
including some that may benefit the contract owner. Payments may be based on the
amount of assets or purchase payments attributable to contracts sold through a
broker-dealer. We may also make fixed payments to broker-dealers in connection
with the initiation of a new relationship or the introduction of a new product.
These payments may serve as an incentive for Selling broker-dealers to promote
the sale of our products. Additionally, as an incentive for financial
professionals of Selling broker-dealers to promote the sale of our products, we
may increase the sales compensation paid to the Selling broker-dealer for a
period of time (commonly referred to as "compensation enhancements"). These
types of payments are made out of the Distributors' assets. Not all Selling
broker-dealers receive additional compensation. For more information about any
such arrangements, ask your financial professional.
The Distributors will receive 12b-1 fees from certain portfolios for providing
certain distribution and/or shareholder support services. In connection with
portfolios offered through unaffiliated insurance trusts, the Distributors may
also receive other payments from the portfolio advisers and/or their affiliates
for administrative costs, as well as payments for sales meetings and/or seminar
sponsorships.
In an effort to promote the sale of our products, AXA Advisors may provide its
financial professionals and managerial personnel with a higher percentage of
sales commissions and/or compensation for the sale of an affiliated variable
product than it would the sale of an unaffiliated product. Such practice is
known as providing "differential compensation." Other forms of compensation
financial professionals may receive include health and retirement benefits. In
addition, managerial personnel may receive expense reimbursements, marketing
allowances and commission-based payments known as "overrides." For tax reasons,
AXA Advisors financial professionals qualify for health and retirement benefits
based solely on their sales of our affiliated products.
These payments and differential compensation (together, the "payments") can
vary in amount based on the applicable product and/or entity or individual
involved. As with any incentive, such payments may cause the financial
professional to show preference in recommending the purchase or sale of our
products. However, under applicable rules of the NASD, AXA Advisors may only
recommend to you products that they reasonably believe are suitable for you
based on facts that you have disclosed as to your other security holdings,
financial situation and needs. In making any recommendation, financial
professionals may nonetheless face conflicts of interest because of the
differences in compensation from one product category to another, and because
of differences in compensation between products in the same category.
In addition, AXA Advisors financial professionals who meet specified production
levels for the sale of both affiliated and unaffiliated products may qualify,
under sales incentive programs, to receive non-cash compensation such as stock
options awards and/or stock appreciation rights, expense-paid trips,
expense-paid educational seminars and merchandise.
- ----------------------
* On or about June 6, 2005, MSC financial professionals are expected to
become financial professionals of AXA Advisors. From that date forward, former
MSC financial professionals will be compensated by AXA Advisors, and the
Distributors will replace MSC as the principal underwriters of its affiliated
products.
More information 65
Although AXA Equitable takes all of its costs into account in establishing the
level of fees and expenses in our products, any compensation paid will not
result in any separate charge to you under your contract. All payments made
will be in compliance with all applicable NASD rules and other laws and
regulations.-
66 More information
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
AXA Equitable's Annual Report on Form 10-K for the year ended December 31, 2004
is considered to be a part of this Prospectus because it is incorporated by
reference.
After the date of this Prospectus and before we terminate the offering of the
securities under this Prospectus, all documents or reports we file with the SEC
under the Securities Exchange Act of 1934 ("Exchange Act"), will be considered
to become part of this Prospectus because they are incorporated by reference.
Any statement contained in a document that is, or becomes part of this
Prospectus, will be considered changed or replaced for purposes of this
Prospectus if a statement contained in this Prospectus changes or is replaced.
Any statement that is considered to be a part of this Prospectus because of its
incorporation will be considered changed or replaced for the purpose of this
Prospectus if a statement contained in any other subsequently filed document
that is considered to be part of this Prospectus changes or replaces that
statement. After that, only the statement that is changed or replaced will be
considered to be part of this Prospectus.
We file our Exchange Act documents and reports, including our Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR
under CIK No. 0000727920. The SEC maintains a website that contains reports,
proxy and information statements and other information regarding registrants
that file electronically with the SEC. The address of the website is
www.sec.gov.
Upon written or oral request, we will provide, free of charge, to each person
to whom this Prospectus is delivered, a copy of any or all of the documents
considered to be part of this Prospectus because they are incorporated herein.
This does not include exhibits not specifically incorporated by reference into
the text of such documents. Requests for documents should be directed to AXA
Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New
York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234).
Incorporation of certain documents by reference 67
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Accounts 45 and 49 with the daily asset charge of 1.35%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- ----------------------------------------------------------------------------------------------
For the years ending December 31,
---------------------------------
2004 2003 2002
- ----------------------------------------------------------------------------------------------
AXA Aggressive Allocation
- ---------------------------------------------------------------------------------------------
Unit value $ 10.62 -- --
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 51 -- --
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 688 -- --
- ----------------------------------------------------------------------------------------------
AXA Conservative Allocation
- ---------------------------------------------------------------------------------------------
Unit value $ 10.29 -- --
- ---------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 131 -- --
- ---------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 237 -- --
- ---------------------------------------------------------------------------------------------
AXA Conservative-Plus Allocation
- ---------------------------------------------------------------------------------------------
Unit value $ 10.39 -- --
- ---------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 150 -- --
- ---------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 426 -- --
- ---------------------------------------------------------------------------------------------
AXA Moderate Allocation
- ---------------------------------------------------------------------------------------------
Unit value $ 44.24 $ 41.25 $ 35.10
- ---------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3,361 3,674 3,926
- ---------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,132 732 407
- ---------------------------------------------------------------------------------------------
AXA Moderate-Plus Allocation
- ---------------------------------------------------------------------------------------------
Unit value $ 10.63 -- --
- ---------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 256 -- --
- ---------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,617 -- --
- ---------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ---------------------------------------------------------------------------------------------
Unit value $ 53.88 $ 48.73 $ 35.92
- ---------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 334 375 404
- ---------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 710 812 899
- ---------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ---------------------------------------------------------------------------------------------
Unit value $ 11.19 $ 10.92 $ 10.67
- ---------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,247 1,242 1,119
- ---------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,011 1,187 1,217
- ---------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ---------------------------------------------------------------------------------------------
Unit value $ 11.04 $ 9.98 $ 7.90
- ---------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 484 378 205
- ---------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 567 383 235
- ---------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ---------------------------------------------------------------------------------------------
Unit value $ 29.46 $ 27.48 $ 22.73
- ---------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,318 1,384 1,316
- ---------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,408 3,959 3,827
- ---------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ---------------------------------------------------------------------------------------------
Unit value $ 12.03 $ 10.34 $ 7.81
- ---------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 456 377 183
- ---------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 704 494 118
- ---------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ---------------------------------------------------------------------------------------------
Unit value $ 10.45 $ 9.66 $ 7.64
- ---------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 201 230 166
- ---------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 253 248 169
- ---------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
-----------------------------------------------------
2001 2000 1999 1998 1997
- ---------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation
- ---------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
AXA Conservative Allocation
- ---------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
AXA Conservative-Plus Allocation
- ---------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
AXA Moderate Allocation
- ---------------------------------------------------------------------------------------------------------------------
Unit value $ 40.77 -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,511 -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 289 -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
AXA Moderate-Plus Allocation
- ---------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ---------------------------------------------------------------------------------------------------------------------
Unit value $ 51.19 $ 69.35 $ 81.12 $ 69.37 $ 70.28
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 513 595 553 293 --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,101 1,253 1,163 939 380
- ---------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ---------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ---------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ---------------------------------------------------------------------------------------------------------------------
Unit value $ 23.74 $ 23.90 $ 26.59 $ 27.96 $ 29.96
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,516 1,616 1,539 801 --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,307 4,697 5,048 4,521 1,256
- ---------------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ---------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ---------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
A-1 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- -------------------------------------------------------------------------------------------------------
For the years ending December 31,
----------------------------------------
2004 2003 2002 2001
- -------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- -------------------------------------------------------------------------------------------------------
Unit value $ 9.20 $ 8.74 $ 6.79 --
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 449 410 275 --
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 801 802 305 --
- -------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- -------------------------------------------------------------------------------------------------------
Unit value $ 11.54 $ 10.23 $ 7.91 --
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 503 429 344 --
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,102 698 384 --
- -------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- -------------------------------------------------------------------------------------------------------
Unit value $ 9.45 $ 8.58 $ 6.20 --
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 806 761 429 --
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,078 1,104 369 --
- -------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- -------------------------------------------------------------------------------------------------------
Unit value $ 11.62 $ 10.22 $ 7.37 --
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 904 765 486 --
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,203 820 388 --
- -------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- -------------------------------------------------------------------------------------------------------
Unit value $ 9.12 $ 8.81 $ 5.66 --
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,028 278 44 --
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,493 571 264 --
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- -------------------------------------------------------------------------------------------------------
Unit value $ 237.75 $ 211.19 $ 143.14 $ 217.65
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,044 1,145 1,240 1,555
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,384 1,588 1,770 2,160
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- -------------------------------------------------------------------------------------------------------
Unit value $ 28.28 $ 25.51 $ 19.83 $ 25.52
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 5,306 5,870 6,485 7,830
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 971 776 383 --
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- -------------------------------------------------------------------------------------------------------
Unit value $ 18.65 $ 18.54 $ 18.40 $ 17.18
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,322 2,993 4,099 3,288
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,348 1,651 1,739 --
- -------------------------------------------------------------------------------------------------------
EQ/Alliance International
- -------------------------------------------------------------------------------------------------------
Unit value $ 13.29 $ 11.40 $ 8.55 $ 9.64
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3,816 4,111 3,907 737
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,475 2,639 208 --
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Large Cap Growth
- -------------------------------------------------------------------------------------------------------
Unit value $ 6.28 $ 5.88 $ 4.84 $ 7.12
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 6,276 7,382 8,409 10,884
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 9,271 10,777 12,339 15,780
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- -------------------------------------------------------------------------------------------------------
Unit value $ 15.89 $ 15.53 $ 15.20 --
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 460 434 430 --
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 603 631 552 --
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- -------------------------------------------------------------------------------------------------------
Unit value $ 15.36 $ 13.66 $ 9.83 $ 14.28
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,733 2,001 2,020 2,115
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,465 6,324 6,943 8,170
- -------------------------------------------------------------------------------------------------------
EQ/Bear Stearns Small Company Growth
- -------------------------------------------------------------------------------------------------------
Unit value $ 22.79 -- -- --
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 31 -- -- --
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 72 -- -- --
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
For the years ending December 31,
----------------------------------------------
2000 1999 1998 1997
- -------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- -------------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- -------------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- -------------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- -------------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- -------------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- -------------------------------------------------------------------------------------------------------------
Unit value $ 247.21 $ 292.20 $ 237.18 $ 186.29
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,775 1,434 550 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,453 2,344 1,542 434
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- -------------------------------------------------------------------------------------------------------------
Unit value $ 26.28 $ 24.51 $ 20.99 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 7,903 5,956 1,853 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- -------------------------------------------------------------------------------------------------------------
Unit value $ 16.14 $ 15.03 $ 15.25 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,333 2,057 929 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance International
- -------------------------------------------------------------------------------------------------------------
Unit value $ 12.74 $ 16.81 $ 12.40 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 839 591 166 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Large Cap Growth
- -------------------------------------------------------------------------------------------------------------
Unit value $ 9.49 $ 11.79 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 12,132 6,304 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 17,298 8,614 -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- -------------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- -------------------------------------------------------------------------------------------------------------
Unit value $ 16.68 $ 14.88 $ 11.82 $ 12.54
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,156 1,264 775 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 9,189 6,912 6,101 2,521
- -------------------------------------------------------------------------------------------------------------
EQ/Bear Stearns Small Company Growth
- -------------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-2
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- ------------------------------------------------------------------------------------------------
For the years ending December 31,
--------------------------------------
2004 2003 2002
- ------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ------------------------------------------------------------------------------------------------
Unit value $ 14.41 $ 12.88 $ 10.14
- ------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3,317 3,362 3,350
- ------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 9,491 10,036 10,473
- ------------------------------------------------------------------------------------------------
EQ/Boston Advisors Equity Income
- ------------------------------------------------------------------------------------------------
Unit value $ 5.66 -- --
- ------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 87 -- --
- ------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 345 -- --
- ------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ------------------------------------------------------------------------------------------------
Unit value $ 8.12 $ 7.94 $ 6.29
- ------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 55 39 29
- ------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 258 189 89
- ------------------------------------------------------------------------------------------------
EQ/Capital Guardian Growth
- ------------------------------------------------------------------------------------------------
Unit value $ 11.94 $ 11.46 $ 9.38
- ------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 19 20 13
- ------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 9,529 11,360 13,307
- ------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ------------------------------------------------------------------------------------------------
Unit value $ 10.68 $ 9.53 $ 7.29
- ------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 425 279 133
- ------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,078 3,761 3,093
- ------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ------------------------------------------------------------------------------------------------
Unit value $ 11.30 $ 10.33 $ 7.97
- ------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,835 3,037 3,265
- ------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 15,697 17,536 18,971
- ------------------------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity
- ------------------------------------------------------------------------------------------------
Unit value $ 11.10 $ 10.29 $ 7.65
- ------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,192 1,043 812
- ------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6,079 6,120 5,353
- ------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ------------------------------------------------------------------------------------------------
Unit value $ 25.63 $ 23.57 $ 18.69
- ------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3,163 3,443 3,683
- ------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 9,685 10,779 11,356
- ------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ------------------------------------------------------------------------------------------------
Unit value $ 8.33 $ 7.89 $ 5.79
- ------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 431 286 184
- ------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 573 552 243
- ------------------------------------------------------------------------------------------------
EQ/FI Mid Cap
- ------------------------------------------------------------------------------------------------
Unit value $ 11.14 $ 9.73 $ 6.87
- ------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,605 1,435 951
- ------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,883 2,874 2,717
- ------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------
Unit value $ 14.40 $ 12.39 $ 9.42
- ------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,500 2,709 2,863
- ------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,481 2,639 3,169
- ------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ------------------------------------------------------------------------------------------------
Unit value $ 13.84 $ 13.48 $ 13.22
- ------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,021 985 903
- ------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 10,774 12,484 14,961
- ------------------------------------------------------------------------------------------------
EQ/JP Morgan Value Opportunities
- ------------------------------------------------------------------------------------------------
Unit value $ 13.20 $ 12.07 $ 9.64
- ------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,375 1,530 1,663
- ------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 16,352 18,895 21,846
- ------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
------------------------------------------------------
2001 2000 1999 1998 1997
- ---------------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ---------------------------------------------------------------------------------------------------------------------
Unit value $ 11.90 $ 11.70 $ 12.10 $ 11.84 --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,847 -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 10,569 10,105 9,428 5,696 --
- ---------------------------------------------------------------------------------------------------------------------
EQ/Boston Advisors Equity Income
- ---------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ---------------------------------------------------------------------------------------------------------------------
Unit value $ 8.67 -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 10 -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6 -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Growth
- ---------------------------------------------------------------------------------------------------------------------
Unit value $ 12.90 $ 17.32 $ 21.35 $ 16.61 $ 12.35
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 16,512 19,069 17,154 10,072 2,581
- ---------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ---------------------------------------------------------------------------------------------------------------------
Unit value $ 8.69 $ 11.14 $ 13.96 -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,210 3,230 1,477 -- --
- ---------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ---------------------------------------------------------------------------------------------------------------------
Unit value $ 10.72 $ 11.09 $ 10.61 -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 231 174 72 -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,208 2,064 982 -- --
- ---------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ---------------------------------------------------------------------------------------------------------------------
Unit value $ 10.15 $ 10.50 $ 10.28 -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 376 298 126 -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,372 4,745 2,907 -- --
- ---------------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ---------------------------------------------------------------------------------------------------------------------
Unit value $ 24.41 $ 28.18 $ 31.67 $ 26.73 $ 21.21
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 4,413 4,923 16 2 --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 12,941 14,537 -- -- --
- ---------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ---------------------------------------------------------------------------------------------------------------------
Unit value $ 7.72 $ 9.43 $ 10.82 -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 161 164 139 -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 140 136 91 -- --
- ---------------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap
- ---------------------------------------------------------------------------------------------------------------------
Unit value $ 8.54 $ 10.00 -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 493 82 -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,307 638 -- -- --
- ---------------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ---------------------------------------------------------------------------------------------------------------------
Unit value $ 11.20 $ 10.92 $ 10.53 $ 10.48 --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,091 1,080 972 560 --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,256 223 -- -- --
- ---------------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ---------------------------------------------------------------------------------------------------------------------
Unit value $ 12.23 $ 11.48 $ 10.44 $ 10.76 --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 14,916 13,606 12,838 8,661 --
- ---------------------------------------------------------------------------------------------------------------------
EQ/JP Morgan Value Opportunities
- ---------------------------------------------------------------------------------------------------------------------
Unit value $ 12.08 $ 13.14 $ 12.47 $ 12.82 $ 11.52
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,936 2,045 2,057 867 --
- ---------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 25,574 28,008 29,522 24,343 8,113
- ---------------------------------------------------------------------------------------------------------------------
A-3 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- -------------------------------------------------------------------------------------------------------
For the years ending December 31,
----------------------------------------
2004 2003 2002 2001
- -------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- -------------------------------------------------------------------------------------------------------
Unit value $ 6.02 $ 5.44 $ 4.39 $ 6.38
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 503 566 552 575
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,149 1,266 1,590 1,490
- -------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- -------------------------------------------------------------------------------------------------------
Unit value $ 16.63 $ 14.39 $ 10.62 $ 12.50
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 986 840 665 --
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6,654 7,289 7,825 7,755
- -------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- -------------------------------------------------------------------------------------------------------
Unit value $ 13.95 $ 12.80 $ 9.89 $ 11.34
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,467 1,522 767 14
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,102 2,058 1,041 155
- -------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- -------------------------------------------------------------------------------------------------------
Unit value $ 19.96 $ 18.30 $ 14.14 $ 17.20
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3,230 3,348 3,538 3,681
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,699 4,955 5,160 5,603
- -------------------------------------------------------------------------------------------------------
EQ/Mercury International Value
- -------------------------------------------------------------------------------------------------------
Unit value $ 16.89 $ 14.08 $ 11.14 $ 13.55
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,244 1,181 1,196 --
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 9,124 10,329 12,054 14,032
- -------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- -------------------------------------------------------------------------------------------------------
Unit value $ 13.19 $ 11.88 $ 9.31 $ 14.37
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 4,453 5,082 5,638 7,229
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 8,228 9,491 10,806 13,726
- -------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- -------------------------------------------------------------------------------------------------------
Unit value $ 8.98 $ 8.17 $ 6.79 $ 8.71
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 635 715 776 948
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,835 6,684 6,910 8,228
- -------------------------------------------------------------------------------------------------------
EQ/Money Market
- -------------------------------------------------------------------------------------------------------
Unit value $ 28.18 $ 28.34 $ 28.57 $ 28.61
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,221 1,537 2,299 2,501
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,938 3,834 5,633 6,273
- -------------------------------------------------------------------------------------------------------
EQ/Montag & Caldwell Growth
- -------------------------------------------------------------------------------------------------------
Unit value $ 4.43 -- -- --
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3 -- -- --
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 20 -- -- --
- -------------------------------------------------------------------------------------------------------
EQ/Small Company Index
- -------------------------------------------------------------------------------------------------------
Unit value $ 14.35 $ 12.36 $ 8.59 $ 11.01
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,073 1,030 859 899
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,622 3,320 2,817 3,131
- -------------------------------------------------------------------------------------------------------
EQ/Small Company Value
- -------------------------------------------------------------------------------------------------------
Unit value $ 22.79 -- -- --
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 31 -- -- --
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 72 -- -- --
- -------------------------------------------------------------------------------------------------------
EQ/TCW Equity
- -------------------------------------------------------------------------------------------------------
Unit value $ 16.99 -- -- --
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 10 -- -- --
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 17 -- -- --
- -------------------------------------------------------------------------------------------------------
EQ/UBS Growth and Income
- -------------------------------------------------------------------------------------------------------
Unit value $ 5.16 -- -- --
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 14 -- -- --
- -------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 41 -- -- --
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
For the years ending December 31,
----------------------------------------
2000 1999 1998 1997
- -------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- -------------------------------------------------------------------------------------------------------
Unit value $ 8.39 -- -- --
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 258 -- -- --
- ------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 745 -- -- --
- ------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ------------------------------------------------------------------------------------------------------
Unit value $ 10.76 $ 9.20 $ 9.17 --
- ------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 7,215 6,774 4,733 --
- ------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- ------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- ------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ------------------------------------------------------------------------------------------------------
Unit value $ 16.52 $ 14.98 $ 12.76 $ 11.60
- ------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3,305 2,567 1,009 --
- ------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,888 5,766 4,389 1,182
- ------------------------------------------------------------------------------------------------------
EQ/Mercury International Value
- ------------------------------------------------------------------------------------------------------
Unit value $ 17.50 $ 20.23 $ 12.80 $ 10.86
- ------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 15,833 13,783 10,607 4,609
- ------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ------------------------------------------------------------------------------------------------------
Unit value $ 22.09 $ 27.59 $ 16.10 $ 12.13
- ------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 8,254 6,114 1,942 --
- ------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 16,073 13,671 9,117 3,327
- ------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ------------------------------------------------------------------------------------------------------
Unit value $ 10.51 $ 10.72 -- --
- ------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,014 550 -- --
- ------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 8,940 6,033 -- --
- ------------------------------------------------------------------------------------------------------
EQ/Money Market
- ------------------------------------------------------------------------------------------------------
Unit value $ 28.00 $ 26.78 $ 25.92 $ 25.00
- ------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,860 2,900 1,566 --
- ------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,065 7,278 5,158 1,153
- ------------------------------------------------------------------------------------------------------
EQ/Montag & Caldwell Growth
- ------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- ------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------
EQ/Small Company Index
- ------------------------------------------------------------------------------------------------------
Unit value $ 10.94 $ 11.48 $ 9.64 --
- ------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 989 756 284 --
- ------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,340 2,922 1,610 --
- ------------------------------------------------------------------------------------------------------
EQ/Small Company Value
- ------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- ------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------
EQ/TCW Equity
- ------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- ------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------
EQ/UBS Growth and Income
- ------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- ------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-4
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- -----------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
-----------------------------------------------------
2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------------------
EQ/Van Kampen Emerging Markets Equity
- -----------------------------------------------------------------------------------------------------------------------
Unit value $ 10.64 $ 8.72 $ 5.67 $ 6.11 $ 6.53
- -----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,948 1,871 1,807 1,765 2,063
- -----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,845 4,287 3,992 4,501 4,990
- -----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
For the years ending December 31,
----------------------------------
1999 1998 1997
- ----------------------------------------------------------------------------------------------
EQ/Van Kampen Emerging Markets Equity
- ----------------------------------------------------------------------------------------------
Unit value $ 11.04 $ 5.72 --
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,267 177 --
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,859 1,805 --
- ----------------------------------------------------------------------------------------------
A-5 Appendix I: Condensed financial information
Appendix II: Purchase considerations for QP contracts
- --------------------------------------------------------------------------------
Trustees who are considering the purchase of an Accumulator(R) QP contract
should discuss with their tax advisers whether this is an appropriate
investment vehicle for the employer's plan. Trustees should consider whether
the plan provisions permit the investment of plan assets in the QP contract,
the distribution of such an annuity, the purchase of the guaranteed minimum
income benefit and the payment of death benefits in accordance with the
requirements of the federal income tax rules. The QP contract and this
Prospectus should be reviewed in full, and the following factors, among others,
should be noted. Assuming continued plan qualification and operation, earnings
on qualified plan assets will accumulate value on a tax-deferred basis even if
the plan is not funded by the Accumulator(R) QP contract or another annuity.
Therefore, you should purchase an Accumulator(R) QP contract to fund a plan for
the contract's features and benefits other than tax deferral, after considering
the relative costs and benefits of annuity contracts and other types of
arrangements and funding vehicles. This QP contract accepts transfer
contributions only and not regular, ongoing payroll contributions. For 401(k)
plans under defined contribution plans, no employee after-tax contributions are
accepted.
We will not accept defined benefit plans. For defined contribution plans, we
will only accept transfers from another defined contribution plan or a change
of investment vehicles in the plan. Only one additional transfer contribution
may be made per contract year. If overfunding of a plan occurs, withdrawals
from the QP contract may be required. A withdrawal charge and/or market value
adjustment may apply.
Further, AXA Equitable will not perform or provide any plan recordkeeping
services with respect to the QP contracts. The plan's administrator will be
solely responsible for performing or providing for all such services. There is
no loan feature offered under the QP contracts, so if the plan provides for
loans and a participant/employee takes a loan from the plan, other plan assets
must be used as the source of the loan and any loan repayments must be credited
to other investment vehicles and/or accounts available under the plan.
Given that required minimum distributions must generally commence from the plan
for annuitants after age 70-1/2, trustees should consider that:
o the QP contract may not be an appropriate purchase for annuitants approaching
or over age 70-1/2;
o provisions in the Treasury Regulations on required minimum distributions will
require, beginning 2006, that the actuarial present value of additional
annuity contract benefits be added to the dollar amount credited for
purposes of calculating required minimum distributions. This could increase
the amounts required to be distributed from the contract; and
o the guaranteed minimum income benefit under baseBUILDER may not be an
appropriate feature for annuitants who are older than age 60-1/2 when the
contract is issued.
Finally, because the method of purchasing the QP contract, including the large
initial contribution, and the features of the QP contract may appeal more to
plan participants/employees who are older and tend to be highly paid, and
because certain features of the QP contract are available only to plan
participants/employees who meet certain minimum and/or maximum age
requirements, plan trustees should discuss with their advisers whether the
purchase of the QP contract would cause the plan to engage in prohibited
discrimination in contributions, benefits or otherwise.
Appendix II: Purchase considerations for QP contracts B-1
Appendix III: Market value adjustment example
- --------------------------------------------------------------------------------
The example below shows how the market value adjustment would be determined and
how it would be applied to a withdrawal, assuming that $100,000 was allocated
on February 15, 2005 to a fixed maturity option with a maturity date of
February 15, 2014 (nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value of $183,846 on the maturity date. We
further assume that a withdrawal of $50,000 is made four years later on
February 15, 2009.
- ---------------------------------------------------------------------------------------------------
Hypothetical Assumed rate to maturity on
February 15, 2009
- ---------------------------------------------------------------------------------------------------
5.00% 9.00%
- ---------------------------------------------------------------------------------------------------
As of February 15, 2009 (before withdrawal)
- ---------------------------------------------------------------------------------------------------
(1) Market adjusted amount $144,048 $ 119,487
- ---------------------------------------------------------------------------------------------------
(2) Fixed maturity amount $131,080 $ 131,080
- ---------------------------------------------------------------------------------------------------
(3) Market value adjustment:
(1) - (2) $ 12,968 $ (11,593)
- ---------------------------------------------------------------------------------------------------
On February 15, 2009 (after withdrawal)
- ---------------------------------------------------------------------------------------------------
(4) Portion of market value adjustment associated
with withdrawal:
(3) x [$50,000/(1)] $ 4,501 $ (4,851)
- ---------------------------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount: [$50,000 - (4)] $ 45,499 $ 54,851
- ---------------------------------------------------------------------------------------------------
(6) Fixed maturity amount: (2) - (5) $ 85,581 $ 76,229
- ---------------------------------------------------------------------------------------------------
(7) Maturity value $120,032 $ 106,915
- ---------------------------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,048 $ 69,487
- ---------------------------------------------------------------------------------------------------
You should note that under this example if a withdrawal is made when rates have
increased from 7.00% to 9.00% (right column), a portion of a negative market
value adjustment is realized. On the other hand, if a withdrawal is made when
rates have decreased from 7.00% to 5.00% (left column), a portion of a positive
market value adjustment is realized.
C-1 Appendix III: Market value adjustment example
Appendix IV: Guaranteed minimum death benefit example
- --------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the guaranteed minimum death benefit.
The following illustrates the guaranteed minimum death benefit calculation.
Assuming $100,000 is allocated to the variable investment options (with no
allocation to the AXA Premier VIP Core Bond, EQ/Alliance Intermediate
Government Securities, EQ/Money Market, EQ/PIMCO Real Return, EQ/Alliance
Quality Bond or EQ/Short Duration Bond options or the fixed maturity options),
no additional contributions, no transfers, no withdrawals and no loans under a
Rollover TSA contract, the guaranteed minimum death benefit for an annuitant
age 45 would be calculated as follows:
- -----------------------------------------------------------------------------------------
End of 5% roll up to age 80 Annual ratchet to age 80
contract guaranteed minimum guaranteed minimum
year Account value death benefit(1) death benefit
- -----------------------------------------------------------------------------------------
1 $105,000 $ 105,000(1) $ 105,000(3)
- -----------------------------------------------------------------------------------------
2 $115,500 $ 110,250(2) $ 115,500(3)
- -----------------------------------------------------------------------------------------
3 $129,360 $ 115,763(2) $ 129,360(3)
- -----------------------------------------------------------------------------------------
4 $103,488 $ 121,551(1) $ 129,360(4)
- -----------------------------------------------------------------------------------------
5 $113,837 $ 127,628(1) $ 129,360(4)
- -----------------------------------------------------------------------------------------
6 $127,497 $ 134,010(1) $ 129,360(4)
- -----------------------------------------------------------------------------------------
7 $127,497 $ 140,710(1) $ 129,360(4)
- -----------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%.
We are using these rates solely to illustrate how the benefit is determined.
The return rates bear no relationship to past or future investment results.
5% ROLL UP TO AGE 80*
(1) At the end of contract year 1, and again at the end of contract years 4
through 7, the death benefit will be the guaranteed minimum death benefit.
(2) At the end of contract years 2 and 3, the death benefit will be the current
account value since it is higher than the current guaranteed minimum death
benefit.
ANNUAL RATCHET TO AGE 80
(3) At the end of contract years 1 through 3, the guaranteed minimum death
benefit is the current account value.
(4) At the end of contract years 4 through 7, the guaranteed minimum death
benefit is the guaranteed minimum death benefit at the end of the prior
year since it is equal to or higher than the current account value.
- ----------
Appendix IV: Guaranteed minimum death benefit example D-1
Appendix V: Hypothetical illustrations
- --------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM
BENEFITS
The following tables illustrate the changes in account value, cash value and
the values of the "the 5% Roll up to age 80" guaranteed minimum death benefit,
the Protection Plus(SM) benefit and the Guaranteed minimum income benefit under
certain hypothetical circumstances for an Accumulator(R) contract. The table
illustrates the operation of a contract based on a male, issue age 60, who
makes a single $100,000 contribution and takes no withdrawals. The amounts
shown are for the beginning of each contract year and assume that all of the
account value is invested in portfolios that achieve investment returns at
constant gross annual rates of 0% and 6% (i.e., before any investment
management fees, 12b-1 fees or other expenses are deducted from the underlying
portfolio assets). After the deduction of the arithmetic average of the
investment management fees, 12b-1 fees and other expenses of all of the
underlying Portfolios (as described below), the corresponding net annual rates
of return would be (2.68)% and 3.32% for the Accumulator(R) contract, at the 0%
and 6% gross annual rates, respectively. These net annual rates of return
reflect the trust and separate account level charges, but they do not reflect
the charges we deduct from your account value annually for the 5% Roll up to
age 80 guaranteed minimum death benefit, Protection Plus(SM) benefit, and the
Guaranteed minimum income benefit features, as well as the annual
administrative charge. If the net annual rates of return did reflect these
charges, the net annual rates of return shown would be lower; however, the
values shown in the following tables reflect all contract charges. The values
shown under "Lifetime Annual Guaranteed Minimum Income Benefit" reflect the
lifetime income that would be guaranteed if the Guaranteed minimum income
benefit is selected at that contract anniversary. An "N/A" in these columns
indicates that the benefit is not exercisable in that year. A "0" under any of
the death benefit and/or "Lifetime Annual Guaranteed Minimum Income Benefit"
columns indicates that the contract has terminated due to insufficient account
value and, consequently, the guaranteed benefit has no value.
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in all tables reflect (1) investment management
fees equivalent to an effective annual rate of 0.69%, and (2) an assumed
average asset charge for all other expenses of the underlying portfolios
equivalent to an effective annual rate of 0.39% and (3) 12b-1 fees equivalent
to an effective annual rate of 0.25%. These rates are the arithmetic average
for all portfolios that are available as investment options. In other words,
they are based on the hypothetical assumption that account values are allocated
equally among the variable investment options. The actual rates associated with
any contract will vary depending upon the actual allocation of contract values
among the investment options. These rates do not reflect expense limitation
arrangements in effect with respect to certain of the underlying portfolios as
described in the footnotes to the fee table for the underlying portfolios in
"Fee Table" earlier in this prospectus. With these arrangements, the charges
shown above would be lower. This would result in higher values than those shown
in the following tables.
Because your circumstances will no doubt differ from those in the illustrations
that follow, values under your contract will differ, in most cases
substantially. Upon request, we will furnish you with a personalized
illustration.
E-1 Appendix V: Hypothetical illustrations
Variable deferred annuity
Accumulator
$100,000 Single contribution and no withdrawals
Male, issue age 60
Benefits:
5% Roll up to age 80 Guaranteed minimum death benefit
Protection Plus
Guaranteed minimum income benefit
5% Roll up
to age 80 Lifetime Annual
Guaranteed Total Death Benefit Guaranteed
Minimum Death with Protection Minimum
Account Value Cash Value Benefit Plus(SM) Income Benefit
Contract ------------------- ------------------ ------------------- ------------------- ----------------
Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6%
Age --------- --------- --------- -------- --------- --------- --------- --------- --------- -------- -------
60 1 100,000 100,000 93,000 93,000 100,000 100,000 100,000 100,000 N/A N/A
61 2 96,810 102,798 90,810 96,798 105,000 105,000 107,000 107,000 N/A N/A
62 3 93,697 105,668 88,697 100,668 110,250 110,250 114,350 114,350 N/A N/A
63 4 90,656 108,611 86,656 104,611 115,763 115,763 122,068 122,068 N/A N/A
64 5 87,685 111,627 84,685 108,627 121,551 121,551 130,171 130,171 N/A N/A
65 6 84,782 114,720 82,782 112,720 127,628 127,628 138,679 138,679 N/A N/A
66 7 81,943 117,890 80,943 116,890 134,010 134,010 147,613 147,613 N/A N/A
67 8 79,165 121,138 79,165 121,138 140,710 140,710 156,994 156,994 N/A N/A
68 9 76,446 124,466 76,446 124,466 147,746 147,746 166,844 166,844 N/A N/A
69 10 73,783 127,876 73,783 127,876 155,133 155,133 177,186 177,186 N/A N/A
74 15 61,214 146,195 61,214 146,195 197,993 197,993 237,190 237,190 13,860 13,860
79 20 49,644 166,759 49,644 166,759 252,695 252,695 313,773 313,773 21,201 21,201
84 25 39,150 190,149 39,150 190,149 265,330 265,330 331,462 331,462 26,560 26,560
89 30 33,129 220,751 33,129 220,751 265,330 265,330 331,462 331,462 N/A N/A
94 35 28,633 257,322 28,633 257,322 265,330 265,330 331,462 331,462 N/A N/A
95 36 27,810 265,334 27,810 265,334 265,330 265,330 331,462 331,462 N/A N/A
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for
individual contract years. We can make no representation that these
hypothetical investment results can be achieved for any one year or continued
over any period of time. In fact, for any given period of time, the investment
results could be negative.
Appendix V: Hypothetical illustrations E-2
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Unit Values 2
Custodian and Independent Registered Public Accounting Firm 2
Distribution of the Contracts 2
Financial Statements 2
How to Obtain an Accumulator(R) Statement of Additional Information for
Separate Account No. 45 and Separate Account No. 49
Send this request form to:
Accumulator(R)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
Please send me a combined Accumulator(R) SAI for Separate Account No. 45 and
Separate Account No. 49 dated May 1, 2005.
- --------------------------------------------------------------------------------
Name:
- --------------------------------------------------------------------------------
Address:
- --------------------------------------------------------------------------------
City State Zip
(SAI 13AMLF(5/03)) x01002/Core '02, OR and '04 Series
Accumulator(R)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2005
Please read and keep this Prospectus for future reference. It contains
important information that you should know before taking any action under your
contract. You should read the prospectuses for each Trust, which contain
important information about the portfolios.
- --------------------------------------------------------------------------------
WHAT IS THE ACCUMULATOR(R)?
Accumulator(R) is a deferred annuity contract issued by AXA Equitable Life
Insurance Company. It provides for the accumulation of retirement savings and
for income. The contract offers income and death benefit protection. It also
offers a number of payout options. You invest to accumulate value on a
tax-deferred basis in one or more of our variable investment options, the
guaranteed interest option, fixed maturity options, or the account for special
dollar cost averaging ("investment options"). Certain features and benefits
described in this Prospectus may vary in your state; all features and benefits
may not be available in all contracts or in all states. Please contact your
financial professional and/or review your contract for state variations that
may apply to you.
Variable investment options
o AXA Aggressive Allocation(1) o EQ/Equity 500 Index
o AXA Conservative Allocation(1) o EQ/Evergreen Omega
o AXA Conservative-Plus Allocation(1) o EQ/FI Mid Cap
o AXA Moderate Allocation(1) o EQ/FI Small/Mid Cap Value
o AXA Moderate-Plus Allocation(1) o EQ/International Growth(3)
o AXA Premier VIP Aggressive Equity o EQ/J.P. Morgan Core Bond
o AXA Premier VIP Core Bond o EQ/JP Morgan Value Opportunities
o AXA Premier VIP Health Care o EQ/Janus Large Cap Growth
o AXA Premier VIP High Yield o EQ/Lazard Small Cap Value
o AXA Premier VIP International Equity o EQ/Long Term Bond(3)
o AXA Premier VIP Large Cap Core o EQ/Lord Abbett Growth and Income(3)
Equity o EQ/Lord Abbett Large Cap Core(3)
o AXA Premier VIP Large Cap Growth o EQ/Lord Abbett Mid Cap Value(3)
o AXA Premier VIP Large Cap Value o EQ/Marsico Focus
o AXA Premier VIP Small/Mid Cap o EQ/Mercury Basic Value Equity
Growth o EQ/Mercury International Value
o AXA Premier VIP Small/Mid Cap Value o EQ/Mergers and Acquisitions(3)
o AXA Premier VIP Technology o EQ/MFS Emerging Growth Companies
o EQ/Alliance Common Stock o EQ/MFS Investors Trust
o EQ/Alliance Growth and Income o EQ/Money Market
o EQ/Alliance Intermediate Government o EQ/Montag & Caldwell Growth(2)
Securities o EQ/PIMCO Real Return(3)
o EQ/Alliance International o EQ/Short Duration Bond(3)
o EQ/Alliance Large Cap Growth(2) o EQ/Small Company Index
o EQ/Alliance Quality Bond o EQ/Small Company Value(2)
o EQ/Alliance Small Cap Growth o EQ/TCW Equity(2)
o EQ/Bear Stearns Small Company o EQ/UBS Growth and Income(2)
Growth(2) o EQ/Van Kampen Comstock(3)
o EQ/Bernstein Diversified Value o EQ/Van Kampen Emerging Markets
o EQ/Boston Advisors Equity Income(2) Equity(2)
o EQ/Calvert Socially Responsible o EQ/Van Kampen Mid Cap Growth(3)
o EQ/Capital Guardian Growth o EQ/Wells Fargo Montgomery Small
o EQ/Capital Guardian International Cap(3)
o EQ/Capital Guardian Research o Laudus Rosenberg VIT Value Long/
o EQ/Capital Guardian U.S. Equity Short Equity
o EQ/Caywood-Scholl High Yield Bond(3) o U.S. Real Estate -- Class II
(1) The "AXA Allocation" portfolios.
(2) This is the option's new name, effective on or about May 9, 2005, subject
to regu latory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former
name.
(3) Available on or about May 9, 2005, subject to regulatory approval. Please
see "Portfolios of the Trusts" in "Contract features and benefits" later in
this Prospectus for more information on the new investment option.
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of Separate Account No. 49. Each
variable investment option, in turn, invests in a corresponding securities
portfolio ("portfolio") of EQ Advisors Trust, AXA Premier VIP Trust, The
Universal Institutional Funds, Inc. or Laudus Variable Insurance Trust (The
"Trusts"). Your investment results in a variable investment option will depend
on the investment performance of the related portfolio.
You may also allocate amounts to the guaranteed interest option, the fixed
maturity options and the account for special dollar cost averaging, which are
discussed later in this Prospectus.
TYPES OF CONTRACTS. Contracts were offered for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only.
o An individual retirement annuity ("IRA"), either traditional IRA or Roth
IRA.
Two versions of the traditional IRA were offered: "Rollover IRA" and
"Flexible Premium IRA." Two versions of the Roth IRA were offered: "Roth
Conversion IRA" and "Flexible Premium Roth IRA."
o Traditional and Roth Inherited IRA beneficiary continuation contract
("Inherited IRA").
o An annuity that is an investment vehicle for a qualified defined
contribution plan ("QP").
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") --
("Rollover TSA").
A contribution of at least $5,000 was required to purchase an NQ, Rollover IRA,
Roth Conversion IRA, Inherited IRA, QP, or Rollover TSA contract. A
contribution of $2,000 was required to purchase a Flexible Premium IRA or
Flexible Premium Roth IRA contract.
Registration statements relating to this offering have been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2005, is part of the registration statement.
The SAI is available free of charge. You may request one by writing to our
processing office or calling 1-800-789-7771. The SAI has been incorporated by
reference into this Prospectus. This Prospectus and the SAI can also be
obtained from the SEC's website at www.sec.gov. The table of contents for the
SAI appears at the back of this Prospectus.
The SEC has not approved or disapproved these securities or determined if this
Prospectus is accurate or complete. Any representation to the contrary is a
criminal offense. The contracts are not insured by the FDIC or any other
agency. They are not deposits or other obligations of any bank and are not bank
guaranteed. They are subject to investment risks and possible loss of
principal.
X01001/Core '02 Series
(R/15)
This contract is no longer available for new purchasers. This contract is no
longer being sold. This Prospectus is designed for current contract owners. In
addition to the possible state variations noted above, you should note that
your contract features and charges may vary depending on the date on which you
purchased your contract. For more information about the particular features,
charges and options applicable to you, please contact your financial
professional or refer to your contract, as well as review Appendix VI later in
this Prospectus for contract variation information and timing. You may not
change your contract or its features as issued.
Contents of this Prospectus
- --------------------------------------------------------------------------------
ACCUMULATOR(R)
- --------------------------------------------------------------------------------
Index of key words and phrases 5
Who is AXA Equitable? 6
How to reach us 7
Accumulator(R) at a glance -- key features 9
- --------------------------------------------------------------------------------
FEE TABLE 12
- --------------------------------------------------------------------------------
Example 16
Condensed financial information 19
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 20
- --------------------------------------------------------------------------------
How you can contribute to your contract 20
Owner and annuitant requirements 24
How you can make your contributions 24
What are your investment options under the contract? 24
Portfolios of the Trusts 25
Allocating your contributions 31
Your benefit base 33
Annuity purchase factors 33
Our Living Benefit option 33
Guaranteed minimum death benefit 35
Inherited IRA beneficiary continuation contract 36
Your right to cancel within a certain number of days 37
- --------------------------------------------------------------------------------
2. DETERMINING YOUR CONTRACT'S VALUE 38
- --------------------------------------------------------------------------------
Your account value and cash value 38
Your contract's value in the variable investment options 38
Your contract's value in the guaranteed interest option 38
Your contract's value in the fixed maturity options 38
Your contract's value in the account for special dollar
cost averaging 38
Termination of your contract 38
- ----------------------
"We," "our," and "us" refer to AXA Equitable.
When we address the reader of this Prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the contract owner.
When we use the word "contract" it also includes certificates that are issued
under group contracts in some states.
Contents of this Prospectus 3
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 39
- --------------------------------------------------------------------------------
Transferring your account value 39
Disruptive transfer activity 39
Rebalancing your account value 40
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 41
- --------------------------------------------------------------------------------
Withdrawing your account value 41
How withdrawals are taken from your account value 42
How withdrawals affect your guaranteed minimum income benefit
and guaranteed minimum death benefit 42
Loans under Rollover TSA contracts 43
Surrendering your contract to receive its cash value 43
When to expect payments 43
Your annuity payout options 43
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 46
- --------------------------------------------------------------------------------
Charges that AXA Equitable deducts 46
Charges that the Trusts deduct 49
Group or sponsored arrangements 49
Other distribution arrangements 49
- --------------------------------------------------------------------------------
6. PAYMENT OF DEATH BENEFIT 50
- --------------------------------------------------------------------------------
Your beneficiary and payment of benefit 50
How death benefit payment is made 50
Beneficiary continuation option 51
- --------------------------------------------------------------------------------
7. TAX INFORMATION 54
- --------------------------------------------------------------------------------
Overview 54
Contracts that fund a retirement arrangement 54
Transfers among investment options 54
Taxation of nonqualified annuities 54
Individual retirement arrangements (IRAs) 56
Tax-Sheltered Annuity contracts (TSAs) 65
Federal and state income tax withholding and
information reporting 69
Special rules for contracts funding qualified plans 70
Impact of taxes to AXA Equitable 70
- --------------------------------------------------------------------------------
8. MORE INFORMATION 71
- --------------------------------------------------------------------------------
About Separate Account No. 49 71
About the Trusts 71
About our fixed maturity options 71
About the general account 72
About other methods of payment 72
Dates and prices at which contract events occur 73
About your voting rights 74
About legal proceedings 74
About our independent registered public accounting firm 74
Financial statements 74
Transfers of ownership, collateral assignments, loans
and borrowing 74
Distribution of the contracts 75
- --------------------------------------------------------------------------------
9. INCORPORATION OF CERTAIN DOCUMENTS
BY REFERENCE 77
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed financial information A-1
II -- Purchase considerations for QP contracts B-1
III -- Market value adjustment example C-1
IV -- Enhanced death benefit example D-1
V -- Hypothetical illustrations E-1
VI -- Contract variations F-1
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
4 Contents of this Prospectus
Index of key words and phrases
- --------------------------------------------------------------------------------
This index should help you locate more information on the terms used in this
Prospectus.
Term Page in Prospectus
6% Roll up to age 85 enhanced death benefit 33
account for special dollar cost averaging 31
account value 38
administrative charge 46
annual administrative charge 46
Annual ratchet to age 85 enhanced death benefit 33
annuitant 20
annuity maturity date 45
annuity payout options 43
annuity purchase factors 33
automatic investment program 73
beneficiary 50
Beneficiary continuation option ("BCO") 51
benefit base 33
business day 73
cash value 38
charges for state premium and other applicable taxes 49
contract date 10
contract date anniversary 10
contract year 10
contributions to traditional IRAs 57
regular contributions 57
rollovers and transfers 58
disability, terminal illness or confinement to nursing home 47
disruptive transfer activity 39
Distribution charge 46
EQAccess 7
ERISA 43
Fixed-dollar option 32
fixed maturity options 30
Flexible Premium IRA cover
Flexible Premium Roth IRA cover
free look 37
free withdrawal amount 47
general account 72
General dollar cost averaging 32
guaranteed interest option 30
guaranteed minimum death benefit 35
guaranteed minimum death benefit charge 48
guaranteed minimum income benefit 33
IRA cover
IRS cover
Inherited IRA cover
investment simplifier 32
investment options cover
lifetime required minimum distribution withdrawals 42
Living Benefit option 33
Living Benefit charge 48
loan reserve account 43
loans under Rollover TSAs 43
lump sum withdrawals 41
market adjusted amount 30
market value adjustment 30
market timing 39
maturity dates 30
maturity value 30
Mortality and expense risks charge 46
NQ cover
participant 24
portfolio cover
principal assurance allocation 31
processing office 7
Protection Plus(SM) 36
Protection Plus(SM) charge 48
QP cover
rate to maturity 30
Rebalancing 40
Rollover IRA cover
Rollover TSA cover
Roth Conversion IRA cover
Roth IRA cover
SAI cover
SEC cover
self-directed allocation 31
Separate Account No. 49 71
special dollar cost averaging 31
standard death benefit 33
substantially equal withdrawals 41
Successor owner and annuitant 51
systematic withdrawals 41
TOPS 7
TSA cover
traditional IRA cover
Trusts 71
unit 38
variable investment options 24
wire transmittals and electronic applications 72
withdrawal charge 46
To make this Prospectus easier to read, we sometimes use different words than
in the contract or supplemental materials. This is illustrated below. Although
we use different words, they have the same meaning in this Prospectus as in the
contract or supplemental materials. Your financial professional can provide
further explanation about your contract.
Prospectus Contract or Supplemental Materials
fixed maturity options Guarantee Periods (Guaranteed Fixed
Interest Accounts in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
Living Benefit Guaranteed Minimum Income Benefit
Guaranteed Interest Option Guaranteed Interest Account
Index of key words and phrases 5
Who is AXA Equitable?
- --------------------------------------------------------------------------------
We are AXA Equitable Life Insurance Company (AXA Equitable) (previously, The
Equitable Life Assurance Society of the United States), a New York stock life
insurance corporation. We have been doing business since 1859. AXA Equitable is
a subsidiary of AXA Financial, Inc. AXA, a French holding company for an
international group of insurance and related financial services companies, is
the sole shareholder of AXA Financial, Inc. As the sole shareholder, and under
its other arrangements with AXA Equitable and AXA Equitable's parent, AXA
exercises significant influence over the operations and capital structure of
AXA Equitable and its parent. No company other than AXA Equitable, however, has
any legal responsibility to pay amounts that AXA Equitable owes under the
contract.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$598 billion in assets as of December 31, 2004. For over 100 years AXA
Equitable has been among the largest insurance companies in the United States.
We are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office
is located at 1290 Avenue of the Americas, New York, N.Y. 10104.
6 Who is AXA Equitable?
HOW TO REACH US
You may communicate with our processing office as listed below for the purposes
described. Certain methods of contacting us, such as by telephone or
electronically, may be unavailable or delayed (for example our facsimile
service may not be available at all times and/or we may be unavailable due to
emergency closing). In addition, the level and type of service available may be
restricted based on criteria established by us.
FOR CONTRIBUTIONS SENT BY REGULAR MAIL:
Accumulator(R)
P.O. Box 13014
Newark, NJ 07188-0014
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
Accumulator(R)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY
REGULAR MAIL:
Accumulator(R)
P.O. Box 1547
Secaucus, NJ 07096-1547
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY
EXPRESS DELIVERY:
Accumulator(R)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
REPORTS WE PROVIDE:
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year and any
calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract
year, including notification of eligibility to exercise the guaranteed
minimum income benefit, if applicable.
TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND
EQACCESS SYSTEMS:
TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQAccess is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for the fixed maturity options;
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
available through TOPS).
You can also:
o change your allocation percentages and/or transfer among the investment
options;
o elect to receive contract statements electronically;
o change your address (not available through TOPS);
o change your TOPS personal identification number ("PIN") (through TOPS only)
and your EQAccess password (through EQAccess only): and
o access Frequently Asked Questions and Service Forms (not available through
TOPS)
TOPS and EQAccess are normally available seven days a week, 24 hours a day. You
may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our website at www.axaonline.com and
logging in to access your account. All other clients may access EQAccess by
visiting our website at www.axa-equitable.com. Of course, for reasons beyond
our control, these services may sometimes be unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or Internet are genuine. For example, we will require
certain personal identification information before we will act on telephone or
Internet instructions and we will provide written confirmation of your
transfers. If we do not employ reasonable procedures to confirm the genuineness
of telephone or Internet instructions, we may be liable for any losses arising
out of any act or omission that constitutes negligence, lack of good faith, or
willful misconduct. In light of our procedures, we will not be liable for
following telephone or Internet instructions we reasonably believe to be
genuine.
We reserve the right to limit access to these services if we determine that you
engaged in a disruptive transfer activity, such as "market timing" (see
"Disruptive transfer activity" in "Transferring your money among investment
options" later in this Prospectus).
CUSTOMER SERVICE REPRESENTATIVE:
You may also use our toll-free number (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
Who is AXA Equitable? 7
(2) conversion of a traditional IRA to a Roth Conversion IRA or Flexible
Premium Roth IRA contract;
(3) election of the automatic investment program;
(4) election of the rebalancing program;
(5) requests for loans under Rollover TSA contracts;
(6) spousal consent for loans under Rollover TSA contracts;
(7) requests for withdrawals or surrenders from Rollover TSA contracts;
(8) tax withholding elections;
(9) election of the beneficiary continuation option;
(10) IRA contribution recharacterizations;
(11) certain Section 1035 exchanges;
(12) direct transfers;
(13) exercise of the Guaranteed minimum income benefit; and
(14) death claims.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between investment options;
(4) contract surrender and withdrawal requests;
(5) general dollar cost averaging (including the fixed dollar and interest
sweep options); and
(6) special dollar cost averaging.
TO CANCEL OR CHANGE ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) automatic investment program;
(2) general dollar cost averaging (including the fixed dollar and interest
sweep options);
(3) rebalancing;
(4) special dollar cost averaging;
(5) substantially equal withdrawals;
(6) systematic withdrawals; and
(7) the date annuity payments are to begin.
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us to
take.
SIGNATURES:
The proper person to sign forms, notices and requests would normally be the
owner. If there are joint owners, all must sign.
8 Who is AXA Equitable?
Accumulator(R) at a glance -- key features
- ------------------------------------------------------------------------------------------------------------------------------------
Professional investment Accumulator's(R) variable investment options invest in different portfolios managed by professional
management investment advisers.
- ------------------------------------------------------------------------------------------------------------------------------------
Fixed maturity options o Fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years (subject
to availability).
o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to
maturity.
-------------------------------------------------------------------------------------------------------
If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a
market value adjustment due to differences in interest rates. If you withdraw or transfer only a
portion of a fixed maturity amount, this may increase or decrease any value that you have left in that
fixed maturity option. If you surrender your contract, a market value adjustment also applies.
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed interest o Principal and interest guarantees.
option
o Interest rates set periodically.
- ------------------------------------------------------------------------------------------------------------------------------------
Account for special dollar Available for dollar cost averaging all or a portion of any eligible contribution to your contract.
cost averaging
- ------------------------------------------------------------------------------------------------------------------------------------
Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or receive
annuity
payments.
o No tax on transfers among investment options inside the contract.
-------------------------------------------------------------------------------------------------------
Annuity contracts that were purchased as an Individual Retirement Annuity (IRA) or Tax Sheltered
Annuity (TSA), or to fund an employer retirement plan (QP or Qualified Plan), do not provide tax
deferral benefits beyond those already provided by the Internal Revenue Code. Before you purchased your
contract, you should have considered its features and benefits beyond tax deferral -- as well as its
features, benefits and costs relative to any other investment that you may have chosen in connection
with your retirement plan or arrangement -- to determine whether it would meet your needs and goals.
Depending on your personal situation, the contract's guaranteed benefits may have limited usefulness
because of required minimum distributions ("RMDs").
- ------------------------------------------------------------------------------------------------------------------------------------
Living Benefit protection The Living Benefit provides a guaranteed minimum income benefit. The guaranteed minimum income
benefit provides income protection for you during the annuitant's life once you elect to annuitize the
contract.
- ------------------------------------------------------------------------------------------------------------------------------------
Contribution amounts o NQ, Rollover IRA, Roth Conversion IRA, Inherited IRA, QP and Rollover TSA contracts
o Initial minimum: $5,000
o Additional minimum: $500 (NQ, QP and Rollover TSA contracts)
$100 monthly and $300 quarterly under our automatic investment program
(NQ contracts)
$50 (IRA contracts)
$1000 (Inherited IRA contracts)
-------------------------------------------------------------------------------------------------------
o Flexible Premium IRA and Flexible Premium Roth IRA contracts
o Initial minimum: $2,000
o Additional minimum: $ 50
-------------------------------------------------------------------------------------------------------
Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million.
- ------------------------------------------------------------------------------------------------------------------------------------
Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Loans under Rollover TSA contracts
o Contract surrender
You may incur a withdrawal charge for certain withdrawals or if you surrender your contract. You may
also incur income tax and a tax penalty.
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) at a glance -- key features 9
- ------------------------------------------------------------------------------------------------------------------------------------
Payout options o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout options
- ------------------------------------------------------------------------------------------------------------------------------------
Additional features o Guaranteed minimum death benefit options
o Dollar cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually, and annually)
o Free transfers
o Waiver of withdrawal charge for disability, terminal illness, or confinement to a nursing home
o Protection Plus(SM), an optional death benefit available under certain contracts (subject to state
availability)
- ------------------------------------------------------------------------------------------------------------------------------------
Fees and charges o Daily charges on amounts invested in variable investment options for mortality and expense risks,
administrative charges and distribution charges at an annual rate of 1.20%.
o The charges for the guaranteed minimum death benefits range from 0.0% to 0.60%, annually, of the
applicable benefit base. The benefit base is described under "Your benefit base" in "Contract features and
benefits" later in this Prospectus.
o Annual 0.60% of the applicable benefit base charge for the optional Living Benefit until you exercise your
guaranteed minimum income benefit, elect another annuity payout or the contract date anniversary after the
annuitant reaches age 85, whichever occurs first. The benefit base is described under "Your benefit base"
in "Contract features and benefits" later in this Prospectus.
o If your account value at the end of the contract year is less than $50,000, we deduct an annual
administrative charge equal to $30, or during the first two contract years, 2% of your account value, if
less. If your account value, on the contract date anniversary, is $50,000 or more, we will not deduct the
charge.
o An annual charge of 0.35% of the account value for the Protection Plus(SM) optional death benefit.
o No sales charge deducted at the time you make contributions. During the first seven contract years
following a contribution, a charge of up to 7% will be deducted from amounts that you withdraw that exceed
15% of your account value. We use the account value at the beginning of each contract year to calculate
the 15% amount available. There is no withdrawal charge in the eighth and later contract years following a
contribution. Certain other exemptions apply.
-------------------------------
The "contract date" is the effective date of a contract. This usually is the business day we received the
properly completed and signed application, along with any other required documents, and your initial
contribution. Your contract date appears in your contract. The 12-month period beginning on your contract
date and each 12-month period after that date is a "contract year." The end of each 12-month period is
your "contract date anniversary." For example, if your contract date is May 1, your contract date
anniversary is April 30.
-------------------------------
o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes
in your state. This charge is generally deducted from the amount applied to an annuity payout option.
o We deduct a $350 annuity administrative fee from amounts applied to purchase the Variable Immediate
Annuity payout options.
o Annual expenses of the Trusts' portfolios are calculated as a percentage of the average daily net assets
invested in each portfolio. These expenses include management fees ranging from 0.10% to 1.50% annually,
12b-1 fees of either 0.25% or 0.35% annually and other expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant issue ages NQ: 0-85
Rollover IRA, Roth Conversion
IRA, Flexible Premium Roth IRA
and Rollover TSA: 20-85
Flexible Premium IRA: 20-70
Inherited IRA: 0-70
QP: 20-75
- ------------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the
contract. In some cases, restrictions or exceptions apply. Also, all features
of the contract are not necessarily available in your state or at certain ages.
For more detailed information, we urge you to read the contents of this
Prospectus, as well as your contract. Please feel free to speak with your
financial professional, or call us, if you have any questions.
10 Accumulator(R) at a glance -- key features
OTHER CONTRACTS
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, credits, fees and/or charges that are
different from those in the contracts offered by this Prospectus. Not every
contract is offered through the same distributor. Upon request, your financial
professional can show you information regarding other AXA Equitable annuity
contracts that he or she distributes. You can also contact us to find out more
about any of the AXA Equitable annuity contracts.
Accumulator(R) at a glance -- key features 11
Fee table
- --------------------------------------------------------------------------------
The following tables describe the fees and expenses that you pay when owning
and surrendering the contract. Each of the charges and expenses is more fully
described in "Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay at the time that
you surrender the contract or if you make certain withdrawals or apply your
cash to certain payout options or if you purchase a Variable Immediate Annuity
payout option. Charges designed to approximate certain taxes that may be
imposed on us, such as premium taxes in your state, may also apply. Charges for
certain features shown in the fee table are mutually exclusive.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value at the time you request certain transactions
- ------------------------------------------------------------------------------------------------------------------------------------
Maximum withdrawal charge as a percentage of contributions with-
drawn (deducted if you surrender your contract or make certain
withdrawals or apply your cash value to certain payout options).(1) 7.00%
Charge if you elect a Variable Immediate Annuity payout option $350
- ------------------------------------------------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically during
the time that you own the contract, not including the underlying trust portfolio fees
and expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your variable investment options expressed as an
annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Mortality and expense risks 0.75%
Administrative 0.25%
Distribution 0.20%
----
Total annual expenses 1.20%
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value on each contract date anniversary
- ------------------------------------------------------------------------------------------------------------------------------------
Maximum annual administrative charge
If your account value on a contract date anniversary is less than $50,000(2) $ 30
If your account value on a contract date anniversary is $50,000 or more $ 0
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value each year if you elect the optional benefit
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum death benefit charge (calculated as a percentage of the applicable
benefit base. Deducted annually on each contract date anniversary for which the benefit
is in effect).
Standard death benefit 0.00%
Annual Ratchet to age 85 0.30% of the Annual Ratchet to age
85 benefit base
6% Roll-up to age 85 0.45% of the 6% roll-up to age 85
benefit base
Greater of 6% Roll-up to age 85 or Annual Ratchet to age 85 0.60% of the greater of the 6% roll-up to
age 85 benefit base or the Annual Ratchet
to age 85 benefit base, as applicable
- ------------------------------------------------------------------------------------------------------------------------------------
Living Benefit charge (calculated as a percentage of the applicable
benefit base. Deducted annually on each contract date anniversary for
which the benefit is in effect) 0.60%
- ------------------------------------------------------------------------------------------------------------------------------------
Protection Plus(SM) benefit charge (calculated as a percentage of
the account value. Deducted annually on each contract date anniversary for
which the benefit is in effect) 0.35%
12 Fee table
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net asset
value each day. Therefore, they reduce the invest- ment return of the Portfolio
and the related variable investment option. Actual fees and expenses are likely
to fluctuate from year to year. More detail concerning each Portfolio's fees and
expenses is contained in the Trust prospectus for the Portfolio.
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Lowest Highest
------ -------
Total Annual Portfolio Operating Expenses for 2004 (expenses that are deducted
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or 0.55% 7.61%
other expenses)(3)
- ------------------------------------------------------------------------------------------------------------------------------------
This table shows the fees and expenses for 2004 as an annual percentage of each
Portfolio's daily average net assets.
Total Fee Net Total
Annual Waivers Annual
Underlying Expenses ers and/or Expenses
Manage- Portfolio Before Expense After
ment 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name Fees(4) Fees(5) Expenses(6) Expenses(7) Limitation ments(8) Limitations
- ----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ----------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 0.29% 0.99% 1.63% (0.29)% 1.34%
AXA Conservative Allocation 0.10% 0.25% 0.41% 0.75% 1.51% (0.41)% 1.10%
AXA Conservative-Plus Allocation 0.10% 0.25% 0.30% 0.80% 1.45% (0.30)% 1.15%
AXA Moderate Allocation 0.10% 0.25% 0.16% 0.83% 1.34% (0.16)% 1.18%
AXA Moderate-Plus Allocation 0.10% 0.25% 0.20% 1.02% 1.57% (0.20)% 1.37%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.18% -- 1.05% -- 1.05%
AXA Premier VIP Core Bond 0.60% 0.25% 0.20% -- 1.05% (0.10)% 0.95%
AXA Premier VIP Health Care 1.20% 0.25% 0.40% -- 1.85% 0.00% 1.85%
AXA Premier VIP High Yield 0.58% 0.25% 0.18% -- 1.01% -- 1.01%
AXA Premier VIP International Equity 1.05% 0.25% 0.50% -- 1.80% 0.00% 1.80%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.32% -- 1.47% (0.12)% 1.35%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.26% -- 1.41% (0.06)% 1.35%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.25% -- 1.40% (0.05)% 1.35%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.25% -- 1.60% 0.00% 1.60%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.25% -- 1.60% 0.00% 1.60%
AXA Premier VIP Technology 1.20% 0.25% 0.40% -- 1.85% 0.00% 1.85%
- ----------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.47% 0.25% 0.05% -- 0.77% -- 0.77%
EQ/Alliance Growth and Income 0.56% 0.25% 0.05% -- 0.86% -- 0.86%
EQ/Alliance Intermediate Government Securities 0.50% 0.25% 0.06% -- 0.81% -- 0.81%
EQ/Alliance International 0.73% 0.25% 0.12% -- 1.10% 0.00% 1.10%
EQ/Alliance Large Cap Growth* 0.90% 0.25% 0.05% -- 1.20% (0.10)% 1.10%
EQ/Alliance Quality Bond 0.50% 0.25% 0.06% -- 0.81% -- 0.81%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.06% -- 1.06% -- 1.06%
EQ/Bear Stearns Small Company Growth* 1.00% 0.25% 0.18% -- 1.43% (0.13)% 1.30%
EQ/Bernstein Diversified Value 0.63% 0.25% 0.07% -- 0.95% 0.00% 0.95%
EQ/Boston Advisors Equity Income* 0.75% 0.25% 0.21% -- 1.21% (0.16)% 1.05%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.29% -- 1.19% (0.14)% 1.05%
EQ/Capital Guardian Growth 0.65% 0.25% 0.09% -- 0.99% (0.04)% 0.95%
EQ/Capital Guardian International 0.85% 0.25% 0.17% -- 1.27% (0.07)% 1.20%
EQ/Capital Guardian Research 0.65% 0.25% 0.05% -- 0.95% 0.00% 0.95%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.05% -- 0.95% 0.00% 0.95%
EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.12% -- 0.97% (0.12)% 0.85%
EQ/Equity 500 Index 0.25% 0.25% 0.05% -- 0.55% -- 0.55%
EQ/Evergreen Omega 0.65% 0.25% 0.11% -- 1.01% (0.06)% 0.95%
EQ/FI Mid Cap 0.70% 0.25% 0.06% -- 1.01% (0.01)% 1.00%
EQ/FI Small/Mid Cap Value 0.74% 0.25% 0.08% -- 1.07% 0.00% 1.07%
EQ/International Growth 0.85% 0.25% 0.22% -- 1.32% 0.00% 1.32%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.06% -- 0.75% 0.00% 0.75%
EQ/JP Morgan Value Opportunities 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.08% -- 1.23% (0.08)% 1.15%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.05% -- 1.05% 0.00% 1.05%
- ----------------------------------------------------------------------------------------------------------------------------------
Fee table 13
Total Fee Net Total
Annual Waivers Annual
Underlying Expenses ers and/or Expenses
Manage- Portfolio Before Expense After
ment 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name Fees(4) Fees(5) Expenses(6) Expenses(7) Limitation ments(8) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Long Term Bond 0.50% 0.25% 0.25% -- 1.00% 0.00% 1.00%
EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.19% -- 1.14% (0.09)% 1.05%
EQ/Marsico Focus 0.88% 0.25% 0.06% -- 1.19% (0.04)% 1.15%
EQ/Mercury Basic Value Equity 0.58% 0.25% 0.05% -- 0.88% 0.00% 0.88%
EQ/Mercury International Value 0.85% 0.25% 0.15% -- 1.25% 0.00% 1.25%
EQ/Mergers and Acquisitions 0.90% 0.25% 1.21% -- 2.36% (0.91)% 1.45%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.06% -- 0.96% -- 0.96%
EQ/MFS Investors Trust 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Money Market 0.34% 0.25% 0.05% -- 0.64% -- 0.64%
EQ/Montag & Caldwell Growth* 0.75% 0.25% 0.12% -- 1.12% 0.00% 1.12%
EQ/PIMCO Real Return 0.55% 0.25% 0.20% -- 1.00% (0.35)% 0.65%
EQ/Short Duration Bond 0.45% 0.25% 0.52% -- 1.22% (0.57)% 0.65%
EQ/Small Company Index 0.25% 0.25% 0.13% -- 0.63% 0.00% 0.63%
EQ/Small Company Value* 0.80% 0.25% 0.12% -- 1.17% 0.00% 1.17%
EQ/TCW Equity* 0.80% 0.25% 0.12% -- 1.17% (0.02)% 1.15%
EQ/UBS Growth and Income* 0.75% 0.25% 0.16% -- 1.16% (0.11)% 1.05%
EQ/Van Kampen Comstock 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Van Kampen Emerging Markets Equity* 1.15% 0.25% 0.40% -- 1.80% 0.00% 1.80%
EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.19% -- 1.14% (0.09)% 1.05%
EQ/Wells Fargo Montgomery Small Cap 0.85% 0.25% 6.51% -- 7.61% (6.33)% 1.28%
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity 1.50% 0.25% 2.35% -- 4.10% (0.96)% 3.14%
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II** 0.76% 0.35% 0.26% -- 1.37% (0.10)% 1.27%
- ------------------------------------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject to
regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former name.
** Expense information has been restored to reflect current fees in effect as of
November 1, 2004.
Notes:
(1) Deducted upon a withdrawal of amounts in excess of the 15% free withdrawal
amount, if applicable:
The withdrawal charge percentage we use is determined Contract
by the contract year in which you make the withdrawal Year
or surrender your contract. For each contribution, we 1 7.00%
consider the contract year in which we receive that 2 7.00%
contribution to be "contract year 1") 3 6.00%
4 6.00%
5 5.00%
6 3.00%
7 1.00%
8+ 0.00%
(2) During the first two contract years this charge, if it applies, is equal to
the lesser of $30 or 2% of your account value. Thereafter, the charge is $30
for each contract year.
(3) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated
amounts for options added during the fiscal year 2004 and for the underlying
portfolios.
(4) The management fees for each Portfolio cannot be increased without a vote of
that Portfolio's shareholders. See footnote (8) for any expense limitation
agreement information.
(5) Portfolio shares are all subject to fees imposed under the distribution
plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1
under the Investment Company Act of 1940. The 12b-1 fee will not be
increased for the life of the contracts.
(6) Other expenses shown are those incurred in 2004. The amounts shown as "Other
expenses" will fluctuate from year to year depending on actual expenses. See
footnote (8) for any expense limitation agreements information.
(7) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and AXA
Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolio's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocations
as of 12/31/04. A"--" indicates that the listed portfolio does not invest in
underlying portfolios, i.e., it is not an allocation portfolio.
(8) The amounts shown reflect any fee waivers and/or expense reimbursements that
applied to each Portfolio. A "--" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver or reimbursement. AXA Equitable,
the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has
entered into Expense Limitation Agreements with respect to certain
Portfolios, which are effective through April 30, 2006. Under these
agreements AXA Equitable
14 Fee table
has agreed to waive or limit its fees and assume other expenses of certain
Portfolios, if necessary, in an amount that limits each affected Portfolio's
Total Annual Expenses (exclusive of interest, taxes, brokerage commissions,
capitalized expenditures and extraordinary expenses) to not more than
specified amounts. Each Portfolio may at a later date make a reimbursement
to AXA Equitable for any of the management fees waived or limited and other
expenses assumed and paid by AXA Equitable pursuant to the expense
limitation agreement provided that the Portfolio's current annual operating
expenses do not exceed the operating expense limit determined for such
Portfolio. Morgan Stanley Investment Management Inc., which does business in
certain instances as "Van Kampen," is the manager of The Universal
Institutional Funds, Inc. -- U.S. Real Estate Portfolio -- Class II, and has
voluntarily agreed to reduce its management fee and/or reimburse the
Portfolio so that total annual operating expenses of the Portfolio
(exclusive of investment related expenses, such as foreign country tax
expense and interest expense on amounts borrowed) are not more than
specified amounts. Additionally, the distributor of The Universal
Institutional Funds, Inc. has agreed to waive a portion of the 12b-1 fee for
Class II shares. Van Kampen and/or the fund's distributor reserves the right
to terminate any waiver and/or reimbursement at any time without notice.
Charles Schwab Investment Management, Inc., the manager of the Laudus
Variable Insurance Trust -- Laudus Rosenberg VIT Value Long/Short Equity
Portfolio has voluntarily agreed to reimburse expenses in excess of
specified amounts. See the Prospectus for each applicable underlying Trust
for more information about the arrangements. In addition, a portion of the
brokerage commissions of certain Portfolios of EQ Advisors Trust Portfolio
and AXA Premier VIP Trust Portfolio is used to reduce the applicable
Portfolio's expenses. If the above table reflected both the expense
limitation arrangements plus the portion of the brokerage commissions used
to reduce portfolio expenses, the net expenses would be as shown in the
table below:
Portfolio Name
AXA Moderate Allocation 1.17%
AXA Premier VIP Aggressive Equity 0.93%
AXA Premier VIP Health Care 1.81%
AXA Premier VIP International Equity 1.75%
AXA Premier VIP Large Cap Core Equity 1.32%
AXA Premier VIP Large Cap Growth 1.30%
AXA Premier VIP Large Cap Value 1.21%
AXA Premier VIP Small/Mid Cap Growth 1.50%
AXA Premier VIP Small/Mid Cap Value 1.54%
AXA Premier VIP Technology 1.75%
EQ/Alliance Common Stock 0.68%
EQ/Alliance Growth and Income 0.80%
EQ/Alliance International 1.08%
EQ/Alliance Large Cap Growth 1.04%
EQ/Alliance Small Cap Growth 0.98%
EQ/Calvert Socially Responsible 1.00%
EQ/Capital Guardian Growth 0.67%
EQ/Capital Guardian International 1.17%
EQ/Capital Guardian Research 0.90%
EQ/Capital Guardian U.S. Equity 0.93%
EQ/Evergreen Omega 0.57%
EQ/FI Mid Cap 0.96%
EQ/FI Small/Mid Cap Value 1.05%
EQ/JP Morgan Value Opportunities 0.76%
EQ/Lazard Small Cap Value 0.86%
EQ/Marsico Focus 1.12%
EQ/Mercury Basic Value Equity 0.86%
EQ/Mercury International Value 1.18%
EQ/MFS Emerging Growth Companies 0.91%
EQ/MFS Investors Trust 0.91%
EQ/Small Company Value 1.16%
EQ/TCW Equity 1.14%
EQ/Van Kampen Emerging Markets Equity 1.75%
EQ/Wells Fargo Montgomery Small Cap 1.26%
Fee table 15
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses).
The example below shows the expenses that a hypothetical contract owner (who
has elected the Living Benefit with the enhanced death benefit that provides
for the greater of the 6% Roll-up or the Annual Ratchet to age 85 and
Protection Plus(SM)) would pay in the situations illustrated. The annual
administrative charge is based on the charges that apply to a mix of estimated
contract sizes, resulting in an estimated administrative charge for the purpose
of these examples of $1.70 per $10,000.
The fixed maturity options, guaranteed interest option and the account for
special dollar cost averaging are not covered by the examples. However, the
annual administrative charge, the withdrawal charge, the charge for any
optional benefits and the charge if you elect a Variable Immediate Annuity
payout option do apply to the fixed maturity options, guaranteed interest
option and the account for special dollar cost averaging. A market value
adjustment (up or down) may apply as a result of a withdrawal, transfer, or
surrender of amounts from a fixed maturity option.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes that your investment has a 5%
return each year. This example should not be considered a representation of
past or future expenses for each option. Similarly, the annual rate of return
assumed in the example is not an estimate or guarantee of future investment
performance. Although your actual costs may be higher or lower, based on these
assumptions, your costs would be:
16 Fee table
If you surrender your contract at the end of the
applicable time period
- ----------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,162.83 $ 2,015.35 $ 2,905.20 $ 5,056.37
AXA Conservative Allocation $ 1,150.23 $ 1,978.65 $ 2,845.99 $ 4,948.84
AXA Conservative-Plus Allocation $ 1,143.93 $ 1,960.27 $ 2,816.27 $ 4,894.55
AXA Moderate Allocation $ 1,132.17 $ 1,925.89 $ 2,760.58 $ 4,792.29
AXA Moderate-Plus Allocation $ 1,156.53 $ 1,997.01 $ 2,875.64 $ 5,002.78
AXA Premier VIP Aggressive Equity $ 1,101.94 $ 1,837.10 $ 2,616.10 $ 4,523.70
AXA Premier VIP Core Bond $ 1,101.94 $ 1,837.10 $ 2,616.10 $ 4,523.70
AXA Premier VIP Health Care $ 1,185.92 $ 2,082.37 $ 3,012.94 $ 5,249.99
AXA Premier VIP High Yield $ 1,097.74 $ 1,824.73 $ 2,595.89 $ 4,485.74
AXA Premier VIP International Equity $ 1,180.68 $ 2,067.17 $ 2,988.55 $ 5,206.38
AXA Premier VIP Large Cap Core Equity $ 1,146.03 $ 1,966.40 $ 2,826.19 $ 4,912.69
AXA Premier VIP Large Cap Growth $ 1,139.73 $ 1,948.00 $ 2,796.41 $ 4,858.17
AXA Premier VIP Large Cap Value $ 1,138.68 $ 1,944.93 $ 2,791.44 $ 4,849.05
AXA Premier VIP Small/Mid Cap Growth $ 1,159.68 $ 2,006.18 $ 2,890.43 $ 5,029.62
AXA Premier VIP Small/Mid Cap Value $ 1,159.68 $ 2,006.18 $ 2,890.43 $ 5,029.62
AXA Premier VIP Technology $ 1,185.92 $ 2,082.37 $ 3,012.94 $ 5,249.99
- ----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 1,072.54 $ 1,750.26 $ 2,473.88 $ 4,254.63
EQ/Alliance Growth and Income $ 1,081.99 $ 1,778.23 $ 2,519.78 $ 4,341.98
EQ/Alliance Intermediate Government Securities $ 1,076.74 $ 1,762.70 $ 2,494.30 $ 4,293.55
EQ/Alliance International $ 1,107.19 $ 1,852.56 $ 2,641.32 $ 4,570.92
EQ/Alliance Large Cap Growth* $ 1,117.69 $ 1,883.41 $ 2,691.58 $ 4,664.61
EQ/Alliance Quality Bond $ 1,076.74 $ 1,762.70 $ 2,494.30 $ 4,293.55
EQ/Alliance Small Cap Growth $ 1,102.99 $ 1,840.20 $ 2,621.15 $ 4,533.16
EQ/Bear Stearns Small Company Growth* $ 1,141.83 $ 1,954.13 $ 2,806.34 $ 4,876.38
EQ/Bernstein Diversified Value $ 1,091.44 $ 1,806.15 $ 2,565.51 $ 4,428.51
EQ/Boston Advisors Equity Income* $ 1,118.74 $ 1,886.50 $ 2,696.59 $ 4,673.92
EQ/Calvert Socially Responsible $ 1,116.64 $ 1,880.33 $ 2,686.56 $ 4,655.28
EQ/Capital Guardian Growth $ 1,095.64 $ 1,818.54 $ 2,585.77 $ 4,466.70
EQ/Capital Guardian International $ 1,125.03 $ 1,904.97 $ 2,726.63 $ 4,729.61
EQ/Capital Guardian Research $ 1,091.44 $ 1,806.15 $ 2,565.51 $ 4,428.51
EQ/Capital Guardian U.S. Equity $ 1,091.44 $ 1,806.15 $ 2,565.51 $ 4,428.51
EQ/Caywood-Scholl High Yield Bond $ 1,093.54 $ 1,812.34 $ 2,575.64 $ 4,447.63
EQ/Equity 500 Index $ 1,049.45 $ 1,681.66 $ 2,360.91 $ 4,037.60
EQ/Evergreen Omega $ 1,097.74 $ 1,824.73 $ 2,595.89 $ 4,485.74
EQ/FI Mid Cap $ 1,097.74 $ 1,824.73 $ 2,595.89 $ 4,485.74
EQ/FI Small/Mid Cap Value $ 1,104.04 $ 1,843.29 $ 2,626.19 $ 4,542.61
EQ/International Growth $ 1,130.28 $ 1,920.35 $ 2,751.60 $ 4,775.74
EQ/J.P. Morgan Core Bond $ 1,070.44 $ 1,744.04 $ 2,463.65 $ 4,235.10
EQ/JP Morgan Value Opportunities $ 1,091.44 $ 1,806.15 $ 2,565.51 $ 4,428.51
EQ/Janus Large Cap Growth $ 1,120.84 $ 1,892.66 $ 2,706.61 $ 4,692.53
EQ/Lazard Small Cap Value $ 1,101.94 $ 1,837.10 $ 2,616.10 $ 4,523.70
- ----------------------------------------------------------------------------------------------------------
If you annuitize at the end of the
applicable time period
- --------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- --------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- --------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 812.83 $ 1,765.35 $ 2,755.20 $ 5,406.37
AXA Conservative Allocation $ 800.23 $ 1,728.65 $ 2,695.99 $ 5,298.84
AXA Conservative-Plus Allocation $ 793.93 $ 1,710.27 $ 2,666.27 $ 5,244.55
AXA Moderate Allocation $ 782.17 $ 1,675.89 $ 2,610.58 $ 5,142.29
AXA Moderate-Plus Allocation $ 806.53 $ 1,747.01 $ 2,725.64 $ 5,352.78
AXA Premier VIP Aggressive Equity $ 751.94 $ 1,587.10 $ 2,466.10 $ 4,873.70
AXA Premier VIP Core Bond $ 751.94 $ 1,587.10 $ 2,466.10 $ 4,873.70
AXA Premier VIP Health Care $ 835.92 $ 1,832.37 $ 2,862.94 $ 5,599.99
AXA Premier VIP High Yield $ 747.74 $ 1,574.73 $ 2,445.89 $ 4,835.74
AXA Premier VIP International Equity $ 830.68 $ 1,817.17 $ 2,838.55 $ 5,556.38
AXA Premier VIP Large Cap Core Equity $ 796.03 $ 1,716.40 $ 2,676.19 $ 5,262.69
AXA Premier VIP Large Cap Growth $ 789.73 $ 1,698.00 $ 2,646.41 $ 5,208.17
AXA Premier VIP Large Cap Value $ 788.68 $ 1,694.93 $ 2,641.44 $ 5,199.05
AXA Premier VIP Small/Mid Cap Growth $ 809.68 $ 1,756.18 $ 2,740.43 $ 5,379.62
AXA Premier VIP Small/Mid Cap Value $ 809.68 $ 1,756.18 $ 2,740.43 $ 5,379.62
AXA Premier VIP Technology $ 835.92 $ 1,832.37 $ 2,862.94 $ 5,599.99
- --------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 722.54 $ 1,500.26 $ 2,323.88 $ 4,604.63
EQ/Alliance Growth and Income $ 731.99 $ 1,528.23 $ 2,369.78 $ 4,691.98
EQ/Alliance Intermediate Government Securities $ 726.74 $ 1,512.70 $ 2,344.30 $ 4,643.55
EQ/Alliance International $ 757.19 $ 1,602.56 $ 2,491.32 $ 4,920.92
EQ/Alliance Large Cap Growth* $ 767.69 $ 1,633.41 $ 2,541.58 $ 5,014.61
EQ/Alliance Quality Bond $ 726.74 $ 1,512.70 $ 2,344.30 $ 4,643.55
EQ/Alliance Small Cap Growth $ 752.99 $ 1,590.20 $ 2,471.15 $ 4,883.16
EQ/Bear Stearns Small Company Growth* $ 791.83 $ 1,704.13 $ 2,656.34 $ 5,226.38
EQ/Bernstein Diversified Value $ 741.44 $ 1,556.15 $ 2,415.51 $ 4,778.51
EQ/Boston Advisors Equity Income* $ 768.74 $ 1,636.50 $ 2,546.59 $ 5,023.92
EQ/Calvert Socially Responsible $ 766.64 $ 1,630.33 $ 2,536.56 $ 5,005.28
EQ/Capital Guardian Growth $ 745.64 $ 1,568.54 $ 2,435.77 $ 4,816.70
EQ/Capital Guardian International $ 775.03 $ 1,654.97 $ 2,576.63 $ 5,079.61
EQ/Capital Guardian Research $ 741.44 $ 1,556.15 $ 2,415.51 $ 4,778.51
EQ/Capital Guardian U.S. Equity $ 741.44 $ 1,556.15 $ 2,415.51 $ 4,778.51
EQ/Caywood-Scholl High Yield Bond $ 743.54 $ 1,562.34 $ 2,425.64 $ 4,797.63
EQ/Equity 500 Index $ 699.45 $ 1,431.66 $ 2,210.91 $ 4,387.60
EQ/Evergreen Omega $ 747.74 $ 1,574.73 $ 2,445.89 $ 4,835.74
EQ/FI Mid Cap $ 747.74 $ 1,574.73 $ 2,445.89 $ 4,835.74
EQ/FI Small/Mid Cap Value $ 754.04 $ 1,593.29 $ 2,476.19 $ 4,892.61
EQ/International Growth $ 780.28 $ 1,670.35 $ 2,601.60 $ 5,125.74
EQ/J.P. Morgan Core Bond $ 720.44 $ 1,494.04 $ 2,313.65 $ 4,585.10
EQ/JP Morgan Value Opportunities $ 741.44 $ 1,556.15 $ 2,415.51 $ 4,778.51
EQ/Janus Large Cap Growth $ 770.84 $ 1,642.66 $ 2,556.61 $ 5,042.53
EQ/Lazard Small Cap Value $ 751.94 $ 1,587.10 $ 2,466.10 $ 4,873.70
- --------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the
end of the applicable time period
- --------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- --------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- --------------------------------------------------------------------------------------------------------
<c>
AXA Aggressive Allocation $ 462.83 $ 1,415.35 $ 2,405.20 $ 5,056.37
AXA Conservative Allocation $ 450.23 $ 1,378.65 $ 2,345.99 $ 4,948.84
AXA Conservative-Plus Allocation $ 443.93 $ 1,360.27 $ 2,316.27 $ 4,894.55
AXA Moderate Allocation $ 432.17 $ 1,325.89 $ 2,260.58 $ 4,792.29
AXA Moderate-Plus Allocation $ 456.53 $ 1,397.01 $ 2,375.64 $ 5,002.78
AXA Premier VIP Aggressive Equity $ 401.94 $ 1,237.10 $ 2,116.10 $ 4,523.70
AXA Premier VIP Core Bond $ 401.94 $ 1,237.10 $ 2,116.10 $ 4,523.70
AXA Premier VIP Health Care $ 485.92 $ 1,482.37 $ 2,512.94 $ 5,249.99
AXA Premier VIP High Yield $ 397.74 $ 1,224.73 $ 2,095.89 $ 4,485.74
AXA Premier VIP International Equity $ 480.68 $ 1,467.17 $ 2,488.55 $ 5,206.38
AXA Premier VIP Large Cap Core Equity $ 446.03 $ 1,366.40 $ 2,326.19 $ 4,912.69
AXA Premier VIP Large Cap Growth $ 439.73 $ 1,348.00 $ 2,296.41 $ 4,858.17
AXA Premier VIP Large Cap Value $ 438.68 $ 1,344.93 $ 2,291.44 $ 4,849.05
AXA Premier VIP Small/Mid Cap Growth $ 459.68 $ 1,406.18 $ 2,390.43 $ 5,029.62
AXA Premier VIP Small/Mid Cap Value $ 459.68 $ 1,406.18 $ 2,390.43 $ 5,029.62
AXA Premier VIP Technology $ 485.92 $ 1,482.37 $ 2,512.94 $ 5,249.99
- --------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 372.54 $ 1,150.26 $ 1,973.88 $ 4,254.63
EQ/Alliance Growth and Income $ 381.99 $ 1,178.23 $ 2,019.78 $ 4,341.98
EQ/Alliance Intermediate Government Securities $ 376.74 $ 1,162.70 $ 1,994.30 $ 4,293.55
EQ/Alliance International $ 407.19 $ 1,252.56 $ 2,141.32 $ 4,570.92
EQ/Alliance Large Cap Growth* $ 417.69 $ 1,283.41 $ 2,191.58 $ 4,664.61
EQ/Alliance Quality Bond $ 376.74 $ 1,162.70 $ 1,994.30 $ 4,293.55
EQ/Alliance Small Cap Growth $ 402.99 $ 1,240.20 $ 2,121.15 $ 4,533.16
EQ/Bear Stearns Small Company Growth* $ 441.83 $ 1,354.13 $ 2,306.34 $ 4,876.38
EQ/Bernstein Diversified Value $ 391.44 $ 1,206.15 $ 2,065.51 $ 4,428.51
EQ/Boston Advisors Equity Income* $ 418.74 $ 1,286.50 $ 2,196.59 $ 4,673.92
EQ/Calvert Socially Responsible $ 416.64 $ 1,280.33 $ 2,186.56 $ 4,655.28
EQ/Capital Guardian Growth $ 395.64 $ 1,218.54 $ 2,085.77 $ 4,466.70
EQ/Capital Guardian International $ 425.03 $ 1,304.97 $ 2,226.63 $ 4,729.61
EQ/Capital Guardian Research $ 391.44 $ 1,206.15 $ 2,065.51 $ 4,428.51
EQ/Capital Guardian U.S. Equity $ 391.44 $ 1,206.15 $ 2,065.51 $ 4,428.51
EQ/Caywood-Scholl High Yield Bond $ 393.54 $ 1,212.34 $ 2,075.64 $ 4,447.63
EQ/Equity 500 Index $ 349.45 $ 1,081.66 $ 1,860.91 $ 4,037.60
EQ/Evergreen Omega $ 397.74 $ 1,224.73 $ 2,095.89 $ 4,485.74
EQ/FI Mid Cap $ 397.74 $ 1,224.73 $ 2,095.89 $ 4,485.74
EQ/FI Small/Mid Cap Value $ 404.04 $ 1,243.29 $ 2,126.19 $ 4,542.61
EQ/International Growth $ 430.28 $ 1,320.35 $ 2,251.60 $ 4,775.74
EQ/J.P. Morgan Core Bond $ 370.44 $ 1,144.04 $ 1,963.65 $ 4,235.10
EQ/JP Morgan Value Opportunities $ 391.44 $ 1,206.15 $ 2,065.51 $ 4,428.51
EQ/Janus Large Cap Growth $ 420.84 $ 1,292.66 $ 2,206.61 $ 4,692.53
EQ/Lazard Small Cap Value $ 401.94 $ 1,237.10 $ 2,116.10 $ 4,523.70
- ----------------------------------------------------------------------------------------------
Fee table 17
If you surrender your contract at the end of the
applicable time period
- -----------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 1,096.69 $ 1,821.63 $ 2,590.83 $ 4,476.23
EQ/Lord Abbett Growth and Income $ 1,106.14 $ 1,849.47 $ 2,636.28 $ 4,561.49
EQ/Lord Abbett Large Cap Core $ 1,106.14 $ 1,849.47 $ 2,636.28 $ 4,561.49
EQ/Lord Abbett Mid Cap Value $ 1,111.39 $ 1,864.91 $ 2,661.45 $ 4,608.51
EQ/Marsico Focus $ 1,116.64 $ 1,880.33 $ 2,686.56 $ 4,655.28
EQ/Mercury Basic Value Equity $ 1,084.09 $ 1,784.44 $ 2,529.96 $ 4,361.28
EQ/Mercury International Value $ 1,122.94 $ 1,898.82 $ 2,716.63 $ 4,711.09
EQ/Mergers and Acquisitions $ 1,239.47 $ 2,236.54 $ 3,258.69 $ 5,681.64
EQ/MFS Emerging Growth Companies $ 1,092.49 $ 1,809.25 $ 2,570.58 $ 4,438.07
EQ/MFS Investors Trust $ 1,091.44 $ 1,806.15 $ 2,565.51 $ 4,428.51
EQ/Money Market $ 1,058.90 $ 1,709.76 $ 2,407.25 $ 4,126.99
EQ/Montag & Caldwell Growth* $ 1,109.29 $ 1,858.73 $ 2,651.39 $ 4,589.73
EQ/PIMCO Real Return $ 1,096.69 $ 1,821.63 $ 2,590.83 $ 4,476.23
EQ/Short Duration Bond $ 1,119.79 $ 1,889.58 $ 2,701.60 $ 4,683.23
EQ/Small Company Index $ 1,057.85 $ 1,706.64 $ 2,402.11 $ 4,117.10
EQ/Small Company Value* $ 1,114.54 $ 1,874.16 $ 2,676.52 $ 4,636.61
EQ/TCW Equity* $ 1,114.54 $ 1,874.16 $ 2,676.52 $ 4,636.61
EQ/UBS Growth and Income* $ 1,113.49 $ 1,871.08 $ 2,671.50 $ 4,627.25
EQ/Van Kampen Comstock $ 1,106.14 $ 1,849.47 $ 2,636.28 $ 4,561.49
EQ/Van Kampen Emerging Markets Equity* $ 1,180.68 $ 2,067.17 $ 2,988.55 $ 5,206.38
EQ/Van Kampen Mid Cap Growth $ 1,111.39 $ 1,864.91 $ 2,661.45 $ 4,608.51
EQ/Wells Fargo Montgomery Small Cap $ 1,790.62 $ 3,726.41 $ 5,483.49 $ 8,951.47
- -----------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- -----------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short
Equity $ 1,422.13 $ 2,749.78 $ 4,056.15 $ 6,986.37
- -----------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- -----------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II $ 1,135.53 $ 1,935.72 $ 2,776.52 $ 4,821.63
- -----------------------------------------------------------------------------------------------------
If you annuitize at the end of the
applicable time period
- --------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- --------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 746.69 $ 1,571.63 $ 2,440.83 $ 4,826.23
EQ/Lord Abbett Growth and Income $ 756.14 $ 1,599.47 $ 2,486.28 $ 4,911.49
EQ/Lord Abbett Large Cap Core $ 756.14 $ 1,599.47 $ 2,486.28 $ 4,911.49
EQ/Lord Abbett Mid Cap Value $ 761.39 $ 1,614.91 $ 2,511.45 $ 4,958.51
EQ/Marsico Focus $ 766.64 $ 1,630.33 $ 2,536.56 $ 5,005.28
EQ/Mercury Basic Value Equity $ 734.09 $ 1,534.44 $ 2,379.96 $ 4,711.28
EQ/Mercury International Value $ 772.94 $ 1,648.82 $ 2,566.63 $ 5,061.09
EQ/Mergers and Acquisitions $ 889.47 $ 1,986.54 $ 3,108.69 $ 6,031.64
EQ/MFS Emerging Growth Companies $ 742.49 $ 1,559.25 $ 2,420.58 $ 4,788.07
EQ/MFS Investors Trust $ 741.44 $ 1,556.15 $ 2,415.51 $ 4,778.51
EQ/Money Market $ 708.90 $ 1,459.76 $ 2,257.25 $ 4,476.99
EQ/Montag & Caldwell Growth* $ 759.29 $ 1,608.73 $ 2,501.39 $ 4,939.73
EQ/PIMCO Real Return $ 746.69 $ 1,571.63 $ 2,440.83 $ 4,826.23
EQ/Short Duration Bond $ 769.79 $ 1,639.58 $ 2,551.60 $ 5,033.23
EQ/Small Company Index $ 707.85 $ 1,456.64 $ 2,252.11 $ 4,467.10
EQ/Small Company Value* $ 764.54 $ 1,624.16 $ 2,526.52 $ 4,986.61
EQ/TCW Equity* $ 764.54 $ 1,624.16 $ 2,526.52 $ 4,986.61
EQ/UBS Growth and Income* $ 763.49 $ 1,621.08 $ 2,521.50 $ 4,977.25
EQ/Van Kampen Comstock $ 756.14 $ 1,599.47 $ 2,486.28 $ 4,911.49
EQ/Van Kampen Emerging Markets Equity* $ 830.68 $ 1,817.17 $ 2,838.55 $ 5,556.38
EQ/Van Kampen Mid Cap Growth $ 761.39 $ 1,614.91 $ 2,511.45 $ 4,958.51
EQ/Wells Fargo Montgomery Small Cap $ 1,440.62 $ 3,476.41 $ 5,333.49 $ 9,301.47
- --------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- --------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short
Equity $ 1,072.13 $ 2,499.78 $ 3,906.15 $ 7,336.37
- --------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- --------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II $ 785.53 $ 1,685.72 $ 2,626.52 $ 5,171.63
- --------------------------------------------------------------------------------------------------
If you do not surrender your contract at
applicable time period
- ---------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ---------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ---------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 396.69 $ 1,221.63 $ 2,090.83 $ 4,476.23
EQ/Lord Abbett Growth and Income $ 406.14 $ 1,249.47 $ 2,136.28 $ 4,561.49
EQ/Lord Abbett Large Cap Core $ 406.14 $ 1,249.47 $ 2,136.28 $ 4,561.49
EQ/Lord Abbett Mid Cap Value $ 411.39 $ 1,264.91 $ 2,161.45 $ 4,608.51
EQ/Marsico Focus $ 416.64 $ 1,280.33 $ 2,186.56 $ 4,655.28
EQ/Mercury Basic Value Equity $ 384.09 $ 1,184.44 $ 2,029.96 $ 4,361.28
EQ/Mercury International Value $ 422.94 $ 1,298.82 $ 2,216.63 $ 4,711.09
EQ/Mergers and Acquisitions $ 539.47 $ 1,636.54 $ 2,758.69 $ 5,681.64
EQ/MFS Emerging Growth Companies $ 392.49 $ 1,209.25 $ 2,070.58 $ 4,438.07
EQ/MFS Investors Trust $ 391.44 $ 1,206.15 $ 2,065.51 $ 4,428.51
EQ/Money Market $ 358.90 $ 1,109.76 $ 1,907.25 $ 4,126.99
EQ/Montag & Caldwell Growth* $ 409.29 $ 1,258.73 $ 2,151.39 $ 4,589.73
EQ/PIMCO Real Return $ 396.69 $ 1,221.63 $ 2,090.83 $ 4,476.23
EQ/Short Duration Bond $ 419.79 $ 1,289.58 $ 2,201.60 $ 4,683.23
EQ/Small Company Index $ 357.85 $ 1,106.64 $ 1,902.11 $ 4,117.10
EQ/Small Company Value* $ 414.54 $ 1,274.16 $ 2,176.52 $ 4,636.61
EQ/TCW Equity* $ 414.54 $ 1,274.16 $ 2,176.52 $ 4,636.61
EQ/UBS Growth and Income* $ 413.49 $ 1,271.08 $ 2,171.50 $ 4,627.25
EQ/Van Kampen Comstock $ 406.14 $ 1,249.47 $ 2,136.28 $ 4,561.49
EQ/Van Kampen Emerging Markets Equity* $ 480.68 $ 1,467.17 $ 2,488.55 $ 5,206.38
EQ/Van Kampen Mid Cap Growth $ 411.39 $ 1,264.91 $ 2,161.45 $ 4,608.51
EQ/Wells Fargo Montgomery Small Cap $ 1,090.62 $ 3,126.41 $ 4,983.49 $ 8,951.47
- ----------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ----------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short $ 722.13 $ 2,149.78 $ 3,556.15 $ 6,986.37
Equity
- ----------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- --------------------------------------------------------------------- ------------------------------
U.S. Real Estate - Class II $ 435.53 $ 1,335.72 $ 2,276.52 $ 4,821.63
- --------------------------------------------------------------------- ------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject to
regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former name.
18 Fee table
CONDENSED FINANCIAL INFORMATION
Please see Appendix I at the end of this Prospectus for the unit values and the
number of units outstanding as of the end of the periods shown for each of the
variable investment options available as of December 31, 2004.
Fee table 19
1. Contract features and benefits
- --------------------------------------------------------------------------------
HOW YOU CAN CONTRIBUTE TO YOUR CONTRACT
The following table summarizes our rules regarding contributions to your
contract. All ages in the table refer to the age of the annuitant named in the
contract. Initial contribution amounts are provided for informational purposes
only. This contract is no longer available to new purchasers.
We may refuse to accept any contribution if the sum of all contributions under
all Accumulator(R) series contracts with the same annuitant would then total
more than $1,500,000. We reserve the right to limit aggregate contributions
made after the first contract year to 150% of first-year contributions. We may
also refuse to accept any contribution if the sum of all contributions under
all AXA Equitable annuity accumulation contracts that you own would then total
more than $2,500,000.
- --------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining
contract benefits. The annuitant is not necessarily the contract owner.
- --------------------------------------------------------------------------------
Annuitant Minimum
Contract type issue ages* contributions Source of contributions Limitations on contributions
- ------------------------------------------------------------------------------------------------------------------------------------
NQ 0 through 85 o $5,000 (initial) o After-tax money. o For annuitants up to age 83 at
contract issue, no additional
o $500 (additional) o Paid to us by check or transfer of contributions may be made after
contract value in a tax-deferred attainment of age 84 or, if later,
exchange under Section 1035 of the the first contract anniversary.
Internal Revenue Code.
o For annuitants age 84 and older at
contract issue, additional contribu-
tions may be made up to one year
from contract issue.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover IRA 20 through 85 o $5,000 (initial) o Eligible rollover distributions from o For annuitants up to age 83 at con-
TSA contracts or other 403(b) tract issue, no additional
o $50 (additional) arrangements, qualified plans, and contributions may be made after
governmental employer 457(b) attainment of age 84 or, if later,
plans. the first contract anniversary.
o Rollovers from another traditional o For annuitants age 84 and older at
individual retirement arrangement. contract issue, additional contribu-
tions may be made up to one year
o Direct custodian-to-custodian trans- from contract issue.
fers from another traditional
individual retirement arrangement. o Contributions after age 70-1/2 must
be net of required minimum
o Regular IRA contributions. distributions.
o Additional "catch-up" contributions. o Although we accept regular IRA con-
tributions (limited to $4,000 for
2005; same for 2006) under rollover
IRA contracts, we intend that this
contract be used primarily for roll-
over and direct transfer
contributions.
o Additional catch-up contributions of
up to $500 can be made for the cal-
endar year 2005 ($1,000 for 2006)
where the owner is at least age 50
but under age 70-1/2 at any time
during the calendar year for which
the contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
20 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant Minimum Source of Limitations
Contract type issue ages* contributions contributions on contributions
- ------------------------------------------------------------------------------------------------------------------------------------
Roth Conversion 20 through 85 o $5,000 (initial) o Rollovers from another Roth IRA. o For annuitants up to age 83 at con-
IRA tract issue, no additional
o $50 (additional) o Conversion rollovers from a tradi- contributions may be made after
tional IRA. attainment of age 84, or, if later,
the first contract anniversary.
o Direct transfers from another Roth
IRA. o For annuitants age 84 and older at
contract issue, additional contribu-
o Regular Roth IRA contributions. tions may be made up to one year
from contract issue.
o Additional catch-up contributions.
o Conversion rollovers after age 70-1/2
must be net of required minimum
distributions for the traditional IRA
you are rolling over.
o You cannot roll over funds from a
traditional IRA if your adjusted
gross income is $100,000 or more.
o Although we accept regular Roth IRA
contributions (limited to $4,000 for
2005; same for 2006) under Roth IRA
contracts, we intend that this con-
tract be used primarily for roll-over
and direct transfer contributions.
o Additional catch-up contributions of
up to $500 can be made for the cal-
endar year 2005 ($1,000 for 2006)
where the owner is at least age 50 at
any time during the calendar year for
which the contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover TSA 20 through 85 o $5,000 (initial) o Direct transfers of pre-tax funds o For annuitants up to age 83 at con-
from another contract or arrange- tract issue, no additional
o $500 (additional) ment under Section 403(b) of the contributions may be made after
Internal Revenue Code, complying attainment of age 84, or, if later,
with IRS Revenue Ruling 90-24. the first contract anniversary.
o Eligible rollover distributions of o For annuitants age 84 and older at
pre-tax funds from other 403(b) plans. contract issue, additional contribu-
Subsequent contributions may also tions may be made up to one year
be rollovers from qualified plans, from contract issue.
governmental employer 457(b) plans
and traditional IRAs. o Rollover or direct transfer contribu-
tions after age 70-1/2 must be net of
any required minimum distributions.
o We do not accept employer-remitted
contributions.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 21
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant Minimum
Contract type issue ages* contributions Source of contributions Limitations on contributions
- ------------------------------------------------------------------------------------------------------------------------------------
QP 20 through 75 o $5,000 (initial) o Only transfer contributions from o We do not accept regular ongoing
an existing defined contribution payroll contributions.
o $500 (additional) qualified plan trust.
o Only one additional transfer
o The plan must be qualified under contribution may be made during
Section 401(a) of the Internal a contract year.
Revenue Code.
o No additional transfer contributions
o For 401(k) plans, transferred after the attainment of age 76 or, if
contributions may only include later, the first contract anniversary.
employee pre-tax contributions.
o Contributions after age 70-1/2 must
be net of any required minimum
distributions.
o A separate QP contract must be
established for each plan participant.
o We do not accept employer-remitted
contributions.
o We do not accept contributions from
defined benefit plans.
See Appendix II at the end of this Prospectus for a discussion of
purchase considerations of QP contracts.
- ------------------------------------------------------------------------------------------------------------------------------------
Flexible Premium 20 through 70 o $2,000 (initial) o Regular traditional IRA o No regular IRA contributions in the
IRA contributions. calendar year you turn age 70-1/2 and
o $50 (additional) thereafter.
o Additional catch-up contributions.
o Rollover and direct transfer
o Eligible rollover distributions from contributions may be made up to the
TSA contracts or other 403(b) attainment of age 84.
arrangements, qualified plans, and
governmental employer 457(b) o Regular contributions may not exceed
plans. $4,000 for 2005; same for 2006.
o Rollovers from another traditional o Rollover and direct transfer
individual retirement arrangement. contributions after age 70-1/2 must
be net of required minimum
o Direct custodian-to-custodian distributions.
transfers from another traditional
individual retirement arrangement. o Although we accept rollover and
direct transfer contributions under
the Flexible Premium IRA contract,
we intend that this contract be used
for ongoing regular contributions.
o Additional catch-up contributions of
up to $500 can be made for the cal-
endar year 2005 ($1,000 for 2006)
where the owner is at least age 50
but under age 70-1/2 at any time dur-
ing the calendar year for which the
contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
22 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant Minimum
Contract type issue ages* contributions Source of contributions Limitations on contributions
- -----------------------------------------------------------------------------------------------------------------------------------
Flexible Premium 20 through 85 o $2,000 (initial) o Regular after-tax contributions. o For annuitants up to age 83 at con-
Roth IRA tract issue, no additional
o $50 (additional) o Additional catch-up contributions. contributions may be made after the
attainment of age 84, or, if later,
o Rollovers from another Roth IRA. the first contract anniversary.
o Conversion rollovers from a tradi-
tional IRA. o For annuitants age 84 and older at
contract issue additional contribu-
o Direct transfers from another Roth tions may be made up to one year
IRA. from contract issue.
o Regular Roth IRA contributions may
not exceed $4,000 for 2005; same
for 2006.
o Contributions are subject to income
limits and other tax rules.
o Although we accept rollover and
direct transfer contributions under
the Flexible Premium Roth IRA con-
tract, we intend that this contract
be used for ongoing regular Roth IRA
contributions.
o Additional catch-up contributions of
up to $500 can be made for the cal-
endar year 2005 ($1,000 for 2006)
where the owner is at least age 50 at
any time during the calendar year for
which the contribution is made.
- -----------------------------------------------------------------------------------------------------------------------------------
Inherited IRA 0-70 o $5,000 (initial) o Direct custodian-to-custodian o Any additional contributions must be
Beneficiary transfers of your interest as from same type of IRA of same
Continuation o $1,000 a death beneficiary of the deceased owner.
Contract (additional) deceased owner's traditional
(traditional IRA individual retirement arrangement
or Roth IRA) or Roth IRA to an IRA of the same
type.
- -----------------------------------------------------------------------------------------------------------------------------------
* Please see Appendix VI for variations that may apply to your contract.
See "Tax information" later in this Prospectus for a more detailed discussion
of sources of contributions and certain contribution limitations. For
information on when contributions are credited under your contract see "Dates
and prices at which contract events occur" in "More information" later in this
Prospectus.
Contract features and benefits 23
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from the owner. A joint
owner may also be named. Only natural persons can be joint owners. This means
that an entity such as a corporation cannot be a joint owner. In general, we
will not permit a contract to be owned by a minor unless it is pursuant to the
Uniform Gift to Minors Act or the Uniform Transfers to Minors Act in your
state.
Under all IRA and Rollover TSA contracts, the owner and annuitant must be the
same person. In some cases, an IRA contract may be held in a custodial
individual retirement account for the benefit of the individual annuitant. This
option may not be available under your contract. See "Inherited IRA beneficiary
continuation contract" later in this section for Inherited IRA owner and
annuitant requirements.
Under QP contracts, the owner must be the trustee of the qualified plan and the
annuitant must be the plan participant/employee. See Appendix II at the end of
this Prospectus for more information on QP contracts.
- --------------------------------------------------------------------------------
A "participant" is an individual who is currently, or was formerly,
participating in an eligible employer's qualified plan or TSA plan.
- --------------------------------------------------------------------------------
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be by check drawn on a U.S. bank, in
U.S. dollars, and made payable to AXA Equitable. We may also apply
contributions made pursuant to a Section 1035 tax-free exchange or a direct
transfer. We do not accept third-party checks endorsed to us except for
rollover contributions, tax-free exchanges or trustee checks that involve no
refund. All checks are subject to our ability to collect the funds. We reserve
the right to reject a payment if it is received in an unacceptable form.
For your convenience, we will accept contributions by wire transmittal from
certain broker-dealers who have agreements with us for this purpose, including
circumstances under which such contributions are considered received by us when
your order is taken by such broker-dealers. Additional contributions may also
be made under our automatic investment program. These methods of payment are
discussed in detail in "More information" later in this Prospectus.
- --------------------------------------------------------------------------------
Our "business day" is generally any day the New York Stock Exchange is open for
trading and generally ends at 4:00 p.m. Eastern Time. A business day does not
include a day we choose not to open due to emergency conditions. We may also
close early due to emergency conditions.
- --------------------------------------------------------------------------------
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
Your investment options are the variable investment options, the guaranteed
interest option, the fixed maturity options and the account for special dollar
cost averaging.
VARIABLE INVESTMENT OPTIONS
Your investment results in any one of the variable investment options will
depend on the investment performance of the underlying portfolios. You can lose
your principal when investing in the variable investment options. In periods of
poor market performance, the net return, after charges and expenses, may result
in negative yields, including for the EQ/Money Market variable investment
option. Listed below are the currently available portfolios, their investment
objectives and their advisers.
- --------------------------------------------------------------------------------
You can choose from among the variable investment options, the guaranteed
interest option, the fixed maturity options and the account for special dollar
cost averaging.
- --------------------------------------------------------------------------------
24 Contract features and benefits
PORTFOLIOS OF THE TRUSTS
You should note that some portfolios have objectives and strategies that are
substantially similar to those of certain funds that are purchased directly
rather than under a variable insurance product such as the Accumulator(R)
contract. These portfolios may even have the same manager(s) and/or a similar
name. However, there are numerous factors that can contribute to differences in
performance between two investments, particularly over short periods of time.
Such factors include the timing of stock purchases and sales; differences in
fund cash flows; and specific strategies employed by the portfolio manager.
AXA Equitable serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. As such, AXA Equitable oversees
the activities of the investment advisers with respect to the Trusts and is
responsible for retaining or discontinuing the services of those advisers. The
advisers for these Portfolios, listed in the chart below, are those who make
the investment decisions for each Portfolio. The chart also indicates the
investment manager for each of the other Portfolios.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o AXA Equitable
ALLOCATION greater emphasis on current income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o AXA Equitable
ALLOCATION with a greater emphasis on capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
EQUITY o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of risk. o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o AIM Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of current o Alliance Capital Management L.P.
income and capital appreciation. o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P.,
INTERNATIONAL EQUITY through its Bernstein Investment
Research and Management Unit
o J.P. Morgan Investment Management Inc.
o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.,
CORE EQUITY through its Bernstein Investment
Research and Management Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 25
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH o RCM Capital Management LLC
o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE o Institutional Capital Corporation
o MFS Investment Management
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment ManagementLLC
CAP VALUE o TCW Investment Management Company
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
GOVERNMENT SECURITIES relative stability of principal.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE LARGE CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH(1)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
moderate risk to capital.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BEAR STEARNS Seeks to achieve capital appreciation. o Bear Stearns Asset Management Inc.
SMALL COMPANY GROWTH(7)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment
Research and Management Unit
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BOSTON ADVISORS EQUITY Seeks a combination of growth and income to achieve an o Boston Advisors, Inc.
INCOME(4) above-average and consistent total return.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN GROWTH Seeks long-term growth of capital. o Capital Guardian Trust Company
- ------------------------------------------------------------------------------------------------------------------------------------
26 Contract features and benefits
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. o Caywood-Scholl Capital Management
YIELD BOND
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates o Alliance Capital Management L.P.
the total return performance of the S&P 500 Index,
including reinvestment of dividends, at a risk level
consistent with that of the S&P 500 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA Seeks long-term capital growth. o Evergreen Investment Management
Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o SSgA Funds Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent with o J.P. Morgan Investment Management Inc.
moderate risk to capital and maintenance of
liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JP MORGAN VALUE Long-term capital appreciation. o J.P. Morgan Investment Management Inc.
OPPORTUNITIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LONG TERM BOND Seeks to maximize income and capital appreciation o Boston Advisors, Inc.
through investment in long-maturity debt obligations.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT GROWTH AND Capital appreciation and growth of income without o Lord, Abbett & Co. LLC
INCOME excessive fluctuation in market value.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT LARGE CAP Capital appreciation and growth of income with o Lord, Abbett & Co. LLC
CORE reasonable risk.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT MID CAP VALUE Capital appreciation. o Lord, Abbett & Co, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers
VALUE International Limited
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERGERS AND ACQUISITIONS Seeks to achieve capital appreciation. o GAMCO Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary o MFS Investment Management
objective to seek reasonable current income.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 27
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve o Alliance Capital Management L.P.
its assets and maintain liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. o Montag & Caldwell, Inc.
GROWTH(5)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PIMCO REAL RETURN Seeks maximum real return consistent with preservation o Pacific Investment Management
of real capital and prudent investment management. Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SHORT DURATION BOND Seeks current income with reduced volatility of principal. o Boston Advisors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o Alliance Capital Management L. P.
deduction of portfolio expenses) the total return of the
Russell 2000 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY VALUE(8) Seeks to maximize capital appreciation. o GAMCO Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/TCW EQUITY(3) Seeks to achieve long-term capital appreciation. o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/UBS GROWTH AND INCOME(6) Seeks to achieve total return through capital o UBS Global Asset Management
appreciation with income as a secondary (Americas) Inc.
consideration.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN COMSTOCK Capital growth and income. o Morgan Stanley Investment
Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN EMERGING Seeks long-term capital appreciation. o Morgan Stanley Investment
MARKETS EQUITY(2) Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN MID CAP Capital growth. o Morgan Stanley Investment
GROWTH Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/WELLS FARGO MONTGOMERY Seeks long-term capital appreciation. o Wells Capital Management Inc.
SMALL CAP
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE
INSURANCE TRUST
PORTFOLIO NAME Objective Investment Manager/Adviser
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG VIT VALUE Seeks to increase the value of your investment in bull o Charles Schwab Investment Management,
LONG/SHORT EQUITY markets and bear markets through strategies that are Inc.
designed to have limited exposure to general equity o AXA Rosenberg Investment Management LLC
market risk.
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL
FUNDS, INC.
PORTFOLIO NAME Objective Investment Manager
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. REAL ESTATE -- CLASS II Seeks to provide above average current income and long- o Van Kampen (is the name under which
term capital appreciation by investing primarily in equity Morgan Stanley Investment Management
securities of companies in the U.S. real estate industry, Inc. does business in certain
including real estate investment trusts. situations)
- ------------------------------------------------------------------------------------------------------------------------------------
* This portfolio information reflects the portfolio's name change effective
on or about May 9, 2005, subject to regulatory approval. The table below
reflects the portfolio name in effect until on or about May 9, 2005.
The number in the "FN" column corresponds with the number contained in
the chart above.
28 Contract features and benefits
- ----------------------------------------------
FN Portfolio Name until May 9, 2005
- ----------------------------------------------
(1) EQ/Alliance Premier Growth
(2) EQ/Emerging Markets Equity
(3) EQ/Enterprise Equity
(4) EQ/Enterprise Equity Income
(5) EQ/Enterprise Growth
(6) EQ/Enterprise Growth and Income
(7) EQ/Enterprise Small Company Growth
(8) EQ/Enterprise Small Company Value
You should consider the investment objectives, risks and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may
call one of our customer service representatives at 1-800-789-7771.
Contract features and benefits 29
GUARANTEED INTEREST OPTION
The guaranteed interest option is part of our general account and pays interest
at guaranteed rates. We discuss our general account under "More information"
later in this Prospectus.
We assign an interest rate to each amount allocated to the guaranteed interest
option. This rate is guaranteed for a specified period. Therefore, different
interest rates may apply to different amounts in the guaranteed interest
option.
We credit interest daily to amounts in the guaranteed interest option. There
are three levels of interest in effect at the same time in the guaranteed
interest option:
(1) the minimum interest rate guaranteed over the life of the contract,
(2) the yearly guaranteed interest rate for the calendar year, and
(3) the current interest rate.
We set current interest rates periodically, according to our procedures that we
have in effect at the time. We reserve the right to change these procedures.
All interest rates are effective annual rates, but before deduction of annual
administrative charges (if permitted in your state), any withdrawal charges and
any optional benefit charges.
The minimum yearly guaranteed interest rate is 3% for 2005. The minimum yearly
rates we set will never be less than the minimum guaranteed interest rate of 3%
for the life of the contract. Current interest rates will never be less than
the yearly guaranteed interest rate.
See "Transferring your money among the investment options" later in this
Prospectus for restrictions on transfers from the Guaranteed Interest Option.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied the rate to maturity is 3%. This
means that at points in time, there may be no fixed maturity options available.
You can allocate your contributions to one or more of these fixed maturity
options, however, you may not have more than 12 different maturities running
during any contract year. This limit includes any maturities that have had any
allocation or transfers even if the entire amount is withdrawn or transferred
during the contract year. These amounts become part of a non-unitized separate
account. They will accumulate interest at the "rate to maturity" for each fixed
maturity option. The total amount you allocate to and accumulate in each fixed
maturity option is called the "fixed maturity amount." The fixed maturity
options are not available in all states. Check with your financial professional
to see if fixed maturity options are available in your state.
- --------------------------------------------------------------------------------
Fixed maturity options generally range from one to ten years to maturity.
- --------------------------------------------------------------------------------
The rate to maturity you will receive for each fixed maturity option is the
rate to maturity in effect for new contributions allocated to that fixed
maturity option on the date we apply your contribution.
On the maturity date of a fixed maturity option your fixed maturity amount,
assuming you have not made any withdrawals or transfers, will equal your
contribution to that fixed maturity option plus interest, at the rate to
maturity for that contribution, to the date of the calculation. This is the
fixed maturity option's "maturity value." Before maturity, the current value we
will report for your fixed maturity amounts will reflect a market value
adjustment. Your current value will reflect the market value adjustment that we
would make if you were to withdraw all of your fixed maturity amounts on the
date of the report. We call this your "market adjusted amount."
FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with
maturity dates ranging from one to ten years. Not all of these fixed maturity
options will be available for annuitant ages 76 and older. See "Allocating your
contributions" below.
Each new contribution is applied to a new fixed maturity option. When you
applied for an Accumulator(R) contract, a 60-day rate lock-in was applied from
the date the application was signed. Any contributions received and designated
for a fixed maturity option during that period received the then current fixed
maturity option rate or the rate that was in effect on the date that the
application was signed, whichever had been greater. There is no rate lock
available for subsequent contributions to the contract after 60 days, transfers
from the variable investment options or the guaranteed interest option into a
fixed maturity option, or transfers from one fixed maturity option to another.
YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days
before each of your fixed maturity options is scheduled to mature. At that
time, you may choose to have one of the following take place on the maturity
date, as long as none of the restrictive conditions listed in "Allocating your
contributions," below would apply:
(a) transfer the maturity value into another available fixed maturity option,
any of the variable investment options or the guaranteed interest option;
or
(b) withdraw the maturity value (there may be a withdrawal charge).
If we do not receive your choice on or before the fixed maturity option's
maturity date, we will automatically transfer your maturity value into the
shortest available maturity option beginning on that date. As of February 15,
2005, the next available maturity date was February 15, 2013. If no fixed
maturity options are available, we will transfer your maturity value to the
EQ/Money Market option.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender of your contract, or when we make deductions for charges) from a
fixed maturity option before it matures, we will make a market value
adjustment, which will increase or decrease any fixed maturity amount you have
in that fixed maturity option. The amount of the adjustment will depend on two
factors:
(a) the difference between the rate to maturity that applies to the amount
being withdrawn and the rate we have in effect at that time for new fixed
maturity options (adjusted to reflect a similar maturity date), and
(b) the length of time remaining until the maturity date.
In general, if interest rates rise from the time that you originally allocate
an amount to a fixed maturity option to the time that you take a
30 Contract features and benefits
withdrawal, the market value adjustment will be negative. Likewise, if interest
rates drop at the end of that time, the market value adjustment will be
positive. Also, the amount of the market value adjustment, either up or down,
will be greater the longer the time remaining until the fixed maturity option's
maturity date. Therefore, it is possible that the market value adjustment could
greatly reduce your value in the fixed maturity options, particularly in the
fixed maturity options with later maturity dates.
We provide an illustration of the market adjusted amount of specified maturity
values, an explanation of how we calculate the market value adjustment, and
information concerning our general account and investments purchased with
amounts allocated to the fixed maturity options, in "More information" later in
this Prospectus. Appendix III at the end of this Prospectus provides an example
of how the market value adjustment is calculated.
ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING
The account for special dollar cost averaging is part of our general account.
We pay interest at guaranteed rates in this account. We will credit interest to
the amounts that you have in the account for special dollar cost averaging
every day. We set the interest rates periodically, according to procedures that
we have. We reserve the right to change these procedures.
We guarantee to pay our current interest rate that is in effect on the date
that your contribution is allocated to this account. Your guaranteed interest
rate for the time period you select will be shown in your contract for an
initial contribution. The rate will never be less than 3%. See "Allocating your
contributions" below for rules and restrictions that apply to the special
dollar cost averaging program.
ALLOCATING YOUR CONTRIBUTIONS
You may choose from among three ways to allocate your contributions under your
contract: self-directed, principal assurance (at contract issue only), or
dollar cost averaging. We allocate subsequent contributions according to
instructions on file unless you provide new instructions.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options, the guaranteed interest option and fixed maturity options.
Allocations must be in whole percentages and you may change your allocations at
any time. The total of your allocations must equal 100%. If the annuitant is
age 76-80, you may allocate contributions to fixed maturity options with
maturities of seven years or less. If the annuitant is age 81 or older, you may
allocate contributions to fixed maturity options with maturities of five years
or less. Also, you may not allocate amounts to fixed maturity options with
maturity dates that are later than the date annuity payments are to begin.
PRINCIPAL ASSURANCE ALLOCATION
Principal assurance allocation is only available at contract issue. If you
chose this allocation program, you selected a fixed maturity option. We
specified a portion of your initial contribution and allocated it to that fixed
maturity option in an amount that will cause the maturity value to equal the
amount of your entire initial contribution on the fixed maturity option's
maturity date. The maturity date you selected generally could not be later than
10 years, or earlier than 7 years from your contract date. If you were to make
any withdrawals or transfers from the fixed maturity option before the option's
maturity date, the amount in the fixed maturity option will be adjusted and may
no longer grow to equal your initial contribution under the principal assurance
allocation. Principal assurance was not available if none of those maturity
dates were available at the time your contract was issued. You allocated the
remainder of your initial contribution to the variable investment options and
the guaranteed interest option however you chose.
For example, if your initial contribution was $10,000, and on February 15, 2005
you chose the fixed maturity option with a maturity date of February 15, 2015
since the rate to maturity was 3.32% on February 15, 2005, we would have
allocated $7,212 to that fixed maturity option and the balance to your choice
of variable investment options. On the maturity date your value in the fixed
maturity option would be $10,000.
The principal assurance allocation was only available for annuitants ages 80 or
younger when the contract was issued. Had the annuitant been age 76-80, your
principal assurance allocation was limited to the seven year fixed maturity
option only. If you anticipated taking required minimum distributions, you
should have considered whether your values in the variable investment options
and guaranteed interest option would be sufficient to meet your required
minimum distributions. See "Tax information" later in this Prospectus.
DOLLAR COST AVERAGING
We offer a variety of dollar cost averaging programs. You may only participate
in one program at a time. Each program allows you to gradually allocate amounts
to the variable investment options by periodically transferring approximately
the same dollar amount to the variable investment options you select. This will
cause you to purchase more units if the unit value is low and fewer units if
the unit value is high. Therefore, you may get a lower average cost per unit
over the long term. These plans of investing, however, do not guarantee that
you will earn a profit or be protected against losses. You may not make
transfers to the fixed maturity options.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
SPECIAL DOLLAR COST AVERAGING PROGRAM. Subject to state availability, under the
special dollar cost averaging program, you may choose to allocate all or a
portion of any eligible contribution to the account for special dollar cost
averaging. Contributions into the account for special dollar cost averaging may
not be transfers from other investment options. Your initial allocation to any
special dollar cost averaging program time period must be at least $2,000 and
any subsequent contribution to that same time period must be at least $250. You
may only have one time period in effect at any time and once you select a time
period, you may not change it. In Pennsylvania, we refer to this program as
"enhanced rate dollar cost averaging."
Contract features and benefits 31
You may have your account value transferred to any of the variable investment
options. We will transfer amounts from the account for special dollar cost
averaging into the variable investment options over an available time period
that you select. We offer time periods of 3, 6 or 12 months, during which you
will receive an enhanced interest rate. We may also offer other time periods.
Your financial professional can provide information on the time periods and
interest rates currently available in your state, or you may contact our
processing office. If the special dollar cost averaging program was selected at
the time you applied to purchase the Accumulator(R) contract, a 60 day rate
lock was applied from the date of application. Any contribution(s) received
during that 60 day period were credited with the interest rate offered on the
date of application for the remainder of the time period selected at
application. Any contribution(s) received after the 60 day rate lock period
ended will be credited with the then current interest rate for the remainder of
the time period selected at application. Contribution(s) made to a special
dollar cost averaging program selected after the Accumulator(R) contract has
been issued will be credited with the then current interest rate on the date
the contribution is received by AXA Equitable for the time period initially
selected by you. Once the time period you selected has run, you may then select
another time period for future contributions. At that time, you may also select
a different allocation for transfers to the variable investment options, or, if
you wish, we will continue to use the selection that you have previously made.
Currently, your account value will be transferred from the account for special
dollar cost averaging into the variable investment options on a monthly basis.
We may offer this program in the future with transfers on a different basis.
We will transfer all amounts out of the account for special dollar cost
averaging by the end of the chosen time period. The transfer date will be the
same day of the month as the contract date, but not later than the 28th day of
the month. For a special dollar cost averaging program selected after
application, the first transfer date and each subsequent transfer date for the
time period selected will be one month from the date the first contribution is
made into the special dollar cost averaging program, but not later than the
28th of the month.
If you choose to allocate only a portion of an eligible contribution to the
account for special dollar cost averaging, the remaining balance of that
contribution will be allocated to the variable investment options, guaranteed
interest option or fixed maturity options according to your instructions.
The only amounts that should be transferred from the account for special dollar
cost averaging are your regularly scheduled transfers to the variable
investment options. No amounts may be transferred from the account for special
dollar cost averaging to the guaranteed interest option or the fixed maturity
options. If you request to transfer or withdraw any other amounts from the
account for special dollar averaging, we will transfer all of the value that
you have remaining in the account for special dollar cost averaging to the
investment options according to the allocation percentages for special dollar
cost averaging we have on file for you. You may ask us to cancel your
participation at any time.
GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market
option is at least $5,000, you may choose, at any time, to have a specified
dollar amount or percentage of your value transferred from that option to the
other variable investment options and the guaranteed interest option. You can
select to have transfers made on a monthly, quarterly or annual basis. The
transfer date will be the same calendar day of the month as the contract date,
but not later than the 28th day of the month. You can also specify the number
of transfers or instruct us to continue making the transfers until all amounts
in the EQ/Money Market option have been transferred out.
The minimum amount that we will transfer each time is $250. The maximum amount
we will transfer is equal to your value in the EQ/Money Market option at the
time the program is elected, divided by the number of transfers scheduled to be
made.
If, on any transfer date, your value in the EQ/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The general dollar cost averaging program will then end.
You may change the transfer amount once each contract year or cancel this
program at any time.
INVESTMENT SIMPLIFIER
Fixed-dollar option. Under this option you may elect to have a fixed-dollar
amount transferred out of the guaranteed interest option and into the variable
investment options of your choice. Transfers may be made on a monthly,
quarterly or annual basis. You can specify the number of transfers or instruct
us to continue to make transfers until all available amounts in the guaranteed
interest option have been transferred out.
In order to elect the fixed-dollar option, you must have a minimum of $5,000 in
the guaranteed interest option on the date we receive your election form at our
processing office. The transfer date will be the same calendar day of the month
as the contract date but not later than the 28th day of the month. The minimum
transfer amount is $50. Unlike the account for special dollar cost averaging,
this option does not offer enhanced rates. Also, the option is subject to the
guaranteed interest option transfer limitations described under "Transferring
your account value" in "Transferring your money among investment options" later
in this Prospectus. While the program is running, any transfer that exceeds
those limitations will cause the program to end for that contract year. You
will be notified. You must send in a request form to resume the program in the
next or subsequent contract years.
If, on any transfer date, your value in the guaranteed interest option is equal
to or less than the amount you have elected to have transferred, the entire
amount will be transferred, and the program will end. You may change the
transfer amount once each contract year or cancel this program at any time.
Interest sweep option. Under this option, you may elect to have monthly
transfers from amounts in the guaranteed interest option into the variable
investment options of your choice. The transfer date will be the last business
day of the month. The amount we will transfer will be the interest credited to
amounts you have in the guaranteed interest option from the last business day
of the prior month to the last business day of the current month. You must have
at least $7,500 in the guaranteed interest option on the date we receive your
election and on the last business day of each month thereafter to participate
in the interest sweep option. We will automatically cancel the interest sweep
program if the amount in the guaranteed interest option is less
32 Contract features and benefits
than $7,500 on the last day of the month for two months in a row. For the
interest sweep option, the first monthly transfer will occur on the last
business day of the month following the month that we receive your election
form at our processing office.
----------------------------------
You may not participate in any dollar cost averaging program if you are
participating in the rebalancing program. See "Transferring your money among
investment options" later in this Prospectus. You may not elect the special
dollar cost averaging program if the principal assurance program is in effect.
YOUR BENEFIT BASE
A benefit base is used to calculate the guaranteed minimum income benefit and
any death benefit, as described in this section. Your benefit base is not an
account value or a cash value. See also "Our Living Benefit option" and
"Guaranteed minimum death benefit" below.
STANDARD DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money" later in this Prospectus).
6% ROLL UP TO AGE 85 ENHANCED DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
o daily interest; less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money" later in this Prospectus).
The effective annual interest rate credited to this benefit base is:
o 6% (4% in Washington for the enhanced death benefit only) with respect to the
variable investment options (other than EQ/Alliance Intermediate
Government Securities, EQ/Money Market, EQ/PIMCO Real Return and EQ/Short
Duration Bond) and the account for special dollar cost averaging; and
o 3% with respect to the EQ/Alliance Intermediate Government Securities,
EQ/Money Market, EQ/PIMCO Real Return and EQ/Short Duration Bond, the
fixed maturity options, the guaranteed interest option and the loan
reserve account under Rollover TSA (if applicable).
No interest is credited to the benefit base after the contract anniversary
following the annuitant's 85th birthday.
ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT. Your benefit base is equal to
the greater of either:
o your initial contribution to the contract (plus any additional
contributions),
or
o your highest account value on any contract anniversary up to the contract
anniversary following the annuitant's 85th birthday plus any contribution
made since the most recent contract anniversary,
less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money" later in this Prospectus).
GREATER OF 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH
BENEFIT AND THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is equal
to the greater of the benefit base computed for the 6% Roll up to age 85 or the
benefit base computed for the Annual ratchet to age 85, as described
immediately above, on each contract anniversary. For the guaranteed minimum
income benefit, the benefit base is reduced by any applicable withdrawal charge
remaining when the option is exercised.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the guaranteed minimum income benefit and annuity payout
options. The guaranteed minimum income benefit is discussed under "Our Living
Benefit option" below and annuity payout options are discussed under "Your
annuity payout options" in "Accessing your money" later in this Prospectus. The
guaranteed annuity purchase factors are those factors specified in your
contract. The current annuity purchase factors are those factors that are in
effect at any given time. Annuity purchase factors are based on interest rates,
mortality tables, frequency of payments, the form of annuity benefit, and the
annuitant's (and any joint annuitant's) age and sex in certain instances.
OUR LIVING BENEFIT OPTION
The following section provides information about the Living Benefit option,
which was only available at the time you purchased your contract, if the
annuitant was age 20 through 75. The Living Benefit option is a guaranteed
minimum income benefit. If you elected the Living Benefit option at purchase,
you pay an additional charge that is described under "Living Benefit charge" in
"Charges and expenses" or in Appendix VI, depending on when your contract was
issued, later in this Prospectus. The Living Benefit may not have been
available in your state at the time of your purchase. If you purchased your
contract as an Inherited IRA, the guaranteed minimum income benefit was not
available to you. If you purchased your contract to fund a Charitable Remainder
Trust, the guaranteed minimum income benefit was, generally, not available to
you. Subject to our rules, the guaranteed minimum income benefit might have
been available for certain split-funded Charitable Remainder Trusts.
The guaranteed minimum income benefit guarantees you a minimum amount of fixed
income under your choice of a life annuity fixed payout option or an Income
Manager(R) level payment life with a period certain payout option subject to
state availability. You choose which of these payout options you want and
whether you want the option to be paid on a single or joint life basis at the
time you exercise your guar-
Contract features and benefits 33
anteed minimum income benefit. The maximum period certain available under the
Income Manager(R) payout option is 10 years. This period may be shorter,
depending on the annuitant's age, as follows:
- ----------------------------------------------
Level payments
- ----------------------------------------------
Period certain years
Annuitant's ----------------------------
age at excise IRAs NQ
- ----------------------------------------------
60-75 10 10
76 9 10
77 8 10
78 7 10
79 7 10
80 7 10
81 7 9
82 7 8
83 7 7
84 6 6
85 5 5
- ----------------------------------------------
We may also make other forms of payout options available. For a description of
payout options, see "Your annuity payout options" in "Accessing your money"
later in this Prospectus.
- --------------------------------------------------------------------------------
The guaranteed minimum income benefit, which is also known as a living benefit,
should be regarded as a safety net only. It provides income protection if you
elect an income payout while the annuitant is alive.
- --------------------------------------------------------------------------------
When you exercise the guaranteed minimum income benefit, the annual lifetime
income that you will receive will be the greater of (i) your guaranteed minimum
income benefit which is calculated by applying your guaranteed minimum income
benefit base, less any applicable withdrawal charge remaining, at guaranteed
annuity purchase factors, or (ii) the income provided by applying your account
value at our then current annuity purchase factors. For Rollover TSA only, we
will subtract from the benefit base or account value any outstanding loan,
including interest accrued but not paid. You may also elect to receive monthly
or quarterly payments as an alternative. The payments will be less than 1/12 or
1/4 of the annual payments, respectively, due to the effect of interest
compounding. The benefit base is applied only to the Living Benefit guaranteed
annuity purchase factors in your contract and not to any other guaranteed or
current annuity purchase rates. The amount of income you actually receive will
be determined when we receive your request to exercise the benefit.
When you elect to receive annual lifetime income, your contract will terminate
and you will receive a new contract for the annuity payout option. For a
discussion of when your payments will begin and end, see "Exercise of
guaranteed minimum income benefit" below.
The guaranteed minimum income benefit provides a form of insurance and is based
on conservative actuarial factors. The guaranteed annuity purchase factors we
use to determine your Income Manager(R) benefit under the Living Benefit are
more conservative than the guaranteed annuity purchase factors we use for the
Income Manager(R) payout annuity option. This means that, assuming the same
amount is applied to purchase the benefit and that we use guaranteed annuity
purchase factors to compute the benefit, each periodic payment under the Living
Benefit Income Manager(R) will be smaller than each periodic payment under the
Income Manager(R) payout annuity option. Therefore, even if your account value
is less than your benefit base, you may generate more income by applying your
account value to current annuity purchase factors. We will make this comparison
for you when the need arises.
ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll up to
age 85 benefit base, the table below illustrates the guaranteed minimum income
benefit amounts per $100,000 of initial contribution, for a male annuitant age
60 (at issue) on the contract date anniversaries indicated, who has elected the
life annuity fixed payout option, using the guaranteed annuity purchase factors
as of the date of this Prospectus, assuming no additional contributions,
withdrawals, or loans under Rollover TSA contracts, and assuming there were no
allocations to the EQ/Alliance Intermediate Government Securities, EQ/Money
Market, EQ/PIMCO Real Return, EQ/Short Duration Bond, the guaranteed interest
option, the fixed maturity options or the loan reserve account under Rollover
TSA contracts.
guaranteed minimum
Contract date income benefit -- annual
anniversary at exercise income payable for life
10 $11,891
15 $18,597
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date
anniversary that you are eligible to exercise the guaranteed minimum income
benefit, we will send you an eligibility notice illustrating how much income
could be provided as of the contract date anniversary. You must notify us
within 30 days following the contract date anniversary if you want to exercise
the guaranteed minimum income benefit. You must return your contract to us
along with any required information within 30 days following your contract date
anniversary in order to exercise this benefit. You will begin receiving annual
payments one year after the annuity payout contract is issued. If you choose
monthly or quarterly payments, you will receive your payment one month or one
quarter after the annuity payout contract is issued. Payments are always made
on the 15th of the month and generally begin one payment mode from issue. You
may choose to take a withdrawal prior to exercising the guaranteed minimum
income benefit, which will reduce your payments. You may not partially exercise
this benefit. See "Accessing your money" under "Withdrawing your account value"
later in this Prospectus. Payments end with the last payment before the
annuitant's (or joint annuitant's, if applicable) death or, if later, the end
of the period certain (where the payout option chosen includes a period
certain).
You will be eligible to exercise the guaranteed minimum income benefit during
your life and the annuitant's life, as follows:
o If the annuitant was at least age 20 and no older than age 44 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 15th contract date anniversary.
o If the annuitant was at least age 45 and no older than age 49 when the
contract was issued, you are eligible to exercise the guaranteed
34 Contract features and benefits
minimum income benefit within 30 days following each contract date
anniversary after the annuitant is age 60.
o If the annuitant was at least age 50 and no older than age 75 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 10th contract date anniversary.
Please note:
(i) the latest date you may exercise the guaranteed minimum income benefit
is the contract date anniversary following the annuitant's 85th birthday;
(ii) if the annuitant was age 75 when the contract was issued, the only time
you may exercise the guaranteed minimum income benefit is within 30 days
following the first contract date anniversary that it becomes available;
(iii) if the annuitant was older than age 60 at the time an IRA, QP or
Rollover TSA contract was issued, the Living Benefit option may not be an
appropriate feature because the minimum distributions required by tax law
generally must begin before the guaranteed minimum income benefit can be
exercised;
(iv) for Accumulator(R) QP contracts, the Plan participant can exercise the
Living Benefit option only if he or she elects to take a distribution from
the Plan and, in connection with this distribution, the Plan's trustee
changes the ownership of the contract to the participant. This effects a
rollover of the Accumulator(R) QP contract into an Accumulator(R) Rollover
IRA. This process must be completed within the 30-day timeframe following
the contract date anniversary in order for the Plan participant to be
eligible to exercise;
(v) for Accumulator(R) Rollover TSA contracts, you may exercise the Living
Benefit option only if you effect a rollover of the TSA contract to an
Accumulator(R) Rollover IRA. This may only occur when you are eligible for
a distribution from the TSA. This process must be completed within the
30-day timeframe following the contract date anniversary in order for you
to be eligible to exercise;
(vi) for a successor owner/annuitant, the earliest exercise date will be
based on the original contract issue date and the age of successor
owner/annuitant as of the Processing Date successor owner/
annuitant takes effect; and
(vii) if you are the owner but not the annuitant and you die prior to exercise,
then the following applies:
o A successor owner who is not the annuitant may not be able
to exercise the Living Benefit option without causing a tax problem.
You should consider naming the annuitant as successor owner, or if
you do not name a successor owner, as the sole primary beneficiary.
You should carefully review your successor owner and/or beneficiary
designations at least one year prior to the first contract
anniversary on which you could exercise the benefit.
o If the successor owner is the annuitant, the Living Benefit
option continues only if the benefit could be exercised under the
rules described above on a contract anniversary that is within one
year following the owner's death. This would be the only opportunity
for the successor owner to exercise. If the Living Benefit option
cannot be exercised within this timeframe, the benefit will
terminate and the charge for it will no longer apply as of the date
we receive proof of your death and any required information.
o If you designate your surviving spouse as successor owner,
the Living Benefit option continues and your surviving
spouse may exercise the benefit according to the rules described
above even if your spouse is not the annuitant and even if the
benefit is exercised more than one year after your death. If your
surviving spouse dies prior to exercise, the rule described in the
previous bullet applies.
o A successor owner or beneficiary that is a trust or other non-
natural person may not exercise the benefit; in this case, the
benefit will terminate and the charge for it will no longer apply as
of the date we receive proof of your death and any required
information.
See "When an NQ contract owner dies before the annuitant" under "Payment of
death benefit" later in this Prospectus for more information.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
GUARANTEED MINIMUM DEATH BENEFIT
Your contract provides a death benefit. If you did not elect one of the
enhanced death benefits described below, the death benefit is equal to your
account value (without adjustment for any otherwise applicable negative market
value adjustment) as of the date we receive satisfactory proof of death, any
required instructions for the method of payment, information and forms
necessary to effect payment OR the standard death benefit, whichever provides
the highest amount. The standard death benefit is equal to your total
contributions, adjusted for withdrawals (and any associated withdrawal
charges), and any taxes that apply. The standard death benefit was the only
death benefit available for annuitants who were age 85 at issue.
If you elected one of the enhanced death benefits, the death benefit is equal
to your account value as of the date we receive satisfactory proof of the
annuitant's death, any required instructions for the method of payment,
information and forms necessary to effect payment OR your elected enhanced
death benefit on the date of the annuitant's death, adjusted for withdrawals
(and associated withdrawal charges) and taxes that apply, whichever provides
the highest amount.
OPTIONAL ENHANCED DEATH BENEFIT APPLICABLE FOR ANNUITANTS WHO WERE AGES 0
THROUGH 84 AT ISSUE OF NQ CONTRACTS; 20 THROUGH 84 AT ISSUE OF ROLLOVER IRA,
ROTH CONVERSION IRA, FLEXIBLE PREMIUM ROTH IRA, AND ROLLOVER TSA CONTRACTS; 20
THROUGH 70 AT ISSUE OF FLEXIBLE PREMIUM IRA CONTRACTS; 0 THROUGH 70 AT ISSUE
FOR INHERITED IRA CONTRACTS; AND 20 THROUGH 75 AT ISSUE OF QP CONTRACTS.
Subject to state availability, you may have elected one of the following
enhanced death benefits:
Contract features and benefits 35
6% ROLL UP TO AGE 85.
ANNUAL RATCHET TO AGE 85.
THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85.
Each enhanced death benefit is equal to its corresponding benefit base
described earlier in "Your benefit base." Your enhanced death benefit election
may not be changed. In New York, only the standard death benefit and the Annual
ratchet to age 85 enhanced death benefit were available.
----------------------------------
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
See Appendix IV at the end of this Prospectus for an example of how we
calculate an enhanced death benefit.
PROTECTION PLUS(SM)
The following section provides information about the Protection Plus(SM) option,
which was only available at the time you purchased your contract. If Protection
Plus(SM) was not elected when the contract was first issued, neither the owner
nor the successor owner/annuitant can add it subsequently. Protection Plus(SM)
is an additional death benefit as described below. See the appropriate part of
"Tax information" later in this Prospectus for the potential tax consequences
of having purchased the Protection Plus(SM) feature in an NQ, IRA or Rollover
TSA contract.
If the annuitant was 70 or younger when we issued your contract (or if the
successor owner/annuitant is 70 or younger when he or she becomes the successor
owner/annuitant), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit less total net contributions, multiplied by 40%
For purposes of calculating your Protection Plus(SM) benefit, the following
applies: (i) "Net contributions" are the total contributions made (or, if
applicable, the total amount that would otherwise have been paid as a death
benefit had the successor owner/annuitant election not been made plus any
subsequent contributions) reduced on a pro rata basis to reflect withdrawals
(including surrender charges and loans). Reduction on a pro rata basis means
that we calculate the percentage of the current account value that is being
withdrawn and we reduce net contributions by that percentage. For example, if
the account value is $30,000 and you withdraw $12,000, you have withdrawn 40%
of your account value. If the contributions aggregated $40,000 before the
withdrawal, it would be reduced by $16,000 ($40,000 x .40) and net
contributions after the withdrawal would be $24,000 ($40,000-$16,000); (ii)
"Death benefit" is equal to the greater of the account value as of the date we
receive satisfactory proof of death or any applicable guaranteed minimum death
benefit as of the date of death.
If the annuitant was age 71 through 79 when we issued your contract (or if the
successor owner/annuitant is between the ages of 71 and 79 when he or she
becomes the successor owner/annuitant under a contract where Protection Plus(SM)
had been elected at issue), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit (as described above) less total net contributions,
multiplied by 25%
The value of the Protection Plus(SM) death benefit is frozen on the first
contract date anniversary after the annuitant turns age 80, except that the
benefit will be reduced for withdrawals on a pro rata basis. This feature is
not available in every state.
INHERITED IRA BENEFICIARY CONTINUATION CONTRACT
This contract was available to an individual beneficiary of a traditional IRA
or a Roth IRA where the deceased owner held the individual retirement account
or annuity (or Roth individual retirement account or annuity) with an insurance
company or financial institution other than AXA Equitable. The purpose of the
inherited IRA beneficiary continuation contract is to permit the beneficiary to
change the funding vehicle that the deceased owner selected ("original IRA")
while taking the required minimum distribution payments that must be made to
the beneficiary after the deceased owner's death. This contract is intended
only for beneficiaries who want to take payments at least annually over their
life expectancy. These payments generally must begin (or must have begun) no
later than December 31 of the calendar year following the year the deceased
owner died. This contract is not suitable for beneficiaries electing the
"5-year rule." See "Beneficiary continuation option for IRA and Roth IRA
contracts" under "Beneficiary continuation option" in "Payment of death
benefit" later in this Prospectus. You should discuss with your tax adviser
your own personal situation. This contract may not be available in all states.
Please speak with your financial professional for further information.
The inherited IRA beneficiary continuation contract could only have been
purchased by a direct transfer of the beneficiary's interest under the deceased
owner's original IRA. The owner of the inherited IRA beneficiary continuation
contract is the individual who is the beneficiary of the original IRA. (Certain
trusts with only individual beneficiaries are treated as individuals for this
purpose). The contract also contains the name of the deceased owner. In this
discussion, "you" refers to the owner of the inherited IRA beneficiary
continuation contract.
The inherited IRA beneficiary continuation contract could have been purchased
whether or not the deceased owner had begun taking required minimum
distribution payments during his or her life from the original IRA or whether
you had already begun taking required mini-
36 Contract features and benefits
mum distribution payments of your interest as a beneficiary from the deceased
owner's original IRA. You should discuss with your own tax adviser when
payments must begin or must be made.
Under the inherited IRA beneficiary continuation contract:
o You must receive payments at least annually (but may have
elected to receive payments monthly or quarterly). Payments are generally
made over your life expectancy determined in the calendar year after the
deceased owner's death and determined on a term certain basis.
o The beneficiary of the original IRA is the annuitant under the
inherited IRA beneficiary continuation contract. In the case where the
beneficiary is a "See Through Trust," the oldest beneficiary of the trust
is the annuitant.
o An inherited IRA beneficiary continuation contract was not available for
annuitants over age 70.
o The initial contribution had to be a direct transfer from the
deceased owner's original IRA and was subject to minimum contribution
amounts. See "How you can contribute to your contract" earlier in this
section.
o Subsequent contributions of at least $1,000 are permitted but
must be direct transfers of your interest as a beneficiary from another
IRA with a financial institution other than AXA Equitable, where the
deceased owner is the same as under the original IRA contract.
o You may make transfers among the investment options.
o You may choose at any time to withdraw all or a portion of the
account value. Any partial withdrawal must be at least $300. Withdrawal
charges, will apply as described in "Charges and expenses" later in this
Prospectus.
o The Living benefit, successor owner/annuitant feature, special
dollar cost averaging program, automatic investment program and systematic
withdrawals are not available under the Inherited IRA beneficiary
continuation contract.
o If you die, we will pay to a beneficiary that you choose the greater
of the annuity account value or the applicable death benefit.
o Upon your death, your beneficiary has the option to continue taking
required minimum distributions based on your remaining life expectancy
or to receive any remaining interest in the contract in a single sum. The
option elected will be processed when we receive satisfactory proof of
death, any required instructions for the method of payment and any
required information and forms necessary to effect payment. If your
beneficiary elects to continue to take distributions, we will increase the
account value to equal the applicable death benefit if such death benefit
is greater than such account value as of the date we receive satisfactory
proof of death and any required instructions, information and forms.
Thereafter, withdrawal charges will no longer apply. If you had elected
any enhanced death benefits, they will no longer be in effect and charges
for such benefits will stop. The minimum guaranteed death benefit will
also no longer be in effect.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
This is provided for informational purposes only. Since this contract is no
longer available to new purchasers, this cancellation provision is no longer
applicable.
If for any reason you are not satisfied with your contract, you may return it
to us for a refund. To exercise this cancellation right you must mail the
contract, with a signed letter of instruction electing this right, to our
processing office within 10 days after you receive it. If state law requires,
this "free look" period may be longer.
Generally, your refund will equal your account value (less loan reserve
account) under the contract on the day we receive notification of your decision
to cancel the contract and will reflect (i) any investment gain or loss in the
variable investment options (less the daily charges we deduct), (ii) any
guaranteed interest in the guaranteed interest option, (iii) any positive or
negative market value adjustments in the fixed maturity options, and (iv) any
interest in the account for special dollar cost averaging, through the date we
receive your contract. Some states require that we refund the full amount of
your contribution (not reflecting (i), (ii), (iii) or (iv) above). For any IRA
contract returned to us within seven days after you receive it, we are required
to refund the full amount of your contribution.
We may require that you wait six months before you may apply for a contract
with us again if:
o you cancel your contract during the free look period; or
o you change your mind before you receive your contract whether we have
received your contribution or not.
Please see "Tax information" later in this Prospectus for possible consequences
of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA or Flexible Premium
Roth IRA contract, you may cancel your Roth Conversion IRA or Flexible Premium
Roth IRA contract and return to a Rollover IRA or Flexible Premium IRA
contract, whichever applies. Our processing office, or your financial
professional, can provide you with the cancellation instructions.
Contract features and benefits 37
2. Determining your contract's value
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the values you have in: (i) the variable
investment options; (ii) the guaranteed interest option; (iii) market adjusted
amounts in the fixed maturity options; (iv) the account for special dollar cost
averaging; and (v) the loan reserve account (applies for Rollover TSA contracts
only).
Your contract also has a "cash value." At any time before annuity payments
begin, your contract's cash value is equal to the account value, less: (i) the
total amount or a pro rata portion of the annual administrative charge, as well
as optional benefit charges; (ii) any applicable withdrawal charges; and (iii)
the amount of any outstanding loan plus accrued interest (applicable to
Rollover TSA contracts only). Please see "Surrendering your contract to receive
its cash value" in "Accessing your money" later in this Prospectus.
YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS
Each variable investment option invests in shares of a corresponding portfolio.
Your value in each variable investment option is measured by "units." The value
of your units will increase or decrease as though you had invested it in the
corresponding portfolio's shares directly. Your value, however, will be reduced
by the amount of the fees and charges that we deduct under the contract.
The unit value for each variable investment option depends on the investment
performance of that option less daily charges for:
(i) mortality and expense risks;
(ii) administrative expenses; and
(iii) distribution charges.
On any day, your value in any variable investment option equals the number of
units credited to that option, adjusted for any units purchased for or deducted
from your contract under that option, multiplied by that day's value for one
unit. The number of your contract units in any variable investment option does
not change unless they are:
(i) increased to reflect additional contributions;
(ii) decreased to reflect a withdrawal (plus applicable withdrawal charges);
(iii) increased to reflect a transfer into, or decreased to reflect a
transfer out of, a variable investment option; or
(iv) increased or decreased to reflect a transfer of your loan amount from
or to the loan reserve account under a Rollover TSA contract.
In addition, when we deduct the enhanced death benefit, Living Benefit and/or
Protection Plus(SM) benefit charges, the number of units credited to your
contract will be reduced. Your units are also reduced when we deduct the annual
administrative charge. A description of how unit values are calculated is found
in the SAI.
YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION
Your value in the guaranteed interest option at any time will equal: your
contributions and transfers to that option, plus interest, minus withdrawals
out of the option, and charges we deduct.
YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS
Your value in each fixed maturity option at any time before the maturity date
is the market adjusted amount in each option. This is equivalent to your fixed
maturity amount increased or decreased by the market value adjustment. Your
value, therefore, may be higher or lower than your contributions (less
withdrawals) accumulated at the rate to maturity. At the maturity date, your
value in the fixed maturity option will equal its maturity value, provided
there have been no withdrawals or transfers.
YOUR CONTRACT'S VALUE IN THE ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING
Your value in the account for special dollar cost averaging at any time will
equal your contribution allocated to that option, plus interest, less the sum
of all amounts that have been transferred to the variable investment options
you have selected.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose all of your rights under your contract and any
applicable guaranteed benefits.
38 Determining your contract's value
3. Transferring your money among investment options
- --------------------------------------------------------------------------------
TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer
some or all of your account value among the investment options, subject to the
following:
o You may not transfer any amount to the account for special dollar cost
averaging.
o You may not transfer to a fixed maturity option that has a rate to maturity
of 3% or less.
o If the annuitant is age 76-80, you must limit your transfers to fixed
maturity options with maturities of seven years or less. If the annuitant
is age 81 or older, you must limit your transfers to fixed maturity
options of five years or less. As of February 15, 2005, maturities of less
than eight years were not available. Also, the maturity dates may be no
later than the date annuity payments are to begin.
o If you make transfers out of a fixed maturity option other than at its
maturity date, the transfer may cause a market value adjustment.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency, or dollar amount of transfers.
The maximum amount that may be transferred from the guaranteed interest option
to any investment option (including amounts transferred pursuant to the
fixed-dollar option and interest sweep option dollar cost averaging programs
described under "Allocating your contributions" in "Contract features and
benefits" earlier in this Prospectus) in any contract year is the greatest of:
(a) 25% of the amount you have in the guaranteed interest option on the last
day of the prior contract year; or,
(b) the total of all amounts transferred at your request from the guaranteed
interest option to any of the Investment options in the prior contract
year; or,
(c) 25% of amounts transferred or allocated to the guaranteed interest option
during the current contract year.
From time to time, we may remove the restrictions regarding transferring
amounts out of the guaranteed interest option. If we do so, we will tell you.
We will also tell you at least 45 days in advance of the day that we intend to
reimpose the transfer restrictions. When we reimpose the transfer restrictions,
if any dollar cost averaging transfer out of the guaranteed interest option
causes a violation of the 25% outbound restriction, that dollar cost averaging
program will be terminated for the current contract year. A new dollar cost
averaging program can be started in the next or subsequent contract years.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value to be
transferred, and
(3) the investment options to and from which you are transferring.
We will confirm all transfers in writing.
DISRUPTIVE TRANSFER ACTIVITY
You should note that the contract is not designed for professional "market
timing" organizations, or other organizations or individuals engaging in a
market timing strategy. The contract is not designed for programmed transfers,
frequent transfers or transfers that are large in relation to the total assets
of the underlying portfolio.
Frequent transfers, including market timing and other program trading or
short-term trading strategies, may be disruptive to the underlying portfolios
in which the variable investment options invest. Disruptive transfer activity
may adversely affect performance and the interests of long-term investors by
requiring a portfolio to maintain larger amounts of cash or to liquidate
portfolio holdings at a disadvantageous time or price. For example, when market
timing occurs, a portfolio may have to sell its holdings to have the cash
necessary to redeem the market timer's investment. This can happen when it is
not advantageous to sell any securities, so the portfolio's performance may be
hurt. When large dollar amounts are involved, market timing can also make it
difficult to use long-term investment strategies because a portfolio cannot
predict how much cash it will have to invest. In addition, disruptive transfers
or purchases and redemptions of portfolio investments may impede efficient
portfolio management and impose increased transaction costs, such as brokerage
costs, by requiring the portfolio manager to effect more frequent purchases and
sales of portfolio securities. Similarly, a portfolio may bear increased
administrative costs as a result of the asset level and investment volatility
that accompanies patterns of excessive or short-term trading. Portfolios that
invest a significant portion of their assets in foreign securities or the
securities of small- and mid-capitalization companies tend to be subject to the
risks associated with market timing and short-term trading strategies to a
greater extent than portfolios that do not. Securities trading in overseas
markets present time zone arbitrage opportunities when events affecting
portfolio securities values occur after the close of the overseas market but
prior to the close of the U.S. markets. Securities of small- and
mid-capitalization companies present arbitrage opportunities because the market
for such securities may be less liquid than the market for securities of larger
companies, which could result in pricing inefficiencies. Please see the
prospectuses for the underlying portfolios for more information on how
portfolio shares are priced.
We currently use the procedures described below to discourage disruptive
transfer activity. You should understand, however, that these procedures are
subject to the following limitations: (1) they primarily rely on the policies
and procedures implemented by the underlying portfolios; (2) they do not
eliminate the possibility that disruptive transfer activity, including market
timing, will occur or that portfolio performance will be affected by such
activity; and (3) the design of
Transferring your money among investment options 39
market timing procedures involves inherently subjective judgments, which we
seek to make in a fair and reasonable manner consistent with the interests of
all policy and contract owners.
The AXA Premier VIP Trust and EQ Advisors Trust (the "affiliated trusts") have
adopted policies and procedures designed to discourage disruptive transfers by
contract owners investing in the portfolios of the affiliated trusts. The
affiliated trusts discourage frequent purchases and redemptions of portfolio
shares and will not make special arrangements to accommodate such transactions.
As a general matter, the affiliated trusts reserve the right to refuse or limit
any purchase or exchange order by a particular investor (or group of related
investors) if the transaction is deemed harmful to the portfolio's other
investors or would disrupt the management of the portfolio. The affiliated
trusts monitor aggregate inflows and outflows for each portfolio on a daily
basis. On any day when a portfolio's net inflows or outflows exceed an
established monitoring threshold, the affiliated trust obtains from us contract
owner trading activity. The affiliated trusts currently consider transfers into
and out of (or vice versa) the same variable investment option within a five
business day period as potentially disruptive transfer activity. When a
contract owner is identified as having engaged in a potentially disruptive
transfer for the first time, a letter is sent to the contract owner explaining
that there is a policy against disruptive transfer activity and that if such
activity continues certain transfer privileges may be eliminated. If and when
the contract owner is identified a second time as engaged in potentially
disruptive transfer activity, we currently prohibit the use of voice, fax and
automated transaction services. We currently apply such action for the
remaining life of each affected contract. We or the affiliated trusts may
change the definition of potentially disruptive transfer activity, the
monitoring procedures and thresholds, any notification procedures, and the
procedures to restrict this activity. Any new or revised policies and
procedures will apply to all contract owners uniformly. We do not permit
exceptions to our policies restricting disruptive transfer activity.
We may also offer investment options with underlying portfolios that are not
part of the AXA Premier VIP Trust or EQ Advisors Trust (the "unaffiliated
trusts"). Each unaffiliated trust may have its own policies and procedures
regarding disruptive transfer activity, which may be different than those
applied by the affiliated trusts. In most cases, the unaffiliated trust
reserves the right to reject a transfer that it believes, in its sole
discretion, is disruptive (or potentially disruptive) to the management of one
of its portfolios. Please see the prospectus for the underlying trust for
information regarding the policies and procedures, if any, employed by that
trust and any associated risks of investing in that trust. If an unaffiliated
trust advises us that there may be disruptive transfer activity from our
contract owners, we will work with the unaffiliated trust to review contract
owner trading activity. If the underlying trust determines that the trading
activity of a particular contract owner is disruptive, we will take action to
limit the disruptive trading activity of that contract owner as discussed
above.
Contract owners should note that it is not always possible for us and the
underlying trusts to identify and prevent disruptive transfer activity. Our
ability to monitor potentially disruptive transfer activity is limited in
particular with respect to certain group contracts. Group annuity contracts may
be owned by retirement plans on whose behalf we provide transfer instructions
on an omnibus (aggregate) basis, which may mask the disruptive transfer
activity of individual plan participants, and/or interfere with our ability to
restrict communication services. In addition, because we do not monitor for all
frequent trading at the separate account level, contract owners may engage in
frequent trading which may not be detected, for example, due to low net inflows
or outflows on the particular day(s). Therefore, no assurance can be given that
we or the trusts will successfully impose restrictions on all disruptive
transfers. Because there is no guarantee that disruptive trading will be
stopped, some contract owners/ participants may be treated differently than
others, resulting in the risk that some contract owners/participants may be
able to engage in frequent transfer activity while others will bear the effect
of that frequent transfer activity. The potential affects of frequent transfer
activity are discussed above.
REBALANCING YOUR ACCOUNT VALUE
We currently offer a rebalancing program that you can use to automatically
reallocate your account value among the variable investment options. You must
tell us:
(a) the percentage you want invested in each variable investment option (whole
percentages only), and
(b) how often you want the rebalancing to occur (quarterly, semiannually, or
annually on a contract year basis).
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options so that the percentage of your account value that
you specify is invested in each option at the end of each rebalancing date.
Your entire account value in the variable investment options must be included
in the rebalancing program.
- --------------------------------------------------------------------------------
Rebalancing does not assure a profit or protect against loss. You should
periodically review your allocation percentages as your needs change. You may
want to discuss the rebalancing program with your financial professional before
electing the program.
- --------------------------------------------------------------------------------
You may elect the rebalancing program at any time. You may also change your
allocation instructions or cancel the program at any time. If you request a
transfer while the rebalancing program is in effect, we will process the
transfer as requested; your rebalancing allocations will not be changed; and
the rebalancing program will remain in effect unless you request that it be
canceled in writing. There is no charge for the rebalancing feature.
You may not elect the rebalancing program if you are participating in any
dollar cost averaging program. Rebalancing is not available for amounts you
have allocated in the guaranteed interest option or fixed maturity options.
40 Transferring your money among investment options
4. Accessing your money
- --------------------------------------------------------------------------------
WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your account value before annuity payments
begin. The table below shows the methods available under each type of contract.
More information follows the table. If you withdraw more than 90% of a
contract's current cash value, we will treat it as a request to surrender the
contract for its cash value. See "Surrendering your contract to receive its
cash value" below. For the tax consequences of withdrawals, see "Tax
information" later in this Prospectus.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus and "How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death benefit" below for more information
on how withdrawals affect your guaranteed benefits and could potentially cause
your contract to terminate.
- --------------------------------------------------------------------------------
Method of withdrawal
--------------------------------------------------------------
Lifetime
required
Substantially minimum
Contract Lump sum Systematic equal distribution
- --------------------------------------------------------------------------------
NQ Yes Yes No No
- --------------------------------------------------------------------------------
Rollover IRA Yes Yes Yes Yes
- --------------------------------------------------------------------------------
Flexible
Premium IRA Yes Yes Yes Yes
- --------------------------------------------------------------------------------
Roth Conversion
IRA Yes Yes Yes No
- --------------------------------------------------------------------------------
Flexible Premium
Roth IRA Yes Yes Yes No
- --------------------------------------------------------------------------------
Inherited IRA Yes No No **
- --------------------------------------------------------------------------------
QP Yes No No Yes
- --------------------------------------------------------------------------------
Rollover TSA* Yes Yes No Yes
- --------------------------------------------------------------------------------
* For some Rollover TSA contracts, your ability to take withdrawals, loans or
surrender your contract may be limited. You must provide withdrawal
restriction information when you apply for a contract. See "Tax Sheltered
Annuity contracts (TSAs)" in "Tax information" later in this Prospectus.
** This contract pays out post-death required minimum distributions. See
"Inherited IRA beneficiary continuation contract" in "Contract features
and benefits" earlier in this Prospectus.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time.
(Rollover TSA contracts may have restrictions.) The minimum amount you may
withdraw is $300.
Lump sum withdrawals will be subject to a withdrawal charge if they exceed the
15% free withdrawal amount (see "15% free withdrawal amount" in "Charges and
expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is
outstanding, you may only take lump sum withdrawals as long as the cash value
remaining after any withdrawal equals at least 10% of the outstanding loan plus
accrued interest.
SYSTEMATIC WITHDRAWALS
(All contracts except Inherited IRA and QP)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value. (Rollover TSA contracts may have
restrictions)
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 1.2% monthly, 3.6% quarterly and 15.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would
be less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
We will make the withdrawals on any day of the month that you select as long as
it is not later than the 28th day of the month. If you do not select a date, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59-1/2 and 70-1/2.
You may change the payment frequency, or the amount or percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
lump sum withdrawal. You can cancel the systematic withdrawal option at any
time.
Systematic withdrawals are not subject to a withdrawal charge, except to the
extent that, when added to a lump sum withdrawal previously taken in the same
contract year, the systematic withdrawal exceeds the 15% free withdrawal
amount.
SUBSTANTIALLY EQUAL WITHDRAWALS
(Rollover IRA, Roth Conversion IRA, Flexible Premium IRA and Flexible Premium
Roth IRA contracts)
We offer our "substantially equal withdrawals" option to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus. We use one of the
IRS-approved methods for doing this; this is not the exclusive method of
meeting this exception. After consultation with your tax adviser, you may
decide to use another method which would require you to compute amounts
yourself and request lump sum withdrawals. In such a case, a withdrawal charge
may apply. Once you begin to take substantially equal withdrawals, you should
not stop them or change the pattern of your withdrawals until after the
Accessing your money 41
later of age 59-1/2 or five full years after the first withdrawal. If you stop
or change the withdrawals or take a lump sum withdrawal, you may be liable for
the 10% federal tax penalty that would have otherwise been due on prior
withdrawals made under this option and for any interest on the delayed payment
of the penalty.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may change, without penalty, from one of the
IRS-approved methods of calculating fixed payments to another IRS-approved
method (similar to the required minimum distribution rules) of calculating
payments which vary each year.
You may elect to take substantially equal withdrawals at any time before age
59-1/2. We will make the withdrawal on any day of the month that you select as
long as it is not later than the 28th day of the month. You may not elect to
receive the first payment in the same contract year in which you took a lump
sum withdrawal. We will calculate the amount of your substantially equal
withdrawals using the IRS-approved method we offer. The payments will be made
monthly, quarterly or annually as you select. These payments will continue
until we receive written notice from you to cancel this option or you take a
lump sum withdrawal. You may elect to start receiving substantially equal
withdrawals again, but the payments may not restart in the same contract year
in which you took a lump sum withdrawal. We will calculate the new withdrawal
amount.
Substantially equal withdrawals are not subject to a withdrawal charge.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA, Flexible Premium IRA, QP and Rollover TSA contracts only -- See
"Tax information" later in this Prospectus)
We offer our "automatic required minimum distribution (RMD) service" to help
you meet lifetime required minimum distributions under federal income tax
rules. This is not the exclusive way for you to meet these rules. After
consultation with your tax adviser, you may decide to compute required minimum
distributions yourself and request lump sum withdrawals. In such a case, a
withdrawal charge may apply. Before electing this account based withdrawal
option, you should consider whether annuitization might be better in your
situation. If you have elected certain additional benefits, such as the
Guaranteed minimum death benefit, amounts withdrawn from the contract to meet
RMDs will reduce the benefit base and may limit the utility of the benefit.
Also, please refer to "Tax information" later in this Prospectus for
considerations on annuity contracts funding qualified plans, TSAs, and IRAs.
You may elect this service in the year in which you reach age 70-1/2 or in any
later year. The minimum amount we will pay out is $250. Currently, minimum
distribution withdrawal payments will be made annually. See "Required minimum
distributions" in "Tax information" later in this Prospectus for your specific
type of retirement arrangement.
Currently, we do not impose a withdrawal charge on minimum distribution
withdrawals if you are enrolled in our "automatic required minimum distribution
(RMD) service" except if, when added to a lump sum withdrawal previously taken
in the same contract year, the minimum distribution withdrawal exceeds the 15%
free withdrawal amount.
Under Rollover TSA contracts, you may not elect minimum distribution
withdrawals if a loan is outstanding.
- --------------------------------------------------------------------------------
For Rollover IRA, Flexible Premium IRA, and Rollover TSA contracts, we will
send a form outlining the distribution options available in the year you reach
age 70-1/2 (if you have not begun your annuity payments before that time).
- --------------------------------------------------------------------------------
HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your value in the variable investment options and the guaranteed
interest option. If there is insufficient value or no value in the variable
investment options and guaranteed interest option, any additional amount of the
withdrawal required or the total amount of the withdrawal will be withdrawn
from the fixed maturity options in order of the earliest maturity date(s)
first. A market value adjustment may apply to withdrawals from the fixed
maturity options. If the FMO amounts are insufficient, we will deduct all or a
portion of the withdrawal from the account for special dollar cost averaging.
HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED
MINIMUM DEATH BENEFIT
Withdrawals will reduce your guaranteed benefits on either a dollar-for-dollar
basis or on a pro rata basis as explained below:
INCOME BENEFIT AND DEATH BENEFIT
Your applicable benefit base will be reduced on a dollar-for-dollar basis as
long as the sum of your withdrawals in a contract year is 6% or less of the
applicable benefit base on the most recent contract date anniversary. Any
portion of a withdrawal that causes the sum of your withdrawals in a contract
year to exceed 6% of the applicable benefit base on the most recent contract
date anniversary and any subsequent withdrawals in that same contract year will
reduce your applicable benefit base on a pro rata basis. Additional
contributions made during the contract year do not affect the amount of
withdrawals that can be taken on a dollar-for-dollar basis in that contract
year.
The timing of your withdrawals and whether they exceed the 6% threshold
described above can have a significant impact on your guaranteed minimum income
benefit or guaranteed minimum death benefit.
Reduction on a dollar-for-dollar basis means that your current benefit will be
reduced by the dollar amount of the withdrawal. Reduction on a pro rata basis
means that we calculate the percentage of your current account value that is
being withdrawn and we reduce your current benefit by that same percentage. For
example, if your account value is $30,000 and you withdraw $12,000, you have
withdrawn 40% of your account value. If your death benefit was $40,000 before
the withdrawal, it would be reduced by $16,000 ($40,000 x.40) and your new
42 Accessing your money
death benefit after the withdrawal would be $24,000 ($40,000 - $16,000). This
pro rata example assumes that the annual 6% threshold described above has
already been exceeded.
LOANS UNDER ROLLOVER TSA CONTRACTS
You may take loans from a Rollover TSA unless restricted by the employer who
provided the Rollover TSA funds. If you cannot take a loan, or cannot take a
loan without approval from the employer who provided the funds, we will have
this information in our records based on what you and the employer who provided
the funds told us when you purchased your contract. The employer must also tell
us whether special employer plan rules of the Employee Retirement Income
Security Act of 1974 ("ERISA") apply. We will not permit you to take a loan
while you are enrolled in our "automatic required minimum distribution (RMD)
service."
You should read the terms and conditions on our loan request form carefully
before taking out a loan. Under Rollover TSA contracts subject to ERISA, you
may only take a loan with the written consent of your spouse. Your contract
contains further details of the loan provision. Also, see "Tax information"
later in this Prospectus for general rules applicable to loans.
We will permit you to have only one loan outstanding at a time. The minimum
loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your
account value, subject to any limits under the federal income tax rules. The
term of a loan is five years. However, if you use the loan to acquire your
primary residence, the term is 10 years. The term may not extend beyond the
earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
(3) the date a death benefit is paid (the outstanding loan will be deducted
from the death benefit amount).
A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the properly completed
loan request form is received. Interest will accrue daily on your outstanding
loan at a rate we set. The loan interest rate will be equal to the Moody's
Corporate Bond Yield Averages for Baa bonds for the calendar month ending two
months before the first day of the calendar quarter in which the rate is
determined.
LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the
amount of your loan to the loan reserve account. Unless you specify otherwise,
we will subtract your loan on a pro rata basis from your value in the variable
investment options and the guaranteed interest option. If these amounts are
insufficient, any additional amount of the loan will be subtracted from the
fixed maturity options in order of the earliest maturity date(s) first. A
market value adjustment may apply. If FMO amounts are insufficient, we will
deduct all or a portion of the loan from the account for special dollar cost
averaging.
We will credit interest to the amount in the loan reserve account at a rate of
2% lower than the loan interest rate that applies for the time your loan is
outstanding. On each contract date anniversary after the date the loan is
processed, we will transfer the amount of interest earned in the loan reserve
account to the variable investment options on a pro rata basis. When you make a
loan repayment, unless you specify otherwise, we will transfer the dollar
amount of the loan repaid from the loan reserve account to the investment
options according to the allocation percentages we have on our records.
SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time while the
annuitant is living and before you begin to receive annuity payments. (Rollover
TSA contracts may have restrictions.) For a surrender to be effective, we must
receive your written request and your contract at our processing office. We
will determine your cash value on the date we receive the required information.
All benefits under the contract will terminate as of that date.
You may receive your cash value in a single sum payment or apply it to one or
more of the annuity payout options. See "Your annuity payout options" below.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments out of the variable investment
options within seven calendar days after the date of the transaction to which
the request relates. These transactions may include applying proceeds to a
variable annuity, payment of a death benefit, payment of any amount you
withdraw (less any withdrawal charge) and, upon surrender, payment of the cash
value. We may postpone such payments or applying proceeds for any period during
which:
(1) the New York Stock Exchange is closed or restricts trading,
(2) sales of securities or determination of the fair value of a variable
investment option's assets is not reasonably practicable because of an
emergency, or
(3) the SEC, by order, permits us to defer payment to protect people remaining
in the variable investment options.
We can defer payment of any portion of your value in the guaranteed interest
option, fixed maturity options and the account for special dollar cost
averaging (other than for death benefits) for up to six months while you are
living. We also may defer payments for a reasonable amount of time (not to
exceed 10 days) while we are waiting for a contribution check to clear.
All payments are made by check and are mailed to you (or the payee named in a
tax-free exchange) by U.S. mail, unless you request that we use an express
delivery service at your expense.
YOUR ANNUITY PAYOUT OPTIONS
Accumulator(R) offers you several choices of annuity payout options. Some
enable you to receive fixed annuity payments, which can be either level or
increasing, and others enable you to receive variable annuity payments.
You can choose from among the annuity payout options listed below. Restrictions
may apply, depending on the type of contract you own or the annuitant's age
when the contract was issued. In addition, if you
Accessing your money 43
are exercising your guaranteed minimum income benefit under the Living Benefit,
your choice of payout options are those that are available under the Living
Benefit (see "Our Living Benefit option" in "Contract features and benefits"
earlier in this Prospectus).
- --------------------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period certain
Life annuity with refund certain
Period certain annuity
- --------------------------------------------------------------------------------
Variable Immediate Annuity Life annuity (not available in
payout options New York)
Life annuity with period certain
- --------------------------------------------------------------------------------
Income Manager(R) payout options Life annuity with period certain
(available for annuitants age 83 Period certain annuity
or less at contract issue)
- --------------------------------------------------------------------------------
o Life annuity: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment before the
annuitant's death. Because there is no continuation of benefits following
the annuitant's death with this payout option, it provides the highest
monthly payment of any of the life annuity options, so long as the
annuitant is living.
o Life annuity with period certain: An annuity that guarantees payments for the
rest of the annuitant's life. If the annuitant dies before the end of a
selected period of time ("period certain"), payments continue to the
beneficiary for the balance of the period certain. The period certain
cannot extend beyond the annuitant's life expectancy. A life annuity with
a period certain is the form of annuity under the contract that you will
receive if you do not elect a different payout option. In this case, the
period certain will be based on the annuitant's age and will not exceed 10
years.
o Life annuity with refund certain: An annuity that guarantees payments for the
rest of the annuitant's life. If the annuitant dies before the amount
applied to purchase the annuity option has been recovered, payments to the
beneficiary will continue until that amount has been recovered. This
payout option is available only as a fixed annuity.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15, or 20 years. This guaranteed period may
not exceed the annuitant's life expectancy. This option does not guarantee
payments for the rest of the annuitant's life. It does not permit any
repayment of the unpaid principal, so you cannot elect to receive part of
the payments as a single sum payment with the rest paid in monthly annuity
payments. This payout option is available only as a fixed annuity.
The life annuity, life annuity with period certain, and life annuity with
refund certain payout options are available on a single life or joint and
survivor life basis. The joint and survivor life annuity guarantees payments
for the rest of the annuitant's life, and after the annuitant's death, payments
continue to the survivor. We may offer other payout options not outlined here.
Your financial professional can provide details.
FIXED ANNUITY PAYOUT OPTIONS
With fixed annuities, we guarantee fixed annuity payments will be based either
on the tables of guaranteed annuity purchase factors in your contract or on our
then current annuity purchase factors, whichever is more favorable for you.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS
Variable Immediate Annuities are described in a separate prospectus that is
available from your financial professional. Before you select a Variable
Immediate Annuity payout option, you should read the prospectus which contains
important information that you should know.
Variable Immediate Annuities may be funded through your choice of available
variable investment options investing in portfolios of EQ Advisors Trust and
AXA Premier VIP Trust. The contract also offers a fixed income annuity payout
option that can be elected in combination with the variable income annuity
payout option. The amount of each variable income annuity payment will
fluctuate, depending upon the performance of the variable investment options,
and whether the actual rate of investment return is higher or lower than an
assumed base rate.
INCOME MANAGER(R) PAYOUT OPTIONS
The Income Manager(R) payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts may provide higher or
lower income levels, but do not have all the features of the Income Manager(R)
payout annuity contract. You may request an illustration of the Income
Manager(R) payout annuity contract from your financial professional. Income
Manager(R) payout options are described in a separate prospectus that is
available from your financial professional. Before you select an Income
Manager(R) payout option, you should read the prospectus which contains
important information that you should know.
Both NQ and IRA Income Manager(R) payout options provide guaranteed level
payments. The Income Manager(R) (life annuity with period certain) also
provides guaranteed increasing payments (NQ contracts only). You may not elect
an Income Manager(R) payout option without life contingencies unless withdrawal
charges are no longer in effect under your Accumulator(R).
For QP and Rollover TSA contracts, if you want to elect an Income Manager(R)
payout option, we will first roll over amounts in such contract to a Rollover
IRA contract with the plan participant as owner. You must be eligible for a
distribution under the QP or Rollover TSA contract.
You may choose to apply your account value of your Accumulator(R) contract to
an Income Manager(R) payout annuity. In this case, we will consider any amounts
applied as a withdrawal from your Accumulator(R) and we will deduct any
applicable withdrawal charge. For the tax consequences of withdrawals, see "Tax
information" later in this Prospectus.
44 Accessing your money
Depending upon your circumstances, an Income Manager(R) contract may be
purchased on a tax-free basis. Please consult your tax advisor. The Income
Manager(R) payout options are not available in all states.
If you purchase an Income Manager(R) contract in connection with the exercise
of the Living Benefit option, different payout options may apply, as well as
other various differences. See "Our Living Benefit option" in "Contract
features and benefits" earlier in this Prospectus, as well as the Income
Manager(R) Prospectus.
THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION
The amount applied to purchase an annuity payout option varies, depending on
the payout option that you choose, and the timing of your purchase as it
relates to any withdrawal charges or market value adjustments.
If amounts in a fixed maturity option are used to purchase any annuity payout
option, prior to the maturity date, a market value adjustment will apply.
For the fixed annuity payout options and Variable Immediate Annuity payout
options, no withdrawal charge is imposed if you select a life annuity, life
annuity with period certain or life annuity with refund certain.
For the fixed annuity payout option, the withdrawal charge applicable under
your Accumulator(R) is imposed if you select a period certain. If the period
certain is more than 5 years, then the withdrawal charge deducted will not
exceed 5% of the account value.
For the Income Manager(R) life contingent payout options, no withdrawal charge
is imposed under the Accumulator(R). If the withdrawal charge that otherwise
would have been applied to your account value under your Accumulator(R) is
greater than 2% of the contributions that remain in your contract at the time
you purchase your payout option, the withdrawal charges under the Income
Manager(R) will apply. The year in which your account value is applied to the
payout option will be "contract year 1."
SELECTING AN ANNUITY PAYOUT OPTION
When you select a payout option, we will issue you a separate written agreement
confirming your right to receive annuity payments. We require you to return
your contract before annuity payments begin. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
thirteen months from the Accumulator(R) contract date. Except with respect to
the Income Manager(R) annuity payout options, where payments are made on the
15th day of each month, you can change the date your annuity payments are to
begin anytime before that date as long as you do not choose a date later than
the 28th day of any month. Also, that date may not be later than the annuity
maturity date described below:
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier.
In no event will you ever receive payments under a fixed option or an initial
payment under a variable option of less than the minimum amounts guaranteed by
the contract.
If, at the time you elect a payout option, the amount to be applied is less
than $2,000 or the initial payment under the form elected is less than $20
monthly, we reserve the right to pay the account value in a single sum rather
than as payments under the payout option chosen.
ANNUITY MATURITY DATE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 95th birthday.
For contracts issued in Pennsylvania and New York, the maturity date is related
to the contract issue date, as follows:
- --------------------------------------------------------------------------------
New York Pennsylvania
- --------------------------------------------------------------------------------
Maximum Maximum
annuitization annuitization
Issue age age Issue age age
- --------------------------------------------------------------------------------
0-80 90 0-75 85
81 91 76 86
82 92 77 87
83 93 78-80 88
84 94 81-85 90
85 95
- --------------------------------------------------------------------------------
This may also be different in other states.
Before the last day by which annuity payments must begin, we will notify you by
letter. Once you have selected an annuity payout option and payments have
begun, no change can be made other than: (i) transfers (if permitted in the
future) among the variable investment options if a Variable Immediate Annuity
payout option is selected; and (ii) withdrawals or contract surrender (subject
to a market value adjustment) if an Income Manager(R) annuity payout option is
chosen.
Accessing your money 45
5. Charges and expenses
- --------------------------------------------------------------------------------
CHARGES THAT AXA EQUITABLE DEDUCTS
We deduct the following charges each day from the net assets of each variable
investment option. These charges are reflected in the unit values of each
variable investment option:
o A mortality and expense risks charge
o An administrative charge
o A distribution charge
We deduct the following charges from your account value. When we deduct these
charges from your variable investment options, we reduce the number of units
credited to your contract:
o On each contract date anniversary -- an annual administrative charge, if
applicable.
o At the time you make certain withdrawals or surrender your contract -- a
withdrawal charge.
o On each contract date anniversary -- a charge if you elect a death benefit
(other than the Standard death benefit).
o On each contract date anniversary -- a charge for the Living Benefit, if you
elect this optional benefit.
o At the time annuity payments are to begin -- charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your
state. An annuity administrative fee may also apply.
o On each contract date anniversary -- a charge for Protection Plus(SM), if you
elect this optional benefit.
More information about these charges appears below. We will not increase these
charges for the life of your contract, except as noted. We may reduce certain
charges under group or sponsored arrangements. See "Group or sponsored
arrangements" later in this section.
To help with your retirement planning, we may offer other annuities with
different charges, benefits, and features. Please contact your financial
professional for more information.
MORTALITY AND EXPENSE RISKS CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for mortality and expense risks, including the Standard death
benefit. The daily charge is equivalent to an annual rate of .75% of the net
assets in each variable investment option.
The mortality risk we assume is the risk that annuitants as a group will live
for a longer time than our actuarial tables predict. If that happens, we would
be paying more in annuity income than we planned. We also assume a risk that
the mortality assumptions reflected in our guaranteed annuity payment tables,
shown in each contract, will differ from actual mortality experience. Lastly,
we assume a mortality risk to the extent that at the time of death, the
guaranteed minimum death benefit exceeds the cash value of the contract. The
expense risk we assume is the risk that it will cost us more to issue and
administer the contracts than we expect.
ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment
option. The charge, together with the annual administrative charge described
below, is to compensate us for administrative expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
DISTRIBUTION CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for a portion of our sales expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.20% of the net assets in each
variable investment option.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on each contract
date anniversary. We deduct the charge if your account value on the last
business day of the contract year is less than $50,000. If your account value
on such date is $50,000 or more, we do not deduct the charge. During the first
two contract years, the charge is equal to $30 or, if less, 2% of your account
value. The charge is $30 for contract years three and later.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (if permitted in your state) on a pro rata
basis. If those amounts are insufficient, we will deduct all or a portion of
the charge from the fixed maturity options in order of the earliest maturity
date(s) first. A market value adjustment may apply. If the FMO amounts are
insufficient, we will deduct all or a portion of the charge from the account
for special dollar cost averaging. If you surrender your contract during the
contract year, we will deduct a pro rata portion of the charge.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
WITHDRAWAL CHARGE
A withdrawal charge applies in two circumstances: (1) if you make one or more
withdrawals during a contract year that, in total, exceed the 15% free
withdrawal amount, described below, or (2) if you surrender your contract to
receive its cash value or apply your cash value to a non-life contingent payout
option.
The withdrawal charge equals a percentage of the contributions withdrawn. The
percentage that applies depends on how long each
46 Charges and expenses
contribution has been invested in the contract. We determine the withdrawal
charge separately for each contribution according to the following table:
- --------------------------------------------------------------------------------
Contract year
- --------------------------------------------------------------------------------
1 2 3 4 5 6 7 8+
- --------------------------------------------------------------------------------
Percentage of
contribution 7% 7% 6% 6% 5% 3% 1% 0%
- --------------------------------------------------------------------------------
For purposes of calculating the withdrawal charge, we treat the contract year
in which we receive a contribution as "contract year 1." Amounts withdrawn up
to the free withdrawal amount are not considered withdrawal of any
contribution. We also treat contributions that have been invested the longest
as being withdrawn first. We treat contributions as withdrawn before earnings
for purposes of calculating the withdrawal charge. However, federal income tax
rules treat earnings under your contract as withdrawn first. See "Tax
information" later in this Prospectus.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and the withdrawal charge from your account
value. Any amount deducted to pay withdrawal charges is also subject to that
same withdrawal charge percentage. We deduct the charge in proportion to the
amount of the withdrawal subtracted from each investment option. The withdrawal
charge helps cover our sales expenses.
For annuitants that are ages 84 and 85 when the contract is issued in
Pennsylvania, the withdrawal charge will be computed in the same manner as for
other contracts, except that the withdrawal charge schedule will be different.
For these contracts, the withdrawal charge schedule will be 5% of each
contribution made in the first contract year, decreasing by 1% each subsequent
contract year to 0% in the sixth and later contract years.
The withdrawal charge does not apply in the circumstances described below.
15% free withdrawal amount. Each contract year you can withdraw up to 15% of
your account value without paying a withdrawal charge. The 15% free withdrawal
amount is determined using your account value at the beginning of each contract
year, or in the case of the first contract year, your initial contribution,
minus any other withdrawals made during the contract year. Additional
contributions during the contract year do not increase your 15% free withdrawal
amount. The 15% free withdrawal amount does not apply if you surrender your
contract except where required by law.
For NQ contracts issued to a charitable remainder trust, the free withdrawal
amount will equal the greater of: (1) the current account value less
contributions that have not been withdrawn (earnings in the contract) and (2)
the 15% free withdrawal amount defined above.
Disability, terminal illness or confinement to nursing home.
The withdrawal charge does not apply if:
(i) The annuitant has qualified to receive Social Security disability
benefits as certified by the Social Security Administration; or
(ii) We receive proof satisfactory to us (including certification by a
licensed physician) that the annuitant's life expectancy is six months or
less; or
(iii) The annuitant has been confined to a nursing home for more than 90
days (or such other period, as required in your state) as verified by a
licensed physician. A nursing home for this purpose means one that is (a)
approved by Medicare as a provider of skilled nursing care service, or (b)
licensed as a skilled nursing home by the state or territory in which it
is located (it must be within the United States, Puerto Rico, or U.S.
Virgin Islands) and meets all of the following:
- - its main function is to provide skilled, intermediate, or custodial nursing
care;
- - it provides continuous room and board to three or more persons;
- - it is supervised by a registered nurse or licensed practical nurse;
- - it keeps daily medical records of each patient;
- - it controls and records all medications dispensed; and
- - its primary service is other than to provide housing for residents.
We reserve the right to impose a withdrawal charge, in accordance with your
contract and applicable state law, if the conditions described in (i), (ii) or
(iii) above existed at the time a contribution was remitted or if the condition
began within 12 months of the period following remittance. Some states may not
permit us to waive the withdrawal charge in the above circumstances, or may
limit the circumstances for which the withdrawal charge may be waived. Your
financial professional can provide more information or you may contact our
processing office.
FOR CONTRACTS ISSUED IN NEW YORK -- FIXED MATURITY OPTIONS
For contracts issued in New York, the withdrawal charge that applies to
withdrawals taken from amounts in the fixed maturity options will never exceed
7% and will be determined by applying the New York Alternate Scale I shown
below. If you withdraw amounts that have been transferred from one fixed
maturity option to another, we use the New York Alternate Scale II (also shown
below) if it produces a higher charge than Alternate Scale I.
The New York withdrawal charge may not exceed the withdrawal charge that would
normally apply to the contract. If a contribution has been in the contract for
more than 7 years and therefore would have no withdrawal charge, no withdrawal
charge will apply. Use of a New York Alternate Scale can only result in a lower
charge. We will compare
Charges and expenses 47
the result of applying Alternate Scale I or II, as the case may be, to the
result of applying the normal withdrawal charge, and will charge the lower
withdrawal charge.
- --------------------------------------------------------------------------------
NY Alternate Scale I NY Alternate Scale II
Year of investment in fixed maturity Year of transfer within fixed maturity
option* option*
- --------------------------------------------------------------------------------
Within year 1 7% Within year 1 5%
- --------------------------------------------------------------------------------
2 6% 2 4%
- --------------------------------------------------------------------------------
3 5% 3 3%
- --------------------------------------------------------------------------------
4 4% 4 2%
- --------------------------------------------------------------------------------
5 3% 5 1%
- --------------------------------------------------------------------------------
6 2% After year 5 0%
- --------------------------------------------------------------------------------
7 1%
- --------------------------------------------------------------------------------
After year 7 0% Not to exceed 1% times the
number of years remaining
in the fixed maturity
option, rounded to the
higher number of years. In
other words, if 4.3 years
remain, it would be a 5%
charge.
- --------------------------------------------------------------------------------
* Measured from the contract date anniversary prior to the date of the
contribution or transfer
If you take a withdrawal from an investment option other than the fixed
maturity options, the amount available for withdrawal without a withdrawal
charge is reduced. It will be reduced by the amount of the contribution in the
fixed maturity options to which no withdrawal charge applies.
For contracts issued in New York, you should consider that on the maturity date
of a fixed maturity option if we have not received your instructions for
allocation of your maturity value, we will transfer your maturity value to the
fixed maturity option with the shortest available maturity. If we are not
offering other fixed maturity options, we will transfer your maturity value to
the EQ/Money Market option.
The potential for lower withdrawal charges for withdrawals from the fixed
maturity options and the potential for a lower free withdrawal amount than what
would normally apply, should be taken into account when deciding whether to
allocate amounts to, or transfer amounts to or from, the fixed maturity
options.
We will deduct the annual administrative charge and the withdrawal charge from
the variable investment options and the guaranteed interest option as discussed
above. If the amounts in those options are insufficient to cover the charges,
we reserve the right to deduct the charges from the fixed maturity options.
Charges deducted from the fixed maturity options are considered withdrawals
and, as such, will result in a market value adjustment.
GUARANTEED MINIMUM DEATH BENEFIT CHARGE
ANNUAL RATCHET TO AGE 85. If you elected the Annual ratchet to age 85 enhanced
death benefit, we deduct a charge annually from your account value on each
contract date anniversary for which it is in effect. The charge is equal to
0.30% of the Annual ratchet to age 85 benefit base.
6% ROLL UP TO AGE 85. If you elected the 6% Roll up to age 85 enhanced death
benefit, we deduct a charge annually from your account value on each contract
date anniversary for which it is in effect. The charge is equal to 0.45% of the
6% Roll up to age 85 benefit base.
GREATER OF 6% ROLL UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elected
this enhanced death benefit, we deduct a charge annually from your account
value on each contract date anniversary for which it is in effect. The charge
is equal to 0.60% of the greater of the 6% Roll up to age 85 or the Annual
ratchet to age 85 benefit base for which it is in effect.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro-rata basis. If these amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in order of the earliest maturity date(s) first. A market
value adjustment may apply. If the FMO amounts are insufficient, we will deduct
all or a portion of the charge from the account for special dollar cost
averaging.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
STANDARD DEATH BENEFIT. There is no additional charge for the Standard death
benefit.
LIVING BENEFIT CHARGE
If you elected the Living Benefit, we deduct a charge annually from your
account value on each contract date anniversary until such time as you exercise
the guaranteed minimum income benefit, elect another annuity payout option, or
the contract date anniversary after the annuitant reaches age 85, whichever
occurs first. The charge is equal to 0.60% of the applicable benefit base in
effect on the contract date anniversary.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in order of the earliest maturity date(s) first. A market
value adjustment may apply. If the FMO amounts are insufficient, we will deduct
all or a portion of the charge from the account for special dollar cost
averaging.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
PROTECTION PLUS(SM) CHARGE
If you elected Protection Plus(SM), we deduct a charge annually from your
account value on each contract date anniversary for which it is in effect. The
charge is equal to 0.35% of the account value on each contract date anniversary.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in the order of the earliest maturity date(s) first. A market
value adjustment may
48 Charges and expenses
apply. If the FMO amounts are insufficient, we will deduct all or a portion of
the charge from the account for special dollar cost averaging.
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state. Generally, we deduct the charge from
the amount applied to provide an annuity payout option. The current tax charge
that might be imposed varies by jurisdiction and ranges from 0% to 3.5%.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $350 from the amount to be applied to the Variable Immediate
Annuity payout option.
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
o Management fees ranging from 0.10% to 1.50%.
o 12b-1 fees of either 0.25% or 0.35%.
o Operating expenses, such as trustees' fees, independent public accounting
firms' fees, legal counsel fees, administrative service fees, custodian
fees and liability insurance.
o Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of each Trust are purchased at their net asset value, these fees and
expenses are, in effect, passed on to the variable investment options and are
reflected in their unit values. For more information about these charges,
please refer to the prospectuses for the Trusts.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the withdrawal
charge or the mortality and expense risks charge, or change the minimum initial
contribution requirements. We also may change the guaranteed minimum income
benefit or the guaranteed minimum death benefit, or offer variable investment
options that invest in shares of the Trusts that are not subject to the 12b-1
fee. Group arrangements include those in which a trustee or an employer, for
example, purchases contracts covering a group of individuals on a group basis.
Group arrangements are not available for IRA contracts. Sponsored arrangements
include those in which an employer allows us to sell contracts to its employees
or retirees on an individual basis.
Our costs for sales, administration and mortality generally vary with the size
and stability of the group or sponsoring organization, among other factors. We
take all these factors into account when reducing charges. To qualify for
reduced charges, a group or sponsored arrangement must meet certain
requirements, such as requirements for size and number of years in existence.
Group or sponsored arrangements that have been set up solely to buy contracts
or that have been in existence less than six months will not qualify for
reduced charges.
We also may establish different rates to maturity for the fixed maturity
options under different classes of contracts for group or sponsored
arrangements.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these rules from time to
time. Any variation will reflect differences in costs or services and will not
be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules,
ERISA or both. We make no representations with regard to the impact of these
and other applicable laws on such programs. We recommend that employers,
trustees, and others purchasing or making contracts available for purchase
under such programs seek the advice of their own legal and benefits advisers.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that results
in savings of sales and administrative expenses, such as sales through persons
who are compensated by clients for recommending investments and who receive no
commission or reduced commissions in connection with the sale of the contracts.
We will not permit a reduction or elimination of charges where it would be
unfairly discriminatory.
Charges and expenses 49
6. Payment of death benefit
- --------------------------------------------------------------------------------
YOUR BENEFICIARY AND PAYMENT OF BENEFIT
You designated your beneficiary when you applied for your contract. You may
change your beneficiary at any time. The change will be effective on the date
the written request for the change is received in our processing office. We are
not responsible for any beneficiary change request that we do not receive. We
will send you a written confirmation when we receive your request.
Under jointly owned contracts, the surviving owner is considered the
beneficiary, and will take the place of any other beneficiary. You may be
limited as to the beneficiary you can designate in a Rollover TSA contract. In
a QP contract, the beneficiary must be the trustee. Where an NQ contract is
owned by a minor pursuant to the Uniform Gift to Minors Act or the Uniform
Transfers to Minors Act, the beneficiary must be the estate of the annuitant.
Where an IRA contract is owned in a custodial individual retirement account,
the custodian must be the beneficiary so that the custodian can reinvest or
distribute the death benefit as the beneficiary of the account desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
applicable guaranteed minimum death benefit. We determine the amount of the
death benefit (other than the applicable guaranteed minimum death benefit) and
any amount applicable under the Protection Plus(SM) feature, as of the date we
receive satisfactory proof of the annuitant's death, any required instructions
for the method of payment, information and forms necessary to effect payment.
The amount of the applicable guaranteed minimum death benefit will be such
guaranteed minimum death benefit as of the date of the annuitant's death
adjusted for any subsequent withdrawals. The death benefit will be less a
deduction for any outstanding loan plus accrued interest on the date that the
death benefit payment is made (applies to Rollover TSA only).
EFFECT OF THE ANNUITANT'S DEATH
If the annuitant dies before the annuity payments begin, we will pay the death
benefit to your beneficiary.
Generally, the death of the annuitant terminates the contract. However, a
surviving spouse of the deceased owner/annuitant can choose to be treated as
the successor owner/annuitant and continue the contract. Only a spouse who is
the sole primary beneficiary can be a successor owner/annuitant. The successor
owner/annuitant feature is only available under NQ and individually owned IRA
contracts (other than Inherited IRAs).
For NQ and all types of IRA contracts, a beneficiary may be able to have
limited ownership as discussed under "Beneficiary continuation option" below.
WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT
Under certain conditions the owner changes after the original owner's death for
purposes of receiving federal tax law required distributions from the contract.
When the owner is not the annuitant under an NQ contract and the owner dies
before annuity payments begin, unless you specify otherwise, the beneficiary
named to receive the death benefit upon the annuitant's death will become the
successor owner. If you do not want this beneficiary to be the successor owner,
you should name a specific successor owner. You may name a successor owner at
any time during your life by sending satisfactory notice to our processing
office. If the contract is jointly owned and the first owner to die is not the
annuitant, the surviving owner becomes the sole contract owner. This person
will be considered the successor owner for purposes of the distribution rules
described in this section. The surviving owner automatically takes the place of
any other beneficiary designation.
You should carefully consider the following if you have elected the Living
Benefit and you are the owner, but not the annuitant. Because the payments
under the Living Benefit are based on the life of the annuitant, and the
federal tax law required distributions described below are based on the life of
the successor owner, a successor owner who is not also the annuitant may not be
able to exercise the Living Benefit option, if you die before annuity payments
begin. Therefore, one year before you become eligible to exercise the Living
Benefit option, you should consider the effect of your beneficiary designations
on potential payments after your death. For more information, see "Exercise of
guaranteed minimum income benefit," under "Our Living Benefit option," in
"Contract features and benefits" earlier in this Prospectus.
Unless the surviving spouse of the owner who has died (or in the case of a
joint ownership situation, the surviving spouse of the first owner to die) is
the successor owner for this purpose, the entire interest in the contract must
be distributed under the following rules:
o The cash value of the contract must be fully paid to the successor owner (new
owner) within five years after your death (or in a joint ownership
situation, the death of the first owner to die).
o The successor owner may instead elect to receive the cash value as a life
annuity (or payments for a period certain of not longer than the new
owner's life expectancy). Payments must begin within one year after the
non-annuitant owner's death. Unless this alternative is elected, we will
pay any cash value five years after your death (or the death of the first
owner to die).
o A successor owner should name a new beneficiary.
If the surviving spouse is the successor owner or joint owner, the spouse may
elect to continue the contract. No distributions are required as long as the
surviving spouse and annuitant are living.
An eligible successor owner, including a surviving joint owner after the first
owner dies, may elect the beneficiary continuation option for NQ contracts
discussed in "Beneficiary continuation option" below.
HOW DEATH BENEFIT PAYMENT IS MADE
We will pay the death benefit to the beneficiary in the form of the annuity
payout option you have chosen. If you have not chosen an
50 Payment of death benefit
annuity payout option as of the time of the annuitant's death, the beneficiary
will receive the death benefit in a single sum. However, subject to any
exceptions in the contract, our rules and any applicable requirements under
federal income tax rules, the beneficiary may elect to apply the death benefit
to one or more annuity payout options we offer at the time. See "Your annuity
payout options" in "Accessing your money" earlier in this prospectus. Please
note that any annuity payout option chosen may not extend beyond the life
expectancy of the beneficiary.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may elect to
receive the death benefit or continue the contract as successor
owner/annuitant.
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required instructions,
information and forms necessary to effect the successor owner/annuitant
feature, we will increase the account value to equal your elected guaranteed
minimum death benefit as of the date of your death if such death benefit is
greater than such account value, plus any amount applicable under the
Protection Plus(SM) feature, and adjusted for any subsequent withdrawals. The
increase in the account value will be allocated to the investment options
according to the allocation percentages we have on file for your contract.
Thereafter, withdrawal charges will no longer apply to contributions made
before your death. Withdrawal charges will apply if additional contributions
are made. These additional contributions will be considered to be withdrawn
only after all other amounts have been withdrawn. In determining whether your
applicable guaranteed minimum death benefit option will continue to grow, we
will use your surviving spouse's age (as of the date we receive satisfactory
proof of your death, any required instructions and the information and forms
necessary to effect the successor owner/annuitant feature).
Where a NQ contract is owned by a Living Trust, as defined in the contract, and
at the time of the annuitant's death the annuitant's spouse is the sole
beneficiary of the Living Trust, the Trustee, as owner of the contract, may
request that the spouse be substituted as annuitant as of the date of the
annuitant's death. No further change of annuitant will be permitted.
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole beneficiary of the account, the custodian may
request that the spouse be substituted as annuitant after your death.
BENEFICIARY CONTINUATION OPTION
This feature permits a designated individual, on the contract owner's death, to
maintain a contract in the deceased contract owner's name and receive
distributions under the contract, instead of receiving the death benefit in a
single sum. We make this option available to beneficiaries under traditional
IRA, Roth IRA and NQ contracts, subject to state availability. Please speak
with your financial professional for further information.
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. The beneficiary continuation option must be elected by September 30th of
the year following the calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this option. If the election is made, then, as of the
date we receive satisfactory proof of death, any required instructions,
information and forms necessary to effect the beneficiary continuation option
feature, we will increase the account value to equal the applicable death
benefit if such death benefit is greater than such account value, plus any
amount applicable under the Protection Plus(SM) feature, adjusted for any
subsequent withdrawals. Where an IRA contract is owned in a custodial
individual retirement account, the custodian may reinvest the death benefit in
an individual retirement annuity contract, using the account beneficiary as the
annuitant. Please speak with your financial professional for further
information.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy (determined in the calendar year after your death
and determined on a term certain basis). These payments must begin no later
than December 31st of the calendar year after the year of your death. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70-1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed later in this Prospectus in
"Tax information" under "Individual retirement arrangements (IRAs)," the
beneficiary may choose the "5-year rule" option instead of annual payments over
life expectancy. The 5-year rule is always available to beneficiaries under
Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may
take withdrawals as desired, but the entire account value must be fully
withdrawn by December 31st of the calendar year which contains the fifth
anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA
contracts:
o The contract continues in your name for the benefit of your
beneficiary.
o This feature is only available if the beneficiary is an individual.
Certain trusts with only individual beneficiaries will be treated as
individuals for this purpose.
o If there is more than one beneficiary, each beneficiary's share will
be separately accounted for. It will be distributed over the beneficiary's
own life expectancy, if payments over life expectancy are chosen.
o The minimum amount that is required in order to elect the
beneficiary continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment
options but no additional contributions will be permitted.
o If you had elected the guaranteed minimum income benefit or an
optional enhanced death benefit under the contract, they will no longer be
in effect and charges for such benefits will stop. Also, any minimum death
benefit feature will no longer be in effect.
Payment of death benefit 51
o The beneficiary may choose at any time to withdraw all or a portion of the
account value and no withdrawal charges, if any, will apply.
o Any partial withdrawal must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking required minimum distributions based on
the remaining life expectancy of the deceased beneficiary or to receive any
remaining interest in the contract in a lump sum. The option elected will be
processed when we receive satisfactory proof of death, any required
instructions for the method of payment and any required information and forms
necessary to effect payment.
BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known
as Inherited annuity, may only be elected when the NQ contract owner dies
before the annuity commencement date, whether or not the owner and the
annuitant are the same person. If the owner and annuitant are different and the
owner dies before the annuitant, for purposes of this discussion, "beneficiary"
refers to the successor owner. For a discussion of successor owner, see "When
an NQ contract owner dies before the annuitant" earlier in this section. This
feature must be elected within 9 months following the date of your death and
before any other inconsistent election is made. Beneficiaries who do not make a
timely election will not be eligible for this option.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy, determined on a term certain basis and in the
year payments start. These payments must begin no later than one year after the
date of your death and are referred to as "scheduled payments." The beneficiary
may choose the "5-year rule" instead of scheduled payments over life
expectancy. If the beneficiary chooses the 5-year rule, there will be no
scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals
as desired, but the entire account value must be fully withdrawn by the fifth
anniversary of your death.
Under the beneficiary continuation option for NQ contracts (regardless of
whether the owner and annuitant are the same person):
o This feature is only available if the beneficiary is an individual. It
is not available for any entity such as a trust, even if all of the
beneficiaries of the trust are individuals.
o The contract continues in your name for the benefit of your beneficiary.
o If there is more than one beneficiary, each beneficiary's share will
be separately accounted for. It will be distributed over the respective
beneficiary's own life expectancy, if scheduled payments are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment
options but no additional contributions will be permitted.
o If you had elected the guaranteed minimum income benefit or an
optional enhanced death benefit under the contract, they will no longer be
in effect and charges for such benefits will stop. Also, any minimum death
benefit feature will no longer be in effect.
o If the beneficiary chooses the "5-year rule," withdrawals may be
made at any time. If the beneficiary instead chooses scheduled payments,
the beneficiary must also choose between two potential withdrawal options
at the time of election. If the beneficiary chooses "Withdrawal Option 1",
the beneficiary cannot later withdraw funds in addition to the scheduled
payments the beneficiary is receiving; "Withdrawal Option 1" permits total
surrender only. "Withdrawal Option 2" permits the beneficiary to take
withdrawals, in addition to scheduled payments, at any time. However, the
scheduled payments under "Withdrawal Option 1" are afforded favorable tax
treatment as "annuity payments." See "Taxation of nonqualified annuities"
in "Tax Information" later in this Prospectus.
o Any partial withdrawals must be at least $300.
o Your beneficiary will have the right to name a beneficiary to
receive any remaining interest in the contract on the beneficiary's death.
o Upon the death of your beneficiary, the beneficiary he or she has
named has the option to either continue taking scheduled payments based on
the remaining life expectancy of the deceased beneficiary (if scheduled
payments were chosen) or to receive any remaining interest in the contract
in a lump sum. We will pay any remaining interest in the contract in a
lump sum if your beneficiary elects the 5-year rule. The option elected
will be processed when we receive satisfactory proof of death, any
required instructions for the method of payment and any required
information and forms necessary to effect payment.
If you are both the owner and annuitant:
o As of the date we receive satisfactory proof of death, any required
instructions, information and forms necessary to effect the beneficiary
continuation option feature, we will increase the annuity account value to
equal the applicable death benefit if such death benefit is greater than
such account value, plus any amount applicable under the Protection
Plus(SM) feature, adjusted for any subsequent withdrawals.
o No withdrawal charges will apply to any withdrawals by the beneficiary.
If the owner and annuitant are not the same person:
o If the beneficiary continuation option is elected, the beneficiary
automatically becomes the new annuitant of the contract, replacing the
existing annuitant.
o The annuity account value will not be reset to the death benefit
amount.
o The contract's withdrawal charge schedule will continue to be
applied to any withdrawal or surrender other than scheduled payments; the
contract's free corridor amount will continue to apply to withdrawals but
does not apply to surrenders.
o We do not impose a withdrawal charge on scheduled payments
52 Payment of death benefit
except if, when added to any withdrawals previously taken in the same
contract year, including for this purpose a contract surrender, the total
amount of withdrawals and scheduled payments exceed the free corridor
amount. See the "Withdrawal charges" in "Charges and expenses" earlier in
this Prospectus.
If a contract is jointly owned:
o The surviving owner supersedes any other named beneficiary and
may elect the beneficiary continuation option.
o If the deceased joint owner was also the annuitant, see "If you
are both the owner and annuitant" earlier in this section.
o If the deceased joint owner was not the annuitant, see "If the
owner and annuitant are not the same person" earlier in this
section.
Payment of death benefit 53
7. Tax information
- --------------------------------------------------------------------------------
OVERVIEW
In this part of the prospectus, we discuss the current federal income tax rules
that generally apply to Accumulator(R) contracts owned by United States
individual taxpayers. The tax rules can differ, depending on the type of
contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. Therefore, we
discuss the tax aspects of each type of contract separately.
Federal income tax rules include the United States laws in the Internal Revenue
Code, and Treasury Department Regulations and Internal Revenue Service ("IRS")
interpretations of the Internal Revenue Code. These tax rules may change
without notice. We cannot predict whether, when, or how these rules could
change. Any change could affect contracts purchased before the change. Congress
may also consider proposals in the future to comprehensively reform or overhaul
the United States tax and retirement systems, which if enacted, could affect
the tax benefits of a contract.
We cannot provide detailed information on all tax aspects of the contracts.
Moreover, the tax aspects that apply to a particular person's contract may vary
depending on the facts applicable to that person. We do not discuss state
income and other state taxes, federal income tax and withholding rules for
non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the
contract, rights or values under the contract, or payments under the contract,
for example, amounts due to beneficiaries, may be subject to federal or state
gift, estate, or inheritance taxes. You should not rely only on this document,
but should consult your tax adviser before your purchase.
President Bush signed the Economic Growth and Tax Relief Reconciliation Act of
2001 ("EGTRRA") on June 7, 2001. Many of the provisions of EGTRRA became be
effective on January 1, 2002, and are phased in during the first decade of the
twenty-first century. In the absence of future legislation, all of the
amendments made by EGTRRA will no longer apply after December 31, 2010, and the
law in effect in 2001 will apply again. In general, EGTRRA liberalizes
contributions that can be made to all types of tax-favored retirement plans. In
addition to increasing amounts that can be contributed and permitting
individuals over age 50 to make additional contributions, EGTRRA also permits
rollover contributions to be made between different types of tax-favored
retirement plans. Please discuss with your tax adviser how EGTRRA affects your
personal financial situation.
CONTRACTS THAT FUND A RETIREMENT ARRANGEMENT
Generally, there are two types of funding vehicles that are available for
Individual Retirement Arrangements ("IRAs") and Code Section 403(b)
Arrangements ("TSAs"), respectively: an IRA or 403(b) annuity contract such as
this one, or an IRA or 403(b)(7) custodial or other qualified account. Annuity
contracts can also be purchased in connection with retirement plans qualified
under Code Section 401 ("QP contracts"). How these arrangements work, including
special rules applicable to each, are described in the specific sections for
each type of arrangement, below. You should be aware that the funding vehicle
for a qualified arrangement does not provide any tax deferral benefit beyond
that already provided by the Code for all permissible funding vehicles.
Therefore, you should consider the annuity's features and benefits, such as
Accumulator's(R) choice of death benefits and the Living Benefit guaranteed
minimum income benefit, Special Dollar Cost Averaging, selection of investment
funds, guaranteed interest option, fixed maturity options and its choices of
pay-out options, as well as the features and benefits of other permissible
funding vehicles and the relative costs of annuities and other arrangements.
You should be aware that cost may vary depending on the features and benefits
made available and the charges and expenses of the investment options or funds
that you elect.
Beginning in 2006, certain provisions of the Treasury Regulations on required
minimum distributions concerning the actuarial present value of additional
contract benefits could increase the amount required to be distributed from
annuity contracts funding qualified plans, TSAs and IRAs. You should consider
the potential implication of these Regulations before you purchase additional
features under this annuity contract. See also Appendix II at the end of this
Prospectus for a discussion of QP contracts.
TRANSFERS AMONG INVESTMENT OPTIONS
You can make transfers among investment options inside the contract without
triggering taxable income.
TAXATION OF NONQUALIFIED ANNUITIES
CONTRIBUTIONS
You may not deduct the amount of your contributions to a nonqualified annuity
contract.
CONTRACT EARNINGS
Generally, you are not taxed on contract earnings until you receive a
distribution from your contract, whether as a withdrawal or as an annuity
payment. However, earnings are taxable, even without a distribution:
o if a contract fails investment diversification requirements as specified in
federal income tax rules (these rules are based on or are similar to those
specified for mutual funds under the securities laws);
o if you transfer a contract, for example, as a gift to someone other than your
spouse (or former spouse);
o if you use a contract as security for a loan (in this case, the amount
pledged will be treated as a distribution); and
o if the owner is other than an individual (such as a corporation, partnership,
trust, or other non-natural person).
54 Tax information
All nonqualified deferred annuity contracts that AXA Equitable and its
affiliates issue to you during the same calendar year are linked together and
treated as one contract for calculating the taxable amount of any distribution
from any of those contracts.
ANNUITY PAYMENTS
Once annuity payments begin, a portion of each payment is taxable as ordinary
income. You get back the remaining portion without paying taxes on it. This is
your "investment in the contract." Generally, your investment in the contract
equals the contributions you made, less any amounts you previously withdrew
that were not taxable.
For fixed annuity payments, the tax-free portion of each payment is determined
by (1) dividing your investment in the contract by the total amount you are
expected to receive out of the contract, and (2) multiplying the result by the
amount of the payment. For variable annuity payments, your tax-free portion of
each payment is your investment in the contract divided by the number of
expected payments.
Once you have received the amount of your investment in the contract, all
payments after that are fully taxable. If payments under a life annuity stop
because the annuitant dies, there is an income tax deduction for any
unrecovered investment in the contract.
PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN
If you make withdrawals before annuity payments begin under your contract, they
are taxable to you as ordinary income if there are earnings in the contract.
Generally, earnings are your account value less your investment in the
contract. If you withdraw an amount which is more than the earnings in the
contract as of the date of the withdrawal, the balance of the distribution is
treated as a return of your investment in the contract and is not taxable.
PROTECTION PLUS(SM) FEATURE
In order to enhance the amount of the death benefit to be paid at the
annuitant's death, you may have purchased a Protection Plus(SM) rider for your
NQ contract. Although we regard this benefit as an investment protection feature
which is part of the contract and which should have no adverse tax effect, it is
possible that the IRS could take a contrary position or assert that the
Protection Plus(SM) rider is not part of the contract. In such a case the
charges for the Protection Plus(SM) rider could be treated for federal income
tax purposes as a partial withdrawal from the contract. If this were so, such a
deemed withdrawal could be taxable, and for contract owners under age 59-1/2,
also subject to a tax penalty. Were the IRS to take this position, AXA Equitable
would take all reasonable steps to attempt to avoid this result, which could
include amending the contract (with appropriate notice to you).
CONTRACTS PURCHASED THROUGH EXCHANGES
The following information applies if you purchased your NQ contract through an
exchange of another contract. Normally, exchanges of contracts are taxable
events. The exchange was not be taxable under Section 1035 of the Internal
Revenue Code if:
o the contract that was the source of the funds you used to purchase the NQ
contract was another nonqualified deferred annuity contract or life
insurance or endowment contract.
o the owner and the annuitant were the same under the source contract and the
Accumulator(R) NQ contract. If you used a life insurance or endowment
contract, the owner and the insured must have been the same on both sides
of the exchange transaction.
The tax basis, also referred to as your investment in the contract, of the
source contract carried over to the Accumulator(R) NQ contract.
An owner may direct the proceeds of a partial withdrawal from one nonqualified
deferred annuity contract to a different insurer to purchase a new nonqualified
deferred annuity contract on a tax-deferred basis. Special forms, agreement
between the carriers, and provision of cost basis information may be required
to process this type of an exchange.
SURRENDERS
If you surrender or cancel the contract, the distribution is taxable as
ordinary income (not capital gain) to the extent it exceeds your investment in
the contract.
DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH
For the rules applicable to death benefits, see "Payment of death benefit"
earlier in this Prospectus. The tax treatment of a death benefit taken as a
single sum is generally the same as the tax treatment of a withdrawal from or
surrender of your contract. The tax treatment of a death benefit taken as
annuity payments is generally the same as the tax treatment of annuity payments
under your contract.
BENEFICIARY CONTINUATION OPTION
We have received a private letter ruling from the IRS regarding certain tax
consequences of scheduled payments under the beneficiary continuation option
for NQ contracts. See the discussion "Beneficiary continuation option for NQ
Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among
other things, the IRS rules that:
o scheduled payments under the beneficiary continuation option for NQ contracts
satisfy the death of owner rules of Section 72(s)(2) of the Code,
regardless of whether the beneficiary elects Withdrawal Option 1 or
Withdrawal Option 2;
o scheduled payments, any additional withdrawals under Withdrawal Option 2, or
contract surrenders under Withdrawal Option 1 will only be taxable to the
beneficiary when amounts are actually paid, regardless of the Withdrawal
Option selected by the beneficiary;
o a beneficiary who irrevocably elects scheduled payments with Withdrawal
Option 1 will receive "excludable amount" tax treatment on scheduled
payments. See "Annuity payments" earlier in this section. If the
beneficiary elects to surrender the contract before all scheduled payments
are paid, the amount received upon surrender is a non-annuity payment
taxable to the extent it exceeds any remaining investment in the contract.
The ruling specifically does not address the taxation of any payments received
by a beneficiary electing Withdrawal Option 2 (whether scheduled payments or
any withdrawal that might be taken). Before electing the beneficiary
continuation option feature, the individuals you designate as beneficiary or
successor owner should discuss with their tax advisers the consequences of such
elections.
Tax information 55
The tax treatment of a withdrawal after the death of the owner taken as a
single sum or taken as withdrawals under the 5-year rule is generally the same
as the tax treatment of a withdrawal from or surrender of your contract.
EARLY DISTRIBUTION PENALTY TAX
If you take distributions before you are age 59-1/2, a penalty tax of 10% of the
taxable portion of your distribution applies in addition to the income tax.
Some of the available exceptions to the pre-age 59-1/2 penalty tax include
distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o in the form of substantially equal periodic annuity payments for your life
(or life expectancy), or the joint lives (or joint life expectancy) of you
and a beneficiary, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If
you were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. The IRS has said that the owners of variable annuities will
not be treated as owning the separate account assets provided the underlying
portfolios are restricted to variable life and annuity assets. The variable
annuity owners must have the right only to choose among the portfolios, and
must have no right to direct the particular investment decisions within the
portfolios.
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some
issues that remain unclear. For example, the IRS has not issued any guidance as
to whether having a larger number of portfolios available, or an unlimited
right to transfer among them, could cause you to be treated as the owner. We do
not know whether the IRS will ever provide such guidance or whether such
guidance, if unfavorable, would apply retroactively to your contract.
Furthermore, the IRS could reverse its current guidance at any time. We reserve
the right to modify your contract as necessary to prevent you from being
treated as the owner of the assets of Separate Accounts 45 and 49.
SPECIAL RULES FOR NQ CONTRACTS ISSUED IN PUERTO RICO
Income from NQ contracts we issue is U.S. source. A Puerto Rico resident is
subject to U.S. taxation on such U.S. source income. Only Puerto Rico source
income of Puerto Rico residents is excludable from U.S. taxation. Income from
NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable
portion of amounts distributed from a contract may differ in the two
jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax
returns, showing different amounts of income from the contract for each tax
return. Puerto Rico generally provides a credit against Puerto Rico tax for
U.S. tax paid. Depending on your personal situation and the timing of the
different tax liabilities, you may not be able to take full advantage of this
credit.
INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS)
GENERAL
"IRA" stands for individual retirement arrangement. There are two basic types
of such arrangements, individual retirement accounts and individual retirement
annuities. In an individual retirement account, a trustee or custodian holds
the assets funding the account for the benefit of the IRA owner. The assets
typically include mutual funds and/or individual stocks and securities in a
custodial account, and bank certificates of deposit in a trusteed account. In
an individual retirement annuity, an insurance company issues an annuity
contract that serves as the IRA.
There are two basic types of IRAs, as follows:
o Traditional IRAs, typically funded on a pre-tax basis, including SEP-IRAs and
SIMPLE IRAs issued and funded in connection with employer-sponsored
retirement plans; and
o Roth IRAs, funded on an after-tax basis.
Regardless of the type of IRA, your ownership interest in the IRA cannot be
forfeited. You or your beneficiaries who survive you are the only ones who can
receive the IRA's benefits or payments. All types of IRAs qualify for tax
deferral, regardless of the funding vehicle selected.
You can hold your IRA assets in as many different accounts and annuities as you
would like, as long as you meet the rules for setting up and making
contributions to IRAs. However, if you own multiple IRAs, you may be required
to combine IRA values or contributions for tax purposes. For further
information about individual retirement arrangements, you can read Internal
Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)").
This publication is usually updated annually, and can be obtained from any IRS
district office or the IRS website (www.irs.gov).
AXA Equitable designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may have
purchased the contract as either a traditional IRA or Roth IRA. We offered
traditional IRAs in the Rollover IRA and Flexible Premium IRA contracts. We
offered the Roth IRA in the Roth Conversion IRA and Flexible Premium Roth IRA
contracts. We also offered the Inherited IRA for payment of post death required
minimum distributions in traditional IRA and Roth IRA. The first part of this
section covers some of the special tax rules that apply to traditional IRAs.
The next part of this section covers Roth IRAs. The disclosure generally
assumes direct ownership of the individual retirement annuity contract. For
contracts owned in a custodial individual retirement account, the disclosure
will apply only if you terminate your account or transfer ownership of the
contract to yourself.
We have received an opinion letter from the IRS approving the respective forms
of the Accumulator(R) traditional and Roth IRA contracts, as amended to reflect
recent tax law changes, for use as a traditional IRA and a Roth IRA,
respectively. This IRS approval is a determination only as to the form of the
annuity. It does not represent a determination of
56 Tax information
the merits of the annuity as an investment. The contracts submitted for IRS
approval do not include every feature possibly available under the
Accumulator(R) traditional and Roth IRA contracts.
The Inherited IRA beneficiary continuation contract has not been submitted to
the IRS for approval as to form for use as a traditional IRA or Roth IRA.
PROTECTION PLUS(SM) FEATURE
The Protection Plus(SM) feature was offered for IRA contracts, subject to state
and contract availability. We have received IRS opinion letters that the
contract with a Protection Plus(SM) feature qualifies as to form for use as a
traditional IRA and Roth IRA, respectively. This IRS approval is a
determination only as to the form of the annuity. It does not represent a
determination of the merits of the annuity as an investment. The contracts
submitted for IRS approval do not include every feature possibly available
under the Accumulator(R) traditional and Roth IRA contracts. You should consult
with your tax adviser for further information.
Your right to cancel within a certain number of days
This is provided for informational purposes only. Since this contract is no
longer available to new purchasers, this cancellation provision is no longer
applicable.
You can cancel any version of the Accumulator(R) IRA contract (traditional IRA
or Roth IRA) by following the directions in "Your right to cancel within a
certain number of days" in "Contract features and benefits" earlier in this
Prospectus. If you cancel a traditional IRA or Roth IRA contract, we may have
to withhold tax, and we must report the transaction to the IRS. A contract
cancellation could have an unfavorable tax impact.
Traditional individual retirement annuities (traditional IRAs)
Contributions to traditional IRAs. Individuals may make three different types
of contributions to a traditional IRA:
o regular contributions out of earned income or compensation; or
o tax-free "rollover" contributions; or
o direct custodian-to-custodian transfers from other traditional
IRAs ("direct transfers").
Regular contributions to traditional IRAs
Limits on contributions. The "maximum regular contribution amount" for any
taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $4,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for each of the taxable years 2005
and 2006. When your earnings are below $4,000 your earned income or
compensation for the year is the most you can contribute. This limit does not
apply to rollover contributions or direct custodian-to-custodian transfers into
a traditional IRA. You cannot make regular traditional IRA contributions for
the tax year in which you reach age 70-1/2 or any tax year after that.
If you reach age 50 before the close of the taxable year for which you are
making a regular contribution to your IRA, you may be eligible to make an
additional "catch-up contribution" of up to $500 to your traditional IRA for
2005. This amount increases to $1,000 for the taxable year 2006.
Special rules for spouses. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to traditional IRAs
(and Roth IRAs discussed below). Even if one spouse has no compensation or
compensation under $4,000, married individuals filing jointly can contribute up
to $8,000 for each of the taxable years 2005 and 2006 to any combination of
traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the
ability to contribute to traditional IRAs and vice versa. The maximum amount
may be less if earned income is less and the other spouse has made IRA
contributions. No more than a combined total of $4,000 can be contributed
annually to either spouse's traditional and Roth IRAs. Each spouse owns his or
her traditional IRAs and Roth IRAs even if the other spouse funded the
contributions. A working spouse age 70-1/2 or over can contribute up to the
lesser of $4,000 or 100% of "earned income" to a traditional IRA for a
nonworking spouse until the year in which the nonworking spouse reaches age
70-1/2. "Catch-up" contributions may be made as described above for spouses who
are at least age 50 but under age 70-1/2 at any time during the taxable year
for which the contribution is made.
Deductibility of contributions. The amount of traditional IRA contributions
that you can deduct for a taxable year depends on whether you are covered by an
employer-sponsored tax-favored retirement plan, as defined under special
federal income tax rules. Your Form W-2 will indicate whether or not you are
covered by such a retirement plan.
If you are not covered by a retirement plan during any part of the year, you
can make fully deductible contributions to your traditional IRAs for the
taxable year up to the maximum amount discussed earlier in this section under
"Limits on contributions". That is, for each of the taxable years 2005 and
2006, your fully deductible contribution can be up to $4,000, or if less, your
earned income. The dollar limit is $4,500 for people eligible to make age
50-70-1/2 catch-up contributions for 2005, and $5,000 for 2006, respectively.)
If you are covered by a retirement plan during any part of the year, and your
adjusted gross income (AGI) is below the lower dollar figure in a phase-out
range, you can make fully deductible contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls within a phase-out range, you can make partially deductible
contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls above the higher figure in the phase-out range, you may not deduct
any of your regular contributions to your traditional IRAs.
If you are single and covered by a retirement plan during any part of the
taxable year, the deduction for traditional IRA contributions phases out with
AGI between $50,000 and $60,000 in 2005 and later years.
Tax information 57
If you are married and file a joint return, and you are covered by a retirement
plan during any part of the taxable year, the deduction for traditional IRA
contributions phases out with AGI between $70,000 and $80,000 in 2005 and AGI
between $75,000 and $85,000 in 2006. In 2007, the deduction will phase out for
AGI between $80,000 and $100,000.
Married individuals filing separately and living apart at all times are not
considered married for purposes of this deductible contribution calculation.
Generally, the active participation in an employer-sponsored retirement plan of
an individual is determined independently for each spouse. Where spouses have
"married filing jointly" status, however, the maximum deductible traditional
IRA contribution for an individual who is not an active participant (but whose
spouse is an active participant) is phased out for taxpayers with an AGI
between $150,000 and $160,000.
To determine the deductible amount of the contribution for 2005, for example,
you determine AGI and subtract $50,000 if you are single, or $70,000 if you are
married and file a joint return with your spouse. The resulting amount is your
excess AGI. You then determine the limit on the deduction for traditional IRA
contributions using the following formula:
($10,000-excess AGI) times the maximum Equals the adjusted
x regular = deductible
divided by $10,000 contribution contribution for
the year limit
Additional "Saver's Credit" for contributions to a
traditional IRA or Roth IRA
You may be eligible for a nonrefundable income tax credit for contributions you
make to a traditional IRA or Roth IRA. The final year this credit is available
is 2006. If you qualify, you may take this credit even though your traditional
IRA contribution is already fully or partially deductible. To take advantage of
this "saver's credit" you must be 18 or over before the end of the taxable year
for which the contribution is made. You cannot be a full-time student or
claimed as a dependent on another's tax return and your adjusted gross income
cannot exceed $50,000. The amount of the tax credit you can get varies from 10%
of your contribution to 50% of your contribution and depends on your income tax
filing status and your adjusted gross income. The maximum annual contribution
eligible for the saver's credit is $2,000. If you and your spouse file a joint
return and each of you qualifies, each is eligible for a maximum annual
contribution of $2,000. Your saver's credit may also be reduced if you take or
have taken a taxable distribution from any plan eligible for a saver's credit
contribution -- even if you make a contribution to one plan and take the
distribution from another plan -- during the "testing period." The "testing
period" begins two years before the year for which you make the contribution
and ends when your tax return is due for the year for which you make the
contribution. Saver's-credit-eligible contributions may be made to a 401(k)
plan, 403(b) TSA, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA,
as well as a traditional IRA or Roth IRA.
Nondeductible regular contributions. If you are not eligible to deduct part or
all of the traditional IRA contribution, you may still make nondeductible
contributions on which earnings will accumulate on a tax-deferred basis. The
combined deductible and nondeductible contributions to your traditional IRA (or
the nonworking spouse's traditional IRA) may not, however, exceed the maximum
dollar per person limit for the applicable taxable year ($4,000 for 2005 and
2006). The dollar limit is $4,500 in 2005 and $5,000 in 2006 for people
eligible to make age 50-70-1/2 "catch-up" contributions. See "Excess
contributions" later in this section. You must keep your own records of
deductible and nondeductible contributions in order to prevent double taxation
on the distribution of previously taxed amounts. See "Withdrawals, payments and
transfers of funds out of traditional IRAs" later in this section.
If you are making nondeductible contributions in any taxable year, or you have
made nondeductible contributions to a traditional IRA in prior years and are
receiving distributions from any traditional IRA, you must file the required
information with the IRS. Moreover, if you are making nondeductible traditional
IRA contributions, you must retain all income tax returns and records
pertaining to such contributions until interests in all traditional IRAs are
fully distributed.
When you can make regular contributions. If you file your tax returns on a
calendar year basis like most taxpayers, you have until the April 15 return
filing deadline (without extensions) of the following calendar year to make
your regular traditional IRA contributions for a taxable year.
Rollover and transfer contributions to traditional IRAs
Rollover contributions may be made to a traditional IRA from these "eligible
retirement plans":
o qualified plans;
o governmental employer 457(b) plans;
o TSAs (including Internal Revenue Code Section 403(b)(7) custodial accounts);
and
o other traditional IRAs.
Direct transfer contributions may only be made directly from one traditional
IRA to another.
Any amount contributed to a traditional IRA after you reach age 70-1/2 must be
net of your required minimum distribution for the year in which the rollover or
direct transfer contribution is made.
Rollovers from "eligible retirement plans" other than traditional IRAs
Your plan administrator will tell you whether or not your distribution is
eligible to be rolled over. Spousal beneficiaries and spousal alternate payees
under qualified domestic relations orders may roll over funds on the same basis
as the plan participant.
There are two ways to do rollovers:
o Do it yourself:
You actually receive a distribution that can be rolled over and you roll
it over to a traditional IRA within 60 days after the date you receive
the funds. The distribution from your eligible retirement plan will be
net of 20% mandatory federal income tax withholding. If you want, you can
replace the withheld funds yourself and roll over the full amount.
o Direct rollover:
58 Tax information
You tell the trustee or custodian of the eligible retirement plan to send
the distribution directly to your traditional IRA issuer. Direct rollovers
are not subject to mandatory federal income tax withholding.
All distributions from a TSA, qualified plan or governmental employer 457(b)
plan are eligible rollover distributions, unless the distributions are:
o "required minimum distributions" after age 70-1/2 or retirement
from service with the employer; or
o substantially equal periodic payments made at least annually for
your life (or life expectancy) or the joint lives (or joint life
expectancies) of you and your designated beneficiary; or
o substantially equal periodic payments made for a specified period
of 10 years or more; or
o hardship withdrawals; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o death benefit payments to a beneficiary who is not your surviving
spouse; or
o qualified domestic relations order distributions to a beneficiary
who is not your current spouse or former spouse.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental employer 457(b) plan are not subject to the
additional 10% federal income tax penalty for premature distributions, but they
may become subject to this penalty if you roll the funds to a different type of
eligible retirement plan, such as a traditional IRA, and subsequently take a
premature distribution.
Rollovers of after-tax contributions from eligible retirement plans other than
traditional IRAs
Any after-tax contributions you have made to a qualified plan or TSA (but not a
governmental employer 457(b) plan) may be rolled over to a traditional IRA
(either in a direct rollover or a rollover you do yourself). When the recipient
plan is a traditional IRA, you are responsible for recordkeeping and
calculating the taxable amount of any distributions you take from that
traditional IRA. See "Taxation of Payments" later in this section under
"Withdrawals, payments and transfers of funds out of traditional IRAs."
After-tax contributions in a traditional IRA cannot be rolled over from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan.
Rollovers from traditional IRAs to traditional IRAs
You may roll over amounts from one traditional IRA to one or more of your other
traditional IRAs if you complete the transaction within 60 days after you
receive the funds. You may make such a rollover only once in every 12-month
period for the same funds. Trustee-to-trustee or custodian-to-custodian direct
transfers are not rollover transactions. You can make these more frequently
than once in every 12-month period.
SPOUSAL ROLLOVERS AND DIVORCE-RELATED DIRECT TRANSFERS
The surviving spouse beneficiary of a deceased individual can roll over funds
from, or directly transfer funds from, an inherited traditional IRA to one or
more other traditional IRAs. Also, in some cases, traditional IRAs can be
transferred on a tax-free basis between spouses or former spouses as a result
of a court-ordered divorce or separation decree.
Excess contributions
Excess contributions to IRAs are subject to a 6% excise tax for the year in
which made and for each year after until withdrawn. The following are excess
contributions to IRAs:
o regular contributions of more than the maximum regular contri
bution amount for the applicable taxable year; or
o regular contributions to a traditional IRA made after you reach
age 70-1/2; or
o rollover contributions of amounts which are not eligible to be
rolled over, for example, minimum distributions required to be made after
age 70-1/2.
You can avoid the excise tax by withdrawing an excess contribution (rollover or
regular) before the due date (including extensions) for filing your federal
income tax return for the year. If it is an excess regular traditional IRA
contribution, you cannot take a tax deduction for the amount withdrawn. You do
not have to include the excess contribution withdrawn as part of your income.
It is also not subject to the 10% additional penalty tax on early
distributions, discussed later in this section under "Early distribution
penalty tax." You do have to withdraw any earnings that are attributed to the
excess contribution. The withdrawn earnings would be included in your gross
income and could be subject to the 10% penalty tax.
Even after the due date for filing your return, you may withdraw an excess
rollover contribution, without income inclusion or 10% penalty, if:
(1) the rollover was from an eligible retirement plan to a traditional
IRA;
(2) the excess contribution was due to incorrect information that the
plan provided; and
(3) you took no tax deduction for the excess contribution.
Recharacterizations
Amounts that have been contributed as traditional IRA funds may subsequently be
treated as Roth IRA funds. Special federal income tax rules allow you to change
your mind again and have amounts that are
Tax information 59
subsequently treated as Roth IRA funds, once again treated as traditional IRA
funds. You do this by using the forms we prescribe. This is referred to as
having "recharacterized" your contribution.
Withdrawals, payments and transfers of funds out of traditional IRAs
No federal income tax law restrictions on withdrawals. You can withdraw any or
all of your funds from a traditional IRA at any time. You do not need to wait
for a special event like retirement.
Taxation of payments. Earnings in traditional IRAs are not subject to federal
income tax until you or your beneficiary receive them. Taxable payments or
distributions include withdrawals from your contract, surrender of your
contract and annuity payments from your contract. Death benefits are also
taxable.
Except as discussed below, the total amount of any distribution from a
traditional IRA must be included in your gross income as ordinary income. We
report all payments from traditional IRA contracts on IRS Form 1099R as fully
taxable.
If you have ever made nondeductible IRA contributions to any traditional IRA
(it does not have to be to this particular traditional IRA contract), those
contributions are recovered tax free when you get distributions from any
traditional IRA. It is your responsibility to keep permanent tax records of all
your nondeductible contributions to traditional IRAs so that you can correctly
report the taxable amount of any distribution on your own tax return. At the
end of any year in which you have received a distribution from any traditional
IRA, you calculate the ratio of your total nondeductible traditional IRA
contributions (less any amounts previously withdrawn tax free) to the total
account balances of all traditional IRAs you own at the end of the year plus
all traditional IRA distributions made during the year. Multiply this by all
distributions from the traditional IRA during the year to determine the
nontaxable portion of each distribution.
A distribution from a traditional IRA is not taxable if:
o the amount received is a withdrawal of excess contributions, as
described under "Excess contributions" earlier in this section; or
o the entire amount received is rolled over to another traditional
IRA or other eligible retirement plan which agrees to accept the funds.
(See "Rollovers from eligible retirement plans other than traditional
IRAs" under "Rollover and transfer contributions to traditional IRAs"
earlier in this section.)
The following are eligible to receive rollovers of distributions from a
traditional IRA: a qualified plan, a TSA or a governmental employer 457(b)
plan. After-tax contributions in a traditional IRA cannot be rolled from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan. Before you decide to roll over a distribution from a
traditional IRA to another eligible retirement plan, you should check with the
administrator of that plan about whether the plan accepts rollovers and, if so,
the types it accepts. You should also check with the administrator of the
receiving plan about any documents required to be completed before it will
accept a rollover.
Distributions from a traditional IRA are not eligible for favorable ten-year
averaging and long-term capital gain treatment available under limited
circumstances for certain distributions from qualified plans. If you might be
eligible for such tax treatment from your qualified plan, you may be able to
preserve such tax treatment even though an eligible rollover from a qualified
plan is temporarily rolled into a "conduit IRA" before being rolled back into a
qualified plan. See your tax adviser.
Required minimum distributions
Background on Regulations--Required Minimum Distributions. Distributions must
be made from traditional IRAs according to the rules contained in the Code and
Treasury Regulations. Certain provisions of the Treasury Regulations will
require, beginning in 2006, that the actuarial present value of additional
annuity contract benefits be added to the dollar amount credited for purposes
of calculating certain types of required minimum distributions from individual
retirement annuity contracts. This could increase the amount required to be
distributed from these contracts if you take annual withdrawals instead of
annuitizing. Please consult your tax adviser concerning applicability of these
complex rules to your situation.
Lifetime required minimum distributions. You must start taking annual
distributions from your traditional IRAs for the year in which you turn age
70-1/2.
When you have to take the first lifetime required minimum distribution. The
first required minimum distribution is for the calendar year in which you turn
age 70-1/2. You have the choice to take this first required minimum
distribution during the calendar year you actually reach age 70-1/2, or to
delay taking it until the first three-month period in the next calendar year
(January 1 - April 1). Distributions must start no later than your Required
Beginning Date, which is April 1st of the calendar year after the calendar year
in which you turn age 70-1/2. If you choose to delay taking the first annual
minimum distribution, then you will have to take two minimum distributions in
that year -- the delayed one for the first year and the one actually for that
year. Once minimum distributions begin, they must be made at some time each
year.
How you can calculate required minimum distributions.
There are two approaches to taking required minimum distributions --
"account-based" or "annuity-based."
ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the
value of your traditional IRA as of December 31st of the past calendar year by
a number corresponding to your age from an IRS table. This gives you the
required minimum distribution amount for that particular IRA for that year. If
your spouse is your sole beneficiary and more than 10 years younger than you,
the dividing number you use may be from another IRS table and may produce a
smaller lifetime required minimum distribution amount. Regardless of the table
used, the required minimum distribution amount will vary each year as the
account value and the divisor change. If you initially choose an account-based
method, you may later apply your traditional IRA funds to a life annuity-based
payout with any certain period not exceeding remaining life expectancy,
determined in accordance with IRS tables.
ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to
do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a desig-
60 Tax information
nated beneficiary or for a period certain not extending beyond applicable life
expectancies, determined in accordance with IRS tables.
Do you have to pick the same method to calculate your required minimum
distributions for all of your traditional IRAs and other retirement plans? No.
If you want, you can choose a different method for each of your traditional
IRAs and other retirement plans. For example, you can choose an annuity payout
from one IRA, a different annuity payout from a qualified plan and an
account-based annual withdrawal from another IRA.
Will we pay you the annual amount every year from your traditional IRA based on
the method you choose? We will only pay you automatically if you affirmatively
select an annuity payout option or an account-based withdrawal option such as
our "automatic required minimum distribution (RMD) service." Even if you do not
enroll in our service we will calculate the amount of the required minimum
distribution withdrawal for you, if you so request in writing. However, in that
case you will be responsible for asking us to pay the required minimum
distribution withdrawal to you.
Also, the IRS will let you calculate the required minimum distribution for each
traditional IRA that you maintain, using the method that you picked for that
particular IRA. You can add these required minimum distribution amount
calculations together. As long as the total amount you take out every year
satisfies your overall traditional IRA required minimum distribution amount,
you may choose to take your annual required minimum distribution from any one
or more traditional IRAs that you own.
What if you take more than you need to for any year? The required minimum
distribution amount for your traditional IRAs is calculated on a year-by-year
basis. There are no carry-back or carry-forward provisions. Also, you cannot
apply required minimum distribution amounts you take from your qualified plans
to the amounts you have to take from your traditional IRAs and vice versa.
What if you take less than you need to for any year? Your IRA could be
disqualified, and you could have to pay tax on the entire value. Even if your
IRA is not disqualified, you could have to pay a 50% penalty tax on the
shortfall (required amount for traditional IRAs less amount actually taken). It
is your responsibility to meet the required minimum distribution rules. We will
remind you when our records show that you are within the age group which must
take lifetime required minimum distributions. If you do not select a method
with us, we will assume you are taking your required minimum distribution from
another traditional IRA that you own.
What are the required minimum distribution payments after you die? These could
vary depending on whether you die before or after your Required Beginning Date
for lifetime required minimum distribution payments, and the status of your
beneficiary. The following assumes that you have not yet elected an
annuity-based payout at the time of your death. If you elect an annuity-based
payout, payments (if any) after your death must be made at least as rapidly as
when you were alive.
Individual beneficiary. Regardless of whether your death occurs before or after
your Required Beginning Date, an individual death beneficiary calculates annual
post-death required minimum distribution payments based on the beneficiary's
life expectancy using the "term certain method." That is, he or she determines
his or her life expectancy using the IRS-provided life expectancy tables as of
the calendar year after the owner's death and reduces that number by one each
subsequent year.
If you die before your Required Beginning Date, the rules permit any individual
beneficiary, including a spousal beneficiary, to elect instead to apply the
"5-year rule." Under this rule, instead of annual payments having to be made
beginning with the first in the year following the owner's death, the entire
account must be distributed by the end of the calendar year which contains the
fifth anniversary of the owners death. No distribution is required before that
fifth year.
Spousal beneficiary. If you die after your Required Beginning Date, and your
death beneficiary is your surviving spouse, your spouse has a number of
choices. Post-death distributions may be made over your spouse's single life
expectancy. Any amounts distributed after that surviving spouse's death are
made over the spouse's life expectancy calculated in the year of his/her death,
reduced by one for each subsequent year. In some circumstances, your surviving
spouse may elect to become the owner of the traditional IRA and halt
distributions until he or she reaches age 70-1/2, or roll over amounts from
your traditional IRA into his/her own traditional IRA or other eligible
retirement plan.
If you die before your Required Beginning Date, and the death beneficiary is
your surviving spouse, the rules permit the spouse to delay starting payments
over his/her life expectancy until the year in which you would have attained
age 70-1/2.
Non-individual beneficiary. If you die after your Required Beginning Date, and
your death beneficiary is a non-individual, such as the estate, the rules
permit the beneficiary to calculate post-death required minimum distribution
amounts based on the owner's life expectancy in the year of death. However,
note that we need an individual annuitant to keep an annuity contract in force.
If the beneficiary is not an individual, we must distribute amounts remaining
in the annuity contract after the death of the annuitant.
If you die before your Required Beginning Date for lifetime required minimum
distribution payments, and the death beneficiary is a non-individual, such as
the estate, the rules continue to apply the 5-year rule discussed earlier under
"Individual beneficiary." Please note that we need an individual annuitant to
keep an annuity contract in force. If the beneficiary is not an individual, we
must distribute amounts remaining in the annuity contract after the death of
the annuitant.
Successor owner and annuitant
If your spouse is the sole primary beneficiary and elects to become the
successor owner and annuitant, no death benefit is payable until your surviving
spouse's death.
Payments to a beneficiary after your death
IRA death benefits are taxed the same as IRA distributions.
Tax information 61
Borrowing and loans are prohibited transactions
You cannot get loans from a traditional IRA. You cannot use a traditional IRA
as collateral for a loan or other obligation. If you borrow against your IRA or
use it as collateral, its tax-favored status will be lost as of the first day
of the tax year in which this prohibited event occurs. If this happens, you
must include the value of the traditional IRA in your federal gross income.
Also, the early distribution penalty tax of 10% may apply if you have not
reached age 59-1/2 before the first day of that tax year.
Early distribution penalty tax
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a traditional IRA made before you reach age 59-1/2. Some of
the available exceptions to the pre-age 59-1/2 penalty tax include
distributions:
o on or after your death; or
o because you are disabled (special federal income tax definition);
or
o used to pay certain extraordinary medical expenses (special fed-
eral income tax definition); or
o used to pay medical insurance premiums for unemployed
individuals (special federal income tax definition); or
o used to pay certain first-time home buyer expenses (special fed-
eral income tax definition; $10,000 lifetime total limit for these
distributions from all your traditional and Roth IRAs); or
o used to pay certain higher education expenses (special federal
income tax definition); or
o in the form of substantially equal periodic payments made at
least annually over your life (or your life expectancy) or over the joint
lives of you and your beneficiary (or your joint life expectancies) using
an IRS-approved distribution method.
To meet this last exception, you could elect to apply your contract value to an
Income Manager(R) (life annuity with a period certain) payout annuity contract
(level payments version). You could also elect the substantially equal
withdrawals option. We will calculate the substantially equal annual payments,
using your choice of IRS-approved methods we offer. Although substantially
equal withdrawals and Income Manager(R) payments are not subject to the 10%
penalty tax, they are taxable as discussed in "Withdrawals, payments and
transfers of funds out of traditional IRAs" earlier in this section. Once
substantially equal withdrawals or Income Manager(R) annuity payments begin,
the distributions should not be stopped or changed until after the later of
your reaching age 59-1/2 or five years after the date of the first
distribution, or the penalty tax, including an interest charge for the prior
penalty avoidance, may apply to all prior distributions under either option.
Also, it is possible that the IRS could view any additional withdrawal or
payment you take from your contract as changing your pattern of substantially
equal withdrawals or Income Manager(R) payments for purposes of determining
whether the penalty applies.
Roth individual retirement annuities (Roth IRAs)
This section of the Prospectus covers some of the special tax rules that apply
to Roth IRAs. If the rules are the same as those that apply to the traditional
IRA, we will refer you to the same topic under "traditional IRAs."
The Accumulator(R) Roth IRA contract is designed to qualify as a Roth
individual retirement annuity under Sections 408A(b) and 408(b) of the Internal
Revenue Code.
Contributions to Roth IRAs
Individuals may make four different types of contributions to a Roth IRA:
o regular after-tax contributions out of earnings; or
o taxable rollover contributions from traditional IRAs ("conversion"
contributions); or
o tax-free rollover contributions from other Roth IRAs; or
o tax-free direct custodian-to-custodian transfers from other Roth
IRAs ("direct transfers").
Regular after-tax, direct transfer and rollover contributions may be made to a
Roth Conversion IRA or a Flexible Premium Roth IRA contract. If you use the
forms we require, we will also accept traditional IRA funds which are
subsequently recharacterized as Roth IRA funds following special federal income
tax rules.
Regular contributions to Roth IRAs
Limits on regular contributions. The "maximum regular contribution amount" for
any taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $4,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for each of the taxable years 2005
and 2006. This limit does not apply to rollover contributions or direct
custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth
IRAs reduce your ability to contribute to traditional IRAs and vice versa. When
your earnings are below $4,000, your earned income or compensation for the year
is the most you can contribute. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to Roth IRAs and
traditional IRAs. See the discussion earlier in this section under traditional
IRAs. If you or your spouse are at least age 50 at any time during the taxable
year for which you are making a regular contribution, additional catch-up
contributions totaling up to $500 can be made for the taxable year 2005. This
amount increases to $1,000 for the taxable year 2006.
62 Tax information
With a Roth IRA, you can make regular contributions when you reach 70-1/2, as
long as you have sufficient earnings. But, you cannot make contributions,
regardless of your age, for any year that:
o your federal income tax filing status is "married filing jointly" and
your modified adjusted gross income is over $160,000; or
o your federal income tax filing status is "single" and your modified
adjusted gross income is over $110,000.
However, you can make regular Roth IRA contributions in reduced amounts when:
o your federal income tax filing status is "married filing jointly" and
your modified adjusted gross income is between $150,000 and $160,000; or
o your federal income tax filing status is "single" and your modified
adjusted gross income is between $95,000 and $110,000.
If you are married and filing separately and your modified adjusted gross
income is between $0 and $10,000 the amount of regular contributions you are
permitted to make is phased out. If your modified adjusted gross income is more
than $10,000 you cannot make regular Roth IRA contributions.
When you can make contributions. Same as traditional IRAs.
Deductibility of contributions. Roth IRA contributions are not tax deductible.
Rollovers and direct transfers
What is the difference between rollover and direct transfer transactions? You
may make rollover contributions to a Roth IRA from only two sources:
o another Roth IRA ("tax-free rollover contribution"); or
o another traditional IRA, including a SEP-IRA or SIMPLE IRA (after
a two-year rollover limitation period for SIMPLE IRA funds), in a taxable
conversion rollover ("conversion contribution").
You may not make contributions to a Roth IRA from a qualified plan under
Section 401(a) of the Internal Revenue Code, a TSA under Section 403(b) of the
Internal Revenue Code or any other eligible retirement plan. You may make
direct transfer contributions to a Roth IRA only from another Roth IRA.
The difference between a rollover transaction and a direct transfer transaction
is the following: in a rollover transaction you actually take possession of the
funds rolled over or are considered to have received them under tax law in the
case of a change from one type of plan to another. In a direct transfer
transaction, you never take possession of the funds, but direct the first Roth
IRA custodian, trustee or issuer to transfer the first Roth IRA funds directly
to the recipient Roth IRA custodian, trustee or issuer. You can make direct
transfer transactions only between identical plan types (for example, Roth IRA
to Roth IRA). You can also make rollover transactions between identical plan
types. However, you can only use rollover transactions between different plan
types (for example, traditional IRA to Roth IRA).
You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to
Roth IRA direct transfer transactions. This can be accomplished on a completely
tax-free basis. However, you may make Roth IRA to Roth IRA rollover
transactions only once in any 12-month period for the same funds.
Trustee-to-trustee or custodian-to-custodian direct transfers can be made more
frequently than once a year. Also, if you send us the rollover contribution to
apply it to a Roth IRA, you must do so within 60 days after you receive the
proceeds from the original IRA to get rollover treatment.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some
cases, Roth IRAs can be transferred on a tax-free basis between spouses or
former spouses as a result of a court-ordered divorce or separation decree.
Conversion contributions to Roth IRAs
In a conversion rollover transaction, you withdraw (or are considered to have
withdrawn) all or a portion of funds from a traditional IRA you maintain and
convert it to a Roth IRA within 60 days after you receive (or are considered to
have received) the traditional IRA proceeds. Unlike a rollover from a
traditional IRA to another traditional IRA, the conversion rollover transaction
is not tax-free. Instead, the distribution from the traditional IRA is
generally fully taxable. For this reason, we are required to withhold 10%
federal income tax from the amount converted unless you elect out of such
withholding. If you have ever made nondeductible regular contributions to any
traditional IRA -- whether or not it is the traditional IRA you are converting
- -- a pro rata portion of the distribution is tax free.
There is, however, no early distribution penalty tax on the traditional IRA
withdrawal that you are converting to a Roth IRA, even if you are under age
59-1/2.
You cannot make conversion contributions to a Roth IRA for any taxable year in
which your modified adjusted gross income exceeds $100,000. (For this purpose,
your modified adjusted gross income is computed without the gross income
stemming from the traditional IRA conversion. Beginning in 2005, modified
adjusted gross income for this purpose will also exclude any lifetime required
minimum distribution from a traditional IRA.) You also cannot make conversion
contributions to a Roth IRA for any taxable year in which your federal income
tax filing status is "married filing separately."
You cannot make conversion contributions to a Roth IRA to the extent that the
funds in your traditional IRA are subject to the annual required minimum
distribution rule applicable to traditional IRAs beginning at age 70-1/2.
You cannot convert and reconvert an amount during the same taxable year, or if
later, during the 30-day period following a recharacterization. If you
reconvert during either of these periods, it will be a failed Roth IRA
conversion.
Recharacterizations
You may be able to treat a contribution made to one type of IRA as having been
made to a different type of IRA. This is called recharacterizing the
contribution.
How to recharacterize. To recharacterize a contribution, you generally must
have the contribution transferred from the first IRA (the one to which it was
made) to the second IRA in a deemed trustee-to--
Tax information 63
trustee transfer. If the transfer is made by the due date (including
extensions) for your tax return for the year during which the contribution was
made, you can elect to treat the contribution as having been originally made to
the second IRA instead of to the first IRA. It will be treated as having been
made to the second IRA on the same date that it was actually made to the first
IRA. You must report the recharacterization and must treat the contribution as
having been made to the second IRA, instead of the first IRA, on your tax
return for the year during which the contribution was made.
The contribution will not be treated as having been made to the second IRA
unless the transfer includes any net income allocable to the contribution. You
can take into account any loss on the contribution while it was in the IRA when
calculating the amount that must be transferred. If there was a loss, the net
income you must transfer may be a negative amount.
No deduction is allowed for the contribution to the first IRA and any net
income transferred with the recharacterized contribution is treated as earned
in the second IRA. The contribution will not be treated as having been made to
the second IRA to the extent any deduction was allowed with respect to the
contribution to the first IRA.
For recharacterization purposes, a distribution from a traditional IRA that is
received in one tax year and rolled over into a Roth IRA in the next year, but
still within 60 days of the distribution from the traditional IRA, is treated
as a contribution to the Roth IRA in the year of the distribution from the
traditional IRA.
Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be
recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or
SIMPLE IRA).
To recharacterize a contribution, you must use our forms.
The recharacterization of a contribution is not treated as a rollover for
purposes of the 12-month limitation period described above. This rule applies
even if the contribution would have been treated as a rollover contribution by
the second IRA if it had been made directly to the second IRA rather than as a
result of a recharacterization of a contribution to the first IRA.
Withdrawals, payments and transfers of funds out of Roth
IRAs
No federal income tax law restrictions on withdrawals. You can withdraw any or
all of your funds from a Roth IRA at any time; you do not need to wait for a
special event like retirement.
Distributions from Roth IRAs
Distributions include withdrawals from your contract, surrender of your
contract and annuity payments from your contract. Death benefits are also
distributions.
You must keep your own records of regular and conversion contributions to all
Roth IRAs to assure appropriate taxation. You may have to file information on
your contributions to and distributions from any Roth IRA on your tax return.
You may have to retain all income tax returns and records pertaining to such
contributions and distributions until your interests in all Roth IRAs are
distributed.
Like traditional IRAs, taxable distributions from a Roth IRA are not entitled
to the special favorable ten-year averaging and long-term capital gain
treatment available in limited cases to certain distributions from qualified
plans.
The following distributions from Roth IRAs are free of income tax:
o Rollovers from a Roth IRA to another Roth IRA;
o Direct transfers from a Roth IRA to another Roth IRA;
o Qualified distributions from a Roth IRA; and
o Return of excess contributions or amounts recharacterized to a
traditional IRA.
Qualified distributions from Roth IRAs. Qualified distributions from Roth IRAs
made because of one of the following four qualifying events or reasons are not
includable in income:
o you are age 59-1/2; or older or
o you die; or
o you become disabled (special federal income tax definition); or
o your distribution is a "qualified first-time homebuyer distribution"
(special federal income tax definition; $10,000 lifetime total limit for
these distributions from all of your traditional and Roth IRAs).
You also have to meet a five-year aging period. A qualified distribution is any
distribution made after the five-taxable-year period beginning with the first
taxable year for which you made any contribution to any Roth IRA (whether or
not the one from which the distribution is being made).
Nonqualified distributions from Roth IRAs. Nonqualified distributions from Roth
IRAs are distributions that do not meet both the qualifying event and five-year
aging period tests described above. If you receive such a distribution, part of
it may be taxable. For purposes of determining the correct tax treatment of
distributions (other than the withdrawal of excess contributions and the
earnings on them), there is a set order in which contributions (including
conversion contributions) and earnings are considered to be distributed from
your Roth IRA. The order of distributions is as follows:
(1) Regular contributions.
(2) Conversion contributions, on a first-in-first-out basis (generally,
total conversions from the earliest year first). These conversion
contributions are taken into account as follows:
(a) Taxable portion (the amount required to be included in gross
income because of conversion) first, and then the
(b) Nontaxable portion.
(3) Earnings on contributions.
Rollover contributions from other Roth IRAs are disregarded for this purpose.
To determine the taxable amount distributed, distributions and contributions
are aggregated or grouped and added together as follows:
64 Tax information
(1) All distributions made during the year from all Roth IRAs you
maintain -- with any custodian or issuer -- are added together.
(2) All regular contributions made during and for the year (contribu
tions made after the close of the year, but before the due date of your
return) are added together. This total is added to the total undistributed
regular contributions made in prior years.
(3) All conversion contributions made during the year are added together. For
purposes of the ordering rules, in the case of any conversion in which the
conversion distribution is made in 2005 and the conversion contribution is
made in 2006, the conversion contribution is treated as contributed prior
to other conversion contributions made in 2006.
Any recharacterized contributions that end up in a Roth IRA are added to the
appropriate contribution group for the year that the original contribution
would have been taken into account if it had been made directly to the Roth
IRA.
Any recharacterized contribution that ends up in an IRA other than a Roth IRA
is disregarded for the purpose of grouping both contributions and
distributions. Any amount withdrawn to correct an excess contribution
(including the earnings withdrawn) is also disregarded for this purpose.
Required minimum distributions during life
Lifetime required minimum distributions do not apply.
Required minimum distributions at death
Same as traditional IRA under "What are the required minimum distribution
payments after you die?"
Payments to a beneficiary after your death
Distributions to a beneficiary generally receive the same tax treatment as if
the distribution had been made to you.
Borrowing and loans are prohibited transactions
Same as traditional IRA.
Excess contributions
Generally the same as traditional IRA, except that regular contributions made
after age 70-1/2 are not excess contributions.
Excess rollover contributions to Roth IRAs are contributions not eligible to be
rolled over (for example, conversion contributions from a traditional IRA if
your modified adjusted gross income is in excess of $100,000 in the conversion
year).
You can withdraw or recharacterize any contribution to a Roth IRA before the
due date (including extensions) for filing your federal income tax return for
the tax year. If you do this, you must also withdraw or recharacterize any
earnings attributable to the contribution.
Early distribution penalty tax
Same as traditional IRA.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
General
This section of the Prospectus covers some of the special tax rules that apply
to TSA contracts under Section 403(b) of the Internal Revenue Code (TSAs). If
the rules are the same as those that apply to another kind of contract, for
example, traditional IRAs, we will refer you to the same topic under
"traditional IRAs."
PLEASE NOTE: The following discussion reflects our understanding of some of the
current federal income tax rules applicable to Section 403(b) of the Code. The
IRS and Treasury have recently issued Proposed Regulations on Section 403(b) of
the Code. If finalized in their current form, these Proposed Regulations would
affect the establishment and operation of plans and arrangements under Section
403(b) of the Code, and the contracts issued to fund such plans. Please consult
your tax adviser concerning how these Proposed Regulations could affect you.
Generally, there are two types of funding vehicles available for 403(b)
arrangements -- an annuity contract under Section 403(b)(1) of the Internal
Revenue Code or a custodial account that invests only in mutual funds and which
is treated as an annuity contract under Section 403(b)(7) of the Code. Both
types of 403(b) arrangements qualify for tax deferral.
Protection Plus(SM) feature
The Protection Plus(SM) feature was offered for Rollover TSA contracts, subject
to state and contract availability. There is a limit to the amount of life
insurance benefits that TSAs may offer. Although we view the optional Protection
Plus(SM) benefit as an investment protection feature which should have no
adverse tax effect and not as a life insurance benefit, the IRS has not
specifically addressed this question. It is possible that the IRS could take a
contrary position regarding tax qualification or assert that the Protection
Plus(SM) rider is not a permissible part of a TSA contract. If the IRS were to
take the position that the optional Protection Plus(SM) benefit is not part of
the contract, in such a case, the charges for the Protection Plus(SM) rider
could be treated for federal income tax purposes as a partial withdrawal from
the contract. If this were so, such a deemed withdrawal could affect the tax
qualification of the TSA and could be taxable. Were the IRS to take any adverse
position, AXA Equitable would take all reasonable steps to attempt to avoid any
adverse result, which would include amending the contract (with appropriate
notice to you). You should consult with your tax adviser for further
information.
Tax information 65
Contributions to TSAs
There were two ways you could have contributed to establish this Accumulator(R)
Rollover TSA contract:
o a full or partial direct transfer of assets ("direct transfer") from
another contract or arrangement that meet the requirements of Section
403(b) of the Internal Revenue Code by means of IRS Revenue Ruling 90-24;
or
o a rollover from another 403(b) arrangement.
If you made a direct transfer, you filled out our transfer form.
We do not accept after-tax funds in the Accumulator(R) Rollover TSA.
Employer-remitted contributions. The Accumulator(R) Rollover TSA contract does
not accept employer-remitted contributions. However, we provide the following
discussion as part of our description of restrictions on the distribution of
funds directly transferred, which include employer-remitted contributions to
other TSAs.
Employer-remitted contributions to TSAs made through the employer's payroll are
subject to annual limits. (Tax-free direct transfer contributions from another
403(b) arrangement and rollover contributions from another eligible retirement
plan are not subject to these annual contribution limits.) Commonly, some or
all of the contributions made to a TSA are made under a salary reduction
agreement between the employee and the employer. These contributions are called
"salary reduction" or "elective deferral" contributions. However, a TSA can
also be wholly or partially funded through nonelective employer contributions
or after-tax employee contributions. Amounts attributable to salary reduction
contributions to TSAs are generally subject to withdrawal restrictions. Also,
all amounts attributable to investments in a 403(b)(7) custodial account are
subject to withdrawal restrictions discussed below.
Rollover or direct transfer contributions. Once you establish your Rollover TSA
contract with 403(b)-source funds, you may make subsequent rollover
contributions to your Rollover TSA contract from these sources: qualified
plans, governmental employer 457(b) plans and traditional IRAs, as well as
other TSAs and 403(b) arrangements. All rollover contributions must be pre-tax
funds only with appropriate documentation satisfactory to us.
Generally, you may make a rollover contribution to your TSA when you have a
distributable event from an existing TSA or other eligible retirement plan as a
result of your:
o termination of employment with the employer who provided the
funds for the plan; or
o reaching age 59-1/2 even if you are still employed; or
o disability (special federal income tax definition).
You can roll over pre-tax funds from a traditional IRA to a TSA at any time.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental employer 457(b) plan are not subject to the
additional 10% federal income tax penalty for premature distributions, but they
may become subject to this penalty if you roll the funds to a different type of
eligible retirement plan and subsequently take a premature distribution.
If the recipient plan separately accounts for funds rolled-over from another
eligible retirement plan, the IRS has ruled that an exception is available in
certain situations to withdrawal restrictions that would otherwise apply to the
rollover contribution funds in the recipient plan. We do not currently
separately account for rollover contributions from other eligible retirement
plans.
A transfer occurs when changing the funding vehicle, even if there is no
distributable event. Under a direct transfer, you do not receive a
distribution. We accept direct transfers of TSA funds under Revenue Ruling
90-24 only if:
o you give us acceptable written documentation as to the source of
the funds, and
o the Accumulator(R) contract receiving the funds has provisions at
least as restrictive as the source contract.
Before you transfer funds to an Accumulator(R) Rollover TSA contract, you may
have to obtain your employer's authorization or demonstrate that you do not
need employer authorization. For example, the transferring TSA may be subject
to Title I of ERISA, if the employer makes matching contributions to salary
reduction contributions made by employees. In that case, the employer must
continue to approve distributions from the plan or contract.
Your contribution to the Accumulator(R) Rollover TSA must be net of the
required minimum distribution for the tax year in which we issue the contract
if:
o you are or will be at least age 70-1/2 in the current calendar year,
and
o you have retired from service with the employer who provided the
funds to purchase the TSA you are transferring or rolling over to the
Accumulator(R) Rollover TSA.
This rule applies regardless of whether the source of funds is a:
o rollover by check of the proceeds from another TSA or eligible
retirement plan; or
o direct rollover from another TSA or eligible retirement plan; or
o direct transfer under Revenue Ruling 90-24 from another TSA.
Distributions from TSAs
General. Depending on the terms of the employer plan and your employment
status, you may have to get your employer's consent to take a loan or
withdrawal. Your employer will tell us this when you establish the TSA through
a direct transfer.
Withdrawal restrictions. If this is a Revenue Ruling 90-24 direct transfer, we
will treat all amounts transferred to this contract and any future earnings on
the amount transferred as not eligible for withdrawal until one of the
following events happens:
66 Tax information
o you are severed from employment with the employer who provided the funds
to purchase the TSA you are transferring to the Accumulator(R) Rollover
TSA; or
o you reach age 59-1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o you take a hardship withdrawal (special federal income tax
definition).
If any portion of the funds directly transferred to your TSA contract is
attributable to amounts that you invested in a 403(b)(7) custodial account,
such amounts, including earnings, are subject to withdrawal restrictions. With
respect to the portion of the funds that were never invested in a 403(b)(7)
custodial account, these restrictions apply to the salary reduction (elective
deferral) contributions to a TSA annuity contract you made and any earnings on
them. These restrictions do not apply to the amount directly transferred to
your TSA contract that represents your December 31, 1988, account balance
attributable to salary reduction contributions to a TSA annuity contract and
earnings. To take advantage of this grandfathering you must properly notify us
in writing at our processing office of your December 31, 1988, account balance
if you have qualifying amounts transferred to your TSA contract.
This paragraph applies only to participants in a Texas Optional retirement
program. Texas Law permits withdrawals only after one of the following
distributable events occur:
(1) the requirements for minimum distribution (discussed under "Required
minimum distributions" later in this section) are met; or
(2) death; or
(3) retirement; or
(4) termination of employment in all Texas public institutions of
higher education.
For you to make a withdrawal, we must receive a properly completed written
acknowledgment from the employer. If a distributable event occurs before you
are vested, we will refund to the employer any amounts provided by an
employer's first-year matching contribution. We reserve the right to change
these provisions without your consent, but only to the extent necessary to
maintain compliance with applicable law. Loans are not permitted under Texas
Optional Retirement Programs.
Tax treatment of distributions. Amounts held under TSAs are generally not
subject to federal income tax until benefits are distributed. Distributions
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSAs are includable in
gross income as ordinary income. Distributions from TSAs may be subject to 20%
federal income tax withholding. See "Federal and state income tax withholding
and information reporting" later in this section. In addition, TSA
distributions may be subject to additional tax penalties.
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since we currently do not accept
after-tax funds, we do not track your investment in the contract, if any. We
will report all distributions from this Rollover TSA as fully taxable. It is
your responsibility to determine how much of the distribution is taxable.
Distributions before annuity payments begin. On a total surrender, the amount
received in excess of the investment in the contract is taxable. The amount of
any partial distribution from a TSA prior to the annuity starting date is
generally taxable, except to the extent that the distribution is treated as a
withdrawal of after-tax contributions. Distributions are normally treated as
pro rata withdrawals of any after-tax contributions and earnings on those
contributions.
Annuity Payments. If you elect an annuity payout option, you will recover any
investment in the contract as each payment is received by dividing the
investment in the contract by an expected return determined under an IRS table
prescribed for qualified annuities. The amount of each payment not excluded
from income under this exclusion ratio is fully taxable. The full amount of the
payments received after your investment in the contract is recovered is fully
taxable. If you (and your beneficiary under a joint and survivor annuity) die
before recovering the full investment in the contract, a deduction is allowed
on your (or your beneficiary's) final tax return.
Payments to a beneficiary after your death. Death benefit distributions from a
TSA generally receive the same tax treatment as distributions during your
lifetime. In some instances, distributions from a TSA made to your surviving
spouse may be rolled over to a traditional IRA or other eligible retirement
plan.
Loans from TSAs. You may take loans from a TSA unless restricted by the
employer (for example, under an employer plan subject to ERISA). If you cannot
take a loan, or cannot take a loan without approval from the employer who
provided the funds, we will have this information in our records based on what
you and the employer who provided the TSA funds told us when you purchased your
contract.
Loans are generally not treated as a taxable distribution. If the amount of the
loan exceeds permissible limits under federal income tax rules when made, the
amount of the excess is treated (solely for tax purposes) as a taxable
distribution. Additionally, if the loan is not repaid at least quarterly,
amortizing (paying down) interest and principal, the amount not repaid when due
will be treated as a taxable distribution. The entire unpaid balance of the
loan is includable in income in the year of the default.
TSA loans are subject to federal income tax limits and may also be subject to
the limits of the plan from which the funds came. Federal income tax rule
requirements apply even if the plan is not subject to ERISA. For example, loans
offered by TSAs are subject to the following conditions:
o The amount of a loan to a participant, when combined with all
other loans to the participant from all qualified plans of the employer,
cannot exceed the lesser of:
Tax information 67
(1) the greater of $10,000 or 50% of the participant's nonforfeitable
accrued benefits; and
(2) $50,000 reduced by the excess (if any) of the highest out standing
loan balance over the previous twelve months over the outstanding
loan balance of plan loans on the date the loan was made.
o In general, the term of the loan cannot exceed five years unless
the loan is used to acquire the participant's primary residence.
Accumulator(R) Rollover TSA contracts have a term limit of 10 years for
loans used to acquire the participant's primary residence.
o All principal and interest must be amortized in substantially level
payments over the term of the loan, with payments being made at least
quarterly. In very limited circumstances, the repayment obligation may be
temporarily suspended during a leave of absence.
The amount borrowed and not repaid may be treated as a distribution if:
o the loan does not qualify under the conditions above;
o the participant fails to repay the interest or principal when due; or
o in some instances, the participant separates from service with the
employer who provided the funds or the plan is terminated.
In this case, the participant may have to include the unpaid amount due as
ordinary income. In addition, the 10% early distribution penalty tax may apply.
The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as
a distribution.
Tax-deferred rollovers and direct transfers. You may roll over an "eligible
rollover distribution" from a TSA into another eligible retirement plan which
agrees to accept the rollover. The rollover may be a direct rollover or one you
do yourself within 60 days after you receive the distribution. To the extent
rolled over, a distribution remains tax-deferred.
You may roll over a distribution from a TSA to any of the following: a
qualified plan, a governmental employer 457(b) plan (separate accounting
required) or a traditional IRA. A spousal beneficiary may also roll over death
benefits as above.
The taxable portion of most distributions will be eligible for rollover, except
as specifically excluded under federal income tax rules. Distributions that you
cannot roll over generally include periodic payments for life or for a period
of 10 years or more, hardship withdrawals and required minimum distributions
under federal income tax rules.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling
90-24 are not distributions.
Required minimum distributions
Generally the same as traditional IRA with these differences:
When you have to take the first required minimum distribution. The minimum
distribution rules force TSA participants to start calculating and taking
annual distributions from their TSAs by a required date. Generally, you must
take the first required minimum distribution for the calendar year in which you
turn age 70-1/2. You may be able to delay the start of required minimum
distributions for all or part of your account balance until after age 70-1/2,
as follows:
o For TSA participants who have not retired from service with the
employer who provided the funds for the TSA by the calendar year the
participant turns age 70-1/2, the required beginning date for minimum
distributions is extended to April 1 following the calendar year of
retirement.
o TSA plan participants may also delay the start of required mini
mum distributions to age 75 of the portion of their account value
attributable to their December 31, 1986, TSA account balance, even if
retired at age 70-1/2. We will know whether or not you qualify for this
exception because it will only apply to people who establish their
Accumulator(R) Rollover TSA by direct Revenue Ruling 90-24 transfers. If
you do not give us the amount of your December 31, 1986, account balance
that is being transferred to the Accumulator(R) Rollover TSA on the form
used to establish the TSA, you do not qualify.
Spousal consent rules
This only applies to you if you established your Accumulator(R) Rollover TSA by
direct Revenue Ruling 90-24 transfer. Your employer will tell us on the form
used to establish the TSA whether or not you need to get spousal consent for
loans, withdrawals or other distributions. If you do, you will need such
consent if you are married when you request a withdrawal under the TSA
contract. In addition, unless you elect otherwise with the written consent of
your spouse, the retirement benefits payable under the plan must be paid in the
form of a qualified joint and survivor annuity. A qualified joint and survivor
annuity is payable for the life of the annuitant with a survivor annuity for
the life of the spouse in an amount not less than one-half of the amount
payable to the annuitant during his or her lifetime. In addition, if you are
married, the beneficiary must be your spouse, unless your spouse consents in
writing to the designation of another beneficiary.
If you are married and you die before annuity payments have begun, payments
will be made to your surviving spouse in the form of a life annuity unless at
the time of your death a contrary election was in effect. However, your
surviving spouse may elect, before payments begin, to receive payments in any
form permitted under the terms of the TSA contract and the plan of the employer
who provided the funds for the TSA.
Early distribution penalty tax
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a TSA before you reach age 59-1/2. This is in addition to
any income tax. There are exceptions to the extra penalty tax. Some of the
available exceptions to the pre-age 59-1/2 penalty tax include distributions
made:
o on or after your death; or
o because you are disabled (special federal income tax definition);
or
68 Tax information
o to pay for certain extraordinary medical expenses (special federal income
tax definition); or
o in any form of payout after you have separated from service (only
if the separation occurs during or after the calendar year you reach age
55); or
o in a payout in the form of substantially equal periodic payments
made at least annually over your life (or your life expectancy), or over
the joint lives of you and your beneficiary (or your joint life
expectancies) using an IRS-approved distribution method (only after you
have separated from service at any age).
FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING
We must withhold federal income tax from distributions from annuity contracts.
You may be able to elect out of this income tax withholding in some cases.
Generally, we do not have to withhold if your distributions are not taxable.
The rate of withholding will depend on the type of distribution and, in certain
cases, the amount of your distribution. Any income tax withheld is a credit
against your income tax liability. If you do not have sufficient income tax
withheld or do not make sufficient estimated income tax payments, you may incur
penalties under the estimated income tax rules.
You must file your request not to withhold in writing before the payment or
distribution is made. Our processing office will provide forms for this
purpose. You cannot elect out of withholding unless you provide us with your
correct Taxpayer Identification Number and a United States residence address.
You cannot elect out of withholding if we are sending the payment out of the
United States.
You should note the following special situations:
o We might have to withhold and/or report on amounts we pay
under a free look or cancellation.
o We are generally required to withhold on conversion rollovers of
traditional IRAs to Roth IRAs, as it is considered a withdrawal from the
traditional IRA and is taxable.
o We are required to withhold on the gross amount of a distribu
tion from a Roth IRA to the extent it is reasonable for us to believe that
a distribution is includable in your gross income. This may result in tax
being withheld even though the Roth IRA distribution is ultimately not
taxable. You can elect out of withholding as described below.
Special withholding rules apply to foreign recipients and United States
citizens residing outside the United States. We do not discuss these rules here
in detail. However, we may require additional documentation in the case of
payments made to non-United States persons and United States persons living
abroad prior to processing any requested transaction.
Certain states have indicated that state income tax withholding will also apply
to payments from the contracts made to residents. In some states, you may elect
out of state withholding, even if federal withholding applies. Generally, an
election out of federal withholding will also be considered an election out of
state withholding. If you need more information concerning a particular state
or any required forms, call our processing office at the toll-free number.
Federal income tax withholding on periodic annuity payments
We withhold differently on "periodic" and "non-periodic" payments. For a
periodic annuity payment, for example, unless you specify a different number of
withholding exemptions, we withhold assuming that you are married and claiming
three withholding exemptions. If you do not give us your correct Taxpayer
Identification Number, we withhold as if you are single with no exemptions.
Based on the assumption that you are married and claiming three withholding
exemptions, if you receive less than $17,760 in periodic annuity payments in
2005, your payments will generally be exempt from federal income tax
withholding. You could specify a different choice of withholding exemption or
request that tax be withheld. Your withholding election remains effective
unless and until you revoke it. You may revoke or change your withholding
election at any time.
Federal income tax withholding on non-periodic annuity payments (withdrawals)
For a non-periodic distribution (total surrender or partial withdrawal), we
generally withhold at a flat 10% rate. We apply that rate to the taxable amount
in the case of nonqualified contracts, and to the payment amount in the case of
traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is
includable in gross income.
You cannot elect out of withholding if the payment is an eligible rollover
distribution from a qualified plan or TSA. If a non-periodic distribution from
a qualified plan or TSA is not an eligible rollover distribution then the 10%
withholding rate applies.
Mandatory withholding from TSA and qualified plan distributions
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans and TSAs are subject to mandatory 20%
withholding. The plan administrator is responsible for withholding from
qualified plan distributions. An eligible rollover distribution from a TSA or a
qualified plan can be rolled over to another eligible retirement plan. All
distributions from a TSA or qualified plan are eligible rollover distributions
unless they are on the following list of exceptions:
o any distributions which are required minimum distributions after
age 70-1/2 or retirement from service with the employer; or
o substantially equal periodic payments made at least annually for
your life (or life expectancy) or the joint lives (or joint life
expectancies) of you and your designated beneficiary; or
o substantially equal periodic payments made for a specified period
of 10 years or more; or
o hardship withdrawals; or
o corrective distributions that fit specified technical tax rules; or
Tax information 69
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviving
spouse; or
o a qualified domestic relations order distribution to a beneficiary
who is not your current spouse or former spouse.
A death benefit payment to your surviving spouse, or a qualified domestic
relations order distribution to your current or former spouse, may be a
distribution subject to mandatory 20% withholding.
SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS
For QP contracts, your plan administrator or trustee notifies you as to tax
consequences. See Appendix II at the end of this Prospectus.
IMPACT OF TAXES TO AXA EQUITABLE
The contracts provide that we may charge Separate Account No. 49 for taxes. We
do not now, but may in the future set up reserves for such taxes.
70 Tax information
8. More information
- --------------------------------------------------------------------------------
ABOUT SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 49. We
established Separate Account No. 49 in 1996 under special provisions of the New
York Insurance Law. These provisions prevent creditors from any other business
we conduct from reaching the assets we hold in our variable investment options
for owners of our variable annuity contracts. We are the legal owner of all of
the assets in Separate Account No. 49 and may withdraw any amounts that exceed
our reserves and other liabilities with respect to variable investment options
under our contracts. The results of Separate Account No. 49 operations are
accounted for without regard to AXA Equitable's other operations.
Separate Account No. 49 is registered under the Investment Company Act of 1940
and is classified by that act as a "unit investment trust." The SEC, however,
does not manage or supervise AXA Equitable or the Separate Account No. 49.
Each subaccount (variable investment option) within the Separate Accounts
invests solely in Class IB/B shares issued by the corresponding portfolio of
its Trusts.
We reserve the right subject to compliance with laws that apply:
(1) to add variable investment options to, or to remove variable investment
options from, either Separate Account, or to add other separate accounts;
(2) to combine any two or more variable investment options;
(3) to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment
option to another variable investment option;
(4) to operate each Separate Account or any variable investment option as a
management investment company under the Investment Company Act of 1940 (in
which case, charges and expenses that otherwise would be assessed against
an underlying mutual fund would be assessed against each Separate Account
or a variable investment option directly);
(5) to deregister the Separate Accounts under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to the Separate Accounts; and
(7) to cause one or more variable investment options to invest some or all of
their assets in one or more other trusts or investment companies.
ABOUT THE TRUSTS
The Trusts are registered under the Investment Company Act of 1940. They are
classified as "open-end management investment companies," more commonly called
mutual funds. Each Trust issues different shares relating to each portfolio.
The Trusts do not impose sales charges or "loads" for buying and selling their
shares. All dividends and other distributions on the Trusts' shares are
reinvested in full. The Board of Trustees of each Trust may establish
additional portfolios or eliminate existing portfolios at any time. More
detailed information about each Trust, its portfolio investment objectives,
policies, restrictions, risks, expenses, its Rule 12b-1 Plan and other aspects
of its operations, appears in the prospectuses for each Trust, which are
generally attached at the end of this Prospectus, or in the respective SAIs,
which are available upon request.
ABOUT OUR FIXED MATURITY OPTIONS
RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE
We can determine the amount required to be allocated to one or more fixed
maturity options in order to produce specified maturity values. For example, we
can tell you how much you need to allocate per $100 of maturity value.
FMO rates are determined daily. The rates in the table below are illustrative
only and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
For example, the rates to maturity for new allocations as of February 15, 2005
and the related price per $100 of maturity value were as shown below:
Fixed Maturity
Options with
February 15th Rate to Maturity Price
Maturity Date of as of Per $100 of
Maturity Year February 15, 2005 Maturity Value
2006 3.00%* $ 97.09
2007 3.00%* $ 94.26
2008 3.00%* $ 91.51
2009 3.00%* $ 88.84
2010 3.00%* $ 86.25
2011 3.00%* $ 83.74
2012 3.00%* $ 81.30
2013 3.08% $ 78.44
2014 3.22% $ 75.17
2015 3.32% $ 72.12
* Since these rates to maturity are 3%, no amounts could have been allocated to
these options.
HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT
We use the following procedure to calculate the market value adjustment (up or
down) we make if you withdraw any of your value from a fixed maturity option
before its maturity date.
(1) We determine the market adjusted amount on the date of the withdrawal as
follows:
(a) We determine the fixed maturity amount that would be payable on the
maturity date, using the rate to maturity for the fixed maturity
option.
More information 71
(b) We determine the period remaining in your fixed maturity option (based
on the withdrawal date) and convert it to fractional years based on a
365-day year. For example, three years and 12 days becomes 3.0329.
(c) We determine the current rate to maturity for your FMO based on the
rate for a new FMO issued on the same date and having the same
maturity date as your FMO; if the same maturity date is not available
for new FMOs, we determine a rate that is between the rates for new
FMO maturities that immediately precede and immediately follow your
FMO's maturity date.
(d) We determine the present value of the fixed maturity amount payable at
the maturity date, using the period determined in (b) and the rate
determined in (c).
(2) We determine the fixed maturity amount as of the current date.
(3) We subtract (2) from the result in (1)(d). The result is the market value
adjustment applicable to such fixed maturity option, which may be positive
or negative.
If you withdraw only a portion of the amount in a fixed maturity option, the
market value adjustment will be a percentage of the market value adjustment
that would have applied if you had withdrawn the entire value in that fixed
maturity option. This percentage is equal to the percentage of the value in the
fixed maturity option that you are withdrawing. Any withdrawal charges that are
deducted from a fixed maturity option will result in a market value adjustment
calculated in the same way. See Appendix III at the end of this Prospectus for
an example.
For purposes of calculating the rate to maturity for new allocations to a fixed
maturity option (see (1)(c) above), we use the rate we have in effect for new
allocations to that fixed maturity option. We use this rate even if new
allocations to that option would not be accepted at that time. This rate will
not be less than 3%. If we do not have a rate to maturity in effect for a fixed
maturity option to which the "current rate to maturity" in (1)(c) would apply,
we will use the rate at the next closest maturity date. If we are no longer
offering new fixed maturity options, the "current rate to maturity" will be
determined by using a widely published index. We reserve the right to add up to
0.25% to the current rate in (1)(c) above for purposes of calculating the
market value adjustment only.
INVESTMENTS UNDER THE FIXED MATURITY OPTIONS
Amounts allocated to the fixed maturity options are held in a "nonunitized"
separate account we have established under the New York Insurance Law. This
separate account provides an additional measure of assurance that we will make
full payment of amounts due under the fixed maturity options. Under New York
Insurance Law, the portion of the separate account's assets equal to the
reserves and other contract liabilities relating to the contracts are not
chargeable with liabilities from any other business we may conduct. We own the
assets of the separate account, as well as any favorable investment performance
on those assets. You do not participate in the performance of the assets held
in this separate account. We may, subject to state law that applies, transfer
all assets allocated to the separate account to our general account. We
guarantee all benefits relating to your value in the fixed maturity options,
regardless of whether assets supporting fixed maturity options are held in a
separate account or our general account.
We expect the rates to maturity for the fixed maturity options to be influenced
by, but not necessarily correspond to, among other things, the yields that we
can expect to realize on the separate account's investments from time to time.
Our current plans are to invest in fixed-income obligations, including
corporate bonds, mortgage-backed and asset-backed securities, and government
and agency issues having durations in the aggregate consistent with those of
the fixed maturity options.
Although the above generally describes our plans for investing the assets
supporting our obligations under the fixed maturity options under the
contracts, we are not obligated to invest those assets according to any
particular plan except as we may be required to by state insurance laws. We
will not determine the rates to maturity we establish by the performance of the
nonunitized separate account.
ABOUT THE GENERAL ACCOUNT
Our general account supports all of our policy and contract guarantees,
including those that apply to the guaranteed interest option and the fixed
maturity options and the account for special dollar cost averaging, as well as
our general obligations.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations
of all jurisdictions where we are authorized to do business. Because of
exemptions and exclusionary provisions that apply, interests in the general
account have not been registered under the Securities Act of 1933, nor is the
general account an investment company under the Investment Company Act of 1940.
However, the market value adjustment interests under the contracts are
registered under the Securities Act of 1933.
We have been advised that the staff of the SEC has not reviewed the portions of
this Prospectus that relate to the general account (other than market value
adjustment interests). The disclosure with regard to the general account,
however, may be subject to certain provisions of the federal securities laws
relating to the accuracy and completeness of statements made in prospectuses.
ABOUT OTHER METHODS OF PAYMENT
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept subsequent contributions sent by wire to our processing office by
agreement with certain broker-dealers. Such transmittals must be accompanied by
the information we require to allocate your contribution. Wire orders not
accompanied by complete information may be retained as described under "How you
can make your contributions" in "Contract features and benefits" earlier in
this Prospectus.
Even if we accepted the wire order and essential information, a contract
generally was not issued until we received and accepted a properly completed
application. In certain cases, we may have issued a contract based on
information provided through certain broker-
72 More information
dealers with whom we have established electronic facilities. In any such cases,
you must have signed our Acknowledgment of Receipt form.
Where we required a signed application, the above procedures did not apply and
no financial transactions were permitted until we received the signed
application and issued the contract. Where we issued a contract based on
information provided through electronic facilities, we required an
Acknowledgment of Receipt form Financial transactions were only permitted if
you requested them in writing, signed the request and had it signature
guaranteed, until we received the signed Acknowledgment of Receipt form. After
a contract is issued, additional contributions are allowed by wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ, FLEXIBLE PREMIUM IRA AND FLEXIBLE
PREMIUM ROTH IRA CONTRACTS ONLY
You may use our automatic investment program, or "AIP," to have a specified
amount automatically deducted from a checking account, money market account, or
credit union checking account and contributed as an additional contribution
into an NQ, Flexible Premium IRA or Flexible Premium Roth IRA contract on a
monthly or quarterly basis. AIP is not available for Rollover IRA, Roth
Conversion IRA, QP or Rollover TSA contracts.
For NQ contracts, the minimum amounts we will deduct are $100 monthly and $300
quarterly. Under Flexible Premium IRA and Flexible Premium Roth IRA contracts,
the minimum amount is $50. AIP additional contributions may be allocated to any
of the variable investment options and available fixed maturity options, but
not the account for special dollar cost averaging. You choose the day of the
month you wish to have your account debited. However, you may not choose a date
later than the 28th day of the month.
You may cancel AIP at any time by notifying our processing office. We are not
responsible for any debits made to your account before the time written notice
of cancellation is received at our processing office.
DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this Prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our business day, generally, is any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions. Our business day generally ends at 4:00 p.m. Eastern Time for
purposes of determining the date when contributions are applied and any other
transaction requests are processed. Contributions will be applied and any other
transaction requests will be processed when they are received along with all
the required information unless another date applies as indicated below.
o If your contribution, transfer, or any other transaction request, containing
all the required information, reaches us on a non-business day or after
4:00 p.m. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then
the transaction will occur on the 1st day of the next month.
o When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
o If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your
contribution will be considered received at the time your broker-dealer
receives your contribution and all information needed to process your
application, along with any required documents, and transmits your order
to us in accordance with our processing procedures. Such arrangements may
apply to initial contributions, subsequent contributions, or both, and may
be commenced or terminated at any time without prior notice. If required
by law, the "closing time" for such orders will be earlier than 4 p.m.,
Eastern Time.
CONTRIBUTIONS AND TRANSFERS
o Contributions allocated to the variable investment options are invested at
the value next determined after the close of the business day.
o Contributions allocated to the guaranteed interest option will receive the
crediting rate in effect on that business day for the specified time
period.
o Contributions allocated to a fixed maturity option will receive the rate to
maturity in effect for that fixed maturity option on that business day
(unless a rate lock-in is applicable).
o Initial contributions allocated to the account for special dollar cost
averaging received the interest rate in effect on that business day. At
certain times, we may have offered the opportunity to lock in the interest
rate for an initial contribution to be received under Section 1035
exchanges and trustee to trustee transfers. Your financial professional
can provide information or you can call our processing office.
o Transfers to or from variable investment options will be made at the value
next determined after the close of the business day.
More information 73
o Transfers to the guaranteed interest option will receive the crediting rate
in effect on that business day for the specified time period.
o For the interest sweep option, the first monthly transfer will occur on the
last business day of the month following the month that we receive your
election form at our processing office.
ABOUT YOUR VOTING RIGHTS
As the owner of shares of the Trusts, we have the right to vote on certain
matters involving the portfolios, such as:
o the election of trustees;
o the formal approval of independent public accounting firm selected for each
Trust; or
o any other matters described in each prospectus for the Trusts or requiring a
shareholders' vote under the Investment Company Act of 1940.
We will give contract owners the opportunity to instruct us how to vote the
number of shares attributable to their contracts if a shareholder vote is
taken. If we do not receive instructions in time from all contract owners, we
will vote the shares of a portfolio for which no instructions have been
received in the same proportion as we vote shares of that portfolio for which
we have received instructions. We will also vote any shares that we are
entitled to vote directly because of amounts we have in a portfolio in the same
proportions that contract owners vote.
VOTING RIGHTS OF OTHERS
Currently, we control the Trusts. Its shares are sold to our separate accounts
and an affiliated qualified plan trust. In addition, shares of the Trusts are
held by separate accounts of insurance companies both affiliated and
unaffiliated with us. Shares held by these separate accounts will probably be
voted according to the instructions of the owners of insurance policies and
contracts issued by those insurance companies. While this will dilute the
effect of the voting instructions of the contract owners, we currently do not
foresee any disadvantages because of this. The Board of Trustees of each Trust
intends to monitor events in order to identify any material irreconcilable
conflicts that may arise and to determine what action, if any, should be taken
in response. If we believe that a response to any of those events
insufficiently protects our contract owners, we will see to it that appropriate
action is taken.
SEPARATE ACCOUNT NO. 49 VOTING RIGHTS
If actions relating to the Separate Account require contract owner approval,
contract owners will be entitled to one vote for each unit they have in the
variable investment options. Each contract owner who has elected a variable
annuity payout option may cast the number of votes equal to the dollar amount
of reserves we are holding for that annuity in a variable investment option
divided by the annuity unit value for that option. We will cast votes
attributable to any amounts we have in the variable investment options in the
same proportion as votes cast by contract owners.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this Prospectus are created under applicable
federal securities laws. To the extent that those laws or the regulations
published under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
ABOUT LEGAL PROCEEDINGS
AXA Equitable and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings would be considered material with respect
to a contract owner's interest in Separate Account No. 49, nor would any of
these proceedings be likely to have a material adverse effect upon the Separate
Account, our ability to meet our obligations under the contracts, or the
distribution of the contracts.
ABOUT OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The consolidated financial statements of AXA Equitable at December 31, 2004 and
2003, and for the three years ended December 31, 2004 incorporated in this
Prospectus by reference to the 2004 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent registered
public accounting firm, given on the authority of said firm as experts in
auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 49, as well as the
consolidated financial statements of AXA Equitable, are in the SAI. The SAI is
available free of charge. You may request one by writing to our processing
office or calling 1-800-789-7771.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING
You can transfer ownership of an NQ contract at any time before annuity
payments begin. We will continue to treat you as the owner until we receive
notification of any change at our processing office. You cannot assign your NQ
contract as collateral or security for a loan. Loans are also not available
under your NQ contract. In some cases, an assignment or change of ownership may
have adverse tax consequences. See "Tax information" earlier in this
Prospectus.
You cannot assign or transfer ownership of an IRA, QP or Rollover TSA contract
except by surrender to us. If your individual retirement annuity contract is
held in your custodial individual retirement account, you may only assign or
transfer ownership of such an IRA contract to yourself. Loans are not available
and you cannot assign IRA and QP contracts as security for a loan or other
obligation. If the employer that provided the funds does not restrict them,
loans are available under a Rollover TSA contract.
For limited transfers of ownership after the owner's death see "Beneficiary
continuation option" in "Payment of death benefit" earlier in this Prospectus.
You may direct the transfer of the values under your IRA,
74 More information
QP or Rollover TSA contract to another similar arrangement under federal income
tax rules. In the case of such a transfer, which involves a surrender of your
contract, we will impose a withdrawal charge, if one applies.
DISTRIBUTION OF THE CONTRACTS
The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and
AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The
Distributors serve as principal underwriters of Separate Account No. 49. The
offering of the contracts is intended to be continuous.
AXA Advisors (the successor to EQ Financial Consultants, Inc.), an affiliate of
AXA Equitable, and AXA Distributors, an indirect wholly owned subsidiary of AXA
Equitable, are registered with the SEC as broker-dealers and are members of the
National Association of Securities Dealers, Inc. ("NASD"). Their principal
business address is 1290 Avenue of the Americas, New York, NY 10104. Both
broker-dealers also act as distributors for other AXA Equitable annuity
products. AXA Distributors is a successor by merger to all of the functions,
rights and obligations of Equitable Distributors, Inc. ("EDI"). Like AXA
Distributors, EDI was owned by Equitable Holdings, LLC.
The contracts are sold by financial professionals of AXA Advisors and its
affiliates and by financial professionals of both affiliated and unaffiliated
broker-dealers that have entered into selling agreements with the Distributors
("Selling broker-dealers"). Affiliated broker-dealers include MONY Securities
Corporation ("MSC")* and Advest, Inc. The Distributors, MSC and Advest are all
under the common control of AXA Financial, Inc.
AXA Equitable pays sales compensation to both Distributors. In general,
broker-dealers receiving sales compensation will pay all or a portion of it to
its individual financial representatives (or to its Selling broker-dealers) as
commissions related to the sale of contracts.
Sales compensation paid to AXA Advisors will generally not exceed 8.5% of the
total contributions made under the contracts. AXA Advisors, in turn, may pay
its financial professionals (or Selling broker-dealers) either a portion of the
contribution-based compensation or a reduced portion of the contribution-based
compensation in combination with ongoing annual compensation ("asset-based
compensation") up to 0.60% of the account value of the contract sold, based on
the financial professional's choice. Contribution-based compensation, when
combined with asset-based compensation, could exceed 8.5% of the total
contributions made under the contracts.
Sales compensation paid to AXA Distributors will generally not exceed 7.50% of
the total contributions made under the contracts. AXA Distributors passes all
sales compensation it receives through to the Selling broker-dealer. The
Selling broker-dealer may elect to receive reduced contribution-based
compensation in combination with asset-based compensation of up to 1.25% of the
account value of all or a portion of the contracts sold through the
broker-dealer. Contribution-based compensation, when combined with asset-based
compensation, could exceed 7.50% of the total contributions made
under the contracts. The sales compensation we pay varies among broker-dealers.
AXA Distributors may also receive compensation and reimbursement for its
marketing services under the terms of its distribution agreement with AXA
Equitable.
The Distributors may also pay certain affiliated and/or unaffiliated
broker-dealers and other financial intermediaries additional compensation for
certain services and/or in recognition of certain expenses that may be incurred
by them or on their behalf (commonly referred to as "marketing allowances").
Services for which such payments are made may include, but are not limited to,
the preferred placement of AXA Equitable and/or Accumulator(R) on a company
and/or product list; sales personnel training; due diligence and related costs;
marketing and related services; conferences; and/or other support services,
including some that may benefit the contract owner. Payments may be based on
the amount of assets or purchase payments attributable to contracts sold
through a broker-dealer. We may also make fixed payments to broker-dealers in
connection with the initiation of a new relationship or the introduction of a
new product. These payments may serve as an incentive for Selling
broker-dealers to promote the sale of our products. Additionally, as an
incentive for financial professionals of Selling broker-dealers to promote the
sale of our products, we may increase the sales compensation paid to the
Selling broker-dealer for a period of time (commonly referred to as
"compensation enhancements"). These types of payments are made out of the
Distributors' assets. Not all Selling broker-dealers receive additional
compensation. For more information about any such arrangements, ask your
financial professional.
The Distributors will receive 12b-1 fees from certain portfolios for providing
certain distribution and/or shareholder support services. In connection with
portfolios offered through unaffiliated insurance trusts, the Distributors may
also receive other payments from the portfolio advisers and/or their affiliates
for administrative costs, as well as payments for sales meetings and/or seminar
sponsorships.
In an effort to promote the sale of our products, AXA Advisors may provide its
financial professionals and managerial personnel with a higher percentage of
sales commissions and/or compensation for the sale of an affiliated variable
product than it would the sale of an unaffiliated product. Such practice is
known as providing "differential compensation." Other forms of compensation
financial professionals may receive include health and retirement benefits. In
addition, managerial personnel may receive expense reimbursements, marketing
allowances and commission-based payments known as "overrides." For tax reasons,
AXA Advisors financial professionals qualify for health and retirement benefits
based solely on their sales of our affiliated products.
These payments and differential compensation (together, the "payments") can
vary in amount based on the applicable product and/or entity or individual
involved. As with any incentive, such payments may cause the financial
professional to show preference in recommending the purchase or sale of our
products. However, under applicable rules of the NASD, AXA Advisors may only
recommend to you products that
- ----------------------
* On or about June 6, 2005, MSC financial professionals are expected to
become financial professionals of AXA Advisors. From that date forward, former
MSC financial professionals will be compensated by AXA Advisors, and the
Distributors will replace MSC as the principal underwriters of its affiliated
products.
More information 75
they reasonably believe are suitable for you based on facts that you have
disclosed as to your other security holdings, financial situation and needs. In
making any recommendation, financial professionals may nonetheless face
conflicts of interest because of the differences in compensation from one
product category to another, and because of differences in compensation between
products in the same category.
In addition, AXA Advisors financial professionals who meet specified production
levels for the sale of both affiliated and unaffiliated products may qualify,
under sales incentive programs, to receive non-cash compensation such as stock
options awards and/or stock appreciation rights, expense-paid trips,
expense-paid educational seminars and merchandise.
Although AXA Equitable takes all of its costs into account in establishing the
level of fees and expenses in our products, any compensation paid will not
result in any separate charge to you under your contract. All payments made
will be in compliance with all applicable NASD rules and other laws and
regulations.
76 More information
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
AXA Equitable's Annual Report on Form 10-K for the year ended December 31, 2004
is considered to be a part of this Prospectus because it is incorporated by
reference.
After the date of this Prospectus and before we terminate the offering of the
securities under this Prospectus, all documents or reports we file with the SEC
under the Securities Exchange Act of 1934 ("Exchange Act"), will be considered
to become part of this Prospectus because they are incorporated by reference.
Any statement contained in a document that is, or becomes part of this
Prospectus, will be considered changed or replaced for purposes of this
Prospectus if a statement contained in this Prospectus changes or is replaced.
Any statement that is considered to be a part of this Prospectus because of its
incorporation will be considered changed or replaced for the purpose of this
Prospectus if a statement contained in any other subsequently filed document
that is considered to be part of this Prospectus changes or replaces that
statement. After that, only the statement that is changed or replaced will be
considered to be part of this Prospectus.
We file our Exchange Act documents and reports, including our Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR
under CIK No. 0000727920. The SEC maintains a website that contains reports,
proxy and information statements, and other information regarding registrants
that file electronically with the SEC. The address of the website is
www.sec.gov.
Upon written or oral request, we will provide, free of charge, to each person
to whom this Prospectus is delivered, a copy of any or all of the documents
considered to be part of this Prospectus because they are incorporated herein.
This does not include exhibits not specifically incorporated by reference into
the text of such documents. Requests for documents should be directed to AXA
Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New
York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234).
Incorporation of certain documents by reference 77
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account 49 with the same daily asset charges of 1.20%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004
For the years ending December 31,
---------------------------------------------------------------------------------------------
2004 2003 2002 2001 2000 1999 1998 1997 1996
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation
Unit value $ 10.63 -- -- -- -- -- -- -- --
Number of units outstanding (000's) 728 -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Conservative Allocation
Unit value $ 10.31 -- -- -- -- -- -- -- --
Number of units outstanding (000's) 373 -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Conservative-Plus Allocation
Unit value $ 10.41 -- -- -- -- -- -- -- --
Number of units outstanding (000's) 695 -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Moderate Allocation
Unit value $ 45.53 $ 42.39 $ 36.01 -- -- -- -- -- --
Number of units outstanding (000's) 5,029 4,208 1,221 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Moderate-Plus Allocation
Unit value $ 10.65 -- -- -- -- -- -- -- --
Number of units outstanding (000's) 3,138 -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
Unit value $ 55.46 $ 50.07 $ 36.85 $ 52.44 $ 70.94 $ 82.86 $ 70.74 $ 71.57 $ 65.53
Number of units outstanding (000's) 269 265 161 153 185 213 266 279 9
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
Unit value $ 11.24 $ 10.96 $ 10.69 -- -- -- -- -- --
Number of units outstanding (000's) 12,384 12,153 4,285 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
Unit value $ 11.09 $ 10.01 $ 7.91 -- -- -- -- -- --
Number of units outstanding (000's) 3,994 3,394 929 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
Unit value $ 30.28 $ 28.20 $ 23.29 $ 24.29 $ 24.42 $ 27.13 $ 28.48 $ 30.46 $ 26.09
Number of units outstanding (000's) 4,900 4,511 903 221 260 329 422 439 24
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
Unit value $ 12.09 $ 10.38 $ 7.82 -- -- -- -- -- --
Number of units outstanding (000's) 3,660 3,008 923 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
Unit value $ 10.50 $ 9.69 $ 7.65 -- -- -- -- -- --
Number of units outstanding (000's) 2,980 2,952 1,004 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
Unit value $ 9.24 $ 8.77 $ 6.80 -- -- -- -- -- --
Number of units outstanding (000's) 6,362 5,953 2,130 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
Unit value $ 11.60 $ 10.26 $ 7.92 -- -- -- -- -- --
Number of units outstanding (000's) 6,199 5,210 1,722 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
Unit value $ 9.50 $ 8.60 $ 6.21 -- -- -- -- -- --
Number of units outstanding (000's) 8,108 7,657 2,602 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
A-1 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
For the years ending December 31,
-----------------------------------------------------------------------------------------
2004 2003 2002 2001 2000 1999 1998 1997 1996
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
Unit value $ 11.67 $ 10.25 $ 7.38 -- -- -- -- -- --
Number of units outstanding (000's) 5,827 5,443 1,889 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
Unit value $ 9.16 $ 8.83 $ 5.67 -- -- -- -- -- --
Number of units outstanding (000's) 3,498 1,530 306 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
Unit value $248.43 $220.33 $149.11 $226.39 $256.74 $303.01 $245.58 $192.60 $ 151.23
Number of units outstanding (000's) 613 548 222 154 188 205 230 240 8
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
Unit value $ 28.77 $ 25.91 $ 20.11 -- -- -- -- -- --
Number of units outstanding (000's) 5,149 5,046 1,615 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government
Securities
Unit value $ 19.04 $ 18.91 $ 18.73 -- -- -- -- -- --
Number of units outstanding (000's) 4,043 4,619 1,850 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance International
Unit value $ 13.49 $ 11.55 $ 8.65 -- -- -- -- -- --
Number of units outstanding (000's) 5,816 5,125 1,285 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Large Cap Growth
Unit value $ 6.34 $ 5.92 $ 4.86 $ 7.15 $ 9.52 $ 11.80 -- -- --
Number of units outstanding (000's) 6,068 5,986 2,292 89 114 79 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
Unit value $ 16.17 $ 15.77 $ 15.42 -- -- -- -- -- --
Number of units outstanding (000's) 4,383 4,326 1,432 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
Unit value $ 15.54 $ 13.80 $ 9.91 $ 14.38 $ 16.78 $ 14.94 $ 11.85 $ 12.55 --
Number of units outstanding (000's) 4,124 4,091 1,279 105 191 50 102 89 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Bear Stearns Small Company Growth
Unit value $ 7.70 -- -- -- -- -- -- -- --
Number of units outstanding (000's) 19 -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
Unit value $ 14.56 $ 12.99 $ 10.22 $ 11.97 $ 11.75 $ 12.13 $ 11.86 -- --
Number of units outstanding (000's) 15,533 14,531 4,578 114 54 46 22 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Boston Advisors Equity Income
Unit value $ 5.71 -- -- -- -- -- -- -- --
Number of units outstanding (000's) 216 -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
Unit value $ 8.18 $ 8.00 $ 6.33 $ 8.70 -- -- -- -- --
Number of units outstanding (000's) 782 744 182 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Growth
Unit value $ 12.08 $ 11.58 $ 9.46 $ 13.00 $ 17.41 $ 21.43 $ 16.65 $ 12.37 --
Number of units outstanding (000's) 2,149 2,153 710 193 235 245 160 124 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
Unit value $ 10.78 $ 9.60 $ 7.33 $ 8.73 $ 11.17 $ 13.97 -- -- --
Number of units outstanding (000's) 8,017 6,516 1,628 26 23 15 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
Unit value $ 11.40 $ 10.41 $ 8.01 $ 10.76 $ 11.12 $ 10.62 -- -- --
Number of units outstanding (000's) 8,080 7,741 2,252 17 10 3 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
Unit value $ 11.19 $ 10.36 $ 7.69 $ 10.20 $ 10.53 $ 10.29 -- -- --
Number of units outstanding (000's) 14,528 13,433 2,981 59 8 7 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-2
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
For the years ending December 31,
-----------------------------------------------------------------------------------------
2004 2003 2002 2001 2000 1999 1998 1997 1996
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
Unit value $ 26.06 $ 23.92 $ 18.94 $ 24.71 $ 28.47 -- -- -- --
Number of units outstanding (000's) 9,053 8,439 2,393 71 78 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
Unit value $ 8.40 $ 7.95 $ 5.82 -- -- -- -- -- --
Number of units outstanding (000's) 3,237 2,600 551 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI /Mid Cap
Unit value $ 11.21 $ 9.78 $ 6.89 $ 8.56 $ 10.00 -- -- -- --
Number of units outstanding (000's) 13,609 12,491 2,799 19 7 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
Unit value $ 14.57 $ 12.51 $ 9.51 $ 11.28 $ 10.98 -- -- -- --
Number of units outstanding (000's) 9,029 8,508 3,161 37 9 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
Unit value $ 13.99 $ 13.60 $ 13.32 $ 12.30 $ 11.54 $ 10.47 $ 10.77 -- --
Number of units outstanding (000's) 11,977 11,974 3,674 280 141 139 98 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JP Morgan Value Opportunities
Unit value $ 13.35 $ 12.19 $ 9.73 $ 12.16 $ 13.21 $ 12.52 $ 12.85 $ 11.53 --
Number of units outstanding (000's) 3,942 3,680 1,342 324 341 423 506 383 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
Unit value $ 6.06 $ 5.47 $ 4.40 $ 6.39 $ 8.40 -- -- -- --
Number of units outstanding (000's) 5,744 5,658 2,123 20 29 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
Unit value $ 16.80 $ 14.55 $ 10.70 $ 12.57 $ 10.81 $ 9.23 $ 9.18 -- --
Number of units outstanding (000's) 8,796 8,124 2,322 111 41 20 26 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
Unit value $ 14.02 $ 12.84 $ 9.91 $ 11.35 -- -- -- -- --
Number of units outstanding (000's) 14,238 13,403 2,875 2 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
Unit value $ 20.19 $ 18.49 $ 14.26 -- -- -- -- -- --
Number of units outstanding (000's) 6,364 5,670 1,591 -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury International Value
Unit value $ 17.09 $ 14.22 $ 11.24 $ 13.65 $ 17.60 $ 20.32 $ 12.83 $ 10.87 --
Number of units outstanding (000's) 4,781 4,396 1,445 154 182 199 190 187 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
Unit value $ 13.35 $ 12.00 $ 9.39 $ 14.47 $ 22.21 $ 27.70 $ 16.14 $ 12.14 --
Number of units outstanding (000's) 1,558 1,506 496 147 214 227 176 149 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
Unit value $ 9.06 $ 8.23 $ 6.83 $ 8.75 $ 10.54 $ 10.74 -- -- --
Number of units outstanding (000's) 4,211 4,026 993 77 42 31 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market
Unit value $ 29.20 $ 29.33 $ 29.52 $ 29.51 $ 28.84 $ 27.54 $ 26.62 $ 25.64 $ 24.68
Number of units outstanding (000's) 1,417 1,972 1,554 256 266 360 329 359 127
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Montag & Caldwell Growth
Unit value $ 4.47 -- -- -- -- -- -- -- --
Number of units outstanding (000's) 13 -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Index
Unit value $ 14.50 $ 12.48 $ 8.66 $ 11.07 $ 10.99 $ 11.51 $ 9.65 -- --
Number of units outstanding (000's) 4,174 3,847 1,053 23 18 18 18 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Value
Unit value $ 23.37 -- -- -- -- -- -- -- --
Number of units outstanding (000's) 62 -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
A-3 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
For the years ending December 31,
-----------------------------------------------------------------------------------------
2004 2003 2002 2001 2000 1999 1998 1997 1996
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/TCW Equity
Unit value $ 17.42 -- -- -- -- -- -- -- --
Number of units outstanding (000's) 19 -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/UBS Growth and Income
Unit value $ 5.21 -- -- -- -- -- -- -- --
Number of units outstanding (000's) 12 -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Van Kampen Emerging Markets Equity
Unit value $ 10.76 $ 8.81 $ 5.72 $ 6.15 $ 6.56 $ 11.08 $ 5.73 -- --
Number of units outstanding (000's) 3,531 2,700 737 43 55 52 16 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short
Equity
Unit value $ 10.16 -- -- -- -- -- -- -- --
Number of units outstanding (000's) 339 -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II
Unit value $ 12.73 -- -- -- -- -- -- -- --
Number of units outstanding (000's) 934 -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-4
Appendix II: Purchase considerations for QP contracts
- --------------------------------------------------------------------------------
Trustees who are considering the purchase of an Accumulator(R) QP contract
should discuss with their tax advisers whether this is an appropriate
investment vehicle for the employer's plan. Trustees should consider whether
the plan provisions permit the investment of plan assets in the QP contract,
the distribution of such an annuity, the purchase of the guaranteed minimum
income benefit, and the payment of death benefits in accordance with the
requirements of the federal income tax rules. The QP contract and this
Prospectus should be reviewed in full, and the following factors, among others,
should be noted. Assuming continued plan qualification and operation, earnings
on qualified plan assets will accumulate value on a tax-deferred basis even if
the plan is not funded by the Accumulator(R) QP contract or another annuity.
Therefore, you should purchase an Accumulator(R) QP contract to fund a plan for
the contract's features and benefits other than tax deferral, after considering
the relative costs and benefits of annuity contracts and other types of
arrangements and funding vehicles. This QP contract accepts transfer
contributions only and not regular, ongoing payroll contributions. For 401(k)
plans under defined contribution plans, no employee after-tax contributions are
accepted.
We will not accept defined benefit plans. For defined contribution plans, we
will only accept transfers from another defined contribution plan or a change
of investment vehicles in the plan. Only one additional transfer contribution
may be made per contract year. If overfunding of a plan occurs or amounts
attributable to an excess contribution must be withdrawn, withdrawals from the
QP contract may be required. A withdrawal charge and/or market value adjustment
may apply.
AXA Equitable will not perform or provide any plan recordkeeping services with
respect to the QP contracts. The plan's administrator will be solely
responsible for performing or providing for all such services. There is no loan
feature offered under the QP contracts, so if the plan provides for loans and a
participant/employee takes a loan from the plan, other plan assets must be used
as the source of the loan and any loan repayments must be credited to other
investment vehicles and/or accounts available under the plan.
Given that required minimum distributions must generally commence from the plan
for annuitants after age 70-1/2, trustees should consider that:
o the QP contract may not be an appropriate purchase for annuitants approaching
or over age 70-1/2;
o provisions in the Treasury Regulations on required minimum distributions will
require, beginning in 2006, that the actuarial present value of additional
annuity contract benefits be added to the dollar amount credited for
purposes of calculating required minimum distributions. This could increase
the amounts required to be distributed from the contract; and
o the guaranteed minimum income benefit under the Living Benefit may not be an
appropriate feature for annuitants who are older than age 60-1/2 when the
contract is issued.
Finally, because the method of purchasing the QP contract, including the large
initial contribution, and the features of the QP contract may appeal more to
plan participants/employees who are older and tend to be highly paid, and
because certain features of the QP contract are available only to plan
participants/employees who meet certain minimum and/or maximum age
requirements, plan trustees should discuss with their advisers whether the
purchase of the QP contract would cause the plan to engage in prohibited
discrimination in contributions, benefits or otherwise.
B-1 Appendix II: Purchase considerations for QP contracts
Appendix III: Market value adjustment example
- --------------------------------------------------------------------------------
The example below shows how the market value adjustment would be determined and
how it would be applied to a withdrawal, assuming that $100,000 was allocated
on February 15, 2005 to a fixed maturity option with a maturity date of
February 15, 2014 (nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value of $183,914 on the maturity date. We
further assume that a withdrawal of $50,000 is made four years later on
February 15, 2009.
- --------------------------------------------------------------------------------
Hypothetical Assumed
rate to maturity on
February 15, 2009
----------------------
5.00% 9.00%
- --------------------------------------------------------------------------------
As of February 15, 2009 (before withdrawal)
- --------------------------------------------------------------------------------
(1) Market adjusted amount $144,082 $ 119,503
(2) Fixed maturity amount $131,104 $ 131,104
(3) Market value adjustment:
(1) - (2) $ 12,978 $ (11,601)
- --------------------------------------------------------------------------------
On February 15, 2009 (after withdrawal)
- --------------------------------------------------------------------------------
(4) Portion of market value adjustment associated
with withdrawal:
(3) x [$50,000/(1)] $ 4,504 $ (4,854)
(5) Reduction in fixed maturity amount: [$50,000 - (4)] $ 45,496 $ 54,854
(6) Fixed maturity amount: (2) - (5) $ 85,608 $ 76,250
(7) Maturity value $120,091 $ 106,965
(8) Market adjusted amount of (7) $ 94,082 $ 69,503
- --------------------------------------------------------------------------------
You should note that under this example, if a withdrawal is made when rates
have increased from 7.00% to 9.00% (right column), a portion of a negative
market value adjustment is realized. On the other hand, if a withdrawal is made
when rates have decreased from 7.00% to 5.00% (left column), a portion of a
positive market value adjustment is realized. The market value adjustment is
computed differently if you withdraw amounts on a date other than the
anniversary of the establishment of the fixed maturity option.
Appendix III: Market value adjustment example C-1
Appendix IV: Enhanced death benefit example
- --------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the enhanced death benefit, if elected.
The following illustrates the enhanced death benefit calculation. Assuming
$100,000 is allocated to the variable investment options (with no allocation to
the EQ/Alliance Intermediate Government Securities, EQ/Money Market, EQ/PIMCO
Real Return, EQ/Short Duration Bond, the guaranteed interest option or the
fixed maturity options), no additional contributions, no transfers, no
withdrawals and no loans under a Rollover TSA contract, the enhanced death
benefit for an annuitant age 45 would be calculated as follows:
- --------------------------------------------------------------------------------
End of 6% roll up to age 85 Annual ratchet to age 85
contract enhanced enhanced
year Account value death benefit(1) death benefit
- --------------------------------------------------------------------------------
1 $105,000 $ 106,000(1) $ 105,000(3)
- --------------------------------------------------------------------------------
2 $115,500 $ 112,360(2) $ 115,500(3)
- --------------------------------------------------------------------------------
3 $129,360 $ 119,102(2) $ 129,360(3)
- --------------------------------------------------------------------------------
4 $103,488 $ 126,248(1) $ 129,360(4)
- --------------------------------------------------------------------------------
5 $113,837 $ 133,823(1) $ 129,360(4)
- --------------------------------------------------------------------------------
6 $127,497 $ 141,852(1) $ 129,360(4)
- --------------------------------------------------------------------------------
7 $127,497 $ 150,363(1) $ 129,360(4)
- --------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%.
We are using these rates solely to illustrate how the benefit is determined.
The return rates bear no relationship to past or future investment results.
6% ROLL-UP TO AGE 85
(1) At the end of contract year 1, and again at the end of contract years 4
through 7, the death benefit will be the enhanced death benefit.
(2) At the end of contract years 2 and 3, the death benefit will be the current
account value since it is higher than the current enhanced death benefit.
ANNUAL RATCHET TO AGE 85
(3) At the end of contract years 1 through 3, the enhanced death benefit is the
current account value.
(4) At the end of contract years 4 through 7, the enhanced death benefit is the
enhanced death benefit at the end of the prior year since it is equal to
or higher than the current account value.
GREATER OF 6% ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85
The enhanced death benefit under this option for each year shown would be the
greater of the amounts shown under the 6% roll-up to age 85 or the Annual
ratchet to age 85.
D-1 Appendix IV: Enhanced death benefit example
Appendix V: Hypothetical illustrations
- --------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM
BENEFITS
The following tables illustrate the changes in account value, cash value and
the values of the "greater of 6% Roll up to Age 85 or the Annual Ratchet to Age
85" guaranteed minimum death benefit, the Protection Plus(SM) benefit and the
Guaranteed minimum income benefit under certain hypothetical circumstances for
an Accumulator(R) contract. The table illustrates the operation of a contract
based on a male, issue age 60, who makes a single $100,000 contribution and
takes no withdrawals. The amounts shown are for the beginning of each contract
year and assume that all of the account value is invested in portfolios that
achieve investment returns at constant gross annual rates of 0% and 6% (i.e.,
before any investment management fees, 12b-1 fees or other expenses are
deducted from the underlying portfolio assets). After the deduction of the
arithmetic average of the investment management fees, 12b-1 fees and other
expenses of all of the underlying Portfolios (as described below), the
corresponding net annual rates of return would be (2.53)% and 3.47% for the
Accumulator(R) Contract, at the 0% and 6% gross annual rates, respectively.
These net annual rates of return reflect the trust and separate account level
charges, but they do not reflect the charges we deduct from your account value
annually for the Guaranteed minimum death benefit, Protection Plus(SM) benefit,
and the Guaranteed minimum income benefit , as well as the annual
administrative charge. If the net annual rates of return did reflect these
charges, the net annual rates of return shown would be lower; however, the
values shown in the following tables reflect all contract charges. The values
shown under "Lifetime Annual Guaranteed Minimum Income Benefit reflect the
lifetime income that would be guaranteed if the Guaranteed minimum income
benefit is selected at that contract anniversary. An "N/A" in these columns
indicates that the benefit is not exercisable in that year. A "0" under any of
the Death Benefit and/or "Lifetime Annual Guaranteed Minimum Income Benefit"
columns indicates that the contract has terminated due to insufficient account
value and, consequently, the guaranteed benefit has no value.
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in all tables reflect (1) investment management
fees equivalent to an effective annual rate of 0.69%, and (2) an assumed
average asset charge for all other expenses of the underlying portfolios
equivalent to an effective annual rate of 0.39% and (3) 12b-1 fees equivalent
to an effective annual rate of 0.25%. These rates are the arithmetic average
for all portfolios that are available as investment options. In other words,
they are based on the hypothetical assumption that account values are allocated
equally among the variable investment options. The actual rates associated with
any contract will vary depending upon the actual allocation of contract values
among the investment options. These rates do not reflect expense limitation
arrangements in effect with respect to certain of the underlying portfolios as
described in the footnotes to the fee table for the underlying portfolios in
"Fee Table" earlier in this Prospectus. With these arrangements, the charges
shown above would be lower. This would result in higher values than those shown
in the following tables.
Because your circumstances will no doubt differ from those in the illustrations
that follow, values under your contract will differ, in most cases
substantially. Upon request, we will furnish you with a personalized
illustration.
Appendix V: Hypothetical illustrations E-1
Variable deferred annuity
Accumulator
$100,000 Single contribution and no withdrawals
Male, issue age 60
Benefits:
Greater of 6% Roll up to age 85 or the Annual Ratchet to age 85 Guaranteed
minimum death benefit
Protection Plus
Guaranteed minimum income benefit
Greater of 6% Roll
up
to age 85 or the
Annual
Ratchet to age 85
Guaranteed
Minimum Death
Account Value Cash Value Benefit
------------------- ------------------ -------------------
Contract Year 0% 6% 0% 6% 0% 6%
Age -------------- --------- --------- -------- --------- --------- ---------
60 1 100,000 100,000 93,000 93,000 100,000 100,000
61 2 95,857 101,836 88,857 94,836 106,000 106,000
62 3 91,756 103,652 85,756 97,652 112,360 112,360
63 4 87,693 105,445 81,693 99,445 119,102 119,102
64 5 83,660 107,207 78,660 102,207 126,248 126,248
65 6 79,652 108,933 76,652 105,933 133,823 133,823
66 7 75,663 110,616 74,663 109,616 141,852 141,852
67 8 71,686 112,249 71,686 112,249 150,363 150,363
68 9 67,715 113,825 67,715 113,825 159,385 159,385
69 10 63,744 115,335 63,744 115,335 168,948 168,948
74 15 43,596 121,562 43,596 121,562 226,090 226,090
79 20 22,187 124,473 22,187 124,473 302,560 302,560
84 25 0 122,052 0 122,052 0 404,893
89 30 0 125,622 0 125,622 0 429,187
94 35 0 132,694 0 132,694 0 429,187
95 36 0 134,242 0 134,242 0 429,187
Lifetime Annual
Guaranteed Minimum Income Benefit
Total Death Benefit ------------------------------------
with Protection Guaranteed Hypothetical
Plus Income Income
------------------- ------------------ -----------------
0% 6% 0% 6% 0% 6%
Age --------- --------- --------- -------- --------- -------
60 100,000 100,000 N/A N/A N/A N/A
61 108,400 108,400 N/A N/A N/A N/A
62 117,304 117,304 N/A N/A N/A N/A
63 126,742 126,742 N/A N/A N/A N/A
64 136,747 136,747 N/A N/A N/A N/A
65 147,352 147,352 N/A N/A N/A N/A
66 158,593 158,593 N/A N/A N/A N/A
67 170,508 170,508 N/A N/A N/A N/A
68 183,139 183,139 N/A N/A N/A N/A
69 196,527 196,527 N/A N/A N/A N/A
74 276,527 276,527 14,266 14,266 14,266 14,266
79 383,584 383,584 20,393 20,393 20,393 20,393
84 0 493,179 0 34,821 0 34,821
89 0 517,472 N/A N/A N/A N/A
94 0 517,472 N/A N/A N/A N/A
95 0 517,472 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for
individual contract years. We can make no representation that these
hypothetical investment results can be achieved for any one year or continued
over any period of time. In fact, for any given period of time, the investment
results could be negative.
E-2 Appendix V: Hypothetical illustrations
Appendix VI: Contract variations
- --------------------------------------------------------------------------------
The contract described in this Prospectus is no longer sold. You should note
that your contract features and charges may vary from what is described in this
Prospectus depending on the date on which you purchased your contract. You may
not change your contract or its features after issue. This Appendix reflects
contract variations that differ from what is described in this Prospectus but
may have been in effect at the time your purchased your contract.
In addition, options and/or features may vary among states in light of
applicable regulations or state approvals. Any such state variations are
generally not included here. For more information about state variations
applicable to you, as well as particular features, charges and options
available under your contract based upon when you purchased it, please contact
your financial professional and/or refer to your contract.
- ------------------------------------------------------------------------------------------------------------------------------------
Approximate Time Period Feature/Benefit Variation
- ------------------------------------------------------------------------------------------------------------------------------------
April 2002 - November 2002 Inherited IRA beneficiary continuation contract Unavailable.
- ------------------------------------------------------------------------------------------------------------------------------------
April 2002 - February 2003 Fee table Guaranteed minimum death benefit charge:
Annual Ratchet to age 85: 0.20%
6% Roll up to age 85: 0.35%
The Greater of the 6% Roll up to age
85 or the Annual Ratchet to age 85: 0.45%
Guaranteed minimum income benefit: 0.45%
- ------------------------------------------------------------------------------------------------------------------------------------
April 2002 - May 2002 Annuity maturity date For New York contract owners only, the maturity
date is age 90.
- ------------------------------------------------------------------------------------------------------------------------------------
April 2002 - August 2003 Annuitant issue age Ages 86-90. For contracts with an annuitant who
was age 86-90 at issue, the following apply: (1)
standard death benefit only was available, and (2)
no withdrawal charge applies.
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix VI: Contract variations F-1
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Unit Values 2
Custodian and Independent Registered Public Accounting Firm 2
Distribution of the Contracts 2
Financial Statements 2
How to Obtain an Accumulator(R) Statement of Additional Information for
Separate Account No. 45 and Separate Account No. 49
Send this request form to:
Accumulator(R)
P.O. Box 1547
Secaucus, NJ 07096-1547
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me an Accumulator(R) SAI for Separate Account No. 45 and Separate
Account No. 49 dated May 1, 2005.
- --------------------------------------------------------------------------------
Name:
- --------------------------------------------------------------------------------
Address:
- --------------------------------------------------------------------------------
City State Zip
(SAI 13AMLF(5/05)) X01001/Core '02, OR and '04 Series
ACCUMULATOR(R)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2005
Please read and keep this Prospectus for future reference. It contains
important information that you should know before purchasing or taking any
other action under your contract. You should read the prospectuses for each
Trust, which contain important information about the portfolios.
- --------------------------------------------------------------------------------
WHAT IS ACCUMULATOR(R)?
Accumulator(R) is a deferred annuity contract issued by AXA Equitable Life
Insurance Company. It provides for the accumulation of retirement savings and
for income. The contract offers income and death benefit protection. It also
offers a number of payout options. You invest to accumulate value on a
tax-deferred basis in one or more of our variable investment options, the
guaranteed interest option, fixed maturity options, or the account for special
dollar cost averaging ("investment options"). This contract may not currently
be available in all states. Certain features and benefits described in this
Prospectus may vary in your state; all features and benefits may not be
available in all contracts or in all states. Please see Appendix VIII later in
this Prospectus for more information on state availability and/or variations of
certain features and benefits.
- -------------------------------------------------------------------------------
Variable Investment Options
- -------------------------------------------------------------------------------
o AXA Aggressive Allocation(1) o EQ/Equity 500 Index
o AXA Conservative Allocation(1) o EQ/Evergreen Omega
o AXA Conservative-Plus Allocation(1) o EQ/FI Mid Cap
o AXA Moderate Allocation(1) o EQ/FI Small/Mid Cap Value
o AXA Moderate-Plus Allocation(1) o EQ/International Growth(3)
o AXA Premier VIP Aggressive Equity o EQ/J.P. Morgan Core Bond
o AXA Premier VIP Core Bond o EQ/JP Morgan Value Opportunities
o AXA Premier VIP Health Care o EQ/Janus Large Cap Growth
o AXA Premier VIP High Yield o EQ/Lazard Small Cap Value
o AXA Premier VIP International Equity o EQ/Long Term Bond(3)
o AXA Premier VIP Large Cap Core o EQ/Lord Abbett Growth and Income(3)
Equity o EQ/Lord Abbett Large Cap Core(3)
o AXA Premier VIP Large Cap Growth o EQ/Lord Abbett Mid Cap Value(3)
o AXA Premier VIP Large Cap Value o EQ/Marsico Focus
o AXA Premier VIP Small/Mid Cap o EQ/Mercury Basic Value Equity
Growth o EQ/Mercury International Value
o AXA Premier VIP Small/Mid Cap Value o EQ/Mergers and Acquisitions(3)
o AXA Premier VIP Technology o EQ/MFS Emerging Growth Companies
o EQ/Alliance Common Stock o EQ/MFS Investors Trust
o EQ/Alliance Growth and Income o EQ/Money Market
o EQ/Alliance Intermediate Government o EQ/Montag & Caldwell Growth(2)
Securities o EQ/PIMCO Real Return(3)
o EQ/Alliance International o EQ/Short Duration Bond(3)
o EQ/Alliance Large Cap Growth(2) o EQ/Small Company Index
o EQ/Alliance Quality Bond o EQ/Small Company Value(2)
o EQ/Alliance Small Cap Growth o EQ/TCW Equity(2)
o EQ/Bear Stearns Small Company o EQ/UBS Growth and Income(2)
Growth(2) o EQ/Van Kampen Comstock(3)
o EQ/Bernstein Diversified Value o EQ/Van Kampen Emerging Markets
o EQ/Boston Advisors Equity Income(2) Equity(2)
o EQ/Calvert Socially Responsible o EQ/Van Kampen Mid Cap Growth(3)
o EQ/Capital Guardian Growth o EQ/Wells Fargo Montgomery Small Cap
o EQ/Capital Guardian International o Laudus Rosenberg VIT Value Long/
o EQ/Capital Guardian Research Short Equity
o EQ/Capital Guardian U.S. Equity o U.S. Real Estate -- Class II
o EQ/Caywood-Scholl High Yield Bond(3)
- --------------------------------------------------------------------------------
(1) The "AXA Allocation" portfolios.
(2) This is the option's new name, effective on or about May 9, 2005, subject
to regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former
name.
(3) Available on or about May 9, 2005, subject to regulatory approval. Please
see "Portfolios of the Trusts" in "Contract features and benefits" later
in this Prospectus for more information on the new investment option.
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of Separate Account No. 49. Each
variable investment option, in turn, invests in a corresponding securities
portfolio of EQ Advisors Trust, AXA Premier VIP Trust, The Universal
Institutional Funds, Inc. or Laudus Variable Insurance Trust (the "Trusts").
Your investment results in a variable investment option will depend on the
investment performance of the related portfolio.
You may also allocate amounts to the guaranteed interest option, the fixed
maturity options, and the account for special dollar cost averaging, which are
discussed later in this Prospectus.
TYPES OF CONTRACTS. We offer the contracts for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only.
o An individual retirement annuity ("IRA"), either traditional IRA or Roth IRA.
We offer two versions of the traditional IRA: "Rollover IRA" and "Flexible
Premium IRA." We also offer two versions of the Roth IRA: "Roth Conversion
IRA" and "Flexible Premium Roth IRA."
o Traditional and Roth Inherited IRA beneficiary continuation contract
("Inherited IRA").
o An annuity that is an investment vehicle for a qualified defined contribution
plan ("QP").
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") --
("Rollover TSA").
A contribution of at least $5,000 is required to purchase an NQ, Rollover IRA,
Roth Conversion IRA, Inherited IRA, QP, or Rollover TSA contract. For Flexible
Premium IRA or Flexible Premium Roth IRA contracts, we require a contribution
of $2,000 to purchase a contract.
Registration statements relating to this offering have been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2005, is part of the registration statement.
The SAI is available free of charge. You may request one by writing to our
processing office or calling 1-800-789-7771. The SAI has been incorporated by
reference into this Prospectus. This Prospectus and the SAI can also be
obtained from the SEC's website at www.sec.gov. The table of contents for the
SAI appears at the back of this Prospectus.
THE SEC HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED IF THIS
PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE. THE CONTRACTS ARE NOT INSURED BY THE FDIC OR ANY OTHER
AGENCY. THEY ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF ANY BANK AND ARE NOT BANK
GUARANTEED. THEY ARE SUBJECT TO INVESTMENT RISKS AND POSSIBLE LOSS OF
PRINCIPAL.
X00889/Core '04 Series
(R-4/15)
Although this Prospectus is primarily designed for potential purchasers of the
contract, you may have previously purchased a contract and be receiving this
Prospectus as a current contract owner. If you are a current contract owner,
you should note that the options, features and charges of the contract may have
varied over time (and, as noted above, may vary depending on your state) and
you may not change your contract or its features as issued. For more
information about the particular options, features and charges applicable to
you, please contact your financial professional and/or refer to your contract
and/or see Appendix IX for contract variations later in this Prospectus.
CONTENTS OF THIS PROSPECTUS
- --------------------------------------------------------------------------------
ACCUMULATOR(R)
- --------------------------------------------------------------------------------
Index of key words and phrases 5
Who is AXA Equitable? 7
How to reach us 8
Accumulator(R) at a glance -- key features 10
- --------------------------------------------------------------------------------
FEE TABLE 14
- --------------------------------------------------------------------------------
Example 18
Condensed financial information 21
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 22
- --------------------------------------------------------------------------------
How you can purchase and contribute to your contract 22
Owner and annuitant requirements 29
How you can make your contributions 29
What are your investment options under the contract? 29
Portfolios of the Trusts 30
Allocating your contributions 36
Your Guaranteed minimum death benefit and
Guaranteed minimum income benefit base 39
Annuity purchase factors 39
Our Guaranteed minimum income benefit option 40
Guaranteed minimum death benefit 42
Principal Protector(SM) 43
Inherited IRA beneficiary continuation contract 46
Your right to cancel within a certain number of days 47
- --------------------------------------------------------------------------------
2. DETERMINING YOUR CONTRACT'S VALUE 48
- --------------------------------------------------------------------------------
Your account value and cash value 48
Your contract's value in the variable investment options 48
Your contract's value in the guaranteed interest option 48
Your contract's value in the fixed maturity options 48
Your contract's value in the account for special dollar
cost averaging 48
Termination of your contract 48
- ----------------------
"We," "our," and "us" refer to AXA Equitable.
When we address the reader of this Prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
Prospectus is discussing at that point. This is usually the contract owner.
When we use the word "contract" it also includes certificates that are issued
under group contracts in some states.
Contents of this Prospectus 3
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 50
- --------------------------------------------------------------------------------
Transferring your account value 50
Disruptive transfer activity 50
Rebalancing your account value 51
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 53
- --------------------------------------------------------------------------------
Withdrawing your account value 53
How withdrawals are taken from your account value 54
How withdrawals (and transfers out of the Special 10 year fixed
maturity option) affect your Guaranteed minimum income
benefit, Guaranteed minimum death benefit and
Guaranteed principal benefit option 2 54
How withdrawals affect Principal Protector(SM) 55
Withdrawals treated as surrenders 55
Loans under Rollover TSA contracts 55
Surrendering your contract to receive its cash value 56
When to expect payments 56
Your annuity payout options 56
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 59
- --------------------------------------------------------------------------------
Charges that AXA Equitable deducts 59
Charges that the Trusts deduct 62
Group or sponsored arrangements 62
Other distribution arrangements 63
- --------------------------------------------------------------------------------
6. PAYMENT OF DEATH BENEFIT 64
- --------------------------------------------------------------------------------
Your beneficiary and payment of benefit 64
How death benefit payment is made 65
Beneficiary continuation option 66
- --------------------------------------------------------------------------------
7. TAX INFORMATION 70
- --------------------------------------------------------------------------------
Overview 70
Buying a contract to fund a retirement arrangement 70
Transfers among investment options 70
Taxation of nonqualified annuities 70
Individual retirement arrangements (IRAs) 72
Tax-sheltered annuity contracts (TSAs) 81
Federal and state income tax withholding and
information reporting 85
Special rules for contracts funding qualified plans 86
Impact of taxes to AXA Equitable 86
- --------------------------------------------------------------------------------
8. MORE INFORMATION 87
- --------------------------------------------------------------------------------
About Separate Account No. 49 87
About the Trusts 87
About our fixed maturity options 87
About the general account 88
About other methods of payment 88
Dates and prices at which contract events occur 89
About your voting rights 90
About legal proceedings 90
About our independent registered public accounting firm 90
Financial statements 90
Transfers of ownership, collateral assignments, loans
and borrowing 90
Distribution of the contracts 91
- --------------------------------------------------------------------------------
9. INCORPORATION OF CERTAIN DOCUMENTS
BY REFERENCE 93
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed financial information A-1
II -- Purchase considerations for QP contracts B-1
III -- Market value adjustment example C-1
IV -- Enhanced death benefit example D-1
V -- Hypothetical illustrations E-1
VI -- Guaranteed principal benefit example F-1
VII -- Protection Plus(SM) example G-1
VIII -- State contract availability and/or variations of certain
features and benefits H-1
IX -- Contract variations I-1
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
4 Contents of This Prospectus
INDEX OF KEY WORDS AND PHRASES
- --------------------------------------------------------------------------------
This index should help you locate more information on the terms used in this
Prospectus.
Page
6% Roll up to age 85 39
account for special dollar cost averaging 36
account value 48
administrative charge 59
annual administrative charge 59
Annual Ratchet to age 85 enhanced death benefit 39
annuitant 22
annuity maturity date 58
annuity payout options 56
annuity purchase factors 39
automatic investment program 89
beneficiary 64
Beneficiary continuation option ("BCO") 66
benefit base 39
business day 89
cash value 48
charges for state premium and other applicable taxes 62
contract date 12
contract date anniversary 12
contract year 12
contributions to Roth IRAs 78
regular contributions 78
rollovers and transfers 79
conversion contributions 79
contributions to traditional IRAs 73
regular contributions 73
rollovers and transfers 74
disability, terminal illness or confinement to nursing home 60
disruptive transfer activity 50
Distribution Charge 59
EQAccess 8
ERISA 55
Fixed-dollar option 38
fixed maturity options 35
Flexible Premium IRA cover
Flexible Premium Roth IRA cover
free look 47
free withdrawal amount 60
general account 88
General dollar cost averaging 38
guaranteed interest option 35
Guaranteed minimum death benefit 42
Guaranteed minimum income benefit 40
Guaranteed minimum income benefit charge 61
Guaranteed principal benefits 36
IRA cover
IRS 70
Inherited IRA cover
Investment simplifier 38
investment options cover
Page
lifetime required minimum distribution withdrawals 54
loan reserve account 55
loans under Rollover TSA 55
lump sum withdrawals 53
market adjusted amount 35
market value adjustment 35
market timing 50
maturity dates 35
maturity value 35
Mortality and expense risks charge 59
NQ cover
Optional step up charge 62
participant 29
portfolio cover
Principal Protector(SM) 43
Principal Protector(SM) charge 62
processing office 8
Protection Plus(SM) 42
Protection Plus(SM)charge 61
QP cover
rate to maturity 35
Rebalancing 51
Rollover IRA cover
Rollover TSA cover
Roth Conversion IRA cover
Roth IRA cover
SAI cover
SEC cover
self-directed allocation 36
Separate Account No. 49 87
special dollar cost averaging 37
standard death benefit 39
substantially equal withdrawals 53
Successor owner and annuitant 65
Spousal protection 65
systematic withdrawals 53
TOPS 8
TSA cover
traditional IRA cover
Trusts 86
unit 48
variable investment options 29
wire transmittals and electronic applications 88
withdrawal charge 60
To make this Prospectus easier to read, we sometimes use different words than
in the contract or supplemental materials. This is illustrated below. Although
we use different words, they have the same meaning in this Prospectus as in the
contract or supplemental materials. Your financial professional can provide
further explanation about your contract.
- ------------------------------------------------------------------------------------
Prospectus Contract or Supplemental Materials
- ------------------------------------------------------------------------------------
fixed maturity options Guarantee Periods (Guaranteed Fixed
Interest Accounts in supplemental materials)
variable investment options Investment Funds
- ------------------------------------------------------------------------------------
Index of key words and phrases 5
- -------------------------------------------------------------------------------------
Prospectus Contract or Supplemental Materials
- -------------------------------------------------------------------------------------
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
Guaranteed minimum death benefit Guaranteed death benefit
Guaranteed minimum income benefit Guaranteed Income Benefit
Guaranteed interest option Guaranteed Interest Account
Principal Protector(SM) Guaranteed withdrawal benefit
GWB benefit base Principal Protector(SM) benefit base
GWB Annual withdrawal amount Principal Protector(SM) Annual withdrawal amount
GWB Annual withdrawal option Principal Protector(SM) Annual withdrawal option
GWB Excess withdrawal Principal Protector(SM) Excess withdrawal
- -------------------------------------------------------------------------------------
6 Index of Key Words and Phrases
WHO IS AXA EQUITABLE?
- --------------------------------------------------------------------------------
We are AXA Equitable Life Insurance Company ("AXA Equitable") (previously, The
Equitable Life Assurance Society of the United States), a New York stock life
insurance corporation. We have been doing business since 1859. AXA Equitable is
a subsidiary of AXA Financial, Inc. AXA, a French holding company for an
international group of insurance and related financial services companies, is
the sole shareholder of AXA Financial, Inc. As the sole shareholder, and under
its other arrangements with AXA Equitable and AXA Equitable's parent, AXA
exercises significant influence over the operations and capital structure of
AXA Equitable and its parent. No company other than AXA Equitable, however, has
any legal responsibility to pay amounts that AXA Equitable owes under the
contract.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$598 billion in assets as of December 31, 2004. For over 100 years AXA
Equitable has been among the largest insurance companies in the United States.
We are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office
is located at 1290 Avenue of the Americas, New York, N.Y. 10104.
Who is AXA Equitable? 7
HOW TO REACH US
You may communicate with our processing office as listed below for the purposes
described. Certain methods of contacting us, such as by telephone or
electronically, may be unavailable or delayed (for example our facsimile
service may not be available at all times and/or we may be unavailable due to
emergency closing). In addition, the level and type of service available may be
restricted based on criteria established by us.
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Accumulator(R)
P.O. Box 13014
Newark, NJ 07188-0014
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Accumulator(R)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY
REGULAR MAIL:
- --------------------------------------------------------------------------------
Accumulator(R)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY
EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Accumulator(R)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year, and any
calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract
year, including notification of eligibility to exercise the guaranteed
minimum income benefit, if applicable.
- --------------------------------------------------------------------------------
TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND
EQACCESS SYSTEMS:
- --------------------------------------------------------------------------------
TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQAccess is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for the fixed maturity options;
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
available through TOPS).
You can also:
o change your allocation percentages and/or transfer among the investment
options;
o elect to receive certain contract statements electronically;
o change your address (not available through TOPS);
o change your TOPS personal identification number ("PIN") (through TOPS only)
and your EQAccess password (through EQAccess only); and
o access Frequently Asked Questions and Service Forms (not available through
TOPS).
TOPS and EQAccess are normally available seven days a week, 24 hours a day. You
may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our website at www.axaonline.com and
logging in to access your account. All other clients may access EQAccess by
visiting our website at www.axa-equitable.com. Of course, for reasons beyond
our control, these services may sometimes be unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or Internet are genuine. For example, we will require
certain personal identification information before we will act on telephone or
Internet instructions and we will provide written confirmation of your
transfers. If we do not employ reasonable procedures to confirm the genuineness
of telephone or Internet instructions, we may be liable for any losses arising
out of any act or omission that constitutes negligence, lack of good faith, or
willful misconduct. In light of our procedures, we will not be liable for
following telephone or Internet instructions we reasonably believe to be
genuine.
We reserve the right to limit access to these services if we determine that you
engaged in a disruptive transfer activity, such as "market timing" (see
"Disruptive transfer activity" in "Transferring your money among investment
options" later in this Prospectus).
- --------------------------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVE:
- --------------------------------------------------------------------------------
You may also use our toll-free number (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
8 Who is AXA Equitable?
(2) conversion of a traditional IRA to a Roth Conversion IRA or Flexible
Premium Roth IRA contract;
(3) election of the automatic investment program;
(4) election of the rebalancing program;
(5) requests for loans under Rollover TSA contracts;
(6) spousal consent for loans under Rollover TSA contracts;
(7) requests for withdrawals or surrenders from Rollover TSA contracts;
(8) tax withholding elections;
(9) election of the beneficiary continuation option;
(10) IRA contribution recharacterizations;
(11) certain Section 1035 exchanges;
(12) direct transfers;
(13) exercise of the Guaranteed minimum income benefit;
(14) requests to step up your Guaranteed withdrawal benefit ("GWB") benefit
base under the Optional step up provision; and
(15) requests to terminate or reinstate the GWB benefit under the Beneficiary
continuation option, if applicable;
(16) death claims; and
(17) change in ownership (NQ only).
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between investment options;
(4) contract surrender and withdrawal requests;
(5) general dollar cost averaging (including the fixed dollar and interest
sweep options); and
(6) special dollar cost averaging.
TO CANCEL OR CHANGE ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) automatic investment program;
(2) general dollar cost averaging (including the fixed dollar and interest
sweep options);
(3) rebalancing;
(4) special dollar cost averaging;
(5) substantially equal withdrawals;
(6) systematic withdrawals; and
(7) the date annuity payments are to begin.
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us to
take.
SIGNATURES:
The proper person to sign forms, notices and requests would normally be the
owner. If there are joint owners, all must sign.
Who is AXA Equitable? 9
Accumulator(R) at a glance -- key features
- --------------------------------------------------------------------------------------
Professional investment Accumulator's(R) variable investment options invest in
management different portfolios managed by professional investment
advisers.
- --------------------------------------------------------------------------------------
Fixed maturity options o Fixed maturity options ("FMOs") with maturities
ranging from approximately 1 to 10 years (subject to
availability).
o Each fixed maturity option offers a guarantee of
principal and interest rate if you hold it to maturity.
o Special 10 year fixed maturity option (available under
Guaranteed principal benefit option 2 only).
---------------------------------------------------------
If you make withdrawals or transfers from a fixed
maturity option before maturity, there will be a market
value adjustment due to differences in interest rates.
If you withdraw or transfer only a portion of a fixed
maturity amount, this may increase or decrease any
value that you have left in that fixed maturity option.
If you surrender your contract, a market value
adjustment also applies.
- --------------------------------------------------------------------------------------
Guaranteed interest o Principal and interest guarantees.
option
o Interest rates set periodically.
- --------------------------------------------------------------------------------------
Account for special dollar Available for dollar cost averaging all or a portion of
cost averaging any eligible contribution to your contract.
- --------------------------------------------------------------------------------------
Tax considerations o No tax on earnings inside the contract until you make
withdrawals from your contract or receive annuity
payments.
---------------------------------------------------------
o No tax on transfers among investment options inside
the contract.
---------------------------------------------------------
If you are purchasing an annuity contract as an
Individual Retirement Annuity (IRA) or Tax Sheltered
Annuity (TSA), or to fund an employer retirement plan
(QP or Qualified Plan), you should be aware that such
annuities do not provide tax deferral benefits beyond
those already provided by the Internal Revenue Code.
Before purchasing one of these annuities, you should
consider whether its features and benefits beyond tax
deferral meet your needs and goals. You may also want to
consider the relative features, benefits and costs of
these annuities compared with any other investment that
you may use in connection with your retirement plan or
arrangement. Depending on your personal situation, the
contract's guaranteed benefits may have limited
usefulness because of required minimum distributions
("RMDs").
- --------------------------------------------------------------------------------------
Guaranteed minimum The Guaranteed minimum income benefit provides income
income benefit protection for you during the annuitant's life once you
elect to annuitize the contract.
- --------------------------------------------------------------------------------------
Principal Protector(SM) Principal Protector(SM) is our optional Guaranteed
withdrawal benefit ("GWB"), which provides for recovery
of your total contributions through withdrawals, even if
your account value falls to zero, provided that during
each contract year, your total withdrawals do not exceed
a specified amount.
- --------------------------------------------------------------------------------------
CONTRIBUTION AMOUNTS o NQ, Rollover IRA, Roth Conversion IRA, Inherited IRA, QP and Rollover TSA contracts
o Initial minimum: $5,000
o Additional minimum: $500 (NQ, QP and Rollover TSA contracts)
$100 monthly and $300 quarterly under our automatic investment program
(NQ contracts)
$50 (IRA contracts)
$1000 (Inherited IRA contracts)
-------------------------------------------------------------------------------------------------------
o Flexible Premium IRA and Flexible Premium Roth IRA contracts
o Initial minimum: $2,000
o Additional minimum: $50
-------------------------------------------------------------------------------------------------------
Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million
($500,000 for owners or annuitants who are age 81 and older at contract issue).
- -----------------------------------------------------------------------------------------------------------------------------------
10 Accumulator(R) At a Glance -- Key Features
- -------------------------------------------------------------------------------------
Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Loans under Rollover TSA contracts
o Contract surrender
You may incur a withdrawal charge for certain
withdrawals or if you surrender your contract. You may
also incur income tax and a tax penalty.
- -------------------------------------------------------------------------------------
Payout options o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout options
- -------------------------------------------------------------------------------------
Additional features o Guaranteed minimum death benefit options
o Guaranteed principal benefit options
o Dollar cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually,
and annually)
o Free transfers
o Waiver of withdrawal charge for certain withdrawals,
disability, terminal illness, or confinement to a
nursing home
o Protection Plus(SM), an optional death benefit
available under certain contracts
o Spousal protection
o Successor owner/annuitant
o Beneficiary continuation option
- -------------------------------------------------------------------------------------
Accumulator(R) at a glance --key features 11
Fees and charges o Daily charges on amounts invested in variable investment
options for mortality and expense risks, administrative
charges and distribution charges at an annual rate of 1.25%.
o The charges for the Guaranteed minimum death benefits range
from 0.0% to 0.60%, annually, of the applicable benefit base.
The benefit base is described under "Your Guaranteed minimum
death benefit and Guaranteed minimum income benefit base" in
"Contract features and benefits" later in this Prospectus.
o Annual 0.65% of the applicable benefit base charge for the
optional Guaranteed minimum income benefit until you exercise
the benefit, elect another annuity payout or the contract date
anniversary after the annuitant reaches age 85, whichever
occurs first. The benefit base is described under "Your
Guaranteed minimum death benefit and Guaranteed minimum income
benefit base" in "Contract features and benefits" later in
this Prospectus.
o An annual charge for the optional Guaranteed principal benefit
option 2 deducted on the first 10 contract date anniversaries
equal to 0.50% of the account value.
o If your account value at the end of the contract year is less
than $50,000, we deduct an annual administrative charge equal
to $30, or during the first two contract years, 2% of your
account value, if less. If your account value, on the contract
date anniversary, is $50,000 or more, we will not deduct the
charge.
o An annual charge of 0.35% of the account value for the Protection
Plus(SM) optional death benefit.
o An annual charge of 0.35% of account value for the 5% GWB Annual
withdrawal option or 0.50% of account value for the 7% GWB Annual
withdrawal option for the Principal Protector(SM) benefit. If
you "step up" your GWB benefit base, we reserve the right to
raise the charge up to 0.60% and 0.80%, respectively. See
"Principal Protector(SM)" in "Contract features and benefits"
later in this Prospectus.
o No sales charge deducted at the time you make contributions.
During the first seven contract years following a
contribution, a charge of up to 7% will be deducted from
amounts that you withdraw that exceed 10% of your account
value. We use the account value at the beginning of each
contract year to calculate the 10% amount available. There is
no withdrawal charge in the eighth and later contract years
following a contribution. Certain other exemptions may apply.
--------------------------------------------------------------
The "contract date" is the effective date of a contract. This
usually is the business day we receive the properly completed
and signed application, along with any other required
documents, and your initial contribution. Your contract date
will be shown in your contract. The 12-month period beginning
on your contract date and each 12-month period after that date
is a "contract year." The end of each 12-month period is your
"contract date anniversary." For example, if your contract
date is May 1, your contract date anniversary is April 30.
--------------------------------------------------------------
o We deduct a charge designed to approximate certain taxes that
may be imposed on us, such as premium taxes in your state.
This charge is generally deducted from the amount applied to
an annuity payout option.
o We deduct a $350 annuity administrative fee from amounts
applied to purchase the Variable Immediate Annuity payout
options.
- -------------------------------------------------------------------------------------
o Annual expenses of the Trusts' portfolios are calculated as a
percentage of the average daily net assets invested in each
portfolio. These expenses include management fees ranging from
0.10% to 1.50% annually, 12b-1 fees of either 0.25% or 0.35%
annually and other expenses. In addition each AXA Allocation
Portfolio will invest in shares of other Portfolios of the EQ
Advisors Trust and AXA Premier VIP Trust (the "Underlying
Portfolios").
- -------------------------------------------------------------------------------------
Annuitant issue ages NQ: 0-85
Rollover IRA, Roth Conversion IRA, Flexible Premium Roth IRA
and Rollover TSA: 20-85
Flexible Premium IRA: 20-70
Inherited IRA: 0-70
QP: 20-75
- -------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the
contract. In some cases, restrictions or exceptions apply. Also, all features
of the contract are not necessarily available in your state or at certain ages.
Please see Appendix VIII later in this Prospectus for more information on state
availability and/or variations of certain features and benefits.
For more detailed information, we urge you to read the contents of this
Prospectus, as well as your contract. Please feel free to speak with your
financial professional, or call us, if you have any questions.
12 Accumulator(R) at a glance -- key features
OTHER CONTRACTS
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, credits, fees and/or charges that are
different from those in the contracts offered by this Prospectus. Not every
contract is offered through the same distributor. At their sole discretion,
some distributors may eliminate and/or limit the availability of certain
features or options, as well as limit the availability of the contracts, based
on annuitant issue age or other criteria. Upon request, your financial
professional can show you information regarding other AXA Equitable annuity
contracts that he or she distributes. You can also contact us to find out more
about any of the AXA Equitable annuity contracts.
Accumulator(R) at a glance -- key features 13
Fee table
- --------------------------------------------------------------------------------
The following tables describe the fees and expenses that you will pay when
buying, owning, and surrendering the contract. Each of the charges and expenses
is more fully described in "Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay at the time that
you surrender the contract or if you make certain withdrawals or apply your
cash to certain payout options or if you purchase a Variable Immediate Annuity
payout option. Charges designed to approximate certain taxes that may be
imposed on us, such as premium taxes in your state, may also apply. Charges for
certain features shown in the fee table are mutually exclusive.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value at the time you request certain transactions
- ------------------------------------------------------------------------------------------------------------------------------------
Maximum withdrawal charge as a percentage of contributions with-
drawn (deducted if you surrender your contract or make certain
withdrawals or apply your cash value to certain payout options).(1) 7.00%
Charge if you elect a Variable Immediate Annuity payout option $350
- ------------------------------------------------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically during the
time that you own the contract, not including the underlying trust portfolio fees and expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your variable investment options expressed as an
annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Mortality and expense risks 0.75%
Administrative 0.30%
Distribution 0.20%
----
Total annual expenses 1.25%
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value on each contract date anniversary
- ------------------------------------------------------------------------------------------------------------------------------------
Maximum annual administrative charge(3)
If your account value on a contract date anniversary is less than
$50,000(2) $30
If your account value on a contract date anniversary is $50,000
or more $0
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value each year if you elect the optional benefit
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum death benefit charge (calculated as a
percentage of the applicable benefit base. Deducted annually(3) on
each contract date anniversary for which the benefit is in effect).
Standard death benefit 0.00%
Annual Ratchet to age 85 0.25% of the Annual Ratchet to age 85 benefit base
Greater of 6% Roll up to age 85 or Annual Ratchet to age 85 0.60% of the greater of 6% Roll up to age 85
benefit base or the Annual Ratchet to age 85 benefit
base, as applicable
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed principal benefit charge for option 2 (calculated as
a percentage of the account value. Deducted annually(3) on the first 10
contract date anniversaries) 0.50%
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum income benefit charge (calculated as a
percentage of the applicable benefit base. Deducted annually(3) on each
contract date anniversary for which the benefit is in effect) 0.65%
- ------------------------------------------------------------------------------------------------------------------------------------
Protection Plus(SM) benefit charge (calculated as a percentage of
the account value. Deducted annually(3) on each contract date anniver-
sary for which the benefit is in effect) 0.35%
- ------------------------------------------------------------------------------------------------------------------------------------
14 Fee table
Principal Protector(SM) benefit charge(3) (calculated as a percentage 0.35% for the 5% GWB
of the account value. Deducted annually on each contract date anniver- Annual withdrawal option
sary, provided your GWB benefit base is greater than zero.)
0.50% for the 7% GWB
Annual withdrawal option
If you "step up" your GWB benefit base, we reserve the right to 0.60% for the 5% GWB
increase your charge up to: Annual withdrawal option
0.80% for the 7% GWB
Annual withdrawal option
Please see "Principal Protector(SM)" in "Contract features and benefits" for
more information about this feature, including its benefit base and the Optional
step up provision, and "Principal Protector(SM) charge" in "Charges and
expenses," both later in this Prospectus, for more information about when the
charge applies.
- ------------------------------------------------------------------------------------------------------------------------------------
Net loan interest charge - Rollover TSA contracts only (calcu-
lated and deducted daily as a percentage of the outstanding loan
amount) 2.00%(4)
- ------------------------------------------------------------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net asset
value each day. Therefore, they reduce the investment return of the Portfolio
and the related variable investment option. Actual fees and expenses are likely
to fluctuate from year to year. More detail concerning each Portfolio's fees and
expenses is contained in the Trust prospectus for the Portfolio.
- ------------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2004 (expenses that are deducted Lowest Highest
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ------ -------
other expenses)(5) 0.55% 7.61%
This table shows the fees and expenses for 2004 as an annual percentage of each
Portfolio's daily average net assets.
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Manage- Portfolio (Before Expense After
ment 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name Fees(6) Fees(7) Expenses (8) Expenses(9) Limitation) ments(10) Limitations
- ----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ----------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 0.29% 0.99% 1.63% (0.29)% 1.34%
AXA Conservative Allocation 0.10% 0.25% 0.41% 0.75% 1.51% (0.41)% 1.10%
AXA Conservative-Plus Allocation 0.10% 0.25% 0.30% 0.80% 1.45% (0.30)% 1.15%
AXA Moderate Allocation 0.10% 0.25% 0.16% 0.83% 1.34% (0.16)% 1.18%
AXA Moderate-Plus Allocation 0.10% 0.25% 0.20% 1.02% 1.57% (0.20)% 1.37%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.18% -- 1.05% -- 1.05%
AXA Premier VIP Core Bond 0.60% 0.25% 0.20% -- 1.05% (0.10)% 0.95%
AXA Premier VIP Health Care 1.20% 0.25% 0.40% -- 1.85% 0.00% 1.85%
AXA Premier VIP High Yield 0.58% 0.25% 0.18% -- 1.01% -- 1.01%
AXA Premier VIP International Equity 1.05% 0.25% 0.50% -- 1.80% 0.00% 1.80%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.32% -- 1.47% (0.12)% 1.35%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.26% -- 1.41% (0.06)% 1.35%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.25% -- 1.40% (0.05)% 1.35%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.25% -- 1.60% 0.00% 1.60%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.25% -- 1.60% 0.00% 1.60%
AXA Premier VIP Technology 1.20% 0.25% 0.40% -- 1.85% 0.00% 1.85%
- ----------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.47% 0.25% 0.05% -- 0.77% -- 0.77%
EQ/Alliance Growth and Income 0.56% 0.25% 0.05% -- 0.86% -- 0.86%
EQ/Alliance Intermediate 0.50% 0.25% 0.06% -- 0.81% -- 0.81%
Government Securities
EQ/Alliance International 0.73% 0.25% 0.12% -- 1.10% 0.00% 1.10%
EQ/Alliance Large Cap Growth* 0.90% 0.25% 0.05% -- 1.20% (0.10)% 1.10%
EQ/Alliance Quality Bond 0.50% 0.25% 0.06% -- 0.81% -- 0.81%
- ----------------------------------------------------------------------------------------------------------------------------------
Fee table 15
This table shows the fees and expenses for 2004 as an annual percentage of each
Portfolio's daily average net assets.
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Manage- Portfolio (Before Expense After
ment 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name Fees(6) Fees(7) Expenses (8) Expenses(9) Limitation) ments(10) Limitations
- -----------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.06% -- 1.06% -- 1.06%
EQ/Bear Stearns Small Company Growth* 1.00% 0.25% 0.18% -- 1.43% (0.13)% 1.30%
EQ/Bernstein Diversified Value 0.63% 0.25% 0.07% -- 0.95% 0.00% 0.95%
EQ/Boston Advisors Equity Income* 0.75% 0.25% 0.21% -- 1.21% (0.16)% 1.05%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.29% -- 1.19% (0.14)% 1.05%
EQ/Capital Guardian Growth 0.65% 0.25% 0.09% -- 0.99% (0.04)% 0.95%
EQ/Capital Guardian International 0.85% 0.25% 0.17% -- 1.27% (0.07)% 1.20%
EQ/Capital Guardian Research 0.65% 0.25% 0.05% -- 0.95% 0.00% 0.95%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.05% -- 0.95% 0.00% 0.95%
EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.12% -- 0.97% (0.12)% 0.85%
EQ/Equity 500 Index 0.25% 0.25% 0.05% -- 0.55% -- 0.55%
EQ/Evergreen Omega 0.65% 0.25% 0.11% -- 1.01% (0.06)% 0.95%
EQ/FI Mid Cap 0.70% 0.25% 0.06% -- 1.01% (0.01)% 1.00%
EQ/FI Small/Mid Cap Value 0.74% 0.25% 0.08% -- 1.07% 0.00% 1.07%
EQ/International Growth 0.85% 0.25% 0.22% -- 1.32% 0.00% 1.32%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.06% -- 0.75% 0.00% 0.75%
EQ/JP Morgan Value Opportunities 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.08% -- 1.23% (0.08)% 1.15%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.05% -- 1.05% 0.00% 1.05%
EQ/Long Term Bond 0.50% 0.25% 0.25% -- 1.00% 0.00% 1.00%
EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.19% -- 1.14% (0.09)% 1.05%
EQ/Marsico Focus 0.88% 0.25% 0.06% -- 1.19% (0.04)% 1.15%
EQ/Mercury Basic Value Equity 0.58% 0.25% 0.05% -- 0.88% 0.00% 0.88%
EQ/Mercury International Value 0.85% 0.25% 0.15% -- 1.25% 0.00% 1.25%
EQ/Mergers and Acquisitions 0.90% 0.25% 1.21% -- 2.36% (0.91)% 1.45%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.06% -- 0.96% -- 0.96%
EQ/MFS Investors Trust 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Money Market 0.34% 0.25% 0.05% -- 0.64% -- 0.64%
EQ/Montag & Caldwell Growth* 0.75% 0.25% 0.12% -- 1.12% 0.00% 1.12%
EQ/PIMCO Real Return 0.55% 0.25% 0.20% -- 1.00% (0.35)% 0.65%
EQ/Short Duration Bond 0.45% 0.25% 0.52% -- 1.22% (0.57)% 0.65%
EQ/Small Company Index 0.25% 0.25% 0.13% -- 0.63% 0.00% 0.63%
EQ/Small Company Value* 0.80% 0.25% 0.12% -- 1.17% 0.00% 1.17%
EQ/TCW Equity* 0.80% 0.25% 0.12% -- 1.17% (0.02)% 1.15%
EQ/UBS Growth and Income* 0.75% 0.25% 0.16% -- 1.16% (0.11)% 1.05%
EQ/Van Kampen Comstock 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Van Kampen Emerging Markets Equity* 1.15% 0.25% 0.40% -- 1.80% 0.00% 1.80%
EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.19% -- 1.14% (0.09)% 1.05%
EQ/Wells Fargo Montgomery Small Cap 0.85% 0.25% 6.51% -- 7.61% (6.33)% 1.28%
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity 1.50% 0.25% 2.35% -- 4.10% (0.96)% 3.14%
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II** 0.76% 0.35% 0.26% -- 1.37% (0.10)% 1.27%
- ------------------------------------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject
to regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former
name.
** Expense information has been restored to reflect current fees in effect as
of November 1, 2004.
16 Fee table
Notes:
(1) Deducted upon a withdrawal of amounts in excess of the 10% free withdrawal
amount, if applicable:
The withdrawal charge percentage we use is determined by the contract year in Contract
which you make the withdrawal or surrender your contract. For each contribution, Year
we consider the contract year in which we receive that contribution to be "contract 1 .......................... 7.00%
year 1") 2 .......................... 7.00%
3 .......................... 6.00%
4 .......................... 6.00%
5 .......................... 5.00%
6 .......................... 3.00%
7 .......................... 1.00%
8+ ......................... 0.00%
(2) During the first two contract years this charge, if applicable, is equal
to the lesser of $30 or 2% of your account value. Thereafter, the charge,
if applicable , is $30 for each contract year.
(3) If the contract is surrendered or annuitized or a death benefit is paid on
any date other than the contract date anniversary, we will deduct a pro
rata portion of the charge for that year. For Principal Protector(SM)
only, if the contract is continued under the Beneficiary continuation
option with Principal Protector(SM), the pro rata deduction for the
Principal Protector(SM) charge is waived.
(4) We charge interest on loans under Rollover TSA contracts but also credit
you interest on your loan reserve account. Our net loan interest charge is
determined by the excess between the interest rate we charge over the
interest rate we credit. See "Loans under Rollover TSA contracts" later in
this Prospectus for more information on how the loan interest is
calculated and for restrictions that may apply.
(5) "Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2004 and for
the underlying portfolios.
(6) The management fees for each Portfolio cannot be increased without a vote
of that Portfolio's shareholders. See footnote (10) for any expense
limitation agreement information.
(7) Portfolio shares are all subject to fees imposed under the distribution
plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1
under the Investment Company Act of 1940. The 12b-1 fee will not be
increased for the life of the contracts.
(8) Other expenses shown are those incurred in 2004. The amounts shown as
"Other Expenses" will fluctuate from year to year depending on actual
expenses. See footnote (10) for any expense limitation agreement.
(9) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and
AXA Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect
each AXA Allocation portfolio's pro rata share of the fees and expenses of
the various underlying portfolios in which it invests. The fees and
expenses have been estimated based on the respective weighted investment
allocations as of 12/31/04. A "--" indicates that the listed portfolio
does not invest in underlying portfolios, i.e., it is not an allocation
portfolio.
(10) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A "--" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver or reimbursement. AXA
Equitable, the investment manager of AXA Premier VIP Trust and EQ Advisors
Trust, has entered into Expense Limitation Agreements with respect to
certain Portfolios, which are effective through April 30, 2006. Under
these agreements AXA Equitable has agreed to waive or limit its fees and
assume other expenses of certain Portfolios, if necessary, in an amount
that limits each affected Portfolio's total Annual Expenses (exclusive of
interest, taxes, brokerage commissions, capitalized expenditures and
extraordinary expenses) to not more than specified amounts. Therefore each
Portfolio may at a later date make a reimbursement to AXA Equitable for
any of the management fees waived or limited and other expenses assumed
and paid by AXA Equitable pursuant to the expense limitation agreement
provided that the Portfolio's current annual operating expenses do not
exceed the operating expense limit determined for such Portfolio. Morgan
Stanley Investment Management Inc., which does business in certain
instances as "Van Kampen," is the manager of the Universal Institutional
Funds, Inc. -- U.S. Real Estate Portfolio -- Class II and has voluntarily
agreed to reduce its management fee and/or reimburse the Portfolio so that
total annual operating expenses of the Portfolio (exclusive of investment
related expenses, such as foreign country tax expense and interest expense
on amounts borrowed) are not more than specified amounts. Additionally,
the distributor of The Universal Institutional Funds, Inc. has agreed to
waive a portion of the 12b-1 fee for Class II shares. Van Kampen and/or
the fund's distributor reserves the right to terminate any waiver and/or
reimbursement at any time without notice. Charles Schwab Investment
Management, Inc. the manager of the Laudus Variable Insurance Trust --
Laudus Rosenberg VIT Value Long/Short Equity Portfolio has voluntarily
agreed to reimburse expenses in excess of specified amounts. See the
prospectuses for each applicable underlying Trust for more information
about the arrangements. In addition, a portion of the brokerage
commissions of certain Portfolios of EQ Advisors Trust Portfolio and AXA
Premier VIP Trust Portfolio is used to reduce the applicable Portfolio's
expenses. If the above table reflected both the expense limitation
arrangements plus the portion of the brokerage commissions used to reduce
portfolio expenses, the net expenses would be as shown in the table below:
- --------------------------------------------------------
Portfolio Name
- --------------------------------------------------------
AXA Moderate Allocation 1.17%
AXA Premier VIP Aggressive Equity 0.93%
AXA Premier VIP Health Care 1.81%
AXA Premier VIP International Equity 1.75%
AXA Premier VIP Large Cap Core Equity 1.32%
AXA Premier VIP Large Cap Growth 1.30%
AXA Premier VIP Large Cap Value 1.21%
AXA Premier VIP Small/Mid Cap Growth 1.50%
AXA Premier VIP Small/Mid Cap Value 1.54%
AXA Premier VIP Technology 1.75%
EQ/Alliance Common Stock 0.68%
EQ/Alliance Growth and Income 0.80%
EQ/Alliance International 1.08%
EQ/Alliance Large Cap Growth 1.04%
EQ/Alliance Small Cap Growth 0.98%
EQ/Calvert Socially Responsible 1.00%
EQ/Capital Guardian Growth 0.67%
- --------------------------------------------------------
Fee table 17
- ---------------------------------------------------------
Portfolio Name
- ---------------------------------------------------------
EQ/Capital Guardian International 1.17%
EQ/Capital Guardian Research 0.90%
EQ/Capital Guardian U.S. Equity 0.93%
EQ/Evergreen Omega 0.57%
EQ/FI Mid Cap 0.96%
EQ/FI Small/Mid Cap Value 1.05%
EQ/JP Morgan Value Opportunities 0.76%
EQ/Lazard Small Cap Value 0.86%
EQ/Marsico Focus 1.12%
EQ/Mercury Basic Value Equity 0.86%
EQ/Mercury International Value 1.18%
EQ/MFS Emerging Growth Companies 0.91%
EQ/MFS Investors Trust 0.91%
EQ/Small Company Value 1.16%
EQ/TCW Equity 1.14%
EQ/Van Kampen Emerging Markets Equity 1.75%
EQ/Wells Fargo Montgomery Small Cap 1.26%
- ---------------------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses).
The example below shows the expenses that a hypothetical contract owner (who
has elected the Guaranteed minimum income benefit with the enhanced death
benefit that provides for the greater of the 6% Roll up to age 85 or the Annual
Ratchet to age 85 and Protection Plus(SM) would pay in the situations
illustrated. The annual administrative charge is based on the charges that
apply to a mix of estimated contract sizes, resulting in an estimated
administrative charge for the purpose of these examples of $1.70 per $10,000.
The fixed maturity options, guaranteed interest option and the account for
special dollar cost averaging are not covered by the examples. However, the
annual administrative charge, the withdrawal charge, the charge for any
optional benefits and the charge if you elect a Variable Immediate Annuity
payout option do apply to the fixed maturity options, guaranteed interest
option and the account for special dollar cost averaging. A market value
adjustment (up or down) may apply as a result of a withdrawal, transfer, or
surrender of amounts from a fixed maturity option.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes that your investment has a 5%
return each year. This example should not be considered a representation of
past or future expenses for each option. Actual expenses may be greater or less
than those shown. Similarly, the annual rate of return assumed in the example
is not an estimate or guarantee of future investment performance. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
18 Fee table
- -------------------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of the applicable time period
--------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,173.38 $ 2,046.92 $ 2,957.71 $ 5,160.66
AXA Conservative Allocation $ 1,160.78 $ 2,010.29 $ 2,898.70 $ 5,054.04
AXA Conservative-Plus Allocation $ 1,154.48 $ 1,991.94 $ 2,869.08 $ 5,000.21
AXA Moderate Allocation $ 1,142.72 $ 1,957.61 $ 2,813.57 $ 4,898.81
AXA Moderate-Plus Allocation $ 1,167.08 $ 2,028.62 $ 2,928.24 $ 5,107.52
AXA Premier VIP Aggressive Equity $ 1,112.49 $ 1,868.97 $ 2,669.58 $ 4,632.45
AXA Premier VIP Core Bond $ 1,112.49 $ 1,868.97 $ 2,669.58 $ 4,632.45
AXA Premier VIP Health Care $ 1,196.47 $ 2,113.84 $ 3,065.08 $ 5,352.63
AXA Premier VIP High Yield $ 1,108.29 $ 1,856.62 $ 2,649.44 $ 4,594.82
AXA Premier VIP International Equity $ 1,191.22 $ 2,098.66 $ 3,040.77 $ 5,309.40
AXA Premier VIP Large Cap Core Equity $ 1,156.58 $ 1,998.06 $ 2,878.96 $ 5,018.19
AXA Premier VIP Large Cap Growth $ 1,150.28 $ 1,979.69 $ 2,849.28 $ 4,964.13
AXA Premier VIP Large Cap Value $ 1,149.23 $ 1,976.62 $ 2,844.33 $ 4,955.09
AXA Premier VIP Small/Mid Cap Growth $ 1,170.23 $ 2,037.77 $ 2,942.99 $ 5,134.13
AXA Premier VIP Small/Mid Cap Value $ 1,170.23 $ 2,037.77 $ 2,942.99 $ 5,134.13
AXA Premier VIP Technology $ 1,196.47 $ 2,113.84 $ 3,065.08 $ 5,352.63
- -------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 1,083.09 $ 1,782.27 $ 2,527.84 $ 4,365.61
EQ/Alliance Growth and Income $ 1,092.54 $ 1,810.19 $ 2,573.59 $ 4,452.24
EQ/Alliance Intermediate Government Securities $ 1,087.29 $ 1,794.69 $ 2,548.19 $ 4,404.22
EQ/Alliance International $ 1,117.74 $ 1,884.40 $ 2,694.71 $ 4,679.28
EQ/Alliance Large Cap Growth* $ 1,128.24 $ 1,915.21 $ 2,744.80 $ 4,772.19
EQ/Alliance Quality Bond $ 1,087.29 $ 1,794.69 $ 2,548.19 $ 4,404.22
EQ/Alliance Small Cap Growth $ 1,113.54 $ 1,872.06 $ 2,674.61 $ 4,641.84
EQ/Bear Stearns Small Company Growth* $ 1,152.38 $ 1,985.81 $ 2,859.19 $ 4,982.19
EQ/Bernstein Diversified Value $ 1,101.99 $ 1,838.07 $ 2,619.16 $ 4,538.06
EQ/Boston Advisors Equity Income* $ 1,129.28 $ 1,918.28 $ 2,749.80 $ 4,781.43
EQ/Calvert Socially Responsible $ 1,127.19 $ 1,912.13 $ 2,739.81 $ 4,762.95
EQ/Capital Guardian Growth $ 1,106.19 $ 1,850.44 $ 2,639.35 $ 4,575.94
EQ/Capital Guardian International $ 1,135.58 $ 1,936.73 $ 2,779.74 $ 4,836.65
EQ/Capital Guardian Research $ 1,101.99 $ 1,838.07 $ 2,619.16 $ 4,538.06
EQ/Capital Guardian U.S. Equity $ 1,101.99 $ 1,838.07 $ 2,619.16 $ 4,538.06
EQ/Caywood-Scholl High Yield Bond $ 1,104.09 $ 1,844.25 $ 2,629.26 $ 4,557.02
EQ/Equity 500 Index $ 1,060.00 $ 1,713.78 $ 2,415.24 $ 4,150.37
EQ/Evergreen Omega $ 1,108.29 $ 1,856.62 $ 2,649.44 $ 4,594.82
EQ/FI Mid Cap $ 1,108.29 $ 1,856.62 $ 2,649.44 $ 4,594.82
EQ/FI Small/Mid Cap Value $ 1,114.59 $ 1,875.15 $ 2,679.64 $ 4,651.21
EQ/International Growth $ 1,140.83 $ 1,952.09 $ 2,804.63 $ 4,882.40
EQ/J.P. Morgan Core Bond $ 1,080.99 $ 1,776.05 $ 2,517.64 $ 4,346.25
EQ/JP Morgan Value Opportunities $ 1,101.99 $ 1,838.07 $ 2,619.16 $ 4,538.06
EQ/Janus Large Cap Growth $ 1,131.38 $ 1,924.44 $ 2,759.79 $ 4,799.87
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
If you annuitize at the end
of the applicable time period
--------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 823.38 $ 1,796.92 $ 2,807.71 $ 5,510.66
AXA Conservative Allocation $ 810.78 $ 1,760.29 $ 2,748.70 $ 5,404.04
AXA Conservative-Plus Allocation $ 804.48 $ 1,741.94 $ 2,719.08 $ 5,350.21
AXA Moderate Allocation $ 792.72 $ 1,707.61 $ 2,663.57 $ 5,248.81
AXA Moderate-Plus Allocation $ 817.08 $ 1,778.62 $ 2,778.24 $ 5,457.52
AXA Premier VIP Aggressive Equity $ 762.49 $ 1,618.97 $ 2,519.58 $ 4,982.45
AXA Premier VIP Core Bond $ 762.49 $ 1,618.97 $ 2,519.58 $ 4,982.45
AXA Premier VIP Health Care $ 846.47 $ 1,863.84 $ 2,915.08 $ 5,702.63
AXA Premier VIP High Yield $ 758.29 $ 1,606.62 $ 2,499.44 $ 4,944.82
AXA Premier VIP International Equity $ 841.22 $ 1,848.66 $ 2,890.77 $ 5,659.40
AXA Premier VIP Large Cap Core Equity $ 806.58 $ 1,748.06 $ 2,728.96 $ 5,368.19
AXA Premier VIP Large Cap Growth $ 800.28 $ 1,729.69 $ 2,699.28 $ 5,314.13
AXA Premier VIP Large Cap Value $ 799.23 $ 1,726.62 $ 2,694.33 $ 5,305.09
AXA Premier VIP Small/Mid Cap Growth $ 820.23 $ 1,787.77 $ 2,792.99 $ 5,484.13
AXA Premier VIP Small/Mid Cap Value $ 820.23 $ 1,787.77 $ 2,792.99 $ 5,484.13
AXA Premier VIP Technology $ 846.47 $ 1,863.84 $ 2,915.08 $ 5,702.63
- -------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 733.09 $ 1,532.27 $ 2,377.84 $ 4,715.61
EQ/Alliance Growth and Income $ 742.54 $ 1,560.19 $ 2,423.59 $ 4,802.24
EQ/Alliance Intermediate Government Securities $ 737.29 $ 1,544.69 $ 2,398.19 $ 4,754.22
EQ/Alliance International $ 767.74 $ 1,634.40 $ 2,544.71 $ 5,029.28
EQ/Alliance Large Cap Growth* $ 778.24 $ 1,665.21 $ 2,594.80 $ 5,122.19
EQ/Alliance Quality Bond $ 737.29 $ 1,544.69 $ 2,398.19 $ 4,754.22
EQ/Alliance Small Cap Growth $ 763.54 $ 1,622.06 $ 2,524.61 $ 4,991.84
EQ/Bear Stearns Small Company Growth* $ 802.38 $ 1,735.81 $ 2,709.19 $ 5,332.19
EQ/Bernstein Diversified Value $ 751.99 $ 1,588.07 $ 2,469.16 $ 4,888.06
EQ/Boston Advisors Equity Income* $ 779.28 $ 1,668.28 $ 2,599.80 $ 5,131.43
EQ/Calvert Socially Responsible $ 777.19 $ 1,662.13 $ 2,589.81 $ 5,112.95
EQ/Capital Guardian Growth $ 756.19 $ 1,600.44 $ 2,489.35 $ 4,925.94
EQ/Capital Guardian International $ 785.58 $ 1,686.73 $ 2,629.74 $ 5,186.65
EQ/Capital Guardian Research $ 751.99 $ 1,588.07 $ 2,469.16 $ 4,888.06
EQ/Capital Guardian U.S. Equity $ 751.99 $ 1,588.07 $ 2,469.16 $ 4,888.06
EQ/Caywood-Scholl High Yield Bond $ 754.09 $ 1,594.25 $ 2,479.26 $ 4,907.02
EQ/Equity 500 Index $ 710.00 $ 1,463.78 $ 2,265.24 $ 4,500.37
EQ/Evergreen Omega $ 758.29 $ 1,606.62 $ 2,499.44 $ 4,944.82
EQ/FI Mid Cap $ 758.29 $ 1,606.62 $ 2,499.44 $ 4,944.82
EQ/FI Small/Mid Cap Value $ 764.59 $ 1,625.15 $ 2,529.64 $ 5,001.21
EQ/International Growth $ 790.83 $ 1,702.09 $ 2,654.63 $ 5,232.40
EQ/J.P. Morgan Core Bond $ 730.99 $ 1,526.05 $ 2,367.64 $ 4,696.25
EQ/JP Morgan Value Opportunities $ 751.99 $ 1,588.07 $ 2,469.16 $ 4,888.06
EQ/Janus Large Cap Growth $ 781.38 $ 1,674.44 $ 2,609.79 $ 5,149.87
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the
end of the applicable time period
--------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 473.38 $ 1,446.92 $ 2,457.71 $ 5,160.66
AXA Conservative Allocation $ 460.78 $ 1,410.29 $ 2,398.70 $ 5,054.04
AXA Conservative-Plus Allocation $ 454.48 $ 1,391.94 $ 2,369.08 $ 5,000.21
AXA Moderate Allocation $ 442.72 $ 1,357.61 $ 2,313.57 $ 4,898.81
AXA Moderate-Plus Allocation $ 467.08 $ 1,428.62 $ 2,428.24 $ 5,107.52
AXA Premier VIP Aggressive Equity $ 412.49 $ 1,268.97 $ 2,169.58 $ 4,632.45
AXA Premier VIP Core Bond $ 412.49 $ 1,268.97 $ 2,169.58 $ 4,632.45
AXA Premier VIP Health Care $ 496.47 $ 1,513.84 $ 2,565.08 $ 5,352.63
AXA Premier VIP High Yield $ 408.29 $ 1,256.62 $ 2,149.44 $ 4,594.82
AXA Premier VIP International Equity $ 491.22 $ 1,498.66 $ 2,540.77 $ 5,309.40
AXA Premier VIP Large Cap Core Equity $ 456.58 $ 1,398.06 $ 2,378.96 $ 5,018.19
AXA Premier VIP Large Cap Growth $ 450.28 $ 1,379.69 $ 2,349.28 $ 4,964.13
AXA Premier VIP Large Cap Value $ 449.23 $ 1,376.62 $ 2,344.33 $ 4,955.09
AXA Premier VIP Small/Mid Cap Growth $ 470.23 $ 1,437.77 $ 2,442.99 $ 5,134.13
AXA Premier VIP Small/Mid Cap Value $ 470.23 $ 1,437.77 $ 2,442.99 $ 5,134.13
AXA Premier VIP Technology $ 496.47 $ 1,513.84 $ 2,565.08 $ 5,352.63
- -------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 383.09 $ 1,182.27 $ 2,027.84 $ 4,365.61
EQ/Alliance Growth and Income $ 392.54 $ 1,210.19 $ 2,073.59 $ 4,452.24
EQ/Alliance Intermediate Government Securities $ 387.29 $ 1,194.69 $ 2,048.19 $ 4,404.22
EQ/Alliance International $ 417.74 $ 1,284.40 $ 2,194.71 $ 4,679.28
EQ/Alliance Large Cap Growth* $ 428.24 $ 1,315.21 $ 2,244.80 $ 4,772.19
EQ/Alliance Quality Bond $ 387.29 $ 1,194.69 $ 2,048.19 $ 4,404.22
EQ/Alliance Small Cap Growth $ 413.54 $ 1,272.06 $ 2,174.61 $ 4,641.84
EQ/Bear Stearns Small Company Growth* $ 452.38 $ 1,385.81 $ 2,359.19 $ 4,982.19
EQ/Bernstein Diversified Value $ 401.99 $ 1,238.07 $ 2,119.16 $ 4,538.06
EQ/Boston Advisors Equity Income* $ 429.28 $ 1,318.28 $ 2,249.80 $ 4,781.43
EQ/Calvert Socially Responsible $ 427.19 $ 1,312.13 $ 2,239.81 $ 4,762.95
EQ/Capital Guardian Growth $ 406.19 $ 1,250.44 $ 2,139.35 $ 4,575.94
EQ/Capital Guardian International $ 435.58 $ 1,336.73 $ 2,279.74 $ 4,836.65
EQ/Capital Guardian Research $ 401.99 $ 1,238.07 $ 2,119.16 $ 4,538.06
EQ/Capital Guardian U.S. Equity $ 401.99 $ 1,238.07 $ 2,119.16 $ 4,538.06
EQ/Caywood-Scholl High Yield Bond $ 404.09 $ 1,244.25 $ 2,129.26 $ 4,557.02
EQ/Equity 500 Index $ 360.00 $ 1,113.78 $ 1,915.24 $ 4,150.37
EQ/Evergreen Omega $ 408.29 $ 1,256.62 $ 2,149.44 $ 4,594.82
EQ/FI Mid Cap $ 408.29 $ 1,256.62 $ 2,149.44 $ 4,594.82
EQ/FI Small/Mid Cap Value $ 414.59 $ 1,275.15 $ 2,179.64 $ 4,651.21
EQ/International Growth $ 440.83 $ 1,352.09 $ 2,304.63 $ 4,882.40
EQ/J.P. Morgan Core Bond $ 380.99 $ 1,176.05 $ 2,017.64 $ 4,346.25
EQ/JP Morgan Value Opportunities $ 401.99 $ 1,238.07 $ 2,119.16 $ 4,538.06
EQ/Janus Large Cap Growth $ 431.38 $ 1,324.44 $ 2,259.79 $ 4,799.87
- -------------------------------------------------------------------------------------------------------------
Fee table 19
- -------------------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of the applicable time period
--------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value $ 1,112.49 $ 1,868.97 $ 2,669.58 $ 4,632.45
EQ/Long Term Bond $ 1,107.24 $ 1,853.53 $ 2,644.40 $ 4,585.38
EQ/Lord Abbett Growth and Income $ 1,116.69 $ 1,881.32 $ 2,689.69 $ 4,669.94
EQ/Lord Abbett Large Cap Core $ 1,116.69 $ 1,881.32 $ 2,689.69 $ 4,669.94
EQ/Lord Abbett Mid Cap Value $ 1,121.94 $ 1,896.73 $ 2,714.78 $ 4,716.56
EQ/Marsico Focus $ 1,127.19 $ 1,912.13 $ 2,739.81 $ 4,762.95
EQ/Mercury Basic Value Equity $ 1,094.64 $ 1,816.39 $ 2,583.73 $ 4,471.38
EQ/Mercury International Value $ 1,133.48 $ 1,930.59 $ 2,769.77 $ 4,818.28
EQ/Mergers and Acquisitions $ 1,250.01 $ 2,267.76 $ 3,310.00 $ 5,780.58
EQ/MFS Emerging Growth Companies $ 1,103.04 $ 1,841.16 $ 2,624.21 $ 4,547.54
EQ/MFS Investors Trust $ 1,101.99 $ 1,838.07 $ 2,619.16 $ 4,538.06
EQ/Money Market $ 1,069.45 $ 1,741.84 $ 2,461.43 $ 4,239.03
EQ/Montag & Caldwell Growth* $ 1,119.84 $ 1,890.57 $ 2,704.75 $ 4,697.94
EQ/PIMCO Real Return $ 1,107.24 $ 1,853.53 $ 2,644.40 $ 4,585.38
EQ/Short Duration Bond $ 1,130.33 $ 1,921.36 $ 2,754.80 $ 4,790.66
EQ/Small Company Index $ 1,068.40 $ 1,738.72 $ 2,456.31 $ 4,229.22
EQ/Small Company Value* $ 1,125.09 $ 1,905.97 $ 2,729.80 $ 4,744.42
EQ/TCW Equity* $ 1,125.09 $ 1,905.97 $ 2,729.80 $ 4,744.42
EQ/UBS Growth and Income* $ 1,124.04 $ 1,902.89 $ 2,724.79 $ 4,735.15
EQ/Van Kampen Comstock $ 1,116.69 $ 1,881.32 $ 2,689.69 $ 4,669.94
EQ/Van Kampen Emerging Markets Equity* $ 1,191.22 $ 2,098.66 $ 3,040.77 $ 5,309.40
EQ/Van Kampen Mid Cap Growth $ 1,121.94 $ 1,896.73 $ 2,714.78 $ 4,716.56
EQ/Wells Fargo Montgomery Small Cap $ 1,801.17 $ 3,755.10 $ 5,526.84 $ 9,019.62
- -------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- -------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,432.68 $ 2,780.14 $ 4,104.68 $ 7,073.69
- -------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- -------------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II $ 1,146.08 $ 1,967.43 $ 2,829.46 $ 4,927.90
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
If you annuitize at the end
of the applicable time period
--------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value $ 762.49 $ 1,618.97 $ 2,519.58 $ 4,982.45
EQ/Long Term Bond $ 757.24 $ 1,603.53 $ 2,494.40 $ 4,935.38
EQ/Lord Abbett Growth and Income $ 766.69 $ 1,631.32 $ 2,539.69 $ 5,019.94
EQ/Lord Abbett Large Cap Core $ 766.69 $ 1,631.32 $ 2,539.69 $ 5,019.94
EQ/Lord Abbett Mid Cap Value $ 771.94 $ 1,646.73 $ 2,564.78 $ 5,066.56
EQ/Marsico Focus $ 777.19 $ 1,662.13 $ 2,589.81 $ 5,112.95
EQ/Mercury Basic Value Equity $ 744.64 $ 1,566.39 $ 2,433.73 $ 4,821.38
EQ/Mercury International Value $ 783.48 $ 1,680.59 $ 2,619.77 $ 5,168.28
EQ/Mergers and Acquisitions $ 900.01 $ 2,017.76 $ 3,160.00 $ 6,130.58
EQ/MFS Emerging Growth Companies $ 753.04 $ 1,591.16 $ 2,474.21 $ 4,897.54
EQ/MFS Investors Trust $ 751.99 $ 1,588.07 $ 2,469.16 $ 4,888.06
EQ/Money Market $ 719.45 $ 1,491.84 $ 2,311.43 $ 4,589.03
EQ/Montag & Caldwell Growth* $ 769.84 $ 1,640.57 $ 2,554.75 $ 5,047.94
EQ/PIMCO Real Return $ 757.24 $ 1,603.53 $ 2,494.40 $ 4,935.38
EQ/Short Duration Bond $ 780.33 $ 1,671.36 $ 2,604.80 $ 5,140.66
EQ/Small Company Index $ 718.40 $ 1,488.72 $ 2,306.31 $ 4,579.22
EQ/Small Company Value* $ 775.09 $ 1,655.97 $ 2,579.80 $ 5,094.42
EQ/TCW Equity* $ 775.09 $ 1,655.97 $ 2,579.80 $ 5,094.42
EQ/UBS Growth and Income* $ 774.04 $ 1,652.89 $ 2,574.79 $ 5,085.15
EQ/Van Kampen Comstock $ 766.69 $ 1,631.32 $ 2,539.69 $ 5,019.94
EQ/Van Kampen Emerging Markets Equity* $ 841.22 $ 1,848.66 $ 2,890.77 $ 5,659.40
EQ/Van Kampen Mid Cap Growth $ 771.94 $ 1,646.73 $ 2,564.78 $ 5,066.56
EQ/Wells Fargo Montgomery Small Cap $ 1,451.17 $ 3,505.10 $ 5,376.84 $ 9,369.62
- -------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- -------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,082.68 $ 2,530.14 $ 3,954.68 $ 7,423.69
- -------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- -------------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II $ 796.08 $ 1,717.43 $ 2,679.46 $ 5,277.90
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the
end of the applicable time period
--------------------------------------------------------------
Portfolio Name 1 years 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value $ 412.49 $ 1,268.97 $ 2,169.58 $ 4,632.45
EQ/Long Term Bond $ 407.24 $ 1,253.53 $ 2,144.40 $ 4,585.38
EQ/Lord Abbett Growth and Income $ 416.69 $ 1,281.32 $ 2,189.69 $ 4,669.94
EQ/Lord Abbett Large Cap Core $ 416.69 $ 1,281.32 $ 2,189.69 $ 4,669.94
EQ/Lord Abbett Mid Cap Value $ 421.94 $ 1,296.73 $ 2,214.78 $ 4,716.56
EQ/Marsico Focus $ 427.19 $ 1,312.13 $ 2,239.81 $ 4,762.95
EQ/Mercury Basic Value Equity $ 394.64 $ 1,216.39 $ 2,083.73 $ 4,471.38
EQ/Mercury International Value $ 433.48 $ 1,330.59 $ 2,269.77 $ 4,818.28
EQ/Mergers and Acquisitions $ 550.01 $ 1,667.76 $ 2,810.00 $ 5,780.58
EQ/MFS Emerging Growth Companies $ 403.04 $ 1,241.16 $ 2,124.21 $ 4,547.54
EQ/MFS Investors Trust $ 401.99 $ 1,238.07 $ 2,119.16 $ 4,538.06
EQ/Money Market $ 369.45 $ 1,141.84 $ 1,961.43 $ 4,239.03
EQ/Montag & Caldwell Growth* $ 419.84 $ 1,290.57 $ 2,204.75 $ 4,697.94
EQ/PIMCO Real Return $ 407.24 $ 1,253.53 $ 2,144.40 $ 4,585.38
EQ/Short Duration Bond $ 430.33 $ 1,321.36 $ 2,254.80 $ 4,790.66
EQ/Small Company Index $ 368.40 $ 1,138.72 $ 1,956.31 $ 4,229.22
EQ/Small Company Value* $ 425.09 $ 1,305.97 $ 2,229.80 $ 4,744.42
EQ/TCW Equity* $ 425.09 $ 1,305.97 $ 2,229.80 $ 4,744.42
EQ/UBS Growth and Income* $ 424.04 $ 1,302.89 $ 2,224.79 $ 4,735.15
EQ/Van Kampen Comstock $ 416.69 $ 1,281.32 $ 2,189.69 $ 4,669.94
EQ/Van Kampen Emerging Markets Equity* $ 491.22 $ 1,498.66 $ 2,540.77 $ 5,309.40
EQ/Van Kampen Mid Cap Growth $ 421.94 $ 1,296.73 $ 2,214.78 $ 4,716.56
EQ/Wells Fargo Montgomery Small Cap $ 1,101.17 $ 3,155.10 $ 5,026.84 $ 9,019.62
- -------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- -------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 732.68 $ 2,180.14 $ 3,604.68 $ 7,073.69
- -------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- -------------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II $ 446.08 $ 1,367.43 $ 2,329.46 $ 4,927.90
- -------------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject to
regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former name.
20 Fee table
CONDENSED FINANCIAL INFORMATION
Please see Appendix I at the end of this Prospectus for the unit values and the
number of units outstanding as of the end of the periods shown for each of the
variable investment options available as of December 31, 2004.
Fee table 21
1. Contract features and benefits
- --------------------------------------------------------------------------------
HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT
You may purchase a contract by making payments to us that we call
"contributions." We require a minimum contribution amount for each type of
contract purchased. The following table summarizes our rules regarding
contributions to your contract. All ages in the table refer to the age of the
annuitant named in the contract.
We may refuse to accept any contribution if the sum of all contributions under
all Accumulator(R) series contracts with the same owner or annuitant would then
total more than $1,500,000 ($500,000 for owners or annuitants who are ages 81
and older at contract issue). We reserve the right to limit aggregate
contributions made after the first contract year to 150% of first-year
contributions. We may also refuse to accept any contribution if the sum of all
contributions under all AXA Equitable annuity accumulation contracts with the
same owner or annuitant would then total more than $2,500,000. We may accept
less than the minimum initial contribution under a contract if an aggregate
amount of contracts purchased at the same time by an individual (including
spouse) meets the minimum.
- --------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining
contract benefits. The annuitant is not necessarily the contract owner.
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Available
for annuitant Minimum
Contract type issue ages contributions Source of contributions Limitations on contributions+
- ------------------------------------------------------------------------------------------------------------------------------------
NQ 0 through 85 o $5,000 (initial) o After-tax money. o For annuitants up to age 83
at contract issue, no addi-
o $500 (additional) o Paid to us by check or tional contributions may be
transfer of contract value made after attainment of
in a tax-deferred exchange age 84, or, if later, the first
under Section 1035 of the contract anniversary.*
Internal Revenue Code.
o For annuitants age 84 or 85
at contract issue, additional
contributions may be made
up to one year from contract
issue.*
- ------------------------------------------------------------------------------------------------------------------------------------
22 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------
Available
for annuitant Minimum
Contract type issue ages contributions Source of contributions Limitations on contributions+
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover IRA 20 through 85 o $5,000 (initial) o Eligible rollover distribu- o For annuitants up to age 83
tions from TSA contracts or at contract issue, no addi-
o $500 (additional) other 403(b) arrangements, tional contributions may be
qualified plans, and govern- made after attainment of
mental employer 457(b) age 84, or, if later, the first
plans. contract anniversary.*
o Rollovers from another o For annuitants age 84 or 85
traditional individual at contract issue, additional
retirement arrangement. contributions may be made
up to one year from contract issue.*
o Direct custodian-to-
custodian transfers from o Contributions after age 70-1/2
another traditional indi- must be net of required
vidual retirement minimum distributions.
arrangement.
o Although we accept regular
o Regular IRA contributions. IRA contributions (limited to
$4,000 for 2005; same for
o Additional "catch-up" 2006) under rollover IRA
contributions. contracts, we intend that
this contract be used primarily
for rollover and direct transfer
contributions.
o Additional catch-up contri-
butions of up to $500 can
be made for the calendar
year 2005 ($1,000 for 2006)
where the owner is at least
age 50 but under age 70-1/2
at any time during the calen-
dar year for which the
contribution is made.
- -----------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 23
- ------------------------------------------------------------------------------------------------------------------------------------
Available
for annuitant Minimum
Contract type issue ages contributions Source of contributions Limitations on contributions+
- ------------------------------------------------------------------------------------------------------------------------------------
Roth Conversion 20 through 85 o $5,000 (initial) o Rollovers from another o For annuitants up to age 83
IRA Roth IRA. at contract issue, no addi-
o $50 (additional) tional contributions may be
o Conversion rollovers from made after attainment of
a traditional IRA. age 84, or, if later, the first
contract anniversary.*
o Direct transfers from
another Roth IRA. o For annuitants age 84 or 85
at contract issue, additional
o Regular Roth IRA contributions may be made
contributions. up to one year from contract
issue.*
o Additional catch-up
contributions. o Conversion rollovers after
age 70-1/2 must be net of
required minimum distribu-
tions for the traditional IRA
you are rolling over.
o You cannot roll over funds
from a traditional IRA if your
adjusted gross income is
$100,000 or more.
o Although we accept regular
Roth IRA contributions (lim-
ited to $4,000 for 2005;
same for 2006) under Roth
IRA contracts, we intend
that this contract be used
primarily for rollover and
direct transfer contributions.
o Additional catch-up contri-
butions of up to $500 can
be made for the calendar
year 2005 ($1,000 for 2006)
where the owner is at least
age 50 at any time during
the calendar year for which
the contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
24 Contract features and benefits
- -----------------------------------------------------------------------------------------------------------------------------------
Available
for annuitant Minimum
Contract type issue ages contributions Source of contributions Limitations on contributions+
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover TSA 20 through 85 o $5,000 (initial) o Direct transfers of pre-tax o For annuitants up to age 83
funds from another contract at contract issue, no addi-
o $500 (additional) or arrangement under Sec- tional contributions may be
tion 403(b) of the Internal made after attainment of
Revenue Code, complying age 84,or, if later, the first
with IRS Revenue Ruling contract anniversary.*
90-24.
o For annuitants age 84 or 85
o Eligible rollover distribu- at contract issue, additional
tions of pre-tax funds from contributions may be made
other 403(b) plans. Subse- up to one year from contract
quent contributions may issue.*
also be rollovers from quali-
fied plans, governmental o Rollover or direct transfer
employer 457(b) plans and contributions after age 70-1/2
traditional IRAs. must be net of any required
minimum distributions.
o We do not accept employer-
remitted contributions.
- ------------------------------------------------------------------------------------------------------------------------------------
QP 20 through 75 o $5,000 (initial) o Only transfer contributions o We do not accept regular
from an existing defined ongoing payroll contributions.
o $500 (additional) contribution qualified plan
trust.
o Only one additional transfer
o The plan must be qualified contribution may be made
under Section 401(a) of the during a contract year.
Internal Revenue Code.
o No additional transfer con-
o For 401(k) plans, trans- tributions after the
ferred contributions may attainment of age 76 or, if
only include employee pre- later, the first contract
tax contributions. anniversary.
o Contributions after age 70-1/2
must be net of any required
minimum distributions.
o A separate QP contract must
be established for each plan
participant.
o We do not accept employer-
remitted contributions.
o We do not accept contribu-
tions from defined benefit
plans.
See Appendix I at the end of this Prospectus for a discussion of purchase considerations of QP contracts.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 25
- -----------------------------------------------------------------------------------------------------------------------------------
Available
for annuitant Minimum
Contract type issue ages contributions Source of contributions Limitations on contributions+
- ------------------------------------------------------------------------------------------------------------------------------------
Flexible 20 through 70 o $2,000 (initial) o Regular traditional IRA o No regular IRA contributions
Premium IRA contributions. in the calendar year you turn
o $50 (additional) age 70-1/2 and thereafter.
o Additional catch-up
contributions. o Rollover and direct transfer
contributions may be made
o Eligible rollover distribu- up to attainment of age
tions from TSA contracts or 84.*
other 403(b) arrangements,
qualified plans, and govern- o Regular contributions may
mental employer 457(b) not exceed $4,000 for 2005;
plans. same for 2006.
o Rollovers from another o Rollover and direct transfer
traditional individual retire- contributions after age 70-1/2
ment arrangement. must be net of required
minimum distributions.
o Direct custodian-
to-custodian transfers from o Although we accept rollover
another traditional indi- and direct transfer contribu-
vidual retirement tions under the Flexible
arrangement. Premium IRA contract, we
intend that this contract be
used for ongoing regular
contributions.
o Additional catch-up contri-
butions of up to $500 can
be made for the calendar
year 2005 ($1,000 for 2006)
where the owner is at least
age 50 but under age 70-1/2
at any time during the calen-
dar year for which the
contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
26 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------
Available
for annuitant Minimum
Contract type issue ages contributions Source of contributions Limitations on contributions+
- ------------------------------------------------------------------------------------------------------------------------------------
Flexible 20 through 85 o $2,000 (initial) o Regular after-tax o For annuitants up to age 83
Premium Roth contributions. at contract issue, no addi-
IRA o $50 (additional) tional contributions may be
o Additional catch-up of age 84, or, if later, the first
contributions. made after the attainment
contract anniversary.*
o Rollovers from another
Roth IRA. o For annuitants age 84 and
85 at contract issue, addi-
o Conversion rollovers from a tional contributions may be
traditional IRA. made up to one year from
contract issue.
o Direct transfers from
another Roth IRA. o Regular Roth IRA contribu-
tions may not exceed
$4,000 for 2005; same for
2006.
o Contributions are subject to
income limits and other tax
rules.
o Although we accept rollover
and direct transfer contribu-
tions under the Flexible
Premium Roth IRA contract,
we intend that this contract
be used for ongoing regular
Roth IRA contributions.
o Additional catch-up contri-
butions of up to $500 can
be made for the calendar
year 2005 ($1,000 for 2006)
where the owner is at least
age 50 at any time during
the calendar year for which
the contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 27
- ------------------------------------------------------------------------------------------------------------------------------------
Available
for annuitant Minimum
Contract type issue ages contributions Source of contributions Limitations on contributions+
- ------------------------------------------------------------------------------------------------------------------------------------
Inherited IRA 0-70 o $5,000 (initial) o Direct custodian-to- o Any additional contributions
Beneficiary custodian transfers of your must be from same type of
Continuation o $500 (additional) interest as a death benefi- IRA of same deceased
Contract (tradi- ciary of the deceased owner.
tional IRA or owner's traditional indi-
Roth IRA) vidual retirement
arrangement or Roth IRA to
an IRA of the same type.
- ------------------------------------------------------------------------------------------------------------------------------------
+ If you purchase Guaranteed principal benefit option 2, no contributions are permitted after
the six month period beginning on the contract date. Additional contributions may not be
permitted under certain conditions in your state. Please see Appendix VIII later in the
Prospectus to see if additional contributions are permitted in your state.
* For Pennsylvania contracts, please see Appendix VIII later in this Prospectus for state
variations.
See "Tax information" later in this Prospectus for a more detailed discussion of
sources of contributions and certain contribution limitations. For information
on when contributions are credited under your contract see "Dates and prices at
which contract events occur" in "More information" later in this Prospectus.
28 Contract features and benefits
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from the owner. A joint
owner may also be named. Only natural persons can be joint owners. This means
that an entity such as a corporation cannot be a joint owner. In general, we
will not permit a contract to be owned by a minor unless it is pursuant to the
Uniform Gift to Minors Act or the Uniform Transfers to Minors Act in your
state. If the Spousal protection feature is elected, the spouses must be joint
owners, one of the spouses must be the annuitant, and both must be named as the
only primary beneficiaries.
Under all IRA and Rollover TSA contracts, the owner and annuitant must be the
same person. In some cases, an IRA contract may be held in a custodial
individual retirement account for the benefit of the individual annuitant. This
option may not be available under your contract. See "Inherited IRA beneficiary
continuation contract" later in this section for Inherited IRA owner and
annuitant requirements.
Under QP contracts, the owner must be the trustee of the qualified plan and the
annuitant must be the plan participant/employee. See Appendix I at the end of
this Prospectus for more information on QP contracts.
- --------------------------------------------------------------------------------
A "participant" is an individual who is currently, or was formerly,
participating in an eligible employer's qualified plan or TSA plan.
- --------------------------------------------------------------------------------
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be by check drawn on a U.S. bank, in
U.S. dollars, and made payable to AXA Equitable. We may also apply
contributions made pursuant to a Section 1035 tax-free exchange or a direct
transfer. We do not accept third-party checks endorsed to us except for
rollover contributions, tax-free exchanges or trustee checks that involve no
refund. All checks are subject to our ability to collect the funds. We reserve
the right to reject a payment if it is received in an unacceptable form.
For your convenience, we will accept initial and additional contributions by
wire transmittal from certain broker-dealers who have agreements with us for
this purpose, including circumstances under which such contributions are
considered received by us when your order is taken by such broker-dealers.
Additional contributions may also be made under our automatic investment
program. These methods of payment are discussed in detail in "More information"
later in this Prospectus.
Your initial contribution must generally be accompanied by an application and
any other form we need to process the payments. If any information is missing
or unclear, we will try to obtain that information. If we are unable to obtain
all of the information we require within five business days after we receive an
incomplete application or form, we will inform the financial professional
submitting the application on your behalf. We will then return the contribution
to you unless you specifically direct us to keep your contribution until we
receive the required information.
- --------------------------------------------------------------------------------
Our "business day" is generally any day the New York Stock Exchange is open for
trading and generally ends at 4:00 p.m. Eastern Time. A business day does not
include a day we choose not to open due to emergency conditions. We may also
close early due to emergency conditions.
- --------------------------------------------------------------------------------
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
Your investment options are the variable investment options, the guaranteed
interest option, the fixed maturity options and the account for special dollar
cost averaging.
VARIABLE INVESTMENT OPTIONS
Your investment results in any one of the variable investment options will
depend on the investment performance of the underlying portfolios. You can lose
your principal when investing in the variable investment options. In periods of
poor market performance, the net return, after charges and expenses, may result
in negative yields, including for the EQ/Money Market variable investment
option. Listed below are the currently available portfolios, their investment
objectives and their advisers.
- --------------------------------------------------------------------------------
You can choose from among the variable investment options, the guaranteed
interest option, the fixed maturity options and the account for special dollar
cost averaging.
- --------------------------------------------------------------------------------
Contract features and benefits 29
PORTFOLIOS OF THE TRUSTS
You should note that some portfolios have objectives and strategies that are
substantially similar to those of certain funds that are purchased directly
rather than under a variable insurance product such as the Accumulator(R)
contract. These portfolios may even have the same manager(s) and/or a similar
name. However, there are numerous factors that can contribute to differences in
performance between two investments, particularly over short periods of time.
Such factors include the timing of stock purchases and sales; differences in
fund cash flows; and specific strategies employed by the portfolio manager.
AXA Equitable serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. As such, AXA Equitable oversees
the activities of the investment advisers with respect to the Trusts and is
responsible for retaining or discontinuing the services of those advisers. The
advisers for these Portfolios, listed in the chart below, are those who make
the investment decisions for each Portfolio. The chart also indicates the
investment manager for each of the other Portfolios.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o AXA Equitable
ALLOCATION greater emphasis on current income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o AXA Equitable
ALLOCATION with a greater emphasis on capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
EQUITY o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of risk. o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o AIM Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of current o Alliance Capital Management L.P.
income and capital appreciation. o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P.,
INTERNATIONAL EQUITY through its Bernstein Investment
Research and Management Unit
o J.P. Morgan Investment Management Inc.
o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.,
CORE EQUITY through its Bernstein Investment
Research and Management Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
30 Contract features and benefits
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH o RCM Capital Management LLC
o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE o Institutional Capital Corporation
o MFS Investment Management
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management LLC
CAP VALUE o TCW Investment Management Company
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
GOVERNMENT SECURITIES relative stability of principal.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE LARGE CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH(1)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
moderate risk to capital.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BEAR STEARNS Seeks to achieve capital appreciation. o Bear Stearns Asset Management Inc.
SMALL COMPANY GROWTH(7)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment
Research and Management Unit
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BOSTON ADVISORS EQUITY Seeks a combination of growth and income to achieve o Boston Advisors, Inc.
INCOME(4) an above-average and consistent total return.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN GROWTH Seeks long-term growth of capital. o Capital Guardian Trust Company
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 31
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. o Caywood-Scholl Capital Management
YIELD BOND
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates o Alliance Capital Management L.P.
the total return performance of the S&P 500 Index,
including reinvestment of dividends, at a risk level
consistent with that of the S&P 500 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA Seeks long-term capital growth. o Evergreen Investment Management
Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o SSgA Funds Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent with o J.P. Morgan Investment Management Inc.
moderate risk to capital and maintenance of liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JP MORGAN VALUE Long-term capital appreciation. o J.P. Morgan Investment Management Inc.
OPPORTUNITIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LONG TERM BOND Seeks to maximize income and capital appreciation o Boston Advisors, Inc.
through investment in long-maturity debt obligations.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT GROWTH AND Capital appreciation and growth of income without o Lord, Abbett & Co. LLC
INCOME excessive fluctuation in market value.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT LARGE CAP Capital appreciation and growth of income with reason- o Lord, Abbett & Co, LLC
CORE able risk.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT MID CAP VALUE Capital appreciation. o Lord, Abbett & Co. LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers
VALUE international Limited
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERGERS AND ACQUISITIONS Seeks to achieve capital appreciation. o GAMCO Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary o MFS Investment Management
objective to seek reasonable current income.
- ------------------------------------------------------------------------------------------------------------------------------------
32 Contract features and benefits
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, o Alliance Capital Management L.P.
preserve its assets and maintain liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. o Montag & Caldwell, Inc.
GROWTH(5)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PIMCO REAL RETURN Seeks maximum real return consistent with preservation o Pacific Investment Management Company,
of real capital and prudent investment management. LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SHORT DURATION BOND Seeks current income with reduced volatility of principal. o Boston Advisors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o Alliance Capital Management L. P.
deduction of portfolio expenses) the total return of the
Russell 2000 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY VALUE(8) Seeks to maximize capital appreciation. o GAMCO Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/TCW EQUITY(3) Seeks to achieve long-term capital appreciation. o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/UBS GROWTH AND INCOME(6) Seeks to achieve total return through capital appre- o UBS Global Asset Management
ciation with income as a secondary consideration. (Americas) Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN COMPSTOCK Capital growth and income. o Morgan Stanley Investment
Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN EMERGING Seeks long-term capital appreciation. o Morgan Stanley Investment
MARKETS EQUITY(2) Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN MID CAP Capital growth. o Morgan Stanley Investment
GROWTH Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/WELLS FARGO MONTGOMERY Seeks long-term capital appreciation. o Wells Capital Management Inc.
SMALL CAP
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Variable
Insurance Trust
Portfolio Name Objective Investment Manager/Adviser
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG VIT VALUE Seeks to increase the value of your investment in bull o Charles Schwab Investment Management,
LONG/SHORT EQUITY markets and bear markets through strategies that are Inc.
designed to have limited exposure to general equity o AXA Rosenberg Investment
market risk. Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL
FUNDS, INC.
PORTFOLIO NAME Objective Investment Manager
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. REAL ESTATE -- CLASS II Seeks to provide above average current income and long- o Van Kampen (is the name under which
term capital appreciation by investing primarily in equity Morgan Stanley Investment Management
securities of companies in the U.S. real estate industry, Inc. does business in certain
including real estate investment trusts. situations)
- ------------------------------------------------------------------------------------------------------------------------------------
* This portfolio information reflects the portfolio's name change effective on or about May
9, 2005, subject to regulatory approval. The table below reflects the portfolio name in
effect until on or about May 9, 2005. The number in the "FN" column corresponds with the
number contained in the chart above.
- -------------------------------------------------
FN Portfolio Name until May 9, 2005
- -------------------------------------------------
(1) EQ/Alliance Premier Growth
(2) EQ/Emerging Markets Equity
(3) EQ/Enterprise Equity
(4) EQ/Enterprise Equity Income
(5) EQ/Enterprise Growth
(6) EQ/Enterprise Growth and Income
(7) EQ/Enterprise Small Company Growth
(8) EQ/Enterprise Small Company Value
Contract features and benefits 33
You should consider the investment objective, risks, and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the
Portfolios contain this and other important information about the Portfolios.
The prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may
call one of our customer service representatives at 1-800-789-7771.
34 Contract features and benefits
GUARANTEED INTEREST OPTION
The guaranteed interest option is part of our general account and pays interest
at guaranteed rates. We discuss our general account under "More information"
later in this Prospectus.
We assign an interest rate to each amount allocated to the guaranteed interest
option. This rate is guaranteed for a specified period. Therefore, different
interest rates may apply to different amounts in the guaranteed interest
option.
We credit interest daily to amounts in the guaranteed interest option. There
are three levels of interest in effect at the same time in the guaranteed
interest option:
(1) the minimum interest rate guaranteed over the life of the contract,
(2) the yearly guaranteed interest rate for the calendar year, and
(3) the current interest rate.
We set current interest rates periodically, according to our procedures that we
have in effect at the time. We reserve the right to change these procedures.
All interest rates are effective annual rates, but before deduction of annual
administrative charges, any withdrawal charges and any optional benefit
charges. See Appendix VIII later in this Prospectus for state variations.
Depending on the state where your contract is issued, your lifetime minimum
rate ranges from 1.00% to 3.00%. The data page for your contract shows the
lifetime minimum rate. The minimum yearly rate will never be less than the
lifetime minimum rate. The minimum yearly rate for 2005 is equal to 2.25%
except that for contracts issued with a lifetime minimum guaranteed interest
rate of 3.00%, the minimum yearly rate for 2005 is also 3.00%. Check with your
financial professional as to which rate applies in your state. Current interest
rates will never be less than the yearly guaranteed interest rate.
See "Transferring your money among the investment options" later in this
Prospectus for restrictions on transfers from the guaranteed interest option.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied the rate to maturity is 3%. This
means that at points in time, there may be no fixed maturity options available.
You can allocate your contributions to one or more of these fixed maturity
options, however, you may not have more than 12 different maturities running
during any contract year. This limit includes any maturities that have had any
allocation or transfers even if the entire amount is withdrawn or transferred
during the contract year. These amounts become part of a non-unitized separate
account. They will accumulate interest at the "rate to maturity" for each fixed
maturity option. The total amount you allocate to and accumulate in each fixed
maturity option is called the "fixed maturity amount." The fixed maturity
options are not available in all states. Check with your financial professional
or see Appendix VIII later in this Prospectus to see if fixed maturity options
are available in your state.
- --------------------------------------------------------------------------------
Fixed maturity options generally range from one to ten years to maturity.
- --------------------------------------------------------------------------------
Under the Special 10 year fixed maturity option (which is available only under
GPB Option 2), additional contributions will have the same maturity date as
your initial contribution (see "The guaranteed principal benefits" below). The
rate to maturity you will receive for each additional contribution is the rate
to maturity in effect for new contributions allocated to that fixed maturity
option on the date we apply your contribution.
On the maturity date of a fixed maturity option your fixed maturity amount,
assuming you have not made any withdrawals or transfers, will equal your
contribution to that fixed maturity option plus interest, at the rate to
maturity for that contribution, to the date of the calculation. This is the
fixed maturity option's "maturity value." Before maturity, the current value we
will report for your fixed maturity amounts will reflect a market value
adjustment. Your current value will reflect the market value adjustment that we
would make if you were to withdraw all of your fixed maturity amounts on the
date of the report. We call this your "market adjusted amount."
FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with
maturity dates ranging from one to ten years. Not all of these fixed maturity
options will be available for annuitant ages 76 and older. See "Allocating your
contributions" below.
Each new contribution is applied to a new fixed maturity option. When you apply
for an Accumulator(R) contract, a 60-day rate lock-in will apply from the date
the application is signed. Any contributions received and designated for a
fixed maturity option during this period will receive the then current fixed
maturity option rate or the rate that was in effect on the date that the
application was signed, whichever is greater. There is no rate lock available
for subsequent contributions to the contract after 60 days, transfers from the
variable investment options or the guaranteed interest option into a fixed
maturity option or transfers from one fixed maturity option to another.
YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days
before each of your fixed maturity options is scheduled to mature. At that
time, you may choose to have one of the following take place on the maturity
date, as long as none of the restrictive conditions listed in "Allocating your
contributions," below would apply:
(a) transfer the maturity value into another available fixed maturity option,
any of the variable investment options or the guaranteed interest option;
or
(b) withdraw the maturity value (there may be a withdrawal charge).
If we do not receive your choice on or before the fixed maturity option's
maturity date, we will automatically transfer your maturity value into the
shortest available maturity option beginning on that date. As of February 15,
2005, the next available maturity date was February 15, 2013. If no fixed
maturity options are available, we will transfer your maturity value to the
EQ/Money Market option.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender of your contract, or when we make deductions for charges) from a
fixed maturity option before it matures we will make a market value adjustment,
which will increase or decrease any fixed maturity amount you have in that
fixed maturity option. The amount of the adjustment will depend on two factors:
(a) the difference between the rate to maturity that applies to the amount
being withdrawn and the rate we have in effect at that time for new fixed
maturity options (adjusted to reflect a similar maturity date), and
Contract features and benefits 35
(b) the length of time remaining until the maturity date.
In general, if interest rates rise from the time that you originally allocate
an amount to a fixed maturity option to the time that you take a withdrawal,
the market value adjustment will be negative. Likewise, if interest rates drop
at the end of that time, the market value adjustment will be positive. Also,
the amount of the market value adjustment, either up or down, will be greater
the longer the time remaining until the fixed maturity option's maturity date.
Therefore, it is possible that the market value adjustment could greatly reduce
your value in the fixed maturity options, particularly in the fixed maturity
options with later maturity dates.
We provide an illustration of the market adjusted amount of specified maturity
values, an explanation of how we calculate the market value adjustment, and
information concerning our general account and investments purchased with
amounts allocated to the fixed maturity options, in "More information" later in
this Prospectus. Appendix III at the end of this Prospectus provides an example
of how the market value adjustment is calculated.
ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING
The account for special dollar cost averaging is part of our general account.
We pay interest at guaranteed rates in this account. We will credit interest to
the amounts that you have in the account for special dollar cost averaging
every day. We set the interest rates periodically, according to procedures that
we have. We reserve the right to change these procedures.
We guarantee to pay our current interest rate that is in effect on the date
that your contribution is allocated to this account. Your guaranteed interest
rate for the time period you select will be shown in your contract for an
initial contribution. The rate will never be less than the lifetime minimum
rate for the guaranteed interest option. See "Allocating your contributions"
below for rules and restrictions that apply to the special dollar cost
averaging program.
ALLOCATING YOUR CONTRIBUTIONS
You may choose from among three ways to allocate your contributions under your
contract: self-directed, the guaranteed principal benefits or dollar cost
averaging. Subsequent contributions are allocated according to instructions on
file unless you provide new instructions.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options, the guaranteed interest option (subject to restrictions in
certain states-see Appendix VIII later in this Prospectus for state variations)
and fixed maturity options. Allocations must be in whole percentages and you
may change your allocations at any time. The total of your allocations into all
available investment options must equal 100%. If the annuitant is age 76-80,
you may allocate contributions to fixed maturity options with maturities of
seven years or less. If the annuitant is age 81 or older, you may allocate
contributions to fixed maturity options with maturities of five years or less.
Also, you may not allocate amounts to fixed maturity options with maturity
dates that are later than the date annuity payments are to begin.
THE GUARANTEED PRINCIPAL BENEFITS
Subject to state availability (see Appendix VIII later in this Prospectus for
more information on state availability of these benefits), we offer a
guaranteed principal benefit ("GPB") with two options. You may only elect one
of the GPBs. Neither GPB is available under Inherited IRA contracts. We will
not offer either GPB when the rate to maturity for the applicable fixed
maturity option is 3%. If you elect either GPB, you may not elect the
Guaranteed minimum income benefit, Principal Protector(SM), the systematic
withdrawals option or the substantially equal withdrawals option. Both GPB
options allow you to allocate a portion of your contribution or contributions
to the variable investment options, while ensuring that your account value will
at least equal your contributions adjusted for withdrawals and transfers on a
specified date. GPB Option 2 generally provides you with the ability to
allocate more of your contributions to the variable investment options than
could be allocated using GPB Option 1.
You may elect GPB Option 1 only if the annuitant is age 80 or younger when the
contract is issued (after age 75, only the 7-year fixed maturity option is
available). You may elect GPB Option 2 only if the annuitant is age 75 or
younger when the contract is issued. GPB Option 2 is not available for purchase
with any Flexible Premium IRA contract whether traditional or Roth. If you are
purchasing an IRA, QP or Rollover TSA contract, before you either purchase GPB
Option 2 or elect GPB Option 1 with a maturity year that would extend beyond
the year in which you will reach age 70-1/2, you should consider whether your
value in the variable investment options, guaranteed interest option and
permissible funds outside this contract are sufficient to meet your required
minimum distributions. See "Tax information" later in this Prospectus. If you
elect GPB Option 2 and change ownership of the contract, GPB Option 2 will
automatically terminate, except under certain circumstances. See "Transfers of
ownership, collateral assignments, loans and borrowing" in "More information"
later in this Prospectus for more information.
GUARANTEED PRINCIPAL BENEFIT OPTION 1. Under GPB Option 1, you select a fixed
maturity option at the time you sign your application. We specify the portion
of your initial contribution to be allocated to that fixed maturity option in
an amount that will cause the maturity value to equal the amount of your entire
initial contribution on the fixed maturity option's maturity date. The
percentage of your contribution allocated to the fixed maturity option will be
calculated based upon the rate to maturity then in effect for the fixed
maturity option you choose. Your contract will contain information on the
amount of your contribution allocated to the fixed maturity option. If you make
any withdrawals or transfers from the fixed maturity option before the option's
maturity date, the amount in the fixed maturity option will be adjusted and may
no longer grow to equal your initial contribution under GPB Option 1. The
maturity date you select generally may not be later than 10 years, or earlier
than 7 years from your contract date. You may allocate the rest of your initial
contribution to the investment options and guaranteed interest option however
you choose (unless you elect a dollar cost averaging program, in which case the
remainder of your initial contribution must be allocated to the dollar cost
averaging program). Upon the maturity date of the fixed maturity option, you
will be provided with the same notice and the same
36 Contract features and benefits
choices with respect to the maturity value as described above under "Your
choices at the maturity date." There is no charge for GPB Option 1.
GUARANTEED PRINCIPAL BENEFIT OPTION 2. You may purchase GPB Option 2 at the
time you apply for your contract. IF YOU PURCHASE GPB OPTION 2, YOU MAY NOT
MAKE ADDITIONAL CONTRIBUTIONS TO YOUR CONTRACT AFTER SIX MONTHS FROM THE
CONTRACT ISSUE DATE OR AT ANY EARLIER TIME IF AT SUCH TIME THE THEN APPLICABLE
RATE TO MATURITY ON THE SPECIAL 10 YEAR FIXED MATURITY OPTION IS 3%. Therefore,
any discussion in this Prospectus that involves any additional contributions
after the first six months will be inapplicable.
We specify the portion of your initial contribution, and any additional
permitted contributions, to be allocated to a Special 10 year fixed maturity
option. Your contract will contain information on the percentage of applicable
contributions allocated to the Special 10 year fixed maturity option. You may
allocate the rest of your contributions among the investment options (other
than the Special 10 year fixed maturity option) however you choose, as
permitted under your contract (unless you elect a dollar cost averaging
program, in which case all contributions, other than amounts allocated to the
Special 10 year fixed maturity option, must be allocated to the dollar cost
averaging program). The Special 10 year fixed maturity option will earn
interest at the specified rate to maturity then in effect.
If on the 10th contract date anniversary, your annuity account value is less
than the amount that is guaranteed under GPB Option 2, we will increase your
annuity account value to be equal to the guaranteed amount under GPB Option 2.
Any such additional amounts added to your annuity account value will be
allocated to the EQ/Money Market investment option. After the maturity date of
the Special 10 year fixed maturity option, the guarantee under GPB Option 2
will terminate. Upon the maturity date of the Special 10 year fixed maturity
option, you will be provided with the same notice and the same choices with
respect to the maturity value as described above under "Your choices at the
maturity date." The guaranteed amount under GPB Option 2 is equal to your
initial contribution adjusted for any additional permitted contributions,
transfers out of the Special 10 year fixed maturity option and withdrawals from
the contract (see "How withdrawals (and transfers out of the Special 10 year
fixed maturity option) affect your Guaranteed minimum income benefit,
Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in
"Accessing your money" later in this Prospectus). Any transfers or withdrawals
from the Special 10 year fixed maturity option will also be subject to a market
value adjustment (see "Market value adjustment" under "Fixed maturity options"
above in this section).
Once you purchase the Guaranteed principal benefit option 2, you may not
voluntarily terminate this benefit. GPB Option 2 will terminate if the contract
terminates before the maturity date of the Special 10 year fixed maturity
option. If the owner and the annuitant are different people and the owner dies
before the maturity date of the Special 10 year fixed maturity option, we will
continue GPB Option 2 only if the contract can continue through the maturity
date of the Special 10 year fixed maturity option. If the contract cannot so
continue, we will terminate GPB Option 2. GPB Option 2 will continue where
there is a successor owner/annuitant. GPB Option 2 will terminate upon the
exercise of the beneficiary continuation option. See "Payment of death benefit"
later in this Prospectus for more information about the continuation of the
contract after the death of the owner and/or the annuitant.
There is a fee associated with GPB Option 2 (see "Charges and expenses" later
in this Prospectus). You should note that the purchase of GPB Option 2 is not
appropriate if you want to make additional contributions to your contract
beyond the first six months after your contract is issued. If you later decide
that you would like to make additional contributions to the Accumulator(R)
contract, we may permit you to purchase another contract. If we do, however,
you should note that we do not reduce or waive any of the charges on the new
contract, nor do we guarantee that the features available under this contract
will be available under the new contract. This means that you might end up
paying more with respect to certain charges than if you had simply purchased a
single contract (for example, the administrative charge).
The purchase of GPB Option 2 is also not appropriate if you plan on terminating
your contract before the maturity date of the Special 10 year fixed maturity
option. In addition, because we prohibit contributions to your contract after
the first six months, certain contract benefits that are dependent upon
contributions or account value will be limited (for example the guaranteed
death benefits and Protection Plus(SM)). You should also note that if you intend
to allocate a large percentage of your contributions to the guaranteed interest
option or other fixed maturity options, the purchase of GPB Option 2 may not be
appropriate because of the guarantees already provided by these options. An
example of the effect of GPB Option 1 and GPB Option 2 on your annuity contract
is included in Appendix VI later in this Prospectus.
DOLLAR COST AVERAGING
We offer a variety of dollar cost averaging programs. You may only participate
in one program at a time. Each program allows you to gradually allocate amounts
to the variable investment options by periodically transferring approximately
the same dollar amount to the variable investment options you select. This will
cause you to purchase more units if the unit value is low and fewer units if
the unit value is high. Therefore, you may get a lower average cost per unit
over the long term. These plans of investing, however, do not guarantee that
you will earn a profit or be protected against losses. You may not make
transfers to the fixed maturity options.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
SPECIAL DOLLAR COST AVERAGING PROGRAM. Under the special dollar cost averaging
program, you may choose to allocate all or a portion of any eligible
contribution to the account for special dollar cost averaging. Contributions
into the account for special dollar cost averaging may not be transfers from
other investment options. Your initial allocation to any special dollar cost
averaging program time period must be at least $2,000 and any subsequent
contribution to that same time period must be at least $250. You may only have
one time period in effect at any time and once you select a time period, you
may not change it. In Pennsylvania, we refer to this program as "enhanced rate
Contract features and benefits 37
dollar cost averaging." If you elect Principal Protector(SM), you may not
participate in the special dollar cost averaging program.
You may have your account value transferred to any of the variable investment
options. We will transfer amounts from the account for special dollar cost
averaging into the variable investment options over an available time period
that you select. We offer time periods of 3, 6 or 12 months, during which you
will receive an enhanced interest rate. We may also offer other time periods.
Your financial professional can provide information on the time periods and
interest rates currently available in your state, or you may contact our
processing office. If the special dollar cost averaging program is selected at
the time of application to purchase the Accumulator(R) contract, a 60 day rate
lock will apply from the date of application. Any contribution(s) received
during this 60 day period will be credited with the interest rate offered on
the date of application for the remainder of the time period selected at
application. Any contribution(s) received after the 60 day rate lock period has
ended will be credited with the then current interest rate for the remainder of
the time period selected at application. Contribution(s) made to a special
dollar cost averaging program selected after the Accumulator(R) contract has
been issued will be credited with the then current interest rate on the date
the contribution is received by AXA Equitable for the time period initially
selected by you. Once the time period you selected has run, you may then select
another time period for future contributions. At that time, you may also select
a different allocation for transfers to the variable investment options, or, if
you wish, we will continue to use the selection that you have previously made.
Currently, your account value will be transferred from the account for special
dollar cost averaging into the variable investment options on a monthly basis.
We may offer this program in the future with transfers on a different basis.
We will transfer all amounts out of the account for special dollar cost
averaging by the end of the chosen time period. The transfer date will be the
same day of the month as the contract date, but not later than the 28th day of
the month. For a special dollar cost averaging program selected after
application, the first transfer date and each subsequent transfer date for the
time period selected will be one month from the date the first contribution is
made into the special dollar cost averaging program, but not later than the
28th of the month.
If you choose to allocate only a portion of an eligible contribution to the
account for special dollar cost averaging, the remaining balance of that
contribution will be allocated to the variable investment options, guaranteed
interest option or fixed maturity options according to your instructions.
The only transfers that will be made from the account for special dollar cost
averaging are your regularly scheduled transfers to the variable investment
options. No amounts may be transferred from the account for special dollar cost
averaging to the guaranteed interest option or the fixed maturity options. If
you request to transfer or withdraw any other amounts from the account for
special dollar averaging, we will transfer all of the value that you have
remaining in the account for special dollar cost averaging to the investment
options according to the allocation percentages for special dollar cost
averaging we have on file for you. You may ask us to cancel your participation
at any time.
GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market
option is at least $5,000, you may choose, at any time, to have a specified
dollar amount or percentage of your value transferred from that option to the
other variable investment options and the guaranteed interest option (subject
to restrictions in certain states. See Appendix VIII later in this Prospectus.)
You can select to have transfers made on a monthly, quarterly or annual basis.
The transfer date will be the same calendar day of the month as the contract
date, but not later than the 28th day of the month. You can also specify the
number of transfers or instruct us to continue making the transfers until all
amounts in the EQ/Money Market option have been transferred out. The minimum
amount that we will transfer each time is $250.
If, on any transfer date, your value in the EQ/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The general dollar cost averaging program will then end.
You may change the transfer amount once each contract year or cancel this
program at any time.
INVESTMENT SIMPLIFIER
Fixed-dollar option. Under this option you may elect to have a fixed-dollar
amount transferred out of the guaranteed interest option and into the variable
investment options of your choice. Transfers may be made on a monthly,
quarterly or annual basis. You can specify the number of transfers or instruct
us to continue to make transfers until all available amounts in the guaranteed
interest option have been transferred out.
In order to elect the fixed-dollar option, you must have a minimum of $5,000 in
the guaranteed interest option on the date we receive your election form at our
processing office. The transfer date will be the same calendar day of the month
as the contract date but not later than the 28th day of the month. The minimum
transfer amount is $50. Unlike the account for special dollar cost averaging,
this option does not offer enhanced rates. Also, the option is subject to the
guaranteed interest option transfer limitations described under "Transferring
your account value" in "Transferring your money among investment options" later
in this Prospectus. While the program is running, any transfer that exceeds
those limitations will cause the program to end for that contract year. You
will be notified. You must send in a request form to resume the program in the
next or subsequent contract years.
If, on any transfer date, your value in the guaranteed interest option is equal
to or less than the amount you have elected to have transferred, the entire
amount will be transferred, and the program will end. You may change the
transfer amount once each contract year or cancel this program at any time.
Interest sweep option. Under this option, you may elect to have monthly
transfers from amounts in the guaranteed interest option into the variable
investment options of your choice. The transfer date will be the last business
day of the month. The amount we will transfer will be the interest credited to
amounts you have in the guaranteed interest option from the last business day
of the prior month to the last business day of the current month. You must have
at least $7,500 in the guaranteed interest option on the date we receive your
election. We will automatically cancel the interest sweep program if the amount
38 Contract features and benefits
in the guaranteed interest option is less than $7,500 on the last day of the
month for two months in a row. For the interest sweep option, the first monthly
transfer will occur on the last business day of the month following the month
that we receive your election form at our processing office.
----------------------------------
You may not participate in any dollar cost averaging program if you are
participating in the rebalancing program. See "Transferring your money among
investment options" later in this Prospectus. If you elect a GPB and a dollar
cost averaging program, 100% of your contributions not allocated to the fixed
maturity option under the GPB must be allocated to the dollar cost averaging
program you elect.
Not all dollar cost averaging programs are available in every state. See
Appendix VIII later in this Prospectus for more information on state
availability.
YOUR GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED MINIMUM INCOME BENEFIT
BASE
The Guaranteed minimum death benefit and Guaranteed minimum income benefit base
(hereinafter, in this section called your "benefit base") is used to calculate
the Guaranteed minimum income benefit and the death benefits, as described in
this section. Your benefit base is not an account value or a cash value. See
also "Our Guaranteed minimum income benefit option" and "Guaranteed minimum
death benefit" below.
STANDARD DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death benefit and Guaranteed principal
benefit option 2" in "Accessing your money" later in this Prospectus).
6% ROLL UP TO AGE 85 (USED FOR THE GREATER OF 6% ROLL UP TO AGE 85 OR THE
ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM
INCOME BENEFIT). Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
o daily interest; less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death benefit and Guaranteed principal
benefit option 2" in "Accessing your money" and the section entitled
"Charges and expenses" later in this Prospectus).
The effective annual interest rate credited to the benefit base is:
o 6% with respect to the variable investment options (other than EQ/Alliance
Intermediate Government Securities, EQ/Money Market, EQ/PIMCO Real Return
and EQ/Short Duration Bond), and the account for special dollar cost
averaging; the effective annual rate may be 4% in some states. Please see
Appendix VIII later in this Prospectus to see what applies in your state;
and
o 3% with respect to the EQ/Alliance Intermediate Government Securities,
EQ/Money Market, EQ/PIMCO Real Return and EQ/Short Duration Bond, the
fixed maturity options, the Special 10 year fixed maturity option, the
guaranteed interest option and the loan reserve account under Rollover TSA
(if applicable).
No interest is credited to the benefit base after the contract anniversary
following the annuitant's 85th birthday.
ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH
BENEFIT AND THE GREATER OF 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85
ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your
benefit base is equal to the greater of either:
o your initial contribution to the contract (plus any additional
contributions),
or
o your highest account value on any contract anniversary up to the contract
anniversary following the annuitant's 85th birthday, plus any
contributions made since the most recent contract anniversary,
less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death benefit and Guaranteed principal
benefit option 2" in "Accessing your money" later in this Prospectus).
GREATER OF 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH
BENEFIT AND THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is equal
to the greater of the benefit base computed for the 6% Roll up to age 85 or the
benefit base computed for the Annual Ratchet to age 85, as described
immediately above, on each contract anniversary. For the Guaranteed minimum
income benefit, the benefit base is reduced by any applicable withdrawal charge
remaining when the option is exercised.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the Guaranteed minimum income benefit and annuity payout
options. The Guaranteed minimum income benefit is discussed under "Our
Guaranteed minimum income benefit option" below and annuity payout options are
discussed under "Your annuity payout options" in "Accessing your money" later
in this Prospectus. The guaranteed annuity purchase factors are those factors
specified in your contract. The current annuity purchase factors are those
factors that are in effect at any given time. Annuity purchase factors are
based on interest rates, mortality tables, frequency of payments, the form of
annuity benefit, and the annuitant's (and any joint annuitant's) age and sex in
certain instances.
Contract features and benefits 39
OUR GUARANTEED MINIMUM INCOME BENEFIT OPTION
The Guaranteed minimum income benefit is available if the annuitant is age 20
through 75 at the time the contract is issued. There is an additional charge
for the Guaranteed minimum income benefit which is described under "Guaranteed
minimum income benefit charge" in "Charges and expenses" later in this
Prospectus. Once you purchase the Guaranteed minimum income benefit, you may
not voluntarily terminate this benefit.
If you are purchasing this contract as an Inherited IRA or if you elect a GPB
or Principal Protector(SM), the Guaranteed minimum income benefit is not
available. If you are purchasing this contract to fund a Charitable Remainder
Trust, the Guaranteed minimum income benefit is not available, except for
certain split-funded Charitable Remainder Trusts. If the annuitant was older
than age 60 at the time an IRA, QP or Rollover TSA contract was issued, the
Guaranteed minimum income benefit may not be an appropriate feature because the
minimum distributions required by tax law generally must begin before the
Guaranteed minimum income benefit can be exercised.
If you elect the Guaranteed minimum income benefit option and change ownership
of the contract, this benefit will automatically terminate, except under
certain circumstances. See "Transfers of ownership, collateral assignments,
loans and borrowing" in "More information," later in this Prospectus for more
information.
The Guaranteed minimum income benefit guarantees you a minimum amount of fixed
income under your choice of a life annuity fixed payout option or a life with a
period certain payout option. You choose which of these payout options you want
and whether you want the option to be paid on a single or joint life basis at
the time you exercise your Guaranteed minimum income benefit. The maximum
period certain available under the life with a period certain payout option is
10 years. This period may be shorter, depending on the annuitant's age, as
follows:
- ----------------------------------------
Level payments
- ----------------------------------------
Period certain years
Annuitant's --------------------
age at exercise IRAs NQ
- ----------------------------------------
75 and younger 10 10
76 9 10
77 8 10
78 7 10
79 7 10
80 7 10
81 7 9
82 7 8
83 7 7
84 6 6
85 5 5
- ----------------------------------------
We may also make other forms of payout options available. For a description of
payout options, see "Your annuity payout options" in "Accessing your money"
later in this Prospectus.
- --------------------------------------------------------------------------------
The Guaranteed minimum income benefit should be regarded as a safety net only.
It provides income protection if you elect an income payout while the annuitant
is alive.
- --------------------------------------------------------------------------------
When you exercise the Guaranteed minimum income benefit, the annual lifetime
income that you will receive will be the greater of (i) your Guaranteed minimum
income benefit which is calculated by applying your Guaranteed minimum income
benefit base, less any applicable withdrawal charge remaining, at guaranteed
annuity purchase factors, or (ii) the income provided by applying your account
value at our then current annuity purchase factors. For Rollover TSA only, we
will subtract from the Guaranteed minimum income benefit base or account value
any outstanding loan, including interest accrued but not paid. You may also
elect to receive monthly or quarterly payments as an alternative. The payments
will be less than 1/12 or 1/4 of the annual payments, respectively, due to the
effect of interest compounding. The benefit base is applied only to the
guaranteed annuity purchase factors under the Guaranteed minimum income benefit
in your contract and not to any other guaranteed or current annuity purchase
rates. The amount of income you actually receive will be determined when we
receive your request to exercise the benefit.
When you elect to receive annual lifetime income, your contract will terminate
and you will receive a new contract for the annuity payout option. For a
discussion of when your payments will begin and end, see "Exercise of
Guaranteed minimum income benefit" below.
Before you elect the Guaranteed minimum income benefit you should consider the
fact that it provides a form of insurance and is based on conservative
actuarial factors. The guaranteed annuity purchase factors we use to determine
your payout annuity benefit under the Guaranteed minimum income benefit are
more conservative than the guaranteed annuity purchase factors we use for our
standard payout annuity options. This means that, assuming the same amount is
applied to purchase the benefit and that we use guaranteed annuity purchase
factors to compute the benefit, each periodic payment under the Guaranteed
minimum income benefit payout annuity will be smaller than each periodic
payment under our standard payout annuity options. Therefore, even if your
account value is less than your benefit base, you may generate more income by
applying your account value to current annuity purchase factors. We will make
this comparison for you when the need arises.
ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll up to
age 85 benefit base, the table below illustrates the Guaranteed minimum income
benefit amounts per $100,000 of initial contribution, for a male annuitant age
60 (at issue) on the contract date anniversaries indicated, who has elected the
life annuity fixed payout option, using the guaranteed annuity purchase factors
as of
40 Contract features and benefits
the date of this Prospectus, assuming no additional contributions, withdrawals,
or loans under Rollover TSA contracts, and assuming there were no allocations
to the EQ/Alliance Intermediate Government Securities, EQ/Money Market,
EQ/PIMCO Real Return, EQ/Short Duration Bond, the guaranteed interest option,
the fixed maturity options (including the Special 10 year fixed maturity
option) or the loan reserve account under Rollover TSA contracts.
- ----------------------------------------------------------
Guaranteed minimum
Contract date income benefit -- annual
anniversary at exercise income payable for life
- ----------------------------------------------------------
10 $11,891
15 $18,597
- ----------------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date
anniversary that you are eligible to exercise the Guaranteed
minimum income benefit, we will send you an eligibility notice illustrating how
much income could be provided as of the contract date anniversary. You must
notify us within 30 days following the contract date anniversary if you want to
exercise the Guaranteed minimum income benefit. You must return your contract
to us, along with all required information within 30 days following your
contract date anniversary, in order to exercise this benefit. You will begin
receiving annual payments one year after the annuity payout contract is issued.
If you choose monthly or quarterly payments, you will receive your payment one
month or one quarter after the annuity payout contract is issued. You may
choose to take a withdrawal prior to exercising the Guaranteed minimum income
benefit, which will reduce your payments. You may not partially exercise this
benefit. See "Accessing your money" under "Withdrawing your account value"
later in this Prospectus. Payments end with the last payment before the
annuitant's (or joint annuitant's, if applicable) death or, if later, the end
of the period certain (where the payout option chosen includes a period
certain).
EXERCISE RULES. You will be eligible to exercise the Guaranteed minimum income
benefit during your life and the annuitant's life, as follows:
o If the annuitant was at least age 20 and no older than age 44 when the
contract was issued, you are eligible to exercise the Guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 15th contract date anniversary.
o If the annuitant was at least age 45 and no older than age 49 when the
contract was issued, you are eligible to exercise the Guaranteed minimum
income benefit within 30 days following each contract date anniversary after
the annuitant is age 60.
o If the annuitant was at least age 50 and no older than age 75 when the
contract was issued, you are eligible to exercise the Guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 10th contract date anniversary.
Please note:
(i) the latest date you may exercise the Guaranteed minimum income benefit is
within 30 days following the contract date anniversary following the
annuitant's 85th birthday;
(ii) if the annuitant was age 75 when the contract was issued, the only time
you may exercise the Guaranteed minimum income benefit is within 30 days
following the first contract date anniversary that it becomes available;
(iii) for Accumulator(R) QP contracts, the Plan participant can exercise the
Guaranteed minimum income benefit only if he or she elects to take a
distribution from the Plan and, in connection with this distribution, the
Plan's trustee changes the ownership of the contract to the participant.
This effects a rollover of the Accumulator(R) QP contract into an
Accumulator(R) Rollover IRA. This process must be completed within the
30-day timeframe following the contract date anniversary in order for the
Plan participant to be eligible to exercise;
(iv) for Accumulator(R) Rollover TSA contracts, you may exercise the Guaranteed
minimum income benefit only if you effect a rollover of the TSA contract
to an Accumulator(R) Rollover IRA. This may only occur when you are
eligible for a distribution from the TSA. This process must be completed
within the 30-day timeframe following the contract date anniversary in
order for you to be eligible to exercise;
(v) a successor owner/annuitant may only continue the Guaranteed minimum
income benefit if the contract is not past the last date on which the
original annuitant could have exercised the benefit. In addition, the
successor owner/annuitant must be eligible to continue the benefit and to
exercise the benefit under the applicable exercise rule (described in the
above bullets) using the following additional rules. The successor
owner/annuitant's age on the date of the annuitant's death replaces the
annuitant's age at issue for purposes of determining the availability of
the benefit and which of the exercise rules applies. The original contract
issue date will continue to apply for purposes of the exercise rules. If
you elect Spousal Protection and the spouse who is the annuitant dies, the
above rules apply if the contract is continued by the surviving spouse as
the successor owner/annuitant; and
(vi) if you are the owner but not the annuitant and you die prior to exercise,
then the following applies:
o A successor owner who is not the annuitant may not be able to exercise
the guaranteed minimum income benefit without causing a tax problem. You
should consider naming the annuitant as successor owner, or if you do
not name a successor owner, as the sole primary beneficiary. You should
carefully review your successor owner and/or beneficiary designations at
least one year prior to the first contract anniversary on which you
could exercise the benefit.
o If the successor owner is the annuitant, the guaranteed minimum income
benefit continues only if the benefit could be exercised under the rules
described above on a contract anniversary that is within one year
following the owner's death. This would be the only opportunity for the
successor owner to exercise. If the guaranteed minimum income benefit
cannot be exercised within this timeframe, the benefit will terminate
and the charge for it will no longer apply as of the date we receive
proof of your death and any required information.
Contract features and benefits 41
o If you designate your surviving spouse as successor owner, o the
guaranteed minimum income benefit continues and your surviving spouse
may exercise the benefit according to the rules described above even if
your spouse is not the annuitant and even if the benefit is exercised
more than one year after your death. If your surviving spouse dies prior
to exercise, the rule described in the previous bullet applies.
o A successor owner or beneficiary that is a trust or other non- natural
person may not exercise the benefit; in this case, the benefit will
terminate and the charge for it will no longer apply as of the date we
receive proof of your death and any required information.
See "When an NQ contract owner dies before the annuitant" under "Payment of
death benefit" later in this Prospectus for more information.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals (and transfers out of the Special 10 year fixed
maturity option) affect your Guaranteed minimum income benefit, Guaranteed
minimum death benefit and Guaranteed principal benefit option 2" in "Accessing
your money" and the section entitled "Charges and expenses" later in this
Prospectus for more information on these guaranteed benefits.
GUARANTEED MINIMUM DEATH BENEFIT
Your contract provides a death benefit. If you do not elect one of the enhanced
death benefits described below, the death benefit is equal to your account
value (without adjustment for any otherwise applicable negative market value
adjustment) as of the date we receive satisfactory proof of death, any required
instructions for the method of payment, information and forms necessary to
effect payment, OR the standard death benefit, whichever provides the higher
amount. The standard death benefit is equal to your total contributions,
adjusted for withdrawals (and any associated withdrawal charges), and any taxes
that apply. The standard death benefit is the only death benefit available for
annuitant ages 76 through 85 at issue. Once your contract is issued, you may
not change or voluntarily terminate your death benefit.
If you elect one of the enhanced death benefits, the death benefit is equal to
your account value (without adjustment for any otherwise applicable negative
market value adjustment) as of the date we receive satisfactory proof of the
annuitant's death, any required instructions for the method of payment,
information and forms necessary to effect payment, OR your elected enhanced
death benefit on the date of the annuitant's death, adjusted for withdrawals
(and associated withdrawal charges) and taxes that apply, whichever provides
the higher amount. If you elect the Spousal protection option, the Guaranteed
minimum death benefit is based on the age of the older spouse, who may or may
not be the annuitant, for the life of the contract. See "Spousal protection" in
"Payment of death benefit" later in this Prospectus for more information.
If you elect one of the enhanced death benefit options described below and
change ownership of the contract, generally the benefit will automatically
terminate, except under certain circumstances. If this occurs, any enhanced
death benefit elected will be replaced with the standard death benefit. See
"Transfers of ownership, collateral assignments, loans and borrowing" in "More
information" later in this Prospectus for more information.
OPTIONAL ENHANCED DEATH BENEFIT APPLICABLE FOR ANNUITANT AGES 0 THROUGH 75 AT
ISSUE OF NQ CONTRACTS; 20 THROUGH 75 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION
IRA, FLEXIBLE PREMIUM ROTH IRA, AND ROLLOVER TSA CONTRACTS; 20 THROUGH 70 AT
ISSUE OF FLEXIBLE PREMIUM IRA CONTRACTS; 0 THROUGH 70 AT ISSUE FOR INHERITED
IRA CONTRACTS; AND 20 THROUGH 75 AT ISSUE OF QP CONTRACTS.
Subject to state availability (see Appendix VIII later in this Prospectus for
state availability of these benefits), you may elect one of the following
enhanced death benefits:
o Annual Ratchet to age 85.
o The greater of the 6% Roll up to age 85 or the Annual Ratchet to age 85.
Each enhanced death benefit is equal to its corresponding benefit base
described earlier in "Your Guaranteed minimum death benefit and Guaranteed
minimum income benefit base." Once you have made your enhanced death benefit
election, you may not change it.
If you elect Principal Protector(SM), only the standard death benefit and the
Annual Ratchet to Age 85 enhanced death benefit are available.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals (and transfers out of the Special 10 year fixed
maturity option) affect your Guaranteed minimum income benefit, Guaranteed
minimum death benefit and Guaranteed principal benefit option 2" in "Accessing
your money" and the section entitled "Charges and expenses" later in this
Prospectus for more information on these guaranteed benefits.
See Appendix IV later in this Prospectus for an example of how we calculate an
enhanced death benefit.
PROTECTION PLUS(SM)
Subject to state and contract availability (see Appendix VIII later in this
Prospectus for state availability of these benefits), if you are purchasing a
contract under which the Protection Plus(SM) feature is available, you may elect
the Protection Plus(SM) death benefit at the time you purchase your contract.
Protection Plus(SM) provides an additional death benefit as described below. See
the appropriate part of "Tax information" later in this Prospectus for the
potential tax consequences of electing to purchase the Protection Plus(SM)
feature in an NQ, IRA or Rollover TSA contract. Once you purchase the
Protection Plus(SM) feature, you may not voluntarily terminate this feature. If
you elect Principal Protector(SM), the Protection Plus(SM) feature is not
available.
If you elect the Protection Plus(SM) option described below and change ownership
of the contract, generally this benefit will automatically terminate, except
under certain circumstances. See "Transfers of ownership, collateral
assignments, loans and borrowing" in "More information," later in this
Prospectus for more information.
If the annuitant is 70 or younger when we issue your contract (or if the
successor owner/annuitant is 70 or younger when he or she becomes the successor
owner/annuitant), the death benefit will be:
42 Contract features and benefits
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit less total net contributions, multiplied by 40%.
For purposes of calculating your Protection Plus(SM) benefit, the following
applies: (i) "Net contributions" are the total contributions made (or if
applicable, the total amount that would otherwise have been paid as a death
benefit had the successor owner/annuitant election not been made plus any
subsequent contributions) adjusted for each withdrawal that exceeds your
Protection Plus(SM) earnings. "Net contributions" are reduced by the amount of
that excess. Protection Plus(SM) earnings are equal to (a) minus (b) where (a)
is the greater of the account value and the death benefit immediately prior to
the withdrawal and (b) is the net contributions as adjusted by any prior
withdrawals; and (ii) "Death benefit" is equal to the greater of the account
value as of the date we receive satisfactory proof of death or any applicable
Guaranteed minimum death benefit as of the date of death.
If the annuitant is age 71 through 75 when we issue your contract (or if the
successor owner/annuitant is between the ages of 71 and 75 when he or she
becomes the successor owner/annuitant and Protection Plus(SM) had been elected
at issue), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit (as described above) less total net contributions,
multiplied by 25%
The value of the Protection Plus(SM) death benefit is frozen on the first
contract date anniversary after the annuitant turns age 80, except that the
benefit will be reduced for withdrawals on a pro rata basis. Reduction on a pro
rata basis means that we calculate the percentage of the current account value
that is being withdrawn and we reduce the benefit by that percentage. For
example, if the account value is $30,000 and you withdraw $12,000, you have
withdrawn 40% of your account value. If the benefit is $40,000 before the
withdrawal, it would be reduced by $16,000 ($40,000 X .40) and the benefit
after the withdrawal would be $24,000 ($40,000 - $16,000).
For an example of how the Protection Plus(SM) death benefit is calculated,
please see Appendix VII.
If you elect Spousal protection, the Protection Plus(SM) benefit is based on the
age of the older spouse, who may or may not be the annuitant. Upon the death of
the non-annuitant spouse, the account value will be increased by the value of
the Protection Plus(SM) benefit as of the date we receive due proof of death.
Upon the death of the annuitant, the value of the Protection Plus(SM) benefit is
either added to the death benefit payment or to the account value if Successor
owner/annuitant is elected. If the surviving spouse elects to continue the
contract, the benefit will be based on the age of the surviving spouse as of
the date of the non-surviving spouse's death for the remainder of the contract.
If the surviving spouse is age 76 or older, the benefit will terminate and the
charge will no longer be in effect. See "Spousal protection" in "Payment of
death benefit" later in this Prospectus for more information.
Protection Plus(SM) must be elected when the contract is first issued: neither
the owner nor the successor owner/annuitant can add it subsequently. Ask your
financial professional or see Appendix VIII later in this Prospectus to see if
this feature is available in your state.
PRINCIPAL PROTECTOR(SM)
As described below, Principal Protector(SM) provides for recovery of your total
contributions through withdrawals, even if your account value falls to zero,
provided that during each contract year, your total withdrawals do not exceed
your Guaranteed Annual withdrawal amount. Principal Protector(SM) is not an
automated withdrawal program. You may request a withdrawal through any of our
available withdrawal methods. See "Withdrawing your account value" in
"Accessing your money" later in this Prospectus. All withdrawals reduce your
account value and the guaranteed minimum death benefit.
Principal Protector(SM) may be elected at contract issue, for an additional
charge, if the annuitant is age 0 through 85 for NQ contracts or age 20 through
75 for all IRA contracts. Please see "Principal Protector(SM) charge" in
"Charges and expenses" later in this Prospectus for a description of the charge
and when it applies. If you elect this benefit, you cannot terminate it.
If you die, and your beneficiary elects the Beneficiary continuation option, if
available, your beneficiary may continue Principal Protector(SM) provided that
the beneficiary was 75 or younger on the original contract date. If the
beneficiary was older, Principal Protector(SM) will terminate without value even
if the GWB benefit base is greater than zero. In the case of multiple
beneficiaries, any beneficiary older than 75 may not continue Principal
Protector(SM) and that beneficiary's portion of the GWB benefit base will
terminate without value, even if it was greater than zero. The ability to
continue Principal Protector(SM) under the Beneficiary continuation option is
subject to state availability. When and if it is approved in your state, it
will be added to your contract if you had already elected GWB. See "Beneficiary
continuation option" under "Payment of death benefit" later in the Prospectus
for more information on continuing Principal Protector(SM) under the Beneficiary
continuation option.
If you are purchasing this contract as a TSA, QP or Inherited IRA, Principal
Protector(SM) is not available. This benefit is also not available if you elect
the Guaranteed minimum income benefit, the Greater of 6% Roll Up to age 85 and
Annual Ratchet to Age 85 enhanced death benefit, Protection Plus(SM), GPB Option
1 or GPB Option 2 or the special dollar cost averaging program.
If you elect the Principal Protector(SM) option and change ownership of the
contract, generally this benefit will automatically terminate, except under
certain circumstances. See "Transfers of ownership, collateral assignments,
loans and borrowing" in "More information," later in this Prospectus for more
information.
Contract features and benefits 43
You should not purchase Principal Protector(SM) if you plan to take withdrawals
in excess of your GWB Annual withdrawal amount because those withdrawals
significantly reduce or eliminate the value of the benefit. See "Effect of GWB
Excess withdrawals" below. For traditional IRAs, the Principal Protector(SM)
makes provision for you to take lifetime required minimum distributions
("RMDs") without losing the value of the Principal Protector(SM) guarantee,
provided you comply with the conditions under "Lifetime required minimum
distribution withdrawals" in "Accessing your money" later in this Prospectus
including utilizing our Automatic RMD service. If you do not expect to comply
with these conditions, including utilization of our Automatic RMD service, this
benefit may have limited usefulness for you and you should consider whether it
is appropriate. Please consult your tax adviser.
YOUR GWB BENEFIT BASE
At issue, your GWB benefit base is equal to your initial contribution and will
increase or decrease, as follows:
o Your GWB benefit base increases by the dollar amount of any additional
contributions.
o Your GWB benefit base decreases by the dollar amount of withdrawals.
o Your GWB benefit base may be further decreased if a withdrawal is taken in
excess of your GWB Annual withdrawal amount.
o Your GWB benefit base may also be increased under the Optional step up
provision.
o Your GWB benefit base may also be increased under the one time step up
applicable with the Beneficiary continuation option.
Each of these events is described in detail below. Once your GWB benefit base
is depleted, you may continue to make withdrawals from your account value, but
they are not guaranteed under Principal Protector(SM).
YOUR GWB ANNUAL WITHDRAWAL AMOUNT
Your GWB Annual withdrawal amount is equal to either 5% or 7% ("Applicable
percentage"), as applicable, of your initial GWB benefit base, and is the
maximum amount that you can withdraw each year without making a GWB Excess
withdrawal, as described below. When you purchase your contract, you choose
between two available GWB Annual withdrawal options:
o 7% GWB Annual withdrawal option
o 5% GWB Annual withdrawal option
The GWB Annual withdrawal amount may decrease as a result of a GWB Excess
withdrawal and may increase as a result of an Automatic reset, additional
contributions or a "step up" of the GWB benefit base; each of these
transactions are discussed below in detail. Once you elect a GWB Annual
withdrawal option, it cannot be changed.
Your GWB Annual withdrawal amounts are not cumulative. If you withdraw less
than the GWB Annual withdrawal amount in any contract year, you may not add the
remainder to your GWB Annual withdrawal amount in any subsequent year.
The withdrawal charge, if applicable, is waived for withdrawals up to the GWB
Annual withdrawal amount, but all withdrawals are counted toward your free
withdrawal amount. See "Withdrawal charge" in "Charges and expenses" later in
this Prospectus.
EFFECT OF GWB EXCESS WITHDRAWALS
A GWB Excess withdrawal is caused when you withdraw more than your GWB Annual
withdrawal amount in any contract year. Once a withdrawal causes cumulative
withdrawals in a contract year to exceed your GWB Annual withdrawal amount, the
entire amount of the withdrawal and each subsequent withdrawal in that contract
year are GWB Excess withdrawals.
A GWB Excess withdrawal can cause a significant reduction in both your GWB
benefit base and your GWB Annual withdrawal amount. If you make a GWB Excess
withdrawal, we will recalculate your GWB benefit base and the GWB Annual
withdrawal amount. As of the date of the GWB Excess withdrawal, the GWB benefit
base is first reduced by the dollar amount of the withdrawal (including any
applicable withdrawal charge), and the reduced GWB benefit base and the GWB
Annual withdrawal amount are then further adjusted, as follows:
o If the account value after the deduction of the withdrawal is less than the
GWB benefit base, then the GWB benefit base is reset equal to the account
value.
o If the account value after the deduction of the withdrawal is greater than or
equal to the GWB benefit base, then the GWB benefit base is not adjusted
further.
o The GWB Annual withdrawal amount equals the lesser of: (i) the Applicable
percentage of the adjusted GWB benefit base and (ii) the GWB Annual
withdrawal amount prior to the GWB Excess withdrawal.
You should not purchase this benefit if you plan to take withdrawals in excess
of your GWB Annual withdrawal amount, as such withdrawals significantly reduce
or eliminate the value of Principal Protector(SM). If your account value is less
than your GWB benefit base (due, for example, to negative market performance),
a GWB Excess withdrawal, even one that is only slightly more than your GWB
Annual withdrawal amount, can significantly reduce your GWB benefit base and
the GWB Annual withdrawal amount.
For example, if you contribute $100,000 at contract issue, your initial GWB
benefit base is $100,000. If you elect the 7% GWB Annual withdrawal option,
your GWB Annual withdrawal amount is equal to $7,000 (7% of $100,000). Assume
in contract year four that your account value is $80,000, you have not made any
prior withdrawals, and you request an $8,000 withdrawal. Your $100,000 benefit
base is first reduced by $8,000 to now equal $92,000. Your GWB benefit base is
then further reduced to equal the new account value: $72,000 ($80,000 minus
$8,000). In addition, your GWB Annual withdrawal amount is reduced to $5,040
(7% of $72,000), instead of the original $7,000.
Withdrawal charges, if applicable, are applied to the amount of the withdrawal
exceeding the GWB Annual withdrawal amount. See "Withdrawal charge" in "Charges
and expenses" later in this Prospectus. You should further note that a GWB
Excess withdrawal that reduces your account value to zero eliminates any
remaining value in
44 Contract features and benefits
your GWB benefit base. See "Termination of your contract" in "Determining your
contract value" later in this Prospectus.
In general, if you purchase this contract as a traditional IRA and participate
in our Automatic RMD service, and you do not take any other withdrawals, an
automatic withdrawal under that program will not cause a GWB Excess withdrawal,
even if it exceeds your GWB Annual withdrawal amount. For more information, see
"Lifetime required minimum distribution withdrawals" in "Accessing your money"
later in this Prospectus.
If you die, and your beneficiary continues Principal Protector(SM) under the
Beneficiary continuation option, and chooses scheduled payments, such payments
will not cause a GWB Excess withdrawal, provided no additional withdrawals are
taken. If your beneficiary chooses the "5-year rule" instead of scheduled
payments, this waiver does not apply and a GWB Excess withdrawal may occur if
withdrawals exceed the GWB Annual withdrawal amounts.
EFFECT OF AUTOMATIC RESET
If you take no withdrawals in the first five contract years, the Applicable
percentage to determine your GWB Annual withdrawal amount will be automatically
reset at no additional charge. The Applicable percentage under the 7% GWB
Annual withdrawal option will be increased to 10%, and the Applicable
percentage under the 5% GWB Annual withdrawal option will be increased to 7%.
The Applicable percentage is automatically reset on your fifth contract
anniversary, and your GWB Annual withdrawal amount will be recalculated.
If you die before the fifth contract anniversary, and your beneficiary
continues Principal Protector(SM) under the Beneficiary continuation option, if
available, the Automatic reset will apply on the fifth contract anniversary if
you have not taken any withdrawals and: (1) your beneficiary chooses scheduled
payments and payments have not yet started; or, (2) if your beneficiary chooses
the "5-year rule" option and has not taken withdrawals. See "Beneficiary
continuation option" in "Payment of death benefit" later in this Prospectus.
EFFECT OF ADDITIONAL CONTRIBUTIONS
Anytime you make an additional contribution, we will recalculate your GWB
benefit base and your GWB Annual withdrawal amount. Your GWB benefit base will
be increased by the amount of the contribution and your GWB Annual withdrawal
amount will be equal to the greater of (i) the Applicable percentage of the new
GWB benefit base, or (ii) the GWB Annual withdrawal amount in effect
immediately prior to the additional contribution.
If you die, and your beneficiary continues Principal Protector(SM) under the
Beneficiary continuation option, no additional contributions will be permitted.
THE OPTIONAL STEP UP PROVISION
Except as stated below, any time after the fifth contract anniversary, you may
request a step up in the GWB benefit base to equal your account value. If your
GWB benefit base is higher than the account value as of the date we receive
your step up request, no step up will be made. If a step up is made, we may
increase the charge for the benefit. For a description of the charge increase,
see "Principal Protector(SM) charge" in "Charges and expenses" later in this
Prospectus. Once you elect to step up the GWB benefit base, you may not do so
again for five complete contract years from the next contract date anniversary.
Under both the Spousal protection and the successor owner annuitant features,
upon the first death, the surviving spouse must wait five complete contract
years from the last step up or from contract issue, whichever is later, to be
eligible for a step up.
As of the date of your GWB benefit base step up, your GWB Annual withdrawal
amount will be equal to the greater of (i) your GWB Annual withdrawal amount
before the step up, and (ii) your GWB Applicable percentage applied to your
stepped up GWB benefit base.
It is important to note that a step up in your GWB benefit base may not
increase your GWB Annual withdrawal amount. In that situation, the effect of
the step up is only to increase your GWB benefit base and support future
withdrawals. We will process your step up request even if it does not increase
your GWB Annual withdrawal amount, and we will increase the Principal
Protector(SM) charge, if applicable. In addition, you will not be eligible to
request another step up for five complete contract years. After processing your
request, we will send you a confirmation showing the amount of your GWB benefit
base and your GWB Annual withdrawal amount.
For example, if you contribute $100,000 at contract issue, your initial GWB
benefit base is $100,000. If you elect the 7% GWB Annual withdrawal option,
your GWB Annual withdrawal amount is equal to $7,000 (7% of $100,000). Assume
you take withdrawals of $7,000 in each of the first five contract years,
reducing the GWB benefit base to $65,000. After five contract years, further
assume that your account value is $92,000, and you elect to step up the GWB
benefit base from $65,000 to $92,000. The GWB Annual withdrawal amount is
recalculated to equal the greater of 7% of the new GWB benefit base, which is
$6,440 (7% of $92,000), or the current GWB Annual withdrawal amount, $7,000.
Therefore, following the step up, even though your GWB benefit base has
increased, your GWB Annual withdrawal amount does not increase and remains
$7,000.
The Optional step up provision is not available once your beneficiary continues
Principal Protector(SM) under the Beneficiary continuation option. However, if
you die, and your beneficiary continues Principal Protector(SM) under the
Beneficiary continuation option, the GWB benefit base will be stepped up to
equal the account value, if higher, as of the transaction date that we receive
the Beneficiary continuation option election. As of the date of the GWB benefit
base step up, your beneficiary's GWB Annual withdrawal amount will be equal to
the greater of (i) your GWB Annual withdrawal amount before the step up, and
(ii) your GWB Applicable percentage applied to the stepped up GWB benefit base.
This is a one-time step up at no additional charge.
OTHER IMPORTANT CONSIDERATIONS
o Principal Protector(SM) protects your principal only through withdrawals.
Your account value may be less than your total contributions.
o You can take withdrawals under your contract without purchasing Principal
Protector(SM). In other words, you do not need this benefit to make
withdrawals.
Contract features and benefits 45
o Amounts withdrawn in excess of your GWB Annual withdrawal amount may be
subject to a withdrawal charge, if applicable, as described in "Charges and
expenses" later in the Prospectus. In addition, all withdrawals count toward
your free withdrawal amount for that contract year.
o Withdrawals made under Principal Protector(SM) will be treated, for tax
purposes, in the same way as other withdrawals under your contract.
o All withdrawals are subject to all of the terms and conditions of the
contract. Principal Protector(SM) does not change the effect of withdrawals
on your account value or guaranteed minimum death benefit; both are reduced
by withdrawals whether or not you elect Principal Protector(SM). See "How
withdrawals are taken from your account value" and "How withdrawals (and
transfers out of the Special 10 year fixed maturity option) affect your
Guaranteed minimum income benefit, Guaranteed minimum death benefit and
Guaranteed principal benefit option 2" in "Accessing your money" later in
this Prospectus.
o If you withdraw less than the GWB Annual withdrawal amount in any contract
year, you may not add the remainder to your GWB Annual withdrawal amount in
any subsequent year.
o GWB Excess withdrawals can significantly reduce or completely eliminate the
value of this benefit. See "Effect of GWB Excess withdrawals" above in this
section and "Withdrawing your account value" in "Accessing your money" later
in this Prospectus.
o If you surrender your contract to receive its cash value, all benefits under
the contract will terminate, including Principal Protector(SM) if your cash
value is greater than your GWB Annual withdrawal amount. Therefore, when
surrendering your contract, you should seriously consider the impact on
Principal Protector(SM) when you have a GWB benefit base that is greater than
zero.
o If you die and your beneficiary elects the Beneficiary continuation option,
then your beneficiary should consult with a tax adviser before choosing to
use the "5-year rule." The "5-year rule" is described in "Payment of death
benefit" under "Beneficiary continuation option" later in this Prospectus.
The GWB benefit base may be adversely affected if the beneficiary makes any
withdrawals that cause a GWB Excess withdrawal. Also, when the contract
terminates at the end of 5 years, any remaining GWB benefit base would be
lost.
INHERITED IRA BENEFICIARY CONTINUATION CONTRACT
This contract is available to an individual beneficiary of a traditional IRA or
a Roth IRA where the deceased owner held the individual retirement account or
annuity (or Roth individual retirement account or annuity) with an insurance
company or financial institution other than AXA Equitable. The purpose of the
inherited IRA beneficiary continuation contract is to permit the beneficiary to
change the funding vehicle that the deceased owner selected ("original IRA")
while taking the required minimum distribution payments that must be made to
the beneficiary after the deceased owner's death. This contract is intended
only for beneficiaries who want to take payments at least annually over their
life expectancy. These payments generally must begin (or must have begun) no
later than December 31 of the calendar year following the year the deceased
owner died. This contract is not suitable for beneficiaries electing the
"5-year rule." See "Beneficiary continuation option for IRA and Roth IRA
contracts" under "Beneficiary continuation option" in "Payment of death
benefit" later in this Prospectus. You should discuss with your tax adviser
your own personal situation. This contract may not be available in all states.
Please speak with your financial professional for further information.
The inherited IRA beneficiary continuation contract can only be purchased by a
direct transfer of the beneficiary's interest under the deceased owner's
original IRA. The owner of the inherited IRA beneficiary continuation contract
is the individual who is the beneficiary of the original IRA. (Certain trusts
with only individual beneficiaries will be treated as individuals for this
purpose). The contract must also contain the name of the deceased owner. In
this discussion, "you" refers to the owner of the inherited IRA beneficiary
continuation contract.
The inherited IRA beneficiary continuation contract can be purchased whether or
not the deceased owner had begun taking required minimum distribution payments
during his or her life from the original IRA or whether you had already begun
taking required minimum distribution payments of your interest as a beneficiary
from the deceased owner's original IRA. You should discuss with your own tax
adviser when payments must begin or must be made.
Under the inherited IRA beneficiary continuation contract:
o You must receive payments at least annually (but can elect to receive
payments monthly or quarterly). Payments are generally made over your life
expectancy determined in the calendar year after the deceased owner's death
and determined on a term certain basis.
o The beneficiary of the original IRA will be the annuitant under the inherited
IRA beneficiary continuation contract. In the case where the beneficiary is a
"See Through Trust," the oldest beneficiary of the trust will be the
annuitant.
o An inherited IRA beneficiary continuation contract is not available for
annuitants over age 70.
o The initial contribution must be a direct transfer from the deceased owner's
original IRA and is subject to minimum contribution amounts. See "How you can
purchase and contribute to your contract" earlier in this section.
o Subsequent contributions of at least $1,000 are permitted but must be direct
transfers of your interest as a beneficiary from another IRA with a financial
institution other than AXA Equitable, where the deceased owner is the same as
under the original IRA contract.
o You may make transfers among the investment options.
o You may choose at any time to withdraw all or a portion of the account value.
Any partial withdrawal must be at least $300. Withdrawal charges, will apply
as described in "Charges and expenses" later in this Prospectus.
o The Guaranteed minimum income benefit, successor owner/annuitant feature,
special dollar cost averaging program,
46 Contract features and benefits
automatic investment program, GPB Options 1 and 2, Principal Protector(SM)
and systematic withdrawals are not available under the Inherited IRA
beneficiary continuation contract.
o If you die, we will pay to a beneficiary that you choose the greater of the
annuity account value or the applicable death benefit.
o Upon your death, your beneficiary has the option to continue tak ing required
minimum distributions based on your remaining life expectancy or to receive
any remaining interest in the contract in a single sum. The option elected
will be processed when we receive satisfactory proof of death, any required
instructions for the method of payment and any required information and forms
necessary to effect payment. If your beneficiary elects to continue to take
distributions, we will increase the account value to equal the applicable
death benefit if such death benefit is greater than such account value as of
the date we receive satisfactory proof of death and any required
instructions, information and forms. Thereafter, withdrawal charges will no
longer apply. If you had elected any enhanced death benefits, they will no
longer be in effect and charges for such benefits will stop. The Guaranteed
minimum death benefit will also no longer be in effect.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
If for any reason you are not satisfied with your contract, you may return it
to us for a refund. To exercise this cancellation right you must mail the
contract, with a signed letter of instruction electing this right, to our
processing office within 10 days after you receive it. If state law requires,
this "free look" period may be longer. Other state variations may apply. Please
contact your financial professional to find out what applies in your state.
Generally, your refund will equal your account value (less loan reserve
account) under the contract on the day we receive notification of your decision
to cancel the contract and will reflect (i) any investment gain or loss in the
variable investment options (less the daily charges we deduct), (ii) any
guaranteed interest in the guaranteed interest option, (iii) any positive or
negative market value adjustments in the fixed maturity options, and (iv) any
interest in the account for special dollar cost averaging, through the date we
receive your contract. Some states require that we refund the full amount of
your contribution (not reflecting (i), (ii), (iii) or (iv) above). For any IRA
contract returned to us within seven days after you receive it, we are required
to refund the full amount of your contribution.
We may require that you wait six months before you may apply for a contract
with us again if:
o you cancel your contract during the free look period; or
o you change your mind before you receive your contract whether we have
received your contribution or not.
Please see "Tax information" later in this Prospectus for possible consequences
of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA or Flexible Premium
Roth IRA contract, you may cancel your Roth Conversion IRA or Flexible Premium
Roth IRA contract and return to a Rollover IRA or Flexible Premium IRA
contract, whichever applies. Our processing office, or your financial
professional, can provide you with the cancellation instructions.
Contract features and benefits 47
2. Determining your contract's value
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the values you have in: (i) the variable
investment options; (ii) the guaranteed interest option; (iii) market adjusted
amounts in the fixed maturity options; (iv) the account for special dollar cost
averaging; and (v) the loan reserve account (applies for Rollover TSA contracts
only).
Your contract also has a "cash value." At any time before annuity payments
begin, your contract's cash value is equal to the account value, less: (i) the
total amount or a pro rata portion of the annual administrative charge, as well
as optional benefit charges; (ii) any applicable withdrawal charges; and (iii)
the amount of any outstanding loan plus accrued interest (applicable to
Rollover TSA contracts only). Please see "Surrendering your contract to receive
its cash value" in "Accessing your money" later in this Prospectus.
YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS
Each variable investment option invests in shares of a corresponding portfolio.
Your value in each variable investment option is measured by "units." The value
of your units will increase or decrease as though you had invested it in the
corresponding portfolio's shares directly. Your value, however, will be reduced
by the amount of the fees and charges that we deduct under the contract.
The unit value for each variable investment option depends on the investment
performance of that option less daily charges for:
(i) mortality and expense risks;
(ii) administrative expenses; and
(iii) distribution charges.
On any day, your value in any variable investment option equals the number of
units credited to that option, adjusted for any units purchased for or deducted
from your contract under that option, multiplied by that day's value for one
unit. The number of your contract units in any variable investment option does
not change unless they are:
(i) increased to reflect additional contributions;
(ii) decreased to reflect a withdrawal (plus applicable withdrawal charges);
(iii) increased to reflect a transfer into, or decreased to reflect a transfer
out of, a variable investment option; or
(iv) increased or decreased to reflect a transfer of your loan amount from or
to the loan reserve account under a Rollover TSA contract.
In addition, when we deduct the enhanced death benefit, Guaranteed minimum
income benefit, GPB Option 2, Principal Protector(SM) and/or Protection Plus(SM)
benefit charges, the number of units credited to your contract will be reduced.
Your units are also reduced when we deduct the annual administrative charge. A
description of how unit values are calculated is found in the SAI.
YOUR CONTRACT'S VALUE IN THE GUARANTEED
INTEREST OPTION
Your value in the guaranteed interest option at any time will equal: your
contributions and transfers to that option, plus interest, minus withdrawals
out of the option, and charges we deduct.
YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS
Your value in each fixed maturity option at any time before the maturity date
is the market adjusted amount in each option, which reflects withdrawals out of
the option and charges we deduct. This is equivalent to your fixed maturity
amount increased or decreased by the market value adjustment. Your value,
therefore, may be higher or lower than your contributions (less withdrawals)
accumulated at the rate to maturity. At the maturity date, your value in the
fixed maturity option will equal its maturity value, provided there have been
no withdrawals or transfers.
YOUR CONTRACT'S VALUE IN THE ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING
Your value in the account for special dollar cost averaging at any time will
equal your contribution allocated to that option, plus interest, less the sum
of all amounts that have been transferred to the variable investment options
you have selected.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose all your rights under your contract and any
applicable guaranteed benefits, except as discussed below.
See Appendix VIII later in this Prospectus for any state variations with regard
to terminating your contract.
PRINCIPAL PROTECTOR(SM)
If you elect Principal Protector(SM) and your account value falls to zero due to
a GWB Excess withdrawal, we will terminate your contract and you will receive
no payment or annuity benefit, as discussed below, even if your GWB benefit
base is greater than zero. If, however, your account value falls to zero,
either due to a withdrawal or surrender that is not a GWB Excess withdrawal or
due to a deduction of charges, please note the following:
48 Determining your contract's value
o If your GWB benefit base equals zero, we will terminate your contract and
make no payment.
o If your GWB benefit base is greater than zero but less than or equal to the
balance of your GWB Annual withdrawal amount, if any, for that contract year,
we will terminate your contract and pay you any remaining GWB benefit base.
o If your GWB benefit base is greater than the balance of your remaining GWB
Annual withdrawal amount, if any, for that contract year, we will pay you
your GWB Annual withdrawal amount balance and terminate your contract, and we
will pay you your remaining GWB benefit base as an annuity benefit, as
described below.
o If the Beneficiary continuation option is elected, and the account value
falls to zero while there is a remaining GWB benefit base, we will make
payments to the beneficiary as follows:
o If the beneficiary had elected scheduled payments we will continue to make
scheduled payments over remaining life expectancy until the GWB benefit
base is zero, and the Principal Protector(SM) charge will no longer apply.
o If the beneficiary had elected the "5-year rule" and the GWB benefit base
is greater than the remaining GWB Annual withdrawal amount, if any, for
that contract year, we will pay the beneficiary the GWB Annual withdrawal
amount balance. We will continue to pay the beneficiary the remaining GWB
Annual withdrawal amount each year until the GWB benefit base equals zero,
or the contract terminates at the end of the fifth contract year,
whichever comes first. Any remaining GWB benefit base at the end of the
fifth contract year will terminate without value.
ANNUITY BENEFIT. If the contract terminates and the remaining GWB benefit base
is to be paid in installments, we will issue you an annuity benefit contract
and make annual payments equal to your GWB Annual withdrawal amount on your
contract anniversary beginning on the next contract anniversary, until the
cumulative amount of such payments equals the remaining GWB benefit base (as of
the date the contract terminates). The last installment payment may be smaller
than the previous installment payments in order for the total of such payments
to equal the remaining GWB benefit base.
The annuity benefit supplemental contract will carry over the same owner,
annuitant and beneficiary as under your contract. If you die before receiving
all of your payments, we will make any remaining payments to your beneficiary.
The charge for Principal Protector(SM) will no longer apply.
If at the time of your death the GWB Annual withdrawal amount was being paid to
you as an annuity benefit, your beneficiary may not elect the Beneficiary
continuation option.
Determining your contract's value 49
3. Transferring your money among investment options
- --------------------------------------------------------------------------------
TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer
some or all of your account value among the investment options, subject to the
following:
o You may not transfer any amount to the account for special dollar cost
averaging.
o You may not transfer to a fixed maturity option that has a rate to maturity
of 3% or less.
o If the annuitant is age 76-80, you must limit your transfers to fixed
maturity options with maturities of seven years or less. If the annuitant is
age 81 or older, you must limit your transfers to fixed maturity options of
five years or less. As of February 15, 2005, maturities of less than eight
years were not available. Also, the maturity dates may be no later than the
date annuity payments are to begin.
o If you make transfers out of a fixed maturity option other than at its
maturity date, the transfer may cause a market value adjustment and affect
your GPB.
o No transfers are permitted into the Special 10 year fixed maturity option.
Some states may have additional transfer restrictions. Please see Appendix VIII
later in this Prospectus.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency, or dollar amount of transfers.
The maximum amount that may be transferred from the guaranteed interest option
to any investment option (including amounts transferred pursuant to the
fixed-dollar option and interest sweep option dollar cost averaging programs
described under "Allocating your contributions" in "Contract features and
benefits" earlier in this Prospectus) in any contract year is the greatest of:
(a) 25% of the amount you have in the guaranteed interest option on the last day
of the prior contract year; or,
(b) the total of all amounts transferred at your request from the guaranteed
interest option to any of the Investment options in the prior contract year;
or,
(c) 25% of amounts transferred or allocated to the guaranteed interest option
during the current contract year.
From time to time, we may remove the restrictions regarding transferring
amounts out of the guaranteed interest option. If we do so, we will tell you.
We will also tell you at least 45 days in advance of the day that we intend to
reimpose the transfer restrictions. When we reimpose the transfer restrictions,
if any dollar cost averaging transfer out of the guaranteed interest option
causes a violation of the 25% outbound restriction, that dollar cost averaging
program will be terminated for the current contract year. A new dollar cost
averaging program can be started in the next or subsequent contract years.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value to be
transferred, and
(3) the investment options to and from which you are transferring.
We will confirm all transfers in writing.
DISRUPTIVE TRANSFER ACTIVITY
You should note that the contract is not designed for professional "market
timing" organizations, or other organizations or individuals engaging in a
market timing strategy. The contract is not designed for programmed transfers,
frequent transfers or transfers that are large in relation to the total assets
of the underlying portfolio.
Frequent transfers, including market timing and other program trading or
short-term trading strategies, may be disruptive to the underlying portfolios
in which the variable investment options invest. Disruptive transfer activity
may adversely affect performance and the interests of long-term investors by
requiring a portfolio to maintain larger amounts of cash or to liquidate
portfolio holdings at a disadvantageous time or price. For example, when market
timing occurs, a portfolio may have to sell its holdings to have the cash
necessary to redeem the market timer's investment. This can happen when it is
not advantageous to sell any securities, so the portfolio's performance may be
hurt. When large dollar amounts are involved, market timing can also make it
difficult to use long-term investment strategies because a portfolio cannot
predict how much cash it will have to invest. In addition, disruptive transfers
or purchases and redemptions of portfolio investments may impede efficient
portfolio management and impose increased transaction costs, such as brokerage
costs, by requiring the portfolio manager to effect more frequent purchases and
sales of portfolio securities. Similarly, a portfolio may bear increased
administrative costs as a result of the asset level and investment volatility
that accompanies patterns of excessive or short-term trading. Portfolios that
invest a significant portion of their assets in foreign securities or the
securities of small- and mid-capitalization companies tend to be subject to the
risks associated with market timing and short-term trading strategies to a
greater extent than portfolios that do not. Securities trading in overseas
markets present time zone arbitrage opportunities when events affecting
portfolio securities values occur after the close of the overseas market but
prior to the close of the U.S. markets. Securities of small- and
mid-capitalization companies present arbitrage opportunities because the market
for such securities may be less liquid than the market for securities of larger
companies, which could result in pricing inefficiencies. Please see the
prospectuses for the underlying portfolios for more information on how
portfolio shares are priced.
50 Transferring your money among investment options
We currently use the procedures described below to discourage disruptive
transfer activity. You should understand, however, that these procedures are
subject to the following limitations: (1) they primarily rely on the policies
and procedures implemented by the underlying portfolios; (2) they do not
eliminate the possibility that disruptive transfer activity, including market
timing, will occur or that portfolio performance will be affected by such
activity; and (3) the design of market timing procedures involves inherently
subjective judgments, which we seek to make in a fair and reasonable manner
consistent with the interests of all policy and contract owners.
The AXA Premier VIP Trust and EQ Advisors Trust (the "affiliated trusts") have
adopted policies and procedures designed to discourage disruptive transfers by
contract owners investing in the portfolios of the affiliated trusts. The
affiliated trusts discourage frequent purchases and redemptions of portfolio
shares and will not make special arrangements to accommodate such transactions.
As a general matter, the affiliated trusts reserve the right to refuse or limit
any purchase or exchange order by a particular investor (or group of related
investors) if the transaction is deemed harmful to the portfolio's other
investors or would disrupt the management of the portfolio. The affiliated
trusts monitor aggregate inflows and outflows for each portfolio on a daily
basis. On any day when a portfolio's net inflows or outflows exceed an
established monitoring threshold, the affiliated trust obtains from us contract
owner trading activity. The affiliated trusts currently consider transfers into
and out of (or vice versa) the same variable investment option within a five
business day period as potentially disruptive transfer activity. When a
contract owner is identified as having engaged in a potentially disruptive
transfer for the first time, a letter is sent to the contract owner explaining
that there is a policy against disruptive transfer activity and that if such
activity continues certain transfer privileges may be eliminated. If and when
the contract owner is identified a second time as engaged in potentially
disruptive transfer activity, we currently prohibit the use of voice, fax and
automated transaction services. We currently apply such action for the
remaining life of each affected contract. We or the affiliated trusts may
change the definition of potentially disruptive transfer activity, the
monitoring procedures and thresholds, any notification procedures, and the
procedures to restrict this activity. Any new or revised policies and
procedures will apply to all contract owners uniformly. We do not permit
exceptions to our policies restricting disruptive transfer activity.
We may also offer investment options with underlying portfolios that are not
part of the AXA Premier VIP Trust or EQ Advisors Trust (the "unaffiliated
trusts"). Each unaffiliated trust may have its own policies and procedures
regarding disruptive transfer activity, which may be different than those
applied by the affiliated trusts. In most cases, the unaffiliated trust
reserves the right to reject a transfer that it believes, in its sole
discretion, is disruptive (or potentially disruptive) to the management of one
of its portfolios. Please see the prospectus for the underlying trust for
information regarding the policies and procedures, if any, employed by that
trust and any associated risks of investing in that trust. If an unaffiliated
trust advises us that there may be disruptive transfer activity from our
contract owners, we will work with the unaffiliated trust to review contract
owner trading activity. If the underlying trust determines that the trading
activity of a particular contract owner is disruptive, we will take action to
limit the disruptive trading activity of that contract owner as discussed
above.
Contract owners should note that it is not always possible for us and the
underlying trusts to identify and prevent disruptive transfer activity. Our
ability to monitor potentially disruptive transfer activity is limited in
particular with respect to certain group contracts. Group annuity contracts may
be owned by retirement plans on whose behalf we provide transfer instructions
on an omnibus (aggregate) basis, which may mask the disruptive transfer
activity of individual plan participants, and/or interfere with our ability to
restrict communication services. In addition, because we do not monitor for all
frequent trading at the separate account level, contract owners may engage in
frequent trading which may not be detected, for example, due to low net inflows
or outflows on the particular day(s). Therefore, no assurance can be given that
we or the trusts will successfully impose restrictions on all disruptive
transfers. Because there is no guarantee that disruptive trading will be
stopped, some contract owners/ participants may be treated differently than
others, resulting in the risk that some contract owners/participants may be
able to engage in frequent transfer activity while others will bear the effect
of that frequent transfer activity. The potential affects of frequent transfer
activity are discussed above.
REBALANCING YOUR ACCOUNT VALUE
We currently offer a rebalancing program that you can use to automatically
reallocate your account value among the variable investment options. You must
tell us:
(a) the percentage you want invested in each variable investment option (whole
percentages only), and
(b) how often you want the rebalancing to occur (quarterly, semiannually, or
annually on a contract year basis).
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options so that the percentage of your account value that
you specify is invested in each option at the end of each rebalancing date.
Your entire account value in the variable investment options must be included
in the rebalancing program.
- --------------------------------------------------------------------------------
Rebalancing does not assure a profit or protect against loss. You should
periodically review your allocation percentages as your needs change. You may
want to discuss the rebalancing program with your financial professional before
electing the program.
- --------------------------------------------------------------------------------
You may elect the rebalancing program at any time. You may also change your
allocation instructions or cancel the program at any time. If you request a
transfer while the rebalancing program is in effect, we will process the
transfer as requested; your rebalancing allocations will not be changed; and
the rebalancing program will remain in effect unless you request that it be
canceled in writing. There is no charge for the rebalancing feature.
Transferring your money among investment options 51
You may not elect the rebalancing program if you are participating in any
dollar cost averaging program. Rebalancing is not available for amounts you
have allocated in the guaranteed interest option or fixed maturity options.
52 Transferring your money among investment options
4. Accessing your money
- --------------------------------------------------------------------------------
WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your account value before annuity payments
begin. The table below shows the methods available under each type of contract.
More information follows the table.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus and "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum income
benefit, Guaranteed minimum death benefit and Guaranteed principal benefit
option 2," below for more information on how withdrawals affect your guaranteed
benefits and could potentially cause your contract to terminate.
- --------------------------------------------------------------------------------
Method of withdrawal
------------------------------------------------------------
Lifetime
required
Substantially minimum
Contract Lump sum Systematic equal distribution
- --------------------------------------------------------------------------------
NQ Yes Yes No No
- --------------------------------------------------------------------------------
Rollover IRA Yes Yes Yes Yes
- --------------------------------------------------------------------------------
Flexible
Premium IRA Yes Yes Yes Yes
- --------------------------------------------------------------------------------
Roth Conversion
IRA Yes Yes Yes No
- --------------------------------------------------------------------------------
Flexible Premium
Roth IRA Yes Yes Yes No
- --------------------------------------------------------------------------------
Inherited IRA Yes No No **
- --------------------------------------------------------------------------------
QP Yes No No Yes
- --------------------------------------------------------------------------------
Rollover TSA* Yes Yes No Yes
- --------------------------------------------------------------------------------
* For some Rollover TSA contracts, your ability to take withdrawals, loans or
surrender your contract may be limited. You must provide withdrawal
restriction information when you apply for a contract. See "Tax Sheltered
Annuity contracts (TSAs)" in "Tax information" later in this Prospectus.
** This contract pays out post-death required minimum distributions. See
"Inherited IRA beneficiary continuation contract" in "Contract features
and benefits" earlier in this Prospectus.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time.
(Rollover TSA contracts may have restrictions.) The minimum amount you may
withdraw is $300.
Lump sum withdrawals will be subject to a withdrawal charge if they exceed the
10% free withdrawal amount (see "10% free withdrawal amount" in "Charges and
expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is
outstanding, you may only take lump sum withdrawals as long as the cash value
remaining after any withdrawal equals at least 10% of the outstanding loan plus
accrued interest.
SYSTEMATIC WITHDRAWALS
(All contracts except Inherited IRA and QP contracts)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value. (Rollover TSA contracts may have
restrictions.)
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 0.8% monthly, 2.4% quarterly and 10.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would
be less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
We will make the withdrawals on any day of the month that you select as long as
it is not later than the 28th day of the month. If you do not select a date, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59-1/2 and 70-1/2.
You may change the payment frequency, or the amount or percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
lump sum withdrawal. You can cancel the systematic withdrawal option at any
time.
Systematic withdrawals are not subject to a withdrawal charge, except to the
extent that, when added to a lump sum withdrawal previously taken in the same
contract year, the systematic withdrawal exceeds the 10% free withdrawal
amount. This option is not available if you have elected a Guaranteed principal
benefit.
SUBSTANTIALLY EQUAL WITHDRAWALS
(Rollover IRA, Roth Conversion IRA, Flexible Premium IRA and Flexible Premium
Roth IRA contracts)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus. We use one of the
IRS-approved methods for doing this; this is not the exclusive method of
meeting this exception. After consultation with your tax adviser, you may
decide to use another method which would require you to compute amounts
yourself and request lump sum withdrawals. In such a case, a withdrawal charge
may apply. Once you begin to take substantially equal withdrawals, you should
not stop them or change the pattern of your withdrawals until after the later
of age 59-1/2 or five full years after the first withdrawal. If you stop or
change the withdrawals or take a lump sum withdrawal, you may be
Accessing your money 53
liable for the 10% federal tax penalty that would have otherwise been due on
prior withdrawals made under this option and for any interest on the delayed
payment of the penalty.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may change, without penalty, from one of the
IRS-approved methods of calculating fixed payments to another IRS-approved
method (similar to the required minimum distribution rules) of calculating
payments which vary each year.
You may elect to take substantially equal withdrawals at any time before age
59-1/2. We will make the withdrawal on any day of the month that you select as
long as it is not later than the 28th day of the month. You may not elect to
receive the first payment in the same contract year in which you took a lump
sum withdrawal. We will calculate the amount of your substantially equal
withdrawals using the IRS-approved method we offer. The payments will be made
monthly, quarterly or annually as you select. These payments will continue
until we receive written notice from you to cancel this option or you take a
lump sum withdrawal. You may elect to start receiving substantially equal
withdrawals again, but the payments may not restart in the same contract year
in which you took a lump sum withdrawal. We will calculate the new withdrawal
amount.
Substantially equal withdrawals that we calculate for you are not subject to a
withdrawal charge. This option is not available if you have elected a
guaranteed principal benefit.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA, Flexible Premium IRA, QP and Rollover TSA contracts only -- See
"Tax information" later in this Prospectus)
We offer our "automatic required minimum distribution (RMD) service" to help
you meet lifetime required minimum distributions under federal income tax
rules. This is not the exclusive way for you to meet these rules. After
consultation with your tax adviser, you may decide to compute required minimum
distributions yourself and request lump sum withdrawals. In such a case, a
withdrawal charge may apply. Before electing this account based withdrawal
option, you should consider whether annuitization might be better in your
situation. If you have elected certain additional benefits, such as the
Guaranteed minimum death benefit, amounts withdrawn from the contract to meet
RMDs will reduce the benefit base and may limit the utility of the benefit.
Also, please refer to "Tax information" later in this Prospectus for
considerations on annuity contracts funding qualified plans, TSAs, and IRAs.
You may elect this service in the year in which you reach age 70-1/2 or in any
later year. The minimum amount we will pay out is $250. Currently, minimum
distribution withdrawal payments will be made annually. See "Required minimum
distributions" in "Tax information" later in this Prospectus for your specific
type of retirement arrangement.
We do not impose a withdrawal charge on minimum distribution withdrawals if you
are enrolled in our automatic RMD service except if, when added to a lump sum
withdrawal previously taken in the same contract year, the minimum distribution
withdrawal exceeds the 10% free withdrawal amount.
Under Rollover TSA contracts, you may not elect our automatic RMD service if a
loan is outstanding.
If you elect Principal Protector(SM), provided no other withdrawals are taken
during a contract year in which you participate in our Automatic RMD service,
an automatic withdrawal using our service will not cause a GWB Excess
withdrawal, even if it exceeds your GWB Annual withdrawal amount. If you take
any other withdrawal while you participate in the service, however, this GWB
Excess withdrawal exception terminates permanently. In order to take advantage
of this exception, you must elect and maintain participation in our Automatic
RMD service at your required beginning date, or the contract date, if your
required beginning date has occurred before the contract was purchased. See
"Principal Protector(SM)" in "Contract features and benefits" earlier in this
Prospectus for further information.
- --------------------------------------------------------------------------------
For Rollover IRA, Flexible Premium IRA, and Rollover TSA contracts, we will
send a form outlining the distribution options available in the year you reach
age 70-1/2 (if you have not begun your annuity payments before that time).
- --------------------------------------------------------------------------------
HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your value in the variable investment options and the guaranteed
interest option. If there is insufficient value or no value in the variable
investment options and guaranteed interest option, any additional amount of the
withdrawal required or the total amount of the withdrawal will be withdrawn
from the fixed maturity options (other than the Special 10 year fixed maturity
option) in the order of the earliest maturity date(s) first. If the FMO amounts
are insufficient, we will deduct all or a portion of the withdrawal from the
account for special dollar cost averaging. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. A market value adjustment will apply to withdrawals from
the fixed maturity options (including the Special 10 year fixed maturity
option).
HOW WITHDRAWALS (AND TRANSFERS OUT OF THE SPECIAL 10 YEAR FIXED MATURITY
OPTION) AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT, GUARANTEED MINIMUM DEATH
BENEFIT AND GUARANTEED PRINCIPAL BENEFIT OPTION 2
In general, withdrawals will reduce your guaranteed benefits on a pro rata
basis. Reduction on a pro rata basis means that we calculate the percentage of
your current account value that is being withdrawn and we reduce your current
benefit by the same percentage. For example, if your account value is $30,000
and you withdraw $12,000, you have withdrawn 40% of your account value. If your
benefit was $40,000 before the withdrawal, it would be reduced by $16,000
($40,000 X .40) and your new benefit after the withdrawal would be $24,000
($40,000 - $16,000).
Transfers out of the Special 10 year fixed maturity option will reduce the GPB
Option 2 amount on a pro rata basis. In addition, if you make a contract
withdrawal from the Special 10 year fixed maturity option,
54 Accessing your money
we will reduce your GPB Option 2 in a similar manner; however, the reduction
will reflect both a transfer out of the Special 10 year fixed maturity option
and a withdrawal from the contract. Therefore, the reduction in GPB Option 2 is
greater when you take a contract withdrawal from the Special 10 year fixed
maturity option than it would be if you took the withdrawal from another
investment option.
Similar to the example above, if your account value is $30,000 and you withdraw
$12,000 from the Special 10 year fixed maturity option, you have withdrawn 40%
of your account value. If your GPB Option 2 benefit was $40,000 before the
withdrawal, the reduction to reflect the transfer out of the Special 10 year
fixed maturity option would equal $16,000 ($40,000 x .40). The amount used to
calculate the reduction to reflect the withdrawal from the contract is $24,000
($40,000 - $16,000). The reduction to reflect the withdrawal would equal $9,600
($24,000 x .40), and your new benefit after the withdrawal would be $14,400
($24,000 - $9,600).
With respect to the Guaranteed minimum income benefit and the greater of 6%
Roll up to age 85 or the Annual Ratchet to age 85 enhanced death benefit,
withdrawals will reduce each of the benefits' 6% Roll up to age 85 benefit base
on a dollar-for-dollar basis, as long as the sum of withdrawals in a contract
year is 6% or less of the 6% Roll up benefit base on the most recent contract
date anniversary. Additional contributions made during a contract year do not
affect the amount of withdrawals that can be taken on a dollar-for-dollar basis
in that contract year. Once a withdrawal is taken that causes the sum of
withdrawals in a contract year to exceed 6% of the benefit base on the most
recent anniversary, that entire withdrawal and any subsequent withdrawals in
that same contract year will reduce the benefit base pro rata. Reduction on a
dollar-for-dollar basis means that your 6% Roll up to age 85 benefit base will
be reduced by the dollar amount of the withdrawal for each Guaranteed benefit.
The Annual Ratchet to age 85 benefit base will always be reduced on a pro rata
basis.
HOW WITHDRAWALS AFFECT PRINCIPAL PROTECTOR(SM)
If you elect Principal Protector(SM), any withdrawal reduces your GWB benefit
base by the amount of the withdrawal. In addition, a GWB Excess withdrawal can
significantly reduce your GWB Annual withdrawal amount and further reduce your
GWB benefit base. For more information, see "Effect of GWB Excess withdrawals"
and "Other important considerations" under "Principal Protector(SM)" in
"Contract features and benefits" earlier in this Prospectus.
WITHDRAWALS TREATED AS SURRENDERS
If you withdraw more than 90% of a contract's current cash value, we will treat
it as a request to surrender the contract for its cash value. In addition, we
have the right to pay the cash value and terminate this contract if no
contributions are made during the last three completed contract years, and the
account value is less than $500, or if you make a withdrawal that would result
in a cash value of less than $500. See "Surrendering your contract to receive
its cash value" below. For the tax consequences of withdrawals, see "Tax
information" later in this Prospectus.
SPECIAL RULES FOR PRINCIPAL PROTECTOR(SM). If you elect Principal Protector(SM),
all withdrawal methods described above can be used. We will not treat a
withdrawal request that results in a withdrawal in excess of 90% of the
contract's cash value as a request to surrender the contract unless it is a GWB
Excess withdrawal. In addition, we will not terminate your contract if either
your account value or cash value falls below $500, unless it is due to a GWB
Excess withdrawal. In other words, if you take a GWB Excess withdrawal that
equals more than 90% of your cash value or reduces your cash value to less than
$500, we will treat your request as a surrender of your contract even if your
GWB benefit base is greater than zero. Please also see "Termination of your
contract" in "Determining your contract value" earlier in this Prospectus.
Please also see "Principal Protector(SM)" in "Contract features and benefits,"
earlier in this Prospectus, for more information on how withdrawals affect your
guaranteed benefits and could potentially cause your contract to terminate.
LOANS UNDER ROLLOVER TSA CONTRACTS
You may take loans from a Rollover TSA unless restricted by the employer who
provided the Rollover TSA funds. If you cannot take a loan, or cannot take a
loan without approval from the employer who provided the funds, we will have
this information in our records based on what you and the employer who provided
the funds told us when you purchased your contract. The employer must also tell
us whether special employer plan rules of the Employee Retirement Income
Security Act of 1974 ("ERISA") apply. We will not permit you to take a loan
while you are enrolled in our "automatic required minimum distribution (RMD)
service."
You should read the terms and conditions on our loan request form carefully
before taking out a loan. Under Rollover TSA contracts subject to ERISA, you
may only take a loan with the written consent of your spouse. Your contract
contains further details of the loan provision. Please see Appendix VIII later
in this Prospectus for any state restrictions you may be subject to if you take
a loan from a Rollover TSA contract. Also, see "Tax information" later in this
Prospectus for general rules applicable to loans.
We will permit you to have only one loan outstanding at a time. The minimum
loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your
account value, subject to any limits under the federal income tax rules. The
term of a loan is five years. However, if you use the loan to acquire your
primary residence, the term is 10 years. The term may not extend beyond the
earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
(3) the date a death benefit is paid (the outstanding loan will be deducted
from the death benefit amount).
A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the properly completed
loan request form is received. Interest will accrue daily on your outstanding
loan at a rate we set. The loan interest rate will be equal to the Moody's
Corporate Bond Yield Averages for Baa bonds for the calendar month ending two
months before the first day of the calendar quarter in which the rate is
determined.
LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the
amount of your loan to the loan reserve account. Unless
Accessing your money 55
you specify otherwise, we will subtract your loan on a pro rata basis from your
value in the variable investment options and the guaranteed interest option. If
those amounts are insufficient, any additional amount of the loan will be
subtracted from the fixed maturity options (other than the Special 10 year
fixed maturity option) in the order of the earliest maturity date(s) first. If
FMO amounts are insufficient, we will deduct all or a portion of the loan from
the account for special dollar cost averaging. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. A market value adjustment will apply to withdrawals from
the fixed maturity options (including the Special 10 year fixed maturity
option). If amounts are withdrawn from the Special 10 year fixed maturity
option, the guaranteed benefit will be adversely affected. See "Guaranteed
principal benefit option 2" in "Contract features and benefits" earlier in this
Prospectus.
We will credit interest to the amount in the loan reserve account at a rate of
2% lower than the loan interest rate that applies for the time your loan is
outstanding. On each contract date anniversary after the date the loan is
processed, we will transfer the amount of interest earned in the loan reserve
account to the variable investment options on a pro rata basis. When you make a
loan repayment, unless you specify otherwise, we will transfer the dollar
amount of the loan repaid from the loan reserve account to the investment
options according to the allocation percentages we have on our records.
SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time while the
annuitant is living and before you begin to receive annuity payments. (Rollover
TSA contracts may have restrictions.) For a surrender to be effective, we must
receive your written request and your contract at our processing office. We
will determine your cash value on the date we receive the required information.
All benefits under the contract will terminate as of the date we receive the
required information, including Principal Protector(SM) (if applicable) if your
cash value is greater than your GWB Annual withdrawal amount. If you have a GWB
benefit base greater than zero, you should consider the impact of a contract
surrender on the Principal Protector(SM) benefit. If your surrender request does
not constitute a GWB Excess withdrawal, you may be eligible for additional
benefits. If, however, your surrender request constitutes a GWB Excess
withdrawal, you will lose those benefits. For more information, please see
"Annuity benefit" under "Termination of your contract" in "Determining your
contract value" and "Principal Protector(SM)" in "Contract features and
benefits" earlier in this Prospectus.
You may receive your cash value in a single sum payment or apply it to one or
more of the annuity payout options. See "Your annuity payout options" below.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments out of the variable investment
options within seven calendar days after the date of the transaction to which
the request relates. These transactions may include applying proceeds to a
variable annuity, payment of a death benefit, payment of any amount you
withdraw (less any withdrawal charge) and, upon surrender, payment of the cash
value. We may postpone such payments or applying proceeds for any period during
which:
(1) the New York Stock Exchange is closed or restricts trading,
(2) sales of securities or determination of the fair value of a variable
investment option's assets is not reasonably practicable because of an
emergency, or
(3) the SEC, by order, permits us to defer payment to protect people remaining
in the variable investment options.
We can defer payment of any portion of your value in the guaranteed interest
option, fixed maturity options and the account for special dollar cost
averaging (other than for death benefits) for up to six months while you are
living. We also may defer payments for a reasonable amount of time (not to
exceed 10 days) while we are waiting for a contribution check to clear.
All payments are made by check and are mailed to you (or the payee named in a
tax-free exchange) by U.S. mail, unless you request that we use an express
delivery service at your expense.
YOUR ANNUITY PAYOUT OPTIONS
Accumulator(R) offers you several choices of annuity payout options. Some
enable you to receive fixed annuity payments, which can be either level or
increasing, and others enable you to receive variable annuity payments. Please
see Appendix VIII later in this Prospectus for variations that may apply in
your state.
You can choose from among the annuity payout options listed below. Restrictions
may apply, depending on the type of contract you own or the annuitant's age at
contract issue. In addition, if you are exercising your Guaranteed minimum
income benefit, your choice of payout options are those that are available under
the Guaranteed minimum income benefit (see "Our Guaranteed minimum income
benefit option" in "Contract features and benefits" earlier in this Prospectus).
If you elect Principal Protector(SM) and choose to annuitize your contract,
Principal Protector(SM) will terminate without value even if your GWB benefit
base is greater than zero. Payments you receive under the annuity payout option
you select may be less than your GWB benefit base. See "Principal Protector(SM)"
in "Contract features and benefits" earlier in this Prospectus for further
information.
- --------------------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period certain
Life annuity with refund certain
Period certain annuity
- --------------------------------------------------------------------------------
Variable Immediate Annuity Life annuity
payout options Life annuity with period certain
- --------------------------------------------------------------------------------
Income Manager(R) payout options Life annuity with period certain
(available for annuitants age 83 Period certain annuity
or less at contract issue)
- --------------------------------------------------------------------------------
o Life annuity: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment before the
annuitant's death. Because there is no continuation of benefits following the
annuitant's death with this payout option, it
56 Accessing your money
provides the highest monthly payment of any of the life annuity options, so
long as the annuitant is living.
o Life annuity with period certain: An annuity that guarantees payments for the
rest of the annuitant's life. If the annuitant dies before the end of a
selected period of time ("period certain"), payments continue to the
beneficiary for the balance of the period certain. The period certain cannot
extend beyond the annuitant's life expectancy. A life annuity with a period
certain is the form of annuity under the contract that you will receive if
you do not elect a different payout option. In this case, the period certain
will be based on the annuitant's age and will not exceed 10 years.
o Life annuity with refund certain: An annuity that guarantees payments for the
rest of the annuitant's life. If the annuitant dies before the amount
applied to purchase the annuity option has been recovered, payments to the
beneficiary will continue until that amount has been recovered. This
payout option is available only as a fixed annuity.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15, or 20 years. This guaranteed period may
not exceed the annuitant's life expectancy. This option does not guarantee
payments for the rest of the annuitant's life. It does not permit any
repayment of the unpaid principal, so you cannot elect to receive part of the
payments as a single sum payment with the rest paid in monthly annuity
payments. This payout option is available only as a fixed annuity.
The life annuity, life annuity with period certain, and life annuity with
refund certain payout options are available on a single life or joint and
survivor life basis. The joint and survivor life annuity guarantees payments
for the rest of the annuitant's life, and after the annuitant's death, payments
continue to the survivor. We may offer other payout options not outlined here.
Your financial professional can provide details.
FIXED ANNUITY PAYOUT OPTIONS
With fixed annuities, we guarantee fixed annuity payments will be based either
on the tables of guaranteed annuity purchase factors in your contract or on our
then current annuity purchase factors, whichever is more favorable for you.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS
Variable Immediate Annuities are described in a separate prospectus that is
available from your financial professional. Before you select a Variable
Immediate Annuity payout option, you should read the prospectus which contains
important information that you should know.
Variable Immediate Annuities may be funded through your choice of available
variable investment options investing in portfolios of EQ Advisors Trust and
AXA Premier VIP Trust. The contract also offers a fixed income annuity payout
option that can be elected in combination with the variable income annuity
payout option. The amount of each variable income annuity payment will
fluctuate, depending upon the performance of the variable investment options,
and whether the actual rate of investment return is higher or lower than an
assumed base rate.
INCOME MANAGER(R) PAYOUT OPTIONS
The Income Manager(R) payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts may provide higher or
lower income levels, but do not have all the features of the Income Manager(R)
payout annuity contract. You may request an illustration of the Income
Manager(R) payout annuity contract from your financial professional. Income
Manager(R) payout options are described in a separate prospectus that is
available from your financial professional. Before you select an Income
Manager(R) payout option, you should read the prospectus which contains
important information that you should know.
Both NQ and IRA Income Manager(R) payout options provide guaranteed level
payments. The Income Manager(R) (life annuity with period certain) also
provides guaranteed increasing payments (NQ contracts only). You may not elect
an Income Manager(R) payout option without life contingencies unless withdrawal
charges are no longer in effect under your Accumulator(R).
For QP and Rollover TSA contracts, if you want to elect an Income Manager(R)
payout option, we will first roll over amounts in such contract to a Rollover
IRA contract with the plan participant as owner. You must be eligible for a
distribution under the QP or Rollover TSA contract.
You may choose to apply your account value of your Accumulator(R) contract to
an Income Manager(R) payout annuity. In this case, we will consider any amounts
applied as a withdrawal from your Accumulator(R) and we will deduct any
applicable withdrawal charge. For the tax consequences of withdrawals, see "Tax
information" later in this Prospectus.
Depending upon your circumstances, an Income Manager(R) contract may be
purchased on a tax-free basis. Please consult your tax adviser. The Income
Manager(R) payout options are not available in all states.
THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION
The amount applied to purchase an annuity payout option varies, depending on
the payout option that you choose, and the timing of your purchase as it
relates to any withdrawal charges or market value adjustments.
If amounts in a fixed maturity option are used to purchase any annuity payout
option, prior to the maturity date, a market value adjustment will apply.
For the fixed annuity payout options and Variable Immediate Annuity payout
options, no withdrawal charge is imposed if you select a life annuity, life
annuity with period certain or life annuity with refund certain.
For the fixed annuity payout option, the withdrawal charge applicable under
your Accumulator(R) is imposed if you select a period certain. If the period
certain is more than 5 years, then the withdrawal charge deducted will not
exceed 5% of the account value.
For the Income Manager(R) life contingent payout options, no withdrawal charge
is imposed under the Accumulator(R). If the withdrawal charge that otherwise
would have been applied to your account value under your Accumulator(R) is
greater than 2% of the contributions that
Accessing your money 57
remain in your contract at the time you purchase your payout option, the
withdrawal charges under the Income Manager(R) will apply. The year in which
your account value is applied to the payout option will be "contract year 1."
SELECTING AN ANNUITY PAYOUT OPTION
When you select a payout option, we will issue you a separate written agreement
confirming your right to receive annuity payments. We require you to return
your contract before annuity payments begin. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
thirteen months from the Accumulator(R) contract date. Except with respect to
the Income Manager(R) annuity payout options, where payments are made on the
15th day of each month, you can change the date your annuity payments are to
begin anytime before that date as long as you do not choose a date later than
the 28th day of any month. Also, that date may not be later than the annuity
maturity date described below.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier.
In no event will you ever receive payments under a fixed option or an initial
payment under a variable option of less than the minimum amounts guaranteed by
the contract.
If, at the time you elect a payout option, the amount to be applied is less
than $2,000 or the initial payment under the form elected is less than $20
monthly, we reserve the right to pay the account value in a single sum rather
than as payments under the payout option chosen.
ANNUITY MATURITY DATE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 95th birthday.
Please see Appendix VIII later in this Prospectus for variations that may apply
in your state.
Before the last day by which annuity payments must begin, we will notify you by
letter. Once you have selected an annuity payout option and payments have
begun, no change can be made other than: (i) transfers (if permitted in the
future) among the variable investment options if a Variable Immediate Annuity
payout option is selected; and (ii) withdrawals or contract surrender (subject
to a market value adjustment) if an Income Manager(R) annuity payout option is
chosen.
58 Accessing your money
5. Charges and expenses
- --------------------------------------------------------------------------------
CHARGES THAT AXA EQUITABLE DEDUCTS
We deduct the following charges each day from the net assets of each variable
investment option. These charges are reflected in the unit values of each
variable investment option:
o A mortality and expense risks charge
o An administrative charge
o A distribution charge
We deduct the following charges from your account value. When we deduct these
charges from your variable investment options, we reduce the number of units
credited to your contract:
o On each contract date anniversary -- an annual administrative charge, if
applicable.
o At the time you make certain withdrawals or surrender your contract -- a
withdrawal charge.
o On each contract date anniversary -- a charge if you elect a death benefit
(other than the Standard death benefit).
o On each contract date anniversary -- a charge for the Guaranteed minimum
income benefit, if you elect this optional benefit.
o On each contract date anniversary -- a charge for Principal Protector(SM), if
you elect this optional benefit.
o On each contract date anniversary -- a charge for Protection Plus(SM), if you
elect this optional benefit.
o On the first 10 contract date anniversaries -- a charge for GPB Option 2, if
you elect this optional benefit.
o At the time annuity payments are to begin -- charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your state.
An annuity administrative fee may also apply.
More information about these charges appears below. We will not increase these
charges for the life of your contract, except as noted. We may reduce certain
charges under group or sponsored arrangements. See "Group or sponsored
arrangements" later in this section.
The charges under the contracts are designed to cover, in the aggregate, our
direct and indirect costs of selling, administering and providing benefits
under the contracts. They are also designed, in the aggregate, to compensate us
for the risks of loss we assume pursuant to the contracts. If, as we expect,
the charges that we collect from the contracts exceed our total costs in
connection with the contracts, we will earn a profit. Otherwise, we will incur
a loss.
The rates of certain of our charges have been set with reference to estimates
of the amount of specific types of expenses or risks that we will incur. In
most cases, this Prospectus identifies such expenses or risks in the name of
the charge; however, the fact that any charge bears the name of, or is designed
primarily to defray, a particular expense or risk does not mean that the amount
we collect from that charge will never be more than the amount of such expense
or risk. Nor does it mean that we may not also be compensated for such expense
or risk out of any other charges we are permitted to deduct by the terms of the
policies.
To help with your retirement planning, we may offer other annuities with
different charges, benefits, and features. Please contact your financial
professional for more information.
MORTALITY AND EXPENSE RISKS CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for mortality and expense risks, including the Standard death
benefit. The daily charge is equivalent to an annual rate of 0.75% of the net
assets in each variable investment option.
The mortality risk we assume is the risk that annuitants as a group will live
for a longer time than our actuarial tables predict. If that happens, we would
be paying more in annuity income than we planned. We also assume a risk that
the mortality assumptions reflected in our guaranteed annuity payment tables,
shown in each contract, will differ from actual mortality experience. Lastly,
we assume a mortality risk to the extent that at the time of death, the
Guaranteed minimum death benefit exceeds the cash value of the contract. The
expense risk we assume is the risk that it will cost us more to issue and
administer the contracts than we expect.
ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment
option. The charge, together with the annual administrative charge described
below, is to compensate us for administrative expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.30% of the net assets in each
variable investment option.
DISTRIBUTION CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for a portion of our sales expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.20% of the net assets in each
variable investment option.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on each contract
date anniversary. We deduct the charge if your account value on the last
business day of the contract year is less than $50,000. If your account value
on such date is $50,000 or more, we do not deduct the charge. During the first
two contract years, the charge is equal to $30 or, if less, 2% of your account
value. The charge is $30 for contract years three and later.
Charges and expenses 59
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VIII later in this Prospectus
to see if deducting this charge from the guaranteed interest option is
permitted in your state) on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options (other than the Special 10 year fixed maturity option) in the
order of the earliest maturity date(s) first. If such fixed maturity option
amounts are insufficient, we will deduct all or a portion of the charge from
the account for special dollar cost averaging. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. If the contract is surrendered or annuitized or a death
benefit is paid, we will deduct a pro rata portion of the charge for that year.
A market value adjustment will apply to deductions from the fixed maturity
options (including the Special 10 year fixed maturity option).
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
WITHDRAWAL CHARGE
A withdrawal charge applies in two circumstances: (1) if you make one or more
withdrawals during a contract year that, in total, exceed the 10% free
withdrawal amount, described below, or (2) if you surrender your contract to
receive its cash value or apply your cash value to a non-life contingent payout
option.
The withdrawal charge equals a percentage of the contributions withdrawn. The
percentage that applies depends on how long each contribution has been invested
in the contract. We determine the withdrawal charge separately for each
contribution according to the following table:
- --------------------------------------------------------------------------------
Contract year
- --------------------------------------------------------------------------------
1 2 3 4 5 6 7 8+
- --------------------------------------------------------------------------------
Percentage of
contribution 7% 7% 6% 6% 5% 3% 1% 0%
- --------------------------------------------------------------------------------
For purposes of calculating the withdrawal charge, we treat the contract year
in which we receive a contribution as "contract year 1." Amounts withdrawn up
to the free withdrawal amount are not considered withdrawal of any
contribution. We also treat contributions that have been invested the longest
as being withdrawn first. We treat contributions as withdrawn before earnings
for purposes of calculating the withdrawal charge. However, federal income tax
rules treat earnings under your contract as withdrawn first. See "Tax
information" later in this Prospectus.
For contracts issued in New York, please see Appendix VIII later in this
Prospectus for the New York withdrawal charge schedule applicable to monies
withdrawn from and transferred among the fixed maturity options.
For Pennsylvania contracts for annuitants who are age 84 or 85 at issue, please
see Appendix VIII later in this Prospectus for possible withdrawal charge
schedule variations.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and the withdrawal charge from your account
value. Any amount deducted to pay withdrawal charges is also subject to that
same withdrawal charge percentage. We deduct the charge in proportion to the
amount of the withdrawal subtracted from each investment option. The withdrawal
charge helps cover our sales expenses.
The withdrawal charge does not apply in the circumstances described below.
10% free withdrawal amount. Each contract year you can withdraw up to 10% of
your account value without paying a withdrawal charge. The 10% free withdrawal
amount is determined using your account value at the beginning of each contract
year, or in the case of the first contract year, your initial contribution,
minus any other withdrawals made during the contract year. Additional
contributions during the contract year do not increase your 10% free withdrawal
amount. The 10% free withdrawal amount does not apply if you surrender your
contract except where required by law.
For NQ contracts issued to a charitable remainder trust, the free withdrawal
amount will equal the greater of: (1) the current account value less
contributions that have not been withdrawn (earnings in the contract) and (2)
the 10% free withdrawal amount defined above.
If you elect Principal Protector(SM), we will waive any withdrawal charge for
any withdrawal during the contract year up to the GWB Annual withdrawal amount,
even if such withdrawals exceed the free withdrawal amount. However, each
withdrawal reduces the free withdrawal amount for that contract year by the
amount of the withdrawal. Withdrawal charges, are applied to the amount of the
withdrawal that exceeds the GWB Annual withdrawal amount.
Certain withdrawals. If you elected the Guaranteed minimum income benefit
and/or the Greater of 6% roll up to age 85 or the annual ratchet to age 85
enhanced death benefit, the withdrawal charge will be waived for any withdrawal
that, together with any prior withdrawals made during the contract year, does
not exceed 6% of the beginning of contract year rollup portion of the related
benefit bases. If your withdrawals exceed the amount described above, this
waiver is not applicable to that withdrawal nor to any subsequent withdrawal
for the life of the contract.
Disability, terminal illness, or confinement to nursing home.
The withdrawal charge also does not apply if:
(i) The annuitant has qualified to receive Social Security disability benefits
as certified by the Social Security Administration; or
(ii) We receive proof satisfactory to us (including certification by a licensed
physician) that the annuitant's life expectancy is six months or less; or
(iii) The annuitant has been confined to a nursing home for more than 90 days
(or such other period, as required in your state) as verified by a
licensed physician. A nursing home for this purpose means one that is (a)
approved by Medicare as a provider of skilled nursing care service, or (b)
licensed as a skilled nursing home by the state or territory in which it
is located (it must be within the United States, Puerto Rico, or U.S.
Virgin Islands) and meets all of the following:
60 Charges and expenses
- - its main function is to provide skilled, intermediate, or custodial nursing
care;
- - it provides continuous room and board to three or more persons;
- - it is supervised by a registered nurse or licensed practical nurse;
- - it keeps daily medical records of each patient;
- - it controls and records all medications dispensed; and
- - its primary service is other than to provide housing for residents.
We reserve the right to impose a withdrawal charge, in accordance with your
contract and applicable state law, if the conditions described in (i), (ii) or
(iii) above existed at the time a contribution was remitted or if the condition
began within 12 months of the period following remittance. Some states may not
permit us to waive the withdrawal charge in the above circumstances, or may
limit the circumstances for which the withdrawal charge may be waived. Your
financial professional can provide more information or you may contact our
processing office.
GUARANTEED MINIMUM DEATH BENEFIT CHARGE
ANNUAL RATCHET TO AGE 85. If you elect the Annual Ratchet to age 85 enhanced
death benefit, we deduct a charge annually from your account value on each
contract date anniversary for which it is in effect. The charge is equal to
0.25% of the Annual Ratchet to age 85 benefit base.
GREATER OF 6% ROLL UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this
enhanced death benefit, we deduct a charge annually from your account value on
each contract date anniversary for which it is in effect. The charge is equal
to 0.60% of the greater of the 6% Roll up to age 85 or the Annual Ratchet to
age 85 benefit base for which it is in effect.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VIII later in this Prospectus
to see if deducting this charge from the guaranteed interest option is
permitted in your state) on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options (other than the Special 10 year fixed maturity option) in the
order of the earliest maturity date(s) first. If such fixed maturity option
amounts are insufficient, we will deduct all or a portion of the charge from
the account for special dollar cost averaging. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. If the contract is surrendered or annuitized or a death
benefit is paid, we will deduct a pro rata portion of the charge for that year.
A market value adjustment will apply to deductions from the fixed maturity
options (including the Special 10 year fixed maturity option).
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
STANDARD DEATH BENEFIT. There is no additional charge for the standard death
benefit.
GUARANTEED PRINCIPAL BENEFIT OPTION 2
If you purchase GPB Option 2, we deduct a charge annually from your account
value on the first 10 contract date anniversaries. The charge is equal to 0.50%
of the account value. We will deduct this charge from your value in the
variable investment options and the guaranteed interest option (see Appendix
VIII later in this Prospectus to see if deducting this charge from the
guaranteed interest option is permitted in your state) on a pro rata basis. If
those amounts are insufficient, we will deduct any remaining portion of the
charge from amounts in any fixed maturity options (other than the Special 10
year fixed maturity option) in the order of the earliest maturity date(s)
first. If such amounts are insufficient, we will deduct all or a portion from
the account for special dollar cost averaging. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. If the contract is surrendered or annuitized or a death
benefit is paid, we will deduct a pro rata portion of the charge for that year.
A market value adjustment will apply to deductions from the fixed maturity
options (including the Special 10 year fixed maturity option).
GUARANTEED MINIMUM INCOME BENEFIT CHARGE
If you elect the Guaranteed minimum income benefit, we deduct a charge annually
from your account value on each contract date anniversary until such time as
you exercise the Guaranteed minimum income benefit, elect another annuity
payout option, or the contract date anniversary after the annuitant reaches age
85, whichever occurs first. The charge is equal to 0.65% of the applicable
benefit base in effect on the contract date anniversary.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VIII later in this Prospectus
to see if deducting this charge from the guaranteed interest option is
permitted in your state) on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in the order of the earliest maturity date(s) first. If such
fixed maturity option amounts are still insufficient, we will deduct all or a
portion of the charge from the account for special dollar cost averaging. If
the contract is surrendered or annuitized or a death benefit is paid, we will
deduct a pro rata portion of the charge for that year. A market value
adjustment will apply to deductions from the fixed maturity options .
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
PROTECTION PLUS(SM) CHARGE
If you elect Protection Plus(SM), we deduct a charge annually from your account
value on each contract date anniversary for which it is in effect. The charge
is equal to 0.35% of the account value on each contract date anniversary. We
will deduct this charge from your value in the variable investment options and
the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options (other than the Special 10 year fixed maturity option) in the
order of the earliest maturity date(s) first. If such fixed maturity option
amounts are insufficient, we will deduct all or a portion of the charge from
the account for special dollar cost averaging. If such amounts are still
insufficient,
Charges and expenses 61
we will deduct any remaining portion from the Special 10 year fixed maturity
option. If the contract is surrendered or annuitized or a death benefit is
paid, we will deduct a pro rata portion of the charge for that year. A market
value adjustment will apply to deductions from the fixed maturity options
(including the Special 10 year fixed maturity option).
PRINCIPAL PROTECTOR(SM) CHARGE
If you elect Principal Protector(SM), we deduct a charge annually as a
percentage of your account value on each contract anniversary. If you elect the
5% GWB Annual withdrawal option, the charge is equal to 0.35%. If you elect the
7% GWB Annual withdrawal option, the charge is equal to 0.50%. We will deduct
this charge from your value in the variable investment options and the
guaranteed interest option (see Appendix VIII later in this Prospectus to see if
deducting this charge from the guaranteed interest option is permitted in your
state) on a pro rata basis. If those amounts are insufficient, we will deduct
all or a portion of the charge from the fixed maturity options in the order of
the earliest maturity date(s) first. If the contract is surrendered or
annuitized or a death benefit is paid, we will deduct a pro rata portion of the
charge for that year. If you die, and your beneficiary continues Principal
Protector(SM) under the Beneficiary continuation option, we will not deduct a
pro rata portion of the charge upon your death. However, the Principal
Protector(SM) charge will continue. A market value adjustment will apply to
deductions from the fixed maturity options.
If your GWB benefit base falls to zero but your contract is still in force, the
charge will be suspended as of the next contract date anniversary. The charge
will be reinstated, as follows: (i) if you make a subsequent contribution, we
will reinstate the charge that was in effect at the time your GWB benefit base
became depleted, (ii) if you elect to exercise the Optional step up provision,
we will reinstate a charge, as discussed immediately below, and (iii) if your
beneficiary elects the Beneficiary continuation option and reinstates the
Principal Protector(SM) benefit with a one time step up, we will reinstate the
charge that was in effect when the GWB benefit base fell to zero.
If your beneficiary elects the Beneficiary continuation option, and is eligible
to continue Principal Protector(SM), the benefit and the charge will continue
unless your beneficiary tells us to terminate the benefit at the time of
election.
OPTIONAL STEP UP CHARGE. Every time you elect the Optional step up, we reserve
the right to raise the benefit charge at the time of the step up. The maximum
charge for Principal Protector(SM) with a 5% GWB Annual withdrawal option is
0.60%. The maximum charge for Principal Protector(SM) with a 7% GWB Annual
withdrawal amount option is 0.80%. The increased charge, if any, will apply as
of the next contract anniversary following the step up and on all contract
anniversaries thereafter.
If you die and your beneficiary elects the Beneficiary continuation option, if
available, a one time step up only (at no additional charge) is applicable. For
more information on the Optional step up, one time step up and Automatic reset
provisions, see "Principal Protector(SM) " in "Contract features and benefits."
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state. Generally, we deduct the charge from
the amount applied to provide an annuity payout option. The current tax charge
that might be imposed varies by jurisdiction and ranges from 0% to 3.5%.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $350 from the amount to be applied to the Variable Immediate
Annuity payout option.
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
o Management fees ranging from 0.10% to 1.50%.
o 12b-1 fees of either 0.25% or 0.35%.
o Operating expenses, such as trustees' fees, independent public accounting
firms' fees, legal counsel fees, administrative service fees, custodian fees
and liability insurance.
o Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of each Trust are purchased at their net asset value, these fees and
expenses are, in effect, passed on to the variable investment options and are
reflected in their unit values. For more information about these charges,
please refer to the prospectuses for the Trusts.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the withdrawal
charge or the mortality and expense risks charge, or change the minimum initial
contribution requirements. We also may change the Guaranteed minimum income
benefit or the Guaranteed minimum death benefit, or offer variable investment
options that invest in shares of the Trusts that are not subject to the 12b-1
fee. Group arrangements include those in which a trustee or an employer, for
example, purchases contracts covering a group of individuals on a group basis.
Group arrangements are not available for IRA contracts. Sponsored arrangements
include those in which an employer allows us to sell contracts to its employees
or retirees on an individual basis.
Our costs for sales, administration and mortality generally vary with the size
and stability of the group or sponsoring organization, among other factors. We
take all these factors into account when reducing charges. To qualify for
reduced charges, a group or sponsored arrangement must meet certain
requirements, such as requirements for size and number of years in existence.
Group or sponsored arrangements that have been set up solely to buy contracts
or that have been in existence less than six months will not qualify for
reduced charges.
We also may establish different rates to maturity for the fixed maturity
options under different classes of contracts for group or sponsored
arrangements.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these
62 Charges and expenses
rules from time to time. Any variation will reflect differences in costs or
services and will not be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules,
ERISA or both. We make no representations with regard to the impact of these
and other applicable laws on such programs. We recommend that employers,
trustees, and others purchasing or making contracts available for purchase
under such programs seek the advice of their own legal and benefits advisers.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that results
in savings of sales and administrative expenses, such as sales through persons
who are compensated by clients for recommending investments and who receive no
commission or reduced commissions in connection with the sale of the contracts.
We will not permit a reduction or elimination of charges where it would be
unfairly discriminatory.
Charges and expenses 63
6. Payment of death benefit
- --------------------------------------------------------------------------------
YOUR BENEFICIARY AND PAYMENT OF BENEFIT
You designate your beneficiary when you apply for your contract. You may change
your beneficiary at any time. The change will be effective on the date the
written request for the change is received in our processing office. We are not
responsible for any beneficiary change request that we do not receive. We will
send you a written confirmation when we receive your request.
Under jointly owned contracts, the surviving owner is considered the
beneficiary, and will take the place of any other beneficiary. You may be
limited as to the beneficiary you can designate in a Rollover TSA contract. In
a QP contract, the beneficiary must be the trustee. Where an NQ contract is
owned by a minor pursuant to the Uniform Gift to Minors Act or the Uniform
Transfers to Minors Act, the beneficiary must be the estate of the annuitant.
Where an IRA contract is owned in a custodial individual retirement account,
the custodian must be the beneficiary so that the custodian can reinvest or
distribute the death benefit as the beneficiary of the account desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
applicable Guaranteed minimum death benefit. We determine the amount of the
death benefit (other than the applicable Guaranteed minimum death benefit) and
any amount applicable under the Protection Plus(SM) feature, as of the date we
receive satisfactory proof of the annuitant's death, any required instructions
for the method of payment, information and forms necessary to effect payment.
The amount of the applicable Guaranteed minimum death benefit will be such
Guaranteed minimum death benefit as of the date of the annuitant's death
adjusted for any subsequent withdrawals. The death benefit will be less a
deduction for any outstanding loan plus accrued interest on the date that the
death benefit payment is made (applies to Rollover TSA only).
EFFECT OF THE ANNUITANT'S DEATH
If the annuitant dies before the annuity payments begin, we will pay the death
benefit to your beneficiary.
Generally, the death of the annuitant terminates the contract. However, a
surviving spouse who is the sole primary beneficiary of the deceased
owner/annuitant can choose to be treated as the successor owner/annuitant and
continue the contract. The Successor owner/ annuitant feature is only
available under NQ and individually owned IRA contracts (other than Inherited
IRAs).
For NQ and all types of IRA contracts, a beneficiary may be able to have
limited ownership as discussed under "Beneficiary continuation option" below.
WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT
Under certain conditions the owner changes after the original owner's death for
purposes of receiving required distributions from the contract. When the owner
is not the annuitant under an NQ contract and the owner dies before annuity
payments begin, unless you specify otherwise, the beneficiary named to receive
the death benefit upon the annuitant's death will become the successor owner.
If you do not want this beneficiary to be the successor owner, you should name
a specific successor owner. You may name a successor owner at any time during
your life by sending satisfactory notice to our processing office. If the
contract is jointly owned and the first owner to die is not the annuitant, the
surviving owner becomes the sole contract owner. This person will be considered
the successor owner for purposes of the distribution rules described in this
section. The surviving owner automatically takes the place of any other
beneficiary designation.
You should carefully consider the following if you have elected the Guaranteed
minimum income benefit and you are the owner, but not the annuitant. Because
the payments under the Guaranteed minimum income benefit are based on the life
of the annuitant, and the federal tax law required distributions described
below are based on the life of the successor owner, a successor owner who is
not also the annuitant may not be able to exercise the Guaranteed minimum
income benefit if you die before annuity payments begin. Therefore, one year
before you become eligible to exercise the Guaranteed minimum income benefit
you should consider the effect of your beneficiary designations on potential
payments after your death. For more information, see "Exercise rules" under
"Our Guaranteed minimum income benefit option" in "Contract features and
benefits" earlier in this Prospectus.
Unless the surviving spouse of the owner who has died (or in the case of a
joint ownership situation, the surviving spouse of the first owner to die) is
the successor owner for this purpose, the entire interest in the contract must
be distributed under the following rules:
o The cash value of the contract must be fully paid to the successor owner (new
owner) within five years after your death (the "5-year rule"), or in a joint
ownership situation, the death of the first owner to die.
o If Principal Protector(SM) was elected and if the "5-year rule" is elected
and the successor owner dies prior to the end of the fifth year, we will pay
any remaining account value in a lump sum and the contract and any remaining
GWB benefit base will terminate without value. Your successor owner should
consult with a tax adviser before choosing to use the "5-year rule." The GWB
benefit base may be adversely affected if the successor owner makes any
withdrawals that cause a GWB Excess withdrawal. Also, when the contract
terminates at the end of 5 years, any remaining GWB benefit base would be
lost. If you elect Principal Protector(SM), the successor owner has the
option to terminate the benefit and charge upon receipt by us of due proof of
death and notice to discontinue the benefit; otherwise, the benefit and
charge will automatically continue.
o The successor owner may instead elect to receive the cash value as a life
annuity (or payments for a period certain of not longer than the new owner's
life expectancy). Payments must begin within one
64 Payment of death benefit
year after the non-annuitant owner's death. Unless this alternative is
elected, we will pay any cash value five years after your death (or the death
of the first owner to die).
o A successor owner should name a new beneficiary.
If the surviving spouse is the successor owner or joint owner, the spouse may
elect to continue the contract. No distributions are required as long as the
surviving spouse and annuitant are living.
An eligible successor owner, including a surviving joint owner after the first
owner dies, may elect the beneficiary continuation option for NQ contracts
discussed in "Beneficiary continuation option" below.
HOW DEATH BENEFIT PAYMENT IS MADE
We will pay the death benefit to the beneficiary in the form of the annuity
payout option you have chosen. If you have not chosen an annuity payout option
as of the time of the annuitant's death, the beneficiary will receive the death
benefit in a single sum. Payment of the death benefit in a lump sum terminates
all rights and any applicable guarantees under the contract, including
Guaranteed minimum income benefit, GPB Options 1 and 2 and Principal
Protector(SM). Subject to any exceptions in the contract, our rules and any
applicable requirements under federal income tax rules, the beneficiary may
elect to apply the death benefit to one or more annuity payout options we offer
at the time. See "Your annuity payout options" in "Accessing your money"
earlier in this Prospectus. Please note that any annuity payout option chosen
may not extend beyond the life expectancy of the beneficiary.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may elect to
receive the death benefit or continue the contract as successor
owner/annuitant. The successor owner/annuitant must be 85 or younger as of the
date of the non-surviving spouse's death.
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required instructions,
information and forms necessary to effect the Successor owner/annuitant
feature, we will increase the account value to equal your elected Guaranteed
minimum death benefit as of the date of your death if such death benefit is
greater than such account value, plus any amount applicable under the
Protection Plus(SM) feature, and adjusted for any subsequent withdrawals. The
increase in the account value will be allocated to the investment options
according to the allocation percentages we have on file for your contract.
Thereafter, withdrawal charges will no longer apply to contributions made
before your death. Withdrawal charges will apply if additional contributions
are made. These additional contributions will be considered to be withdrawn
only after all other amounts have been withdrawn.
We will determine whether your applicable Guaranteed minimum death benefit
option will continue as follows:
o If the successor owner/annuitant is age 75 or younger on the date of the
original owner/annuitant's death, and the original owner/ annuitant was age
84 or younger at death, the Guaranteed minimum death benefit continues based
upon the option that was elected by the original owner/annuitant and will
continue to grow according to its terms until the contract date anniversary
following the date the successor owner/annuitant reaches age 85.
o If the successor owner/annuitant is age 75 or younger on the date of the
original owner/annuitant's death, and the original owner/ annuitant was age
85 or older at death, we will reinstate the Guaranteed minimum death benefit
that was elected by the original owner/annuitant. The benefit will continue
to grow according to its terms until the contract date anniversary following
the date the successor owner/annuitant reaches age 85.
o If the successor owner/annuitant is age 76 or over on the date of the
original owner/annuitant's death, the Guaranteed minimum death benefit will
no longer grow, and we will no longer charge for the benefit.
If you elect Principal Protector(SM), the benefit and charge will remain in
effect. If the GWB benefit base is zero at the time of your death, and the
charge had been suspended, the charge will be reinstated if any of the events,
described in "Principal Protector(SM) charge" in "Charges and expenses" earlier
in this Prospectus, occur. The GWB benefit base will not automatically be
stepped up to equal the account value, if higher, upon your death. Your spouse
must wait five complete years from the prior step up or from contract issue,
whichever is later, in order to be eligible for the Optional step up. For more
information, see "Principal Protector(SM)" in "Contract features and benefits"
earlier in this Prospectus.
Where a NQ contract is owned by a Living Trust, as defined in the contract, and
at the time of the annuitant's death the annuitant's spouse is the sole
beneficiary of the Living Trust, the Trustee, as owner of the contract, may
request that the spouse be substituted as annuitant as of the date of the
annuitant's death. No further change of annuitant will be permitted.
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole beneficiary of the account, the custodian may
request that the spouse be substituted as annuitant after your death.
For information on the operation of the successor owner/annuitant feature with
the Guaranteed minimum income benefit, see "Exercise of Guaranteed minimum
income benefit" under "Our Guaranteed minimum income benefit option" in
"Contract features and benefits," earlier in this Prospectus. For information
on the operation of this feature with Protection Plus(SM), see "Protection
Plus(SM)" in "Guaranteed minimum death benefit" under "Contract features and
benefits," earlier in this Prospectus.
SPOUSAL PROTECTION
SPOUSAL PROTECTION OPTION FOR NQ CONTRACTS ONLY. This feature permits spouses
who are joint contract owners to increase the account value to equal the
guaranteed minimum death benefit, if higher, and by the value of any Protection
Plus(SM) benefit, if elected, upon the death of either spouse. This account
value "step up" occurs even if the surviving spouse was the named annuitant. If
you and your spouse jointly own the contract and one of you is the named
annuitant, you may
Payment of death benefit 65
elect the Spousal protection option at the time you purchase your contract at
no additional charge. Both spouses must be between the ages of 20 and 70 at the
time the contract is issued and must each be named the primary beneficiary in
the event of the other's death.
The annuitant's age is generally used for the purpose of determining contract
benefits. However, for the Annual Ratchet to age 85 and the Greater of 6% Roll
up to age 85 or Annual Ratchet to age 85 guaranteed minimum death benefits and
the Protection Plus(SM) benefit, the benefit is based on the older spouse's age.
The older spouse may or may not be the annuitant.
If the annuitant dies prior to annuitization, the surviving spouse may elect to
receive the death benefit, including the value of the Protection Plus(SM)
benefit, or, if eligible, continue the contract as the sole owner/ annuitant
by electing the successor owner/annuitant option. If the non-annuitant spouse
dies prior to annuitization, the surviving spouse continues the contract
automatically as the sole owner/annuitant. In either case, the contract would
continue, as follows:
o As of the date we receive due proof of the spouse's death, the account value
will be re-set to equal the Guaranteed minimum death benefit as of the date
of the non-surviving spouse's death, if higher, increased by the value of the
Protection Plus(SM) benefit.
o The Guaranteed minimum death benefit continues to be based on the older
spouse's age for the life of the contract, even if the younger spouse is
originally or becomes the sole owner/annuitant.
o The Protection Plus(SM) benefit will now be based on the surviving spouse's
age at the date of the non-surviving spouse's death for the remainder of the
life of the contract. If the benefit had been previously frozen because the
older spouse had attained age 80, it will be reinstated if the surviving
spouse is age 75 or younger. The benefit is then frozen on the contract date
anniversary after the surviving spouse reaches age 80. If the surviving
spouse is age 76 or older, the benefit will be discontinued even if the
surviving spouse is the older spouse (upon whose age the benefit was
originally based).
o The Guaranteed minimum income benefit may continue if the benefit had not
already terminated and the benefit will be based on the successor
owner/annuitant, if applicable. See "Guaranteed minimum income benefit" in
"Contract features and benefits" earlier in this Prospectus.
o If the annuitant dies first, withdrawal charges will no longer apply to any
contributions made prior to the annuitant's death. If the non-annuitant
spouse dies first, the withdrawal charge schedule remains in effect with
regard to all contributions.
o If you elect Principal Protector(SM), the benefit and charge will remain in
effect. If your GWB benefit base is zero at the time of your death, and the
charge had been suspended, the charge will be reinstated if any of the
events, described in "Principal Protector(SM) charge" in "Charges and
expenses" earlier in this Prospectus, occur. The GWB benefit base will not
automatically be stepped up to equal the account value, if higher, upon your
death. Your spouse must wait five complete years from the prior step up or
from contract issue, whichever is later, in order to be eligible for the
Optional step up. For more information, see "Principal Protector(SM)" in
"Contract features and benefits" earlier in this Prospectus.
We will not allow Spousal protection to be added after contract issue. If there
is a change in owner or primary beneficiary, the Spousal protection benefit
will be terminated. If you divorce but do not change the owner or primary
beneficiary, Spousal protection continues.
BENEFICIARY CONTINUATION OPTION
This feature permits a designated individual, on the contract owner's death, to
maintain a contract in the deceased contract owner's name and receive
distributions under the contract, instead of receiving the death benefit in a
single sum. We make this option available to beneficiaries under traditional
IRA, Roth IRA and NQ contracts, subject to state availability. Please speak
with your financial professional or see Appendix VIII later in this Prospectus
for further information.
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. The beneficiary continuation option must be elected by September 30th of
the year following the calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this option. If the election is made, then, as of the
date we receive satisfactory proof of death, any required instructions,
information and forms necessary to effect the beneficiary continuation option
feature, we will increase the account value to equal the applicable death
benefit if such death benefit is greater than such account value, plus any
amount applicable under the Protection Plus(SM) feature, adjusted for any
subsequent withdrawals. Where an IRA contract is owned in a custodial
individual retirement account, the custodian may reinvest the death benefit in
an individual retirement annuity contract, using the account beneficiary as the
annuitant. Please speak with your financial professional for further
information.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy (determined in the calendar year after your death
and determined on a term certain basis). These payments must begin no later
than December 31st of the calendar year after the year of your death. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70-1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed later in this Prospectus in
"Tax information" under "Individual retirement arrangements (IRAs)," the
beneficiary may choose the "5-year rule" option instead of annual payments over
life expectancy. The 5-year rule is always available to beneficiaries under
Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may
take withdrawals as desired, but the entire account value must be fully
withdrawn by December 31st of the calendar year which contains the fifth
anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA contracts:
o The contract continues in your name for the benefit of your beneficiary.
66 Payment of death benefit
o This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals for
this purpose.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's own
life expectancy, if payments over life expectancy are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the Guaranteed minimum income benefit, an optional
enhanced death benefit, GPB Option 2 or Principal Protector(SM) (in certain
circumstances) under the contract, they will no longer be in effect and
charges for such benefits will stop. Also, any Guaranteed minimum death
benefit feature will no longer be in effect. See below for certain
circumstances where Principal Protector(SM) may continue to apply.
o The beneficiary may choose at any time to withdraw all or a portion of the
account value and no withdrawal charges, if any, will apply.
o Any partial withdrawal must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking required minimum distributions based on
the remaining life expectancy of the deceased beneficiary or to receive any
remaining interest in the contract in a lump sum. The option elected will be
processed when we receive satisfactory proof of death, any required
instructions for the method of payment and any required information and forms
necessary to effect payment.
o If you had elected Principal Protector(SM), your spousal beneficiary may not
continue Principal Protector(SM), and the benefit will terminate without
value, even if the GWB benefit base is greater than zero. In general, spousal
beneficiaries who wish to continue Principal Protector(SM) should consider
continuing the contract under the Successor owner and annuitant feature, if
eligible. In general, eligibility requires that your spouse must be the sole
primary beneficiary. Please see "Successor owner and annuitant" in "How death
benefit payment is made" under "Payment of death benefit" earlier in this
Prospectus for further details. If there are multiple beneficiaries who elect
the Beneficiary continuation option, the spousal beneficiary may continue the
contract without Principal Protector(SM) and non-spousal beneficiaries may
continue with Principal Protector(SM). In this case, the spouse's portion of
the GWB benefit base will terminate without value.
o If you had elected Principal Protector(SM), your non-spousal beneficiary may
continue the benefit, as follows:
o The beneficiary was 75 or younger on the original contract date.
o The benefit and charge will remain in effect unless your beneficiary tells
us to terminate the benefit at the time of the Beneficiary continuation
option election.
o One time step up: Upon your death, if your account value is greater than the
GWB benefit base, the GWB benefit base will be automatically stepped up to
equal the account value, at no additional charge. If Principal Protector(SM)
is not in effect at the time of your death because the GWB benefit base is
zero, the beneficiary may reinstate the benefit (at the charge that was last
in effect) with the one time step up. If the beneficiary chooses not to
reinstate the Principal Protector(SM) at the time the Beneficiary
continuation option is elected, Principal Protector(SM) will terminate.
o If there are multiple beneficiaries each beneficiary's interest in the GWB
benefit base will be separately accounted for.
o As long as the GWB benefit base is $5,000 or greater, the benefi ciary may
elect the Beneficiary continuation option and continue Principal
Protector(SM) even if the account value is less than $5,000.
o If scheduled payments are elected, the beneficiary's scheduled payments will
be calculated, using the greater of the account value or the GWB benefit
base, as of each December 31. If the beneficiary dies prior to receiving all
payments, we will make the remaining payments to the person designated by the
deceased non-spousal beneficiary, unless that person elects to take any
remaining account value in a lump sum, in which case any remaining GWB
benefit base will terminate without value.
o If the "5-year rule" is elected and the beneficiary dies prior to the end of
the fifth year, we will pay any remaining account value in a lump sum and the
contract and any remaining GWB benefit base will terminate without value.
o Provided no other withdrawals are taken during a contract year while the
beneficiary receives scheduled payments, the scheduled payments will not
cause a GWB Excess withdrawal, even if they exceed the GWB Annual withdrawal
amount. If the beneficiary takes any other withdrawals while the Beneficiary
continuation option scheduled payments are in effect, the GWB Excess
withdrawal exception terminates permanently. In order to take advantage of
this exception, the beneficiary must elect the scheduled payments rather than
the "5-year rule." If the beneficiary elects the "5-year rule," there is no
exception.
BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known
as Inherited annuity, may only be elected when the NQ contract owner dies
before the annuity commencement date, whether or not the owner and the
annuitant are the same person. If the owner and annuitant are different and the
owner dies before the annuitant, for purposes of this discussion, "beneficiary"
refers to the successor owner. For a discussion of successor owner, see "When
an NQ contract owner dies before the annuitant" earlier in this section. This
feature must be elected within 9 months following the date of your death and
before any other inconsistent election is made. Beneficiaries who do not make a
timely election will not be eligible for this option.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy, determined on a term certain basis
Payment of death benefit 67
and in the year payments start. These payments must begin no later than one
year after the date of your death and are referred to as "scheduled payments."
The beneficiary may choose the "5-year rule" instead of scheduled payments over
life expectancy. If the beneficiary chooses the 5-year rule, there will be no
scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals
as desired, but the entire account value must be fully withdrawn by the fifth
anniversary of your death.
Under the beneficiary continuation option for NQ contracts (regardless of
whether the owner and annuitant are the same person):
o This feature is only available if the beneficiary is an individual. It is not
available for any entity such as a trust, even if all of the beneficiaries of
the trust are individuals.
o The contract continues in your name for the benefit of your beneficiary.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the respective
beneficiary's own life expectancy, if scheduled payments are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the Guaranteed minimum income benefit, an optional
enhanced death benefit, GPB Option 2 or Principal Protector(SM) (in certain
circumstances) under the contract, they will no longer be in effect and
charges for such benefits will stop. Also, any Guaranteed minimum death
benefit feature will no longer be in effect. See below for certain
circumstances where Principal Protector(SM) may continue to apply.
o If the beneficiary chooses the "5-year rule," withdrawals may be made at any
time. If the beneficiary instead chooses scheduled payments, the beneficiary
must also choose between two potential withdrawal options at the time of
election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary
cannot later withdraw funds in addition to the scheduled payments the
beneficiary is receiving; "Withdrawal Option 1" permits total surrender only.
"Withdrawal Option 2" permits the beneficiary to take withdrawals, in
addition to scheduled payments, at any time. However, the scheduled payments
under "Withdrawal Option 1" are afforded favorable tax treatment as "annuity
payments." See "Taxation of nonqualified annuities" in "Tax Information"
later in this Prospectus.
o Any partial withdrawals must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract on the beneficiary's death.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking scheduled payments based on the
remaining life expectancy of the deceased beneficiary (if scheduled payments
were chosen) or to receive any remaining interest in the contract in a lump
sum. We will pay any remaining interest in the contract in a lump sum if your
beneficiary elects the 5-year rule. The option elected will be processed when
we receive satisfactory proof of death, any required instructions for the
method of payment and any required information and forms necessary to effect
payment.
o If you had elected Principal Protector(SM), your spousal beneficiary may not
continue Principal Protector(SM), and the benefit will terminate without
value, even if the GWB benefit base is greater than zero. In general, spousal
beneficiaries who wish to continue Principal Protector(SM) should consider
continuing the contract under the Successor owner and annuitant feature, if
eligible. In general, eligibility requires that you must be the owner and
annuitant and your spouse must be the sole primary beneficiary. Please see
"Successor owner and annuitant" in "How death benefit payment is made" under
"Payment of death benefit" earlier in this Prospectus for further details. If
there are multiple beneficiaries who elect the Beneficiary continuation
option, the spousal beneficiary may continue the contract without Principal
Protector(SM) and non-spousal beneficiaries may continue with Principal
Protector(SM). In this case, the spouse's portion of the GWB benefit base
will terminate without value.
o If the non-spousal beneficiary chooses scheduled payments under "Withdrawal
Option 1," as discussed above in this section, Principal Protector(SM) may
not be continued and will automatically terminate without value even if the
GWB benefit base is greater than zero.
o If you had elected Principal Protector(SM), your non-spousal beneficiary may
continue the benefit, as follows:
o The beneficiary was 75 or younger on the original contract date.
o The benefit and charge will remain in effect unless your benefi ciary tells
us to terminate the benefit at the time of the Beneficiary continuation
option election.
o One time step up: Upon your death, if your account value is greater than the
GWB benefit base, the GWB benefit base will be automatically stepped up to
equal the account value, at no additional charge. If Principal Protector(SM)
is not in effect at the time of your death because the GWB benefit base is
zero, the beneficiary may reinstate the benefit (at the charge that was last
in effect) with the one time step up. If the beneficiary chooses not to
reinstate the Principal Protector(SM) at the time the Beneficiary
continuation option is elected, Principal Protector(SM) will terminate.
o If there are multiple beneficiaries, each beneficiary's interest in the GWB
benefit base will be separately accounted for.
o As long as the GWB benefit base is $5,000 or greater, the benefi ciary may
elect the Beneficiary continuation option and continue Principal
Protector(SM) even if the account value is less than $5,000.
o If scheduled payments under "Withdrawal Option 2" is elected, the
beneficiary's scheduled payments will be calculated using the greater of the
account value or the GWB benefit base, as of each December 31. If the
beneficiary dies prior to receiving all payments, we will make the remaining
payments to the person designated by the deceased non-spousal beneficiary,
unless that
68 Payment of death benefit
person elects to take any remaining account value in a lump sum, in which
case any remaining GWB benefit base will terminate without value.
o If the "5-year rule" is elected and the beneficiary dies prior to the end of
the fifth year, we will pay any remaining account value in a lump sum and the
contract and any remaining GWB benefit base will terminate without value.
o Provided no other withdrawals are taken during a contract year while the
beneficiary receives scheduled payments, the scheduled payments will not
cause a GWB Excess withdrawal, even if they exceed the GWB Annual withdrawal
amount. If the beneficiary takes any other withdrawals while the Beneficiary
continuation option scheduled payments are in effect, the GWB Excess
withdrawal exception terminates permanently. In order to take advantage of
this exception, the beneficiary must elect scheduled payments under
"Withdrawal Option 2" rather than the "5-year rule." If the beneficiary
elects the "5-year rule," there is no exception.
If you are both the owner and annuitant:
o As of the date we receive satisfactory proof of death, any required
instructions, information and forms necessary to effect the beneficiary
continuation option feature, we will increase the annuity account value to
equal the applicable death benefit if such death benefit is greater than such
account value, plus any amount applicable under the Protection Plus(SM)
feature, adjusted for any subsequent withdrawals.
o No withdrawal charges will apply to any withdrawals by the beneficiary.
If the owner and annuitant are not the same person:
o If the beneficiary continuation option is elected, the beneficiary
automatically becomes the new annuitant of the contract, replacing the
existing annuitant.
o The annuity account value will not be reset to the death benefit amount.
o The contract's withdrawal charge schedule will continue to be applied to any
withdrawal or surrender other than scheduled payments; the contract's free
corridor amount will continue to apply to withdrawals but does not apply to
surrenders.
o We do not impose a withdrawal charge on scheduled payments except if, when
added to any withdrawals previously taken in the same contract year,
including for this purpose a contract surrender, the total amount of
withdrawals and scheduled payments exceed the free corridor amount. See the
"Withdrawal charges" in "Charges and expenses" earlier in this Prospectus.
If a contract is jointly owned:
o The surviving owner supersedes any other named beneficiary and may elect the
beneficiary continuation option.
o If the deceased joint owner was also the annuitant, see "If you are both the
owner and annuitant" earlier in this section.
o If the deceased joint owner was not the annuitant, see "If the owner and
annuitant are not the same person" earlier in this section.
Payment of death benefit 69
7. Tax information
- --------------------------------------------------------------------------------
OVERVIEW
In this part of the Prospectus, we discuss the current federal income tax rules
that generally apply to Accumulator(R) contracts owned by United States
individual taxpayers. The tax rules can differ, depending on the type of
contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. Therefore, we
discuss the tax aspects of each type of contract separately.
Federal income tax rules include the United States laws in the Internal Revenue
Code, and Treasury Department Regulations and Internal Revenue Service ("IRS")
interpretations of the Internal Revenue Code. These tax rules may change
without notice. We cannot predict whether, when, or how these rules could
change. Any change could affect contracts purchased before the change. Congress
may also consider proposals in the future to comprehensively reform or overhaul
the United States tax and retirement systems, which if enacted, could affect
the tax benefits of a contract.
We cannot provide detailed information on all tax aspects of the contracts.
Moreover, the tax aspects that apply to a particular person's contract may vary
depending on the facts applicable to that person. We do not discuss state
income and other state taxes, federal income tax and withholding rules for
non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the
contract, rights or values under the contract, or payments under the contract,
for example, amounts due to beneficiaries, may be subject to federal or state
gift, estate, or inheritance taxes. You should not rely only on this document,
but should consult your tax adviser before your purchase.
President Bush signed the Economic Growth and Tax Relief Reconciliation Act of
2001 ("EGTRRA") on June 7, 2001. Many of the provisions of EGTRRA became be
effective on January 1, 2002, and are phased in during the first decade of the
twenty-first century. In the absence of future legislation, all of the
amendments made by EGTRRA will no longer apply after December 31, 2010, and the
law in effect in 2001 will apply again. In general, EGTRRA liberalizes
contributions that can be made to all types of tax-favored retirement plans. In
addition to increasing amounts that can be contributed and permitting
individuals over age 50 to make additional contributions, EGTRRA also permits
rollover contributions to be made between different types of tax-favored
retirement plans. Please discuss with your tax adviser how EGTRRA affects your
personal financial situation.
BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT
Generally, there are two types of funding vehicles that are available for
Individual Retirement Arrangements ("IRAs") and Code Section 403(b)
Arrangements ("TSAs"), respectively: an IRA or 403(b) annuity contract such as
this one, or an IRA or 403(b)(7) custodial or other qualified account. Annuity
contracts can also be purchased in connection with retirement plans qualified
under Code Section 401 ("QP contracts"). How these arrangements work, including
special rules applicable to each, are described in the specific sections for
each type of arrangement, below. You should be aware that the funding vehicle
for a qualified arrangement does not provide any tax deferral benefit beyond
that already provided by the Code for all permissible funding vehicles. Before
choosing an annuity contract, therefore, you should consider the annuity's
features and benefits, such as Accumulator's(R) choice of death benefits, the
Guaranteed minimum income benefit, special dollar cost averaging, selection of
investment funds, guaranteed interest option, fixed maturity options and its
choices of pay-out options, as well as the features and benefits of other
permissible funding vehicles and the relative costs of annuities and other
arrangements. You should be aware that cost may vary depending on the features
and benefits made available and the charges and expenses of the investment
options or funds that you elect.
Beginning in 2006, certain provisions of the Treasury Regulations on required
minimum distributions concerning the actuarial present value of additional
contract benefits could increase the amount required to be distributed from
annuity contracts funding qualified plans, TSAs and IRAs. You should consider
the potential implication of these Regulations before you purchase this annuity
contract or purchase additional features under this annuity contract. See also
Appendix II at the end of this Prospectus for a discussion of QP contracts.
TRANSFERS AMONG INVESTMENT OPTIONS
You can make transfers among investment options inside the contract without
triggering taxable income.
TAXATION OF NONQUALIFIED ANNUITIES
CONTRIBUTIONS
You may not deduct the amount of your contributions to a nonqualified annuity
contract.
CONTRACT EARNINGS
Generally, you are not taxed on contract earnings until you receive a
distribution from your contract, whether as a withdrawal or as an annuity
payment. However, earnings are taxable, even without a distribution:
o if a contract fails investment diversification requirements as specified in
federal income tax rules (these rules are based on or are similar to those
specified for mutual funds under the securities laws);
o if you transfer a contract, for example, as a gift to someone other than your
spouse (or former spouse);
o if you use a contract as security for a loan (in this case, the amount
pledged will be treated as a distribution); and
o if the owner is other than an individual (such as a corporation, partnership,
trust, or other non-natural person).
70 Tax information
All nonqualified deferred annuity contracts that AXA Equitable and its
affiliates issue to you during the same calendar year are linked together and
treated as one contract for calculating the taxable amount of any distribution
from any of those contracts.
ANNUITY PAYMENTS
Once annuity payments begin, a portion of each payment is taxable as ordinary
income. You get back the remaining portion without paying taxes on it. This is
your "investment in the contract." Generally, your investment in the contract
equals the contributions you made, less any amounts you previously withdrew
that were not taxable.
For fixed annuity payments, the tax-free portion of each payment is determined
by (1) dividing your investment in the contract by the total amount you are
expected to receive out of the contract, and (2) multiplying the result by the
amount of the payment. For variable annuity payments, your tax-free portion of
each payment is your investment in the contract divided by the number of
expected payments.
Once you have received the amount of your investment in the contract, all
payments after that are fully taxable. If payments under a life annuity stop
because the annuitant dies, there is an income tax deduction for any
unrecovered investment in the contract.
PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN
If you make withdrawals before annuity payments begin under your contract, they
are taxable to you as ordinary income if there are earnings in the contract.
Generally, earnings are your account value less your investment in the
contract. If you withdraw an amount which is more than the earnings in the
contract as of the date of the withdrawal, the balance of the distribution is
treated as a return of your investment in the contract and is not taxable.
PROTECTION PLUS(SM) FEATURE
In order to enhance the amount of the death benefit to be paid at the
annuitant's death, you may purchase a Protection Plus(SM) rider for your NQ
contract. Although we regard this benefit as an investment protection feature
which is part of the contract and which should have no adverse tax effect, it is
possible that the IRS could take a contrary position or assert that the
Protection Plus(SM) rider is not part of the contract. In such a case the
charges for the Protection Plus(SM) rider could be treated for federal income
tax purposes as a partial withdrawal from the contract. If this were so, such a
deemed withdrawal could be taxable, and for contract owners under age 59-1/2,
also subject to a tax penalty. Were the IRS to take this position, AXA Equitable
would take all reasonable steps to attempt to avoid this result, which could
include amending the contract (with appropriate notice to you).
CONTRACTS PURCHASED THROUGH EXCHANGES
You may purchase your NQ contract through an exchange of another contract.
Normally, exchanges of contracts are taxable events. The exchange will not be
taxable under Section 1035 of the Internal Revenue Code if:
o the contract that is the source of the funds you are using to purchase the NQ
contract is another nonqualified deferred annuity contract or life
insurance or endowment contract.
o the owner and the annuitant are the same under the source contract and the
Accumulator(R) NQ contract. If you are using a life insurance or endowment
contract the owner and the insured must be the same on both sides of the
exchange transaction.
The tax basis, also referred to as your investment in the contract, of the
source contract carries over to the Accumulator(R) NQ contract.
An owner may direct the proceeds of a partial withdrawal from one nonqualified
deferred annuity contract to a different insurer to purchase a new nonqualified
deferred annuity contract on a tax-deferred basis. Special forms, agreement
between the carriers, and provision of cost basis information may be required
to process this type of an exchange.
SURRENDERS
If you surrender or cancel the contract, the distribution is taxable as
ordinary income (not capital gain) to the extent it exceeds your investment in
the contract.
DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH
For the rules applicable to death benefits, see "Payment of death benefit"
earlier in this Prospectus. The tax treatment of a death benefit taken as a
single sum is generally the same as the tax treatment of a withdrawal from or
surrender of your contract. The tax treatment of a death benefit taken as
annuity payments is generally the same as the tax treatment of annuity payments
under your contract. The IRS has not specifically addressed the tax treatment
of the Spousal protection benefit. Please consult with your tax adviser before
electing this feature.
BENEFICIARY CONTINUATION OPTION
We have received a private letter ruling from the IRS regarding certain tax
consequences of scheduled payments under the beneficiary continuation option
for NQ contracts. See the discussion "Beneficiary continuation option for NQ
Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among
other things, the IRS rules that:
o scheduled payments under the beneficiary continuation option for NQ contracts
satisfy the death of owner rules of Section 72(s)(2) of the Code, regardless
of whether the beneficiary elects "Withdrawal Option 1" or "Withdrawal Option
2";
o scheduled payments, any additional withdrawals under "Withdrawal Option 2",
or contract surrenders under "Withdrawal Option 1" will only be taxable to
the beneficiary when amounts are actually paid, regardless of the "Withdrawal
Option" selected by the beneficiary;
o a beneficiary who irrevocably elects scheduled payments with "Withdrawal
Option 1" will receive "excludable amount" tax treatment on scheduled
payments. See "Annuity payments" earlier in this section. If the beneficiary
elects to surrender the contract before all scheduled payments are paid, the
amount received upon surrender is a non-annuity payment taxable to the extent
it exceeds any remaining investment in the contract.
The ruling specifically does not address the taxation of any payments received
by a beneficiary electing "Withdrawal Option 2" (whether
Tax information 71
scheduled payments or any withdrawal that might be taken). The ruling also does
not address the effect of the retention of the Principal Protector(SM) feature
discussed earlier in this Prospectus under "Contract features and benefits,"
which a non-spousal beneficiary may elect under certain conditions. Before
electing the beneficiary continuation option feature, the individuals you
designate as beneficiary or successor owner should discuss with their tax
advisers the consequences of such elections.
The tax treatment of a withdrawal after the death of the owner taken as a
single sum or taken as withdrawals under the 5-year rule is generally the same
as the tax treatment of a withdrawal from or surrender of your contract.
EARLY DISTRIBUTION PENALTY TAX
If you take distributions before you are age 59-1/2, a penalty tax of 10% of the
taxable portion of your distribution applies in addition to the income tax.
Some of the available exceptions to the pre-age 59-1/2 penalty tax include
distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o in the form of substantially equal periodic annuity payments for your life
(or life expectancy), or the joint lives (or joint life expectancy) of you
and a beneficiary, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If
you were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. The IRS has said that the owners of variable annuities will
not be treated as owning the separate account assets provided the underlying
portfolios are restricted to variable life and annuity assets. The variable
annuity owners must have the right only to choose among the portfolios, and
must have no right to direct the particular investment decisions within the
portfolios.
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some
issues that remain unclear. For example, the IRS has not issued any guidance as
to whether having a larger number of portfolios available, or an unlimited
right to transfer among them, could cause you to be treated as the owner. We do
not know whether the IRS will ever provide such guidance or whether such
guidance, if unfavorable, would apply retroactively to your contract.
Furthermore, the IRS could reverse its current guidance at any time. We reserve
the right to modify your contract as necessary to prevent you from being
treated as the owner of the assets of Separate Accounts 45 and 49.
SPECIAL RULES FOR NQ CONTRACTS ISSUED IN PUERTO RICO
Income from NQ contracts we issue is U.S. source. A Puerto Rico resident is
subject to U.S. taxation on such U.S. source income. Only Puerto Rico source
income of Puerto Rico residents is excludable from U.S. taxation. Income from
NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable
portion of amounts distributed from a contract may differ in the two
jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax
returns, showing different amounts of income from the contract for each tax
return. Puerto Rico generally provides a credit against Puerto Rico tax for
U.S. tax paid. Depending on your personal situation and the timing of the
different tax liabilities, you may not be able to take full advantage of this
credit.
INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS)
GENERAL
"IRA" stands for individual retirement arrangement. There are two basic types
of such arrangements, individual retirement accounts and individual retirement
annuities. In an individual retirement account, a trustee or custodian holds
the assets funding the account for the benefit of the IRA owner. The assets
typically include mutual funds and/or individual stocks and securities in a
custodial account, and bank certificates of deposit in a trusteed account. In
an individual retirement annuity, an insurance company issues an annuity
contract that serves as the IRA.
There are two basic types of IRAs, as follows:
o Traditional IRAs, typically funded on a pre-tax basis, including SEP-IRAs and
SIMPLE IRAs issued and funded in connection with employer-sponsored
retirement plans; and
o Roth IRAs, funded on an after-tax basis.
Regardless of the type of IRA, your ownership interest in the IRA cannot be
forfeited. You or your beneficiaries who survive you are the only ones who can
receive the IRA's benefits or payments. All types of IRAs qualify for tax
deferral, regardless of the funding vehicle selected.
You can hold your IRA assets in as many different accounts and annuities as you
would like, as long as you meet the rules for setting up and making
contributions to IRAs. However, if you own multiple IRAs, you may be required
to combine IRA values or contributions for tax purposes. For further
information about individual retirement arrangements, you can read Internal
Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)").
This publication is usually updated annually, and can be obtained from any IRS
district office or the IRS website (www.irs.gov).
AXA Equitable designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may purchase
the contract as a traditional IRA or Roth IRA. The traditional IRAs we offer
are the Rollover IRA and Flexible Premium IRA. The versions of the Roth IRA
available are the Roth Conversion IRA and Flexible Premium Roth IRA. We also
offer the Inherited IRA for payment of post-death required minimum
distributions in traditional IRA and Roth IRA. This Prospectus contains the
information that the IRS requires you to have before you purchase an IRA. The
first section covers some of the special tax rules that apply to traditional
IRAs. The next section covers Roth IRAs. The disclosure generally assumes
direct ownership of the individual retirement annuity contract. For contracts
72 Tax information
owned in a custodial individual retirement account, the disclosure will apply
only if you terminate your account or transfer ownership of the contract to
yourself.
We have not applied for an opinion letter from the IRS to approve the
respective forms of the Accumulator(R) traditional and Roth IRA contracts for
use as a traditional and Roth IRA, respectively. We have received IRS opinion
letters approving the respective forms of a similar traditional IRA and Roth
IRA endorsement for use as a traditional and Roth IRA, respectively. This IRS
approval is a determination only as to the form of the annuity. It does not
represent a determination of the merits of the annuity as an investment. The
contracts submitted for IRS approval do not include every feature possibly
available under the Accumulator(R) traditional and Roth IRA contracts.
The Inherited IRA beneficiary continuation contract has not been submitted to
the IRS for approval as to form for use as a traditional IRA or Roth IRA.
PROTECTION PLUS(SM) FEATURE
The Protection Plus(SM) feature is offered for IRA contracts, subject to state
and contract availability. We have received IRS opinion letters that the
contract with a similar Protection Plus(SM) feature qualifies as to form for use
as a traditional IRA and Roth IRA, respectively. This IRS approval is a
determination only as to the form of the annuity. It does not represent a
determination of the merits of the annuity as an investment. The contracts
submitted for IRS approval do not include every feature possibly available
under the Accumulator(R) traditional and Roth IRA contracts. You should discuss
with your tax adviser whether you should consider purchasing an Accumulator(R)
IRA or Accumulator(R) Roth IRA with optional Protection Plus(SM) feature.
Your right to cancel within a certain number of days
You can cancel any version of the Accumulator(R) IRA contract (traditional IRA
or Roth IRA) by following the directions in "Your right to cancel with a
certain number of days" under "Contract features and benefits" earlier in this
Prospectus. If you cancel a traditional IRA or Roth IRA contract, we may have
to withhold tax, and we must report the transaction to the IRS. A contract
cancellation could have an unfavorable tax impact.
Traditional individual retirement annuities (traditional IRAs)
Contributions to traditional IRAs. Individuals may make three different types
of contributions to a traditional IRA:
o regular contributions out of earned income or compensation; or
o tax-free "rollover" contributions; or
o direct custodian-to-custodian transfers from other traditional IRAs ("direct
transfers").
Regular contributions to traditional IRAs
Limits on contributions. The "maximum regular contribution amount" for any
taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $4,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for each of the taxable years 2005
and 2006. When your earnings are below $4,000 your earned income or
compensation for the year is the most you can contribute. This limit does not
apply to rollover contributions or direct custodian-to-custodian transfers into
a traditional IRA. You cannot make regular traditional IRA contributions for
the tax year in which you reach age 70-1/2 or any tax year after that.
If you reach age 50 before the close of the taxable year for which you are
making a regular contribution to your IRA, you may be eligible to make an
additional "catch-up contribution" of up to $500 to your traditional IRA for
2005. This amount increases to $1,000 for the taxable year 2006.
Special rules for spouses. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to traditional IRAs
(and Roth IRAs discussed below). Even if one spouse has no compensation or
compensation under $4,000, married individuals filing jointly can contribute up
to $8,000 for each of the taxable years 2005 and 2006 to any combination of
traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the
ability to contribute to traditional IRAs and vice versa. The maximum amount
may be less if earned income is less and the other spouse has made IRA
contributions. No more than a combined total of $4,000 can be contributed
annually to either spouse's traditional and Roth IRAs. Each spouse owns his or
her traditional IRAs and Roth IRAs even if the other spouse funded the
contributions. A working spouse age 70-1/2 or over can contribute up to the
lesser of $4,000 or 100% of "earned income" to a traditional IRA for a
nonworking spouse until the year in which the nonworking spouse reaches age
70-1/2. "Catch-up" contributions may be made as described above for spouses who
are at least age 50 but under age 70-1/2 at any time during the taxable year
for which the contribution is made.
Deductibility of contributions. The amount of traditional IRA contributions
that you can deduct for a taxable year depends on whether you are covered by an
employer-sponsored tax-favored retirement plan, as defined under special federal
income tax rules. Your Form W-2 will indicate whether or not you are covered by
such a retirement plan.
If you are not covered by a retirement plan during any part of the year, you
can make fully deductible contributions to your traditional IRAs for the
taxable year up to the maximum amount discussed earlier in this section under
"Limits on contributions". That is, for each of the taxable years 2005 and
2006, your fully deductible contribution can be up to $4,000, or if less, your
earned income. The dollar limit is $4,500 for people eligible to make age
50 - 70-1/2 catch-up contributions for 2005 and $5,000 for 2006, respectively.
If you are covered by a retirement plan during any part of the year, and your
adjusted gross income (AGI) is below the lower dollar figure in a phase-out
range, you can make fully deductible contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls within a phase-out range, you can make partially deductible
contributions to your traditional IRAs.
Tax information 73
If you are covered by a retirement plan during any part of the year, and your
AGI falls above the higher figure in the phase-out range, you may not deduct
any of your regular contributions to your traditional IRAs.
If you are single and covered by a retirement plan during any part of the
taxable year, the deduction for traditional IRA contributions phases out with
AGI between $50,000 and $60,000 in 2005 and later years.
If you are married and file a joint return, and you are covered by a retirement
plan during any part of the taxable year, the deduction for traditional IRA
contributions phases out with AGI between $70,000 and $80,000 in 2005 and AGI
between $75,000 and $85,000 in 2006. In 2007, the deduction will phase out for
AGI between $80,000 and $100,000.
Married individuals filing separately and living apart at all times are not
considered married for purposes of this deductible contribution calculation.
Generally, the active participation in an employer-sponsored retirement plan of
an individual is determined independently for each spouse. Where spouses have
"married filing jointly" status, however, the maximum deductible traditional
IRA contribution for an individual who is not an active participant (but whose
spouse is an active participant) is phased out for taxpayers with an AGI
between $150,000 and $160,000.
To determine the deductible amount of the contribution for 2005, for example,
you determine AGI and subtract $50,000 if you are single, or $70,000 if you are
married and file a joint return with your spouse. The resulting amount is your
excess AGI. You then determine the limit on the deduction for traditional IRA
contributions using the following formula:
($10,000-excess AGI) times the maximum Equals the adjusted
-------------------- x regular = deductible
divided by $10,000 contribution contribution
for the year limit
Additional "Saver's Credit" for contributions to a traditional IRA or Roth IRA
You may be eligible for a nonrefundable income tax credit for contributions you
make to a traditional IRA or Roth IRA. The final year this credit is available
is 2006. If you qualify, you may take this credit even though your traditional
IRA contribution is already fully or partially deductible. To take advantage of
this "saver's credit" you must be age 18 or over before the end of the taxable
year for which the contribution is made. You cannot be a full-time student or
claimed as a dependent on another's tax return and your adjusted gross income
cannot exceed $50,000. The amount of the tax credit you can get varies from 10%
of your contribution to 50% of your contribution and depends on your income tax
filing status and your adjusted gross income. The maximum annual contribution
eligible for the saver's credit is $2,000. If you and your spouse file a joint
return and each of you qualifies, each is eligible for a maximum annual
contribution of $2,000. Your saver's credit may also be reduced if you take or
have taken a taxable distribution from any plan eligible for a saver's credit
contribution -- even if you make a contribution to one plan and take the
distribution from another plan -- during the "testing period." The "testing
period" begins two years before the year for which you make the contribution
and ends when your tax return is due for the year for which you make the
contribution. Saver's-credit-eligible contributions may be made to a 401(k)
plan, 403(b) TSA, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA,
as well as a traditional IRA or Roth IRA.
Nondeductible regular contributions. If you are not eligible to deduct part or
all of the traditional IRA contribution, you may still make nondeductible
contributions on which earnings will accumulate on a tax-deferred basis. The
combined deductible and nondeductible contributions to your traditional IRA (or
the nonworking spouse's traditional IRA) may not, however, exceed the maximum
dollar per person limit for the applicable taxable year ($4,000 for 2005 and
2006). The dollar limit is $4,500 in 2005 and $5,000 in 2006 for people
eligible to make age 50 - 70-1/2 "catch-up" contributions. See "Excess
contributions" later in this section. You must keep your own records of
deductible and nondeductible contributions in order to prevent double taxation
on the distribution of previously taxed amounts. See "Withdrawals, payments and
transfers of funds out of traditional IRAs" later in this section.
If you are making nondeductible contributions in any taxable year, or you have
made nondeductible contributions to a traditional IRA in prior years and are
receiving distributions from any traditional IRA, you must file the required
information with the IRS. Moreover, if you are making nondeductible traditional
IRA contributions, you must retain all income tax returns and records
pertaining to such contributions until interests in all traditional IRAs are
fully distributed.
When you can make regular contributions. If you file your tax returns on a
calendar year basis like most taxpayers, you have until the April 15 return
filing deadline (without extensions) of the following calendar year to make
your regular traditional IRA contributions for a taxable year.
Rollover and transfer contributions to traditional IRAs
Rollover contributions may be made to a traditional IRA from these "eligible
retirement plans":
o qualified plans;
o governmental employer 457(b) plans;
o TSAs (including Internal Revenue Code Section 403(b)(7) custo dial accounts);
and
o other traditional IRAs.
Direct transfer contributions may only be made directly from one traditional
IRA to another.
Any amount contributed to a traditional IRA after you reach age 70-1/2 must be
net of your required minimum distribution for the year in which the rollover or
direct transfer contribution is made.
Rollovers from "eligible retirement plans" other than
traditional IRAs
Your plan administrator will tell you whether or not your distribution is
eligible to be rolled over. Spousal beneficiaries and spousal alternate
74 Tax information
payees under qualified domestic relations orders may roll over funds on the
same basis as the plan participant.
There are two ways to do rollovers:
o Do it yourself:
You actually receive a distribution that can be rolled over and you roll it
over to a traditional IRA within 60 days after the date you receive the
funds. The distribution from your eligible retirement plan will be net of 20%
mandatory federal income tax withholding. If you want, you can replace the
withheld funds yourself and roll over the full amount.
o Direct rollover:
You tell the trustee or custodian of the eligible retirement plan to send the
distribution directly to your traditional IRA issuer. Direct rollovers are
not subject to mandatory federal income tax withholding.
All distributions from a TSA, qualified plan or governmental employer 457(b)
plan are eligible rollover distributions, unless the distributions are:
o "required minimum distributions" after age 70-1/2 or retirement from service
with the employer; or
o substantially equal periodic payments made at least annually for your life
(or life expectancy) or the joint lives (or joint life expectancies) of you
and your designated beneficiary; or
o substantially equal periodic payments made for a specified period of 10 years
or more; or
o hardship withdrawals; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o death benefit payments to a beneficiary who is not your surviving spouse; or
o qualified domestic relations order distributions to a beneficiary who is not
your current spouse or former spouse.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental employer 457(b) plan are not subject to the
additional 10% federal income tax penalty for premature distributions, but they
may become subject to this penalty if you roll the funds to a different type of
eligible retirement plan, such as a traditional IRA, and subsequently take a
premature distribution.
Rollovers of after-tax contributions from eligible retirement plans other than
traditional IRAs
Any after-tax contributions you have made to a qualified plan or TSA (but not a
governmental employer 457(b) plan) may be rolled over to a traditional IRA
(either in a direct rollover or a rollover you do yourself). When the recipient
plan is a traditional IRA, you are responsible for recordkeeping and
calculating the taxable amount of any distributions you take from that
traditional IRA. See "Taxation of Payments" later in this section under
"Withdrawals, payments and transfers of funds out of traditional IRAs."
After-tax contributions in a traditional IRA cannot be rolled over from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan.
Rollovers from traditional IRAs to traditional IRAs
You may roll over amounts from one traditional IRA to one or more of your other
traditional IRAs if you complete the transaction within 60 days after you
receive the funds. You may make such a rollover only once in every 12-month
period for the same funds. Trustee-to-trustee or custodian-to-custodian direct
transfers are not rollover transactions. You can make these more frequently
than once in every 12-month period.
SPOUSAL ROLLOVERS AND DIVORCE-RELATED DIRECT TRANSFERS
The surviving spouse beneficiary of a deceased individual can roll over funds
from, or directly transfer funds from, an inherited traditional IRA to one or
more other traditional IRAs. Also, in some cases, traditional IRAs can be
transferred on a tax-free basis between spouses or former spouses as a result
of a court-ordered divorce or separation decree.
Excess contributions
Excess contributions to IRAs are subject to a 6% excise tax for the year in
which made and for each year after until withdrawn. The following are excess
contributions to IRAs:
o regular contributions of more than the maximum regular contri bution amount
for the applicable taxable year; or
o regular contributions to a traditional IRA made after you reach age 70-1/2;
or
o rollover contributions of amounts which are not eligible to be rolled over,
for example, minimum distributions required to be made after age 70-1/2.
You can avoid the excise tax by withdrawing an excess contribution (rollover or
regular) before the due date (including extensions) for filing your federal
income tax return for the year. If it is an excess regular traditional IRA
contribution, you cannot take a tax deduction for the amount withdrawn. You do
not have to include the excess contribution withdrawn as part of your income.
It is also not subject to the 10% additional penalty tax on early
distributions, discussed later in this section under "Early distribution
penalty tax." You do have to withdraw any earnings that are attributed to the
excess contribution. The withdrawn earnings would be included in your gross
income and could be subject to the 10% penalty tax.
Even after the due date for filing your return, you may withdraw an excess
rollover contribution, without income inclusion or 10% penalty, if:
(1) the rollover was from an eligible retirement plan to a traditional IRA;
(2) the excess contribution was due to incorrect information that the plan
provided; and
Tax information 75
(3) you took no tax deduction for the excess contribution.
Recharacterizations
Amounts that have been contributed as traditional IRA funds may subsequently be
treated as Roth IRA funds. Special federal income tax rules allow you to change
your mind again and have amounts that are subsequently treated as Roth IRA
funds, once again treated as traditional IRA funds. You do this by using the
forms we prescribe. This is referred to as having "recharacterized" your
contribution.
Withdrawals, payments and transfers of funds out of
traditional IRAs
No federal income tax law restrictions on withdrawals. You can withdraw any or
all of your funds from a traditional IRA at any time. You do not need to wait
for a special event like retirement.
Taxation of payments. Earnings in traditional IRAs are not subject to federal
income tax until you or your beneficiary receive them. Taxable payments or
distributions include withdrawals from your contract, surrender of your
contract and annuity payments from your contract. Death benefits are also
taxable.
Except as discussed below, the total amount of any distribution from a
traditional IRA must be included in your gross income as ordinary income. We
report all payments from traditional IRA contracts on IRS Form 1099R as fully
taxable.
If you have ever made nondeductible IRA contributions to any traditional IRA
(it does not have to be to this particular traditional IRA contract), those
contributions are recovered tax free when you get distributions from any
traditional IRA. It is your responsibility to keep permanent tax records of all
your nondeductible contributions to traditional IRAs so that you can correctly
report the taxable amount of any distribution on your own tax return. At the
end of any year in which you have received a distribution from any traditional
IRA, you calculate the ratio of your total nondeductible traditional IRA
contributions (less any amounts previously withdrawn tax free) to the total
account balances of all traditional IRAs you own at the end of the year plus
all traditional IRA distributions made during the year. Multiply this by all
distributions from the traditional IRA during the year to determine the
nontaxable portion of each distribution.
A distribution from a traditional IRA is not taxable if:
o the amount received is a withdrawal of excess contributions, as described
under "Excess contributions" earlier in this section; or
o the entire amount received is rolled over to another traditional IRA or other
eligible retirement plan which agrees to accept the funds. (See "Rollovers
from eligible retirement plans other than traditional IRAs" under "Rollover
and transfer contributions to traditional IRAs" earlier in this section.)
The following are eligible to receive rollovers of distributions from a
traditional IRA: a qualified plan, a TSA or a governmental employer 457(b)
plan. After-tax contributions in a traditional IRA cannot be rolled from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan. Before you decide to roll over a distribution from a
traditional IRA to another eligible retirement plan, you should check with the
administrator of that plan about whether the plan accepts rollovers and, if so,
the types it accepts. You should also check with the administrator of the
receiving plan about any documents required to be completed before it will
accept a rollover.
Distributions from a traditional IRA are not eligible for favorable ten-year
averaging and long-term capital gain treatment available under limited
circumstances for certain distributions from qualified plans. If you might be
eligible for such tax treatment from your qualified plan, you may be able to
preserve such tax treatment even though an eligible rollover from a qualified
plan is temporarily rolled into a "conduit IRA" before being rolled back into a
qualified plan. See your tax
adviser.
Required minimum distributions
Background on Regulations--Required Minimum Distributions. Distributions must
be made from traditional IRAs according to rules contained in the Code and
Treasury Regulations. Certain provisions of the Treasury Regulations will
require, beginning in 2006, that the actuarial present value of additional
annuity contract benefits be added to the dollar amount credited for purposes
of calculating certain types of required minimum distributions from individual
retirement annuity contracts. This could increase the amount required to be
distributed from these contracts if you take annual withdrawals instead of
annuitizing. Please consult your tax adviser concerning applicability of these
complex rules to your situation.
Lifetime required minimum distributions. You must start taking annual
distributions from your traditional IRAs for the year in which you turn age
70-1/2.
When you have to take the first lifetime required minimum distribution. The
first required minimum distribution is for the calendar year in which you turn
age 70-1/2. You have the choice to take this first required minimum
distribution during the calendar year you actually reach age 70-1/2, or to
delay taking it until the first three-month period in the next calendar year
(January 1 - April 1). Distributions must start no later than your Required
Beginning Date, which is April 1st of the calendar year after the calendar year
in which you turn age 70-1/2. If you choose to delay taking the first annual
minimum distribution, then you will have to take two minimum distributions in
that year -- the delayed one for the first year and the one actually for that
year. Once minimum distributions begin, they must be made at some time each
year.
How you can calculate required minimum distributions.
There are two approaches to taking required minimum distributions --
"account-based" or "annuity-based."
ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the
value of your traditional IRA as of December 31st of the past calendar year by
a number corresponding to your age from an IRS table. This gives you the
required minimum distribution amount for that particular IRA for that year. If
your spouse is your sole beneficiary and more than 10 years younger than you,
the dividing number you use may be from another IRS table and may produce a
smaller lifetime required minimum distribution amount. Regardless of the table
used, the required minimum distribution amount will vary each year as the
76 Tax information
account value and the divisor change. If you initially choose an account-based
method, you may later apply your traditional IRA funds to a life annuity-based
payout with any certain period not exceeding remaining life expectancy,
determined in accordance with IRS tables.
ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to
do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a designated beneficiary or for a
period certain not extending beyond applicable life expectancies, determined in
accordance with IRS tables.
Do you have to pick the same method to calculate your required minimum
distributions for all of your traditional IRAs and other retirement plans? No.
If you want, you can choose a different method for each of your traditional
IRAs and other retirement plans. For example, you can choose an annuity payout
from one IRA, a different annuity payout from a qualified plan and an
account-based annual withdrawal from another IRA.
Will we pay you the annual amount every year from your traditional IRA based on
the method you choose? We will only pay you automatically if you affirmatively
select an annuity payout option or an account-based withdrawal option such as
our "automatic required minimum distribution (RMD) service." Even if you do not
enroll in our service we will calculate the amount of the required minimum
distribution withdrawal for you, if you so request in writing. However, in that
case you will be responsible for asking us to pay the required minimum
distribution withdrawal to you.
Also, the IRS will let you calculate the required minimum distribution for each
traditional IRA that you maintain, using the method that you picked for that
particular IRA. You can add these required minimum distribution amount
calculations together. As long as the total amount you take out every year
satisfies your overall traditional IRA required minimum distribution amount,
you may choose to take your annual required minimum distribution from any one
or more traditional IRAs that you own.
What if you take more than you need to for any year? The required minimum
distribution amount for your traditional IRAs is calculated on a year-by-year
basis. There are no carry-back or carry-forward provisions. Also, you cannot
apply required minimum distribution amounts you take from your qualified plans
to the amounts you have to take from your traditional IRAs and vice versa.
What if you take less than you need to for any year? Your IRA could be
disqualified, and you could have to pay tax on the entire value. Even if your
IRA is not disqualified, you could have to pay a 50% penalty tax on the
shortfall (required amount for traditional IRAs less amount actually taken). It
is your responsibility to meet the required minimum distribution rules. We will
remind you when our records show that - you are within the age group which must
take lifetime required minimum distributions. If you do not select a method
with us, we will assume you are taking your required minimum distribution from
another traditional IRA that you own.
What are the required minimum distribution payments after you die? These could
vary depending on whether you die before or after your Required Beginning Date
for lifetime required minimum distribution payments, and the status of your
beneficiary. The following assumes that you have not yet elected an
annuity-based payout at the time of your death. If you elect an annuity-based
payout, payments (if any) after your death must be made at least as rapidly as
when you were alive.
Individual beneficiary. Regardless of whether your death occurs before or after
your Required Beginning Date, an individual death beneficiary calculates annual
post-death required minimum distribution payments based on the beneficiary's
life expectancy using the "term certain method." That is, he or she determines
his or her life expectancy using the IRS-provided life expectancy tables as of
the calendar year after the owner's death and reduces that number by one each
subsequent year.
If you die before your Required Beginning Date, the rules permit any individual
beneficiary, including a spousal beneficiary, to elect instead to apply the
"5-year rule." Under this rule, instead of annual payments having to be made
beginning with the first in the year following the owner's death, the entire
account must be distributed by the end of the calendar year which contains the
fifth anniversary of the owners death. No distribution is required before that
fifth year.
Spousal beneficiary. If you die after your Required Beginning Date, and your
death beneficiary is your surviving spouse, your spouse has a number of
choices. Post-death distributions may be made over your spouse's single life
expectancy. Any amounts distributed after that surviving spouse's death are
made over the spouse's life expectancy calculated in the year of his/her death,
reduced by one for each subsequent year. In some circumstances, your surviving
spouse may elect to become the owner of the traditional IRA and halt
distributions until he or she reaches age 70-1/2, or roll over amounts from
your traditional IRA into his/her own traditional IRA or other eligible
retirement plan.
If you die before your Required Beginning Date, and the death beneficiary is
your surviving spouse, the rules permit the spouse to delay starting payments
over his/her life expectancy until the year in which you would have attained
age 70-1/2.
Non-individual beneficiary. If you die after your Required Beginning Date, and
your death beneficiary is a non-individual, such as the estate, the rules
permit the beneficiary to calculate post-death required minimum distribution
amounts based on the owner's life expectancy in the year of death. However,
note that we need an individual annuitant to keep an annuity contract in force.
If the beneficiary is not an individual, we must distribute amounts remaining
in the annuity contract after the death of the annuitant.
If you die before your Required Beginning Date for lifetime required minimum
distribution payments, and the death beneficiary is a non-individual, such as
the estate, the rules continue to apply the 5-year rule discussed earlier under
"Individual beneficiary." Please note that we need an individual annuitant to
keep an annuity contract in force. If the beneficiary is not an individual, we
must distribute amounts remaining in the annuity contract after the death of
the annuitant.
Tax information 77
Successor owner and annuitant
If your spouse is the sole primary beneficiary and elects to become the
successor owner and annuitant, no death benefit is payable until your surviving
spouse's death.
Payments to a beneficiary after your death
IRA death benefits are taxed the same as IRA distributions.
Borrowing and loans are prohibited transactions
You cannot get loans from a traditional IRA. You cannot use a traditional IRA
as collateral for a loan or other obligation. If you borrow against your IRA or
use it as collateral, its tax-favored status will be lost as of the first day
of the tax year in which this prohibited event occurs. If this happens, you
must include the value of the traditional IRA in your federal gross income.
Also, the early distribution penalty tax of 10% may apply if you have not
reached age 59-1/2 before the first day of that tax year.
Early distribution penalty tax
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a traditional IRA made before you reach age 59-1/2. Some of
the available exceptions to the pre-age 59-1/2 penalty tax include
distributions:
o on or after your death; or
o because you are disabled (special federal income tax definition);
or
o used to pay certain extraordinary medical expenses (special fed
eral income tax definition); or
o used to pay medical insurance premiums for unemployed indi
viduals (special federal income tax definition); or
o used to pay certain first-time home buyer expenses (special fed
eral income tax definition; $10,000 lifetime total limit for these
distributions from all your traditional and Roth IRAs); or
o used to pay certain higher education expenses (special federal
income tax definition); or
o in the form of substantially equal periodic payments made at
least annually over your life (or your life expectancy) or over the joint
lives of you and your beneficiary (or your joint life expectancies) using
an IRS-approved distribution method.
To meet this last exception, you could elect to apply your contract value to an
Income Manager(R) (life annuity with a period certain) payout annuity contract
(level payments version). You could also elect the substantially equal
withdrawals option. We will calculate the substantially equal annual payments,
using your choice of IRS-approved methods we offer. Although substantially
equal withdrawals and Income Manager(R) payments are not subject to the 10%
penalty tax, they are taxable as discussed in "Withdrawals, payments and
transfers of funds out of traditional IRAs" earlier in this section. Once
substantially equal withdrawals or Income Manager(R) annuity payments begin,
the distributions should not be stopped or changed until after the later of
your reaching age 59-1/2 or five years after the date of the first
distribution, or the penalty tax, including an interest charge for the prior
penalty avoidance, may apply to all prior distributions under either option.
Also, it is possible that the IRS could view any additional withdrawal or
payment you take from your contract as changing your pattern of substantially
equal withdrawals or Income Manager(R) payments for purposes of determining
whether the penalty applies.
Roth individual retirement annuities (Roth IRAs)
This section of the Prospectus covers some of the special tax rules that apply
to Roth IRAs. If the rules are the same as those that apply to the traditional
IRA, we will refer you to the same topic under "traditional IRAs."
The Accumulator(R) Roth IRA contract is designed to qualify as a Roth
individual retirement annuity under Sections 408A(b) and 408(b) of the Internal
Revenue Code.
Contributions to Roth IRAs
Individuals may make four different types of contributions to a Roth IRA:
o regular after-tax contributions out of earnings; or
o taxable rollover contributions from traditional IRAs ("conversion"
contributions); or
o tax-free rollover contributions from other Roth IRAs; or
o tax-free direct custodian-to-custodian transfers from other Roth
IRAs ("direct transfers").
Regular after-tax, direct transfer and rollover contributions may be made to a
Roth Conversion IRA or a Flexible Premium Roth IRA contract. If you use the
forms we require, we will also accept traditional IRA funds which are
subsequently recharacterized as Roth IRA funds following special federal income
tax rules.
Regular contributions to Roth IRAs
Limits on regular contributions. The "maximum regular contribution amount" for
any taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $4,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for each of the taxable years 2005
and 2006. This limit does not apply to rollover contributions or direct
custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth
IRAs reduce your ability to contribute to traditional IRAs and vice versa. When
your earnings are below $4,000, your earned income or compensation for the year
is the most you can contribute. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to Roth IRAs and
traditional IRAs. See the discussion earlier in this section under traditional
IRAs. If you or your spouse are at least age 50 at any time during the taxable
year for which you are making a regular contribution, additional catch-up
contributions totaling up to $500 can be made for the taxable year 2005. This
amount increases to $1,000 for the taxable year 2006.
78 Tax information
With a Roth IRA, you can make regular contributions when you reach 70-1/2, as
long as you have sufficient earnings. But, you cannot make contributions,
regardless of your age, for any year that:
o your federal income tax filing status is "married filing jointly" and your
modified adjusted gross income is over $160,000; or
o your federal income tax filing status is "single" and your modified adjusted
gross income is over $110,000.
However, you can make regular Roth IRA contributions in reduced amounts when:
o your federal income tax filing status is "married filing jointly" and your
modified adjusted gross income is between $150,000 and $160,000; or
o your federal income tax filing status is "single" and your modified adjusted
gross income is between $95,000 and $110,000.
If you are married and filing separately and your modified adjusted gross
income is between $0 and $10,000 the amount of regular contributions you are
permitted to make is phased out. If your modified adjusted gross income is more
than $10,000 you cannot make regular Roth IRA contributions.
When you can make contributions. Same as traditional IRAs.
Deductibility of contributions. Roth IRA contributions are not tax deductible.
Rollovers and direct transfers
What is the difference between rollover and direct transfer transactions? You
may make rollover contributions to a Roth IRA from only two sources:
o another Roth IRA ("tax-free rollover contribution"); or
o another traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two-year
rollover limitation period for SIMPLE IRA funds), in a taxable conversion
rollover ("conversion contribution").
You may not make contributions to a Roth IRA from a qualified plan under
Section 401(a) of the Internal Revenue Code, a TSA under Section 403(b) of the
Internal Revenue Code or any other eligible retirement plan. You may make
direct transfer contributions to a Roth IRA only from another Roth IRA.
The difference between a rollover transaction and a direct transfer transaction
is the following: in a rollover transaction you actually take possession of the
funds rolled over or are considered to have received them under tax law in the
case of a change from one type of plan to another. In a direct transfer
transaction, you never take possession of the funds, but direct the first Roth
IRA custodian, trustee or issuer to transfer the first Roth IRA funds directly
to the recipient Roth IRA custodian, trustee or issuer. You can make direct
transfer transactions only between identical plan types (for example, Roth IRA
to Roth IRA). You can also make rollover transactions between identical plan
types. However, you can only use rollover transactions between different plan
types (for example, traditional IRA to Roth IRA).
You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to
Roth IRA direct transfer transactions. This can be accomplished on a completely
tax-free basis. However, you may make Roth IRA to Roth IRA rollover
transactions only once in any 12-month period for the same funds.
Trustee-to-trustee or custodian-to-custodian direct transfers can be made more
frequently than once a year. Also, if you send us the rollover contribution to
apply it to a Roth IRA, you must do so within 60 days after you receive the
proceeds from the original IRA to get rollover treatment.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some
cases, Roth IRAs can be transferred on a tax-free basis between spouses or
former spouses as a result of a court-ordered divorce or separation decree.
Conversion contributions to Roth IRAs
In a conversion rollover transaction, you withdraw (or are considered to have
withdrawn) all or a portion of funds from a traditional IRA you maintain and
convert it to a Roth IRA within 60 days after you receive (or are considered to
have received) the traditional IRA proceeds. Unlike a rollover from a
traditional IRA to another traditional IRA, the conversion rollover transaction
is not tax-free. Instead, the distribution from the traditional IRA is
generally fully taxable. For this reason, we are required to withhold 10%
federal income tax from the amount converted unless you elect out of such
withholding. If you have ever made nondeductible regular contributions to any
traditional IRA -- whether or not it is the traditional IRA you are converting
- -- a pro rata portion of the distribution is tax free.
There is, however, no early distribution penalty tax on the traditional IRA
withdrawal that you are converting to a Roth IRA, even if you are under age
59-1/2.
You cannot make conversion contributions to a Roth IRA for any taxable year in
which your modified adjusted gross income exceeds $100,000. (For this purpose,
your modified adjusted gross income is computed without the gross income
stemming from the traditional IRA conversion. Beginning in 2005, modified
adjusted gross income for this purpose will also exclude any lifetime required
minimum distribution from a traditional IRA.) You also cannot make conversion
contributions to a Roth IRA for any taxable year in which your federal income
tax filing status is "married filing separately."
You cannot make conversion contributions to a Roth IRA to the extent that the
funds in your traditional IRA are subject to the annual required minimum
distribution rule applicable to traditional IRAs beginning at age 70-1/2.
You cannot convert and reconvert an amount during the same taxable year, or if
later, during the 30-day period following a recharacterization. If you
reconvert during either of these periods, it will be a failed Roth IRA
conversion.
Recharacterizations
You may be able to treat a contribution made to one type of IRA as having been
made to a different type of IRA. This is called recharacterizing the
contribution.
How to recharacterize. To recharacterize a contribution, you generally must
have the contribution transferred from the first IRA (the one to which it was
made) to the second IRA in a deemed trustee-to--
Tax information 79
trustee transfer. If the transfer is made by the due date (including extensions)
for your tax return for the year during which the contribution was made, you can
elect to treat the contribution as having been originally made to the second IRA
instead of to the first IRA. It will be treated as having been made to the
second IRA on the same date that it was actually made to the first IRA. You must
report the recharacterization and must treat the contribution as having been
made to the second IRA, instead of the first IRA, on your tax return for the
year during which the contribution was made.
The contribution will not be treated as having been made to the second IRA
unless the transfer includes any net income allocable to the contribution. You
can take into account any loss on the contribution while it was in the IRA when
calculating the amount that must be transferred. If there was a loss, the net
income you must transfer may be a negative amount.
No deduction is allowed for the contribution to the first IRA and any net
income transferred with the recharacterized contribution is treated as earned
in the second IRA. The contribution will not be treated as having been made to
the second IRA to the extent any deduction was allowed with respect to the
contribution to the first IRA.
For recharacterization purposes, a distribution from a traditional IRA that is
received in one tax year and rolled over into a Roth IRA in the next year, but
still within 60 days of the distribution from the traditional IRA, is treated
as a contribution to the Roth IRA in the year of the distribution from the
traditional IRA.
Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be
recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or
SIMPLE IRA).
To recharacterize a contribution, you must use our forms.
The recharacterization of a contribution is not treated as a rollover for
purposes of the 12-month limitation period described above. This rule applies
even if the contribution would have been treated as a rollover contribution by
the second IRA if it had been made directly to the second IRA rather than as a
result of a recharacterization of a contribution to the first IRA.
Withdrawals, payments and transfers of funds out of Roth
IRAs
No federal income tax law restrictions on withdrawals. You can withdraw any or
all of your funds from a Roth IRA at any time; you do not need to wait for a
special event like retirement.
Distributions from Roth IRAs
Distributions include withdrawals from your contract, surrender of your
contract and annuity payments from your contract. Death benefits are also
distributions.
You must keep your own records of regular and conversion contributions to all
Roth IRAs to assure appropriate taxation. You may have to file information on
your contributions to and distributions from any Roth IRA on your tax return.
You may have to retain all income tax returns and records pertaining to such
contributions and distributions until your interests in all Roth IRAs are
distributed.
Like traditional IRAs, taxable distributions from a Roth IRA are not entitled
to the special favorable ten-year averaging and long-term capital gain
treatment available in limited cases to certain distributions from qualified
plans.
The following distributions from Roth IRAs are free of income tax:
o Rollovers from a Roth IRA to another Roth IRA;
o Direct transfers from a Roth IRA to another Roth IRA;
o Qualified distributions from a Roth IRA; and
o Return of excess contributions or amounts recharacterized to a traditional
IRA.
Qualified distributions from Roth IRAs. Qualified distributions from Roth IRAs
made because of one of the following four qualifying events or reasons are not
includable in income:
o you are age 59-1/2; or older or
o you die; or
o you become disabled (special federal income tax definition); or
o your distribution is a "qualified first-time homebuyer distribution" (special
federal income tax definition; $10,000 lifetime total limit for these
distributions from all of your traditional and Roth IRAs).
You also have to meet a five-year aging period. A qualified distribution is any
distribution made after the five-taxable-year period beginning with the first
taxable year for which you made any contribution to any Roth IRA (whether or
not the one from which the distribution is being made).
Nonqualified distributions from Roth IRAs. Nonqualified distributions from Roth
IRAs are distributions that do not meet both the qualifying event and five-year
aging period tests described above. If you receive such a distribution, part of
it may be taxable. For purposes of determining the correct tax treatment of
distributions (other than the withdrawal of excess contributions and the
earnings on them), there is a set order in which contributions (including
conversion contributions) and earnings are considered to be distributed from
your Roth IRA. The order of distributions is as follows:
(1) Regular contributions.
(2) Conversion contributions, on a first-in-first-out basis (generally, total
conversions from the earliest year first). These conversion contributions
are taken into account as follows:
(a) Taxable portion (the amount required to be included in gross income
because of conversion) first, and then the
(b) Nontaxable portion.
(3) Earnings on contributions.
Rollover contributions from other Roth IRAs are disregarded for this purpose.
To determine the taxable amount distributed, distributions and contributions
are aggregated or grouped and added together as follows:
80 Tax information
(1) All distributions made during the year from all Roth IRAs you maintain --
with any custodian or issuer -- are added together.
(2) All regular contributions made during and for the year (contribu tions made
after the close of the year, but before the due date of your return) are
added together. This total is added to the total undistributed regular
contributions made in prior years.
(3) All conversion contributions made during the year are added together. For
purposes of the ordering rules, in the case of any conversion in which the
conversion distribution is made in 2005 and the conversion contribution is
made in 2006, the conversion contribution is treated as contributed prior
to other conversion contributions made in 2006.
Any recharacterized contributions that end up in a Roth IRA are added to the
appropriate contribution group for the year that the original contribution
would have been taken into account if it had been made directly to the Roth
IRA.
Any recharacterized contribution that ends up in an IRA other than a Roth IRA
is disregarded for the purpose of grouping both contributions and
distributions. Any amount withdrawn to correct an excess contribution
(including the earnings withdrawn) is also disregarded for this purpose.
Required minimum distributions during life
Lifetime required minimum distributions do not apply.
Required minimum distributions at death
Same as traditional IRA under "What are the required minimum distribution
payments after you die?"
Payments to a beneficiary after your death
Distributions to a beneficiary generally receive the same tax treatment as if
the distribution had been made to you.
Borrowing and loans are prohibited transactions
Same as traditional IRA.
Excess contributions
Generally the same as traditional IRA, except that regular contributions made
after age 70-1/2 are not excess contributions.
Excess rollover contributions to Roth IRAs are contributions not eligible to be
rolled over (for example, conversion contributions from a traditional IRA if
your modified adjusted gross income is in excess of $100,000 in the conversion
year).
You can withdraw or recharacterize any contribution to a Roth IRA before the
due date (including extensions) for filing your federal income tax return for
the tax year. If you do this, you must also withdraw or recharacterize any
earnings attributable to the contribution.
Early distribution penalty tax
Same as traditional IRA.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
General
This section of the Prospectus covers some of the special tax rules that apply
to TSA contracts under Section 403(b) of the Internal Revenue Code (TSAs). If
the rules are the same as those that apply to another kind of contract, for
example, traditional IRAs, we will refer you to the same topic under
"traditional IRAs."
PLEASE NOTE: The following discussion reflects our understanding of some of the
current federal income tax rules applicable to Section 403(b) of the Code. The
IRS and Treasury have recently issued Proposed Regulations on Section 403(b) of
the Code. If finalized in their current form, these Proposed Regulations would
affect the establishment and operation of plans and arrangements under Section
403(b) of the Code, and the contracts issued to fund such plans. Please consult
your tax adviser concerning how these Proposed Regulations could affect you.
Generally, there are two types of funding vehicles available for 403(b)
arrangements -- an annuity contract under Section 403(b)(1) of the Internal
Revenue Code or a custodial account that invests only in mutual funds and which
is treated as an annuity contract under Section 403(b)(7) of the Code. Both
types of 403(b) arrangements qualify for tax deferral.
Protection Plus(SM) feature
The Protection Plus(SM) feature is offered for Rollover TSA contracts, subject
to state and contract availability. There is a limit to the amount of life
insurance benefits that TSAs may offer. Although we view the optional Protection
Plus(SM) benefit as an investment protection feature which should have no
adverse tax effect and not as a life insurance benefit, the IRS has not
specifically addressed this question. It is possible that the IRS could take a
contrary position regarding tax qualification or assert that the Protection
Plus(SM) rider is not a permissible part of a TSA contract. If the IRS were to
take the position that the optional Protection Plus(SM) benefit is not part of
the contract, in such a case, the charges for the Protection Plus(SM) rider
could be treated for federal income tax purposes as a partial withdrawal from
the contract. If this were so, such a deemed withdrawal could affect the tax
qualification of the TSA and could be taxable. Were the IRS to take any adverse
position, AXA Equitable would take all reasonable steps to attempt to avoid any
adverse result, which would include amending the contract (with appropriate
notice to you). You should discuss with your tax adviser whether you should
consider purchasing an Accumulator(R) Rollover TSA contract with the optional
Protection Plus(SM) feature.
Contributions to TSAs
There are two ways you can make contributions to establish this Accumulator(R)
Rollover TSA contract:
o a full or partial direct transfer of assets ("direct transfer") from
Tax information 81
another contract or arrangement that meets the requirements of Section
403(b) of the Internal Revenue Code by means of IRS Revenue Ruling 90-24;
or
o a rollover from another 403(b) arrangement.
If you make a direct transfer, you must fill out our transfer form.
We do not accept after-tax funds in the Rollover TSA.
Employer-remitted contributions. The Accumulator(R) Rollover TSA contract does
not accept employer-remitted contributions. However, we provide the following
discussion as part of our description of restrictions on the distribution of
funds directly transferred, which include employer-remitted contributions to
other TSAs.
Employer-remitted contributions to TSAs made through the employer's payroll are
subject to annual limits. (Tax-free direct transfer contributions from another
403(b) arrangement and rollover contributions from another eligible retirement
plan are not subject to these annual contribution limits.) Commonly, some or
all of the contributions made to a TSA are made under a salary reduction
agreement between the employee and the employer. These contributions are called
"salary reduction" or "elective deferral" contributions. However, a TSA can
also be wholly or partially funded through nonelective employer contributions
or after-tax employee contributions. Amounts attributable to salary reduction
contributions to TSAs are generally subject to withdrawal restrictions. Also,
all amounts attributable to investments in a 403(b)(7) custodial account are
subject to withdrawal restrictions discussed below.
Rollover or direct transfer contributions. Once you establish your Rollover TSA
contract with 403(b)-source funds, you may make subsequent rollover
contributions to your Rollover TSA contract from these sources: qualified
plans, governmental employer 457(b) plans and traditional IRAs, as well as
other TSAs and 403(b) arrangements. All rollover contributions must be pre-tax
funds only with appropriate documentation satisfactory to us.
Generally, you may make a rollover contribution to your TSA when you have a
distributable event from an existing TSA or other eligible retirement plan as a
result of your:
o termination of employment with the employer who provided the funds for the
plan; or
o reaching age 59-1/2 even if you are still employed; or
o disability (special federal income tax definition).
You can roll over pre-tax funds from a traditional IRA to a TSA at any time.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental employer 457(b) plan are not subject to the
additional 10% federal income tax penalty for premature distributions, but they
may become subject to this penalty if you roll the funds to a different type of
eligible retirement plan and subsequently take a premature distribution.
If the recipient plan separately accounts for funds rolled over from another
eligible retirement plan, the IRS has ruled that an exception is available in
certain situations to withdrawal restrictions that would otherwise apply to the
rollover contribution funds in the recipient plan. We do not currently
separately account for rollover contributions from other eligible retirement
plans.
A transfer occurs when changing the funding vehicle, even if there is no
distributable event. Under a direct transfer, you do not receive a
distribution. We accept direct transfers of TSA funds under Revenue Ruling
90-24 only if:
o you give us acceptable written documentation as to the source of the funds,
and
o the Accumulator(R) contract receiving the funds has provisions at least as
restrictive as the source contract.
Before you transfer funds to an Accumulator(R) Rollover TSA contract, you may
have to obtain your employer's authorization or demonstrate that you do not
need employer authorization. For example, the transferring TSA may be subject
to Title I of ERISA, if the employer makes matching contributions to salary
reduction contributions made by employees. In that case, the employer must
continue to approve distributions from the plan or contract.
Your contribution to the Accumulator(R) Rollover TSA must be net of the
required minimum distribution for the tax year in which we issue the contract
if:
o you are or will be at least age 70-1/2 in the current calendar year, and
o you have retired from service with the employer who provided the funds to
purchase the TSA you are transferring or rolling over to the Accumulator(R)
Rollover TSA.
This rule applies regardless of whether the source of funds is a:
o rollover by check of the proceeds from another TSA or eligible retirement
plan; or
o direct rollover from another TSA or eligible retirement plan; or
o direct transfer under Revenue Ruling 90-24 from another TSA.
Distributions from TSAs
General. Depending on the terms of the employer plan and your employment
status, you may have to get your employer's consent to take a loan or
withdrawal. Your employer will tell us this when you establish the TSA through
a direct transfer.
Withdrawal restrictions. If this is a Revenue Ruling 90-24 direct transfer, we
will treat all amounts transferred to this contract and any future earnings on
the amount transferred as not eligible for withdrawal until one of the
following events happens:
82 Tax information
o you are severed from employment with the employer who provided the funds to
purchase the TSA you are transferring to the Accumulator(R) Rollover TSA; or
o you reach age 59-1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o you take a hardship withdrawal (special federal income tax definition).
If any portion of the funds directly transferred to your TSA contract is
attributable to amounts that you invested in a 403(b)(7) custodial account,
such amounts, including earnings, are subject to withdrawal restrictions. With
respect to the portion of the funds that were never invested in a 403(b)(7)
custodial account, these restrictions apply to the salary reduction (elective
deferral) contributions to a TSA annuity contract you made and any earnings on
them. These restrictions do not apply to the amount directly transferred to
your TSA contract that represents your December 31, 1988, account balance
attributable to salary reduction contributions to a TSA annuity contract and
earnings. To take advantage of this grandfathering you must properly notify us
in writing at our processing office of your December 31, 1988, account balance
if you have qualifying amounts transferred to your TSA contract.
This paragraph applies only to participants in a Texas Optional retirement
program. Texas Law permits withdrawals only after one of the following
distributable events occur:
(1) the requirements for minimum distribution (discussed under "Required
minimum distributions" later in this section) are met; or
(2) death; or
(3) retirement; or
(4) termination of employment in all Texas public institutions of higher
education.
For you to make a withdrawal, we must receive a properly completed written
acknowledgment from the employer. If a distributable event occurs before you
are vested, we will refund to the employer any amounts provided by an
employer's first-year matching contribution. We reserve the right to change
these provisions without your consent, but only to the extent necessary to
maintain compliance with applicable law. Loans are not permitted under Texas
Optional Retirement Programs.
Tax treatment of distributions. Amounts held under TSAs are generally not
subject to federal income tax until benefits are distributed. Distributions
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSAs are includable in
gross income as ordinary income. Distributions from TSAs may be subject to 20%
federal income tax withholding. See "Federal and state income tax withholding
and information reporting" later in this section. In addition, TSA
distributions may be subject to additional tax penalties.
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since we currently do not accept
after-tax funds, we do not track your investment in the contract, if any. We
will report all distributions from this Rollover TSA as fully taxable. It is
your responsibility to determine how much of the distribution is taxable.
Distributions before annuity payments begin. On a total surrender, the amount
received in excess of the investment in the contract is taxable. The amount of
any partial distribution from a TSA prior to the annuity starting date is
generally taxable, except to the extent that the distribution is treated as a
withdrawal of after-tax contributions. Distributions are normally treated as
pro rata withdrawals of any after-tax contributions and earnings on those
contributions.
Annuity Payments. If you elect an annuity payout option, you will recover any
investment in the contract as each payment is received by dividing the
investment in the contract by an expected return determined under an IRS table
prescribed for qualified annuities. The amount of each payment not excluded
from income under this exclusion ratio is fully taxable. The full amount of the
payments received after your investment in the contract is recovered is fully
taxable. If you (and your beneficiary under a joint and survivor annuity) die
before recovering the full investment in the contract, a deduction is allowed
on your (or your beneficiary's) final tax return.
Payments to a beneficiary after your death. Death benefit distributions from a
TSA generally receive the same tax treatment as distributions during your
lifetime. In some instances, distributions from a TSA made to your surviving
spouse may be rolled over to a traditional IRA or other eligible retirement
plan.
Loans from TSAs. You may take loans from a TSA unless restricted by the
employer (for example, under an employer plan subject to ERISA). If you cannot
take a loan, or cannot take a loan without approval from the employer who
provided the funds, we will have this information in our records based on what
you and the employer who provided the TSA funds told us when you purchased your
contract.
Loans are generally not treated as a taxable distribution. If the amount of the
loan exceeds permissible limits under federal income tax rules when made, the
amount of the excess is treated (solely for tax purposes) as a taxable
distribution. Additionally, if the loan is not repaid at least quarterly,
amortizing (paying down) interest and principal, the amount not repaid when due
will be treated as a taxable distribution. The entire unpaid balance of the
loan is includable in income in the year of the default.
TSA loans are subject to federal income tax limits and may also be subject to
the limits of the plan from which the funds came. Federal income tax rule
requirements apply even if the plan is not subject to ERISA. For example, loans
offered by TSAs are subject to the following conditions:
o The amount of a loan to a participant, when combined with all other loans to
the participant from all qualified plans of the employer, cannot exceed the
lesser of:
Tax information 83
(1) the greater of $10,000 or 50% of the participant's nonfor feitable
accrued benefits; and
(2) $50,000 reduced by the excess (if any) of the highest out standing loan
balance over the previous twelve months over the outstanding loan
balance of plan loans on the date the loan was made.
o In general, the term of the loan cannot exceed five years unless the loan is
used to acquire the participant's primary residence. Accumulator(R) Rollover
TSA contracts have a term limit of 10 years for loans used to acquire the
participant's primary residence.
o All principal and interest must be amortized in substantially level payments
over the term of the loan, with payments being made at least quarterly. In
very limited circumstances, the repayment obligation may be temporarily
suspended during a leave of absence.
The amount borrowed and not repaid may be treated as a distribution if:
o the loan does not qualify under the conditions above;
o the participant fails to repay the interest or principal when due; or
o in some instances, the participant separates from service with the employer
who provided the funds or the plan is terminated.
In this case, the participant may have to include the unpaid amount due as
ordinary income. In addition, the 10% early distribution penalty tax may apply.
The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as
a distribution.
See Appendix VIII later in this Prospectus for any state rules that may affect
loans from a Rollover TSA contract.
Tax-deferred rollovers and direct transfers. You may roll over an "eligible
rollover distribution" from a TSA into another eligible retirement plan which
agrees to accept the rollover. The rollover may be a direct rollover or one you
do yourself within 60 days after you receive the distribution. To the extent
rolled over, a distribution remains tax-deferred.
You may roll over a distribution from a TSA to any of the following: a
qualified plan, a governmental employer 457(b) plan (separate accounting
required) or a traditional IRA. A spousal beneficiary may also roll over death
benefits as above.
The taxable portion of most distributions will be eligible for rollover, except
as specifically excluded under federal income tax rules. Distributions that you
cannot roll over generally include periodic payments for life or for a period
of 10 years or more, hardship withdrawals and required minimum distributions
under federal income tax rules.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling
90-24 are not distributions.
Required minimum distributions
Generally the same as traditional IRA with these differences:
When you have to take the first required minimum distribution. The minimum
distribution rules force TSA participants to start calculating and taking
annual distributions from their TSAs by a required date. Generally, you must
take the first required minimum distribution for the calendar year in which you
turn age 70-1/2. You may be able to delay the start of required minimum
distributions for all or part of your account balance until after age 70-1/2,
as follows:
o For TSA participants who have not retired from service with the employer who
provided the funds for the TSA by the calendar year the participant turns age
70-1/2, the required beginning date for minimum distributions is extended to
April 1 following the calendar year of retirement.
o TSA plan participants may also delay the start of required mini mum
distributions to age 75 of the portion of their account value attributable to
their December 31, 1986, TSA account balance, even if retired at age 70-1/2.
We will know whether or not you qualify for this exception because it will
only apply to people who establish their Accumulator(R) Rollover TSA by
direct Revenue Ruling 90-24 transfers. If you do not give us the amount of
your December 31, 1986, account balance that is being transferred to the
Accumulator(R) Rollover TSA on the form used to establish the TSA, you do not
qualify.
Spousal consent rules
This will only apply to you if you establish your Accumulator(R) Rollover TSA
by direct Revenue Ruling 90-24 transfer. Your employer will tell us on the form
used to establish the TSA whether or not you need to get spousal consent for
loans, withdrawals or other distributions. If you do, you will need such
consent if you are married when you request a withdrawal under the TSA
contract. In addition, unless you elect otherwise with the written consent of
your spouse, the retirement benefits payable under the plan must be paid in the
form of a qualified joint and survivor annuity. A qualified joint and survivor
annuity is payable for the life of the annuitant with a survivor annuity for
the life of the spouse in an amount not less than one-half of the amount
payable to the annuitant during his or her lifetime. In addition, if you are
married, the beneficiary must be your spouse, unless your spouse consents in
writing to the designation of another beneficiary.
If you are married and you die before annuity payments have begun, payments
will be made to your surviving spouse in the form of a life annuity unless at
the time of your death a contrary election was in effect. However, your
surviving spouse may elect, before payments begin, to receive payments in any
form permitted under the terms of the TSA contract and the plan of the employer
who provided the funds for the TSA.
Early distribution penalty tax
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a TSA before you reach age 59-1/2. This is in addition to
any income tax. There are exceptions to the extra penalty tax. Some of the
available exceptions to the pre-age 59-1/2 penalty tax include distributions
made:
84 Tax information
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o to pay for certain extraordinary medical expenses (special federal income tax
definition); or
o in any form of payout after you have separated from service (only if the
separation occurs during or after the calendar year you reach age 55); or
o in a payout in the form of substantially equal periodic payments made at
least annually over your life (or your life expectancy), or over the joint
lives of you and your beneficiary (or your joint life expectancies) using an
IRS-approved distribution method (only after you have separated from service
at any age).
FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING
We must withhold federal income tax from distributions from annuity contracts.
You may be able to elect out of this income tax withholding in some cases.
Generally, we do not have to withhold if your distributions are not taxable.
The rate of withholding will depend on the type of distribution and, in certain
cases, the amount of your distribution. Any income tax withheld is a credit
against your income tax liability. If you do not have sufficient income tax
withheld or do not make sufficient estimated income tax payments, you may incur
penalties under the estimated income tax rules.
You must file your request not to withhold in writing before the payment or
distribution is made. Our processing office will provide forms for this
purpose. You cannot elect out of withholding unless you provide us with your
correct Taxpayer Identification Number and a United States residence address.
You cannot elect out of withholding if we are sending the payment out of the
United States.
You should note the following special situations:
o We might have to withhold and/or report on amounts we pay under a free look
or cancellation.
o We are generally required to withhold on conversion rollovers of traditional
IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA
and is taxable.
o We are required to withhold on the gross amount of a distribu tion from a
Roth IRA to the extent it is reasonable for us to believe that a distribution
is includable in your gross income. This may result in tax being withheld
even though the Roth IRA distribution is ultimately not taxable. You can
elect out of withholding as described below.
Special withholding rules apply to foreign recipients and United States
citizens residing outside the United States. We do not discuss these rules here
in detail. However, we may require additional documentation in the case of
payments made to non-United States persons and United States persons living
abroad prior to processing any requested transaction.
Certain states have indicated that state income tax withholding will also apply
to payments from the contracts made to residents. In some states, you may elect
out of state withholding, even if federal withholding applies. Generally, an
election out of federal withholding will also be considered an election out of
state withholding. If you need more information concerning a particular state
or any required forms, call our processing office at the toll-free number.
Federal income tax withholding on periodic annuity
payments
We withhold differently on "periodic" and "non-periodic" payments. For a
periodic annuity payment, for example, unless you specify a different number of
withholding exemptions, we withhold assuming that you are married and claiming
three withholding exemptions. If you do not give us your correct Taxpayer
Identification Number, we withhold as if you are single with no exemptions.
Based on the assumption that you are married and claiming three withholding
exemptions, if you receive less than $17,760 in periodic annuity payments in
2005, your payments will generally be exempt from federal income tax
withholding. You could specify a different choice of withholding exemption or
request that tax be withheld. Your withholding election remains effective
unless and until you revoke it. You may revoke or change your withholding
election at any time.
Federal income tax withholding on non-periodic annuity
payments (withdrawals)
For a non-periodic distribution (total surrender or partial withdrawal), we
generally withhold at a flat 10% rate. We apply that rate to the taxable amount
in the case of nonqualified contracts, and to the payment amount in the case of
traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is
includable in gross income.
You cannot elect out of withholding if the payment is an eligible rollover
distribution from a qualified plan or TSA. If a non-periodic distribution from
a qualified plan or TSA is not an eligible rollover distribution then the 10%
withholding rate applies.
Mandatory withholding from TSA and qualified plan
distributions
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans and TSAs are subject to mandatory 20%
withholding. The plan administrator is responsible for withholding from
qualified plan distributions. An eligible rollover distribution from a TSA or a
qualified plan can be rolled over to another eligible retirement plan. All
distributions from a TSA or qualified plan are eligible rollover distributions
unless they are on the following list of exceptions:
o any distributions which are required minimum distributions after age 70-1/2
or retirement from service with the employer; or
o substantially equal periodic payments made at least annually for your life
(or life expectancy) or the joint lives (or joint life expectancies) of you
and your designated beneficiary; or
o substantially equal periodic payments made for a specified period of 10 years
or more; or
o hardship withdrawals; or
Tax information 85
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviving spouse;
or
o a qualified domestic relations order distribution to a beneficiary who is not
your current spouse or former spouse.
A death benefit payment to your surviving spouse, or a qualified domestic
relations order distribution to your current or former spouse, may be a
distribution subject to mandatory 20% withholding.
SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS
For QP contracts, your plan administrator or trustee notifies you as to tax
consequences. See Appendix II at the end of this Prospectus.
IMPACT OF TAXES TO AXA EQUITABLE
The contracts provide that we may charge Separate Account No. 49 for taxes. We
do not now, but may in the future set up reserves for such taxes.
86 Tax information
8. More information
- --------------------------------------------------------------------------------
ABOUT SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 49. We
established Separate Account No. 49 in 1996 under special provisions of the New
York Insurance Law. These provisions prevent creditors from any other business
we conduct from reaching the assets we hold in our variable investment options
for owners of our variable annuity contracts. We are the legal owner of all of
the assets in Separate Account No. 49 and may withdraw any amounts that exceed
our reserves and other liabilities with respect to variable investment options
under our contracts. The results of Separate Account No. 49 operations are
accounted for without regard to AXA Equitable's other operations.
Separate Account No. 49 is registered under the Investment Company Act of 1940
and is classified by that act as a "unit investment trust." The SEC, however,
does not manage or supervise AXA Equitable or the Separate Account No. 49.
Each subaccount (variable investment option) within the Separate Accounts
invests solely in class IB/B shares issued by the corresponding portfolio of
its Trust.
We reserve the right subject to compliance with laws that apply:
(1) to add variable investment options to, or to remove variable investment
options from, either Separate Account, or to add other separate accounts;
(2) to combine any two or more variable investment options;
(3) to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment option
to another variable investment option;
(4) to operate each Separate Account or any variable investment option as a
management investment company under the Investment Company Act of 1940 (in
which case, charges and expenses that otherwise would be assessed against
an underlying mutual fund would be assessed against each Separate Account
or a variable investment option directly);
(5) to deregister the Separate Accounts under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to the Separate Accounts; and
(7) to cause one or more variable investment options to invest some or all of
their assets in one or more other trusts or investment companies.
ABOUT THE TRUSTS
The Trusts are registered under the Investment Company Act of 1940. They are
classified as "open-end management investment companies," more commonly called
mutual funds. Each Trust issues different shares relating to each portfolio.
The Trusts do not impose sales charges or "loads" for buying and selling their
shares. All dividends and other distributions on the Trusts' shares are
reinvested in full. The Board of Trustees of each Trust may establish
additional portfolios or eliminate existing portfolios at any time. More
detailed information about each Trust, its portfolio investment objectives,
policies, restrictions, risks, expenses, its Rule 12b-1 Plan, and other aspects
of its operations, appears in the prospectuses for each Trust, which generally
accompany this Prospectus, or in the respective SAIs, which are available upon
request.
ABOUT OUR FIXED MATURITY OPTIONS
RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE
We can determine the amount required to be allocated to one or more fixed
maturity options in order to produce specified maturity values. For example, we
can tell you how much you need to allocate per $100 of maturity value.
FMO rates are determined daily. The rates in the table below are illustrative
only and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
For example, the rates to maturity for new allocations as of February 15, 2005
and the related price per $100 of maturity value were as shown below:
- ----------------------------------------------------------
Fixed Maturity
Options with
February 15th Rate to Maturity Price
Maturity Date of as of Per $100 of
Maturity Year February 15, 2005 Maturity Value
- ----------------------------------------------------------
2006 3.00%* $ 97.09
2007 3.00%* $ 94.26
2008 3.00%* $ 91.51
2009 3.00%* $ 88.84
2010 3.00%* $ 86.25
2011 3.00%* $ 83.74
2012 3.00%* $ 81.30
2013 3.08% $ 78.44
2014 3.22% $ 75.17
2015 3.32% $ 72.12
- ----------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated to
these options.
HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT
We use the following procedure to calculate the market value adjustment (up or
down) we make if you withdraw any of your value from a fixed maturity option
before its maturity date.
(1) We determine the market adjusted amount on the date of the withdrawal as
follows:
(a) We determine the fixed maturity amount that would be payable on the
maturity date, using the rate to maturity for the fixed maturity
option.
More information 87
(b) We determine the period remaining in your fixed maturity option (based
on the withdrawal date) and convert it to fractional years based on a
365-day year. For example, three years and 12 days becomes 3.0329.
(c) We determine the current rate to maturity for your FMO based on the
rate for a new FMO issued on the same date and having the same maturity
date as your FMO; if the same maturity date is not available for new
FMOs, we determine a rate that is between the rates for new FMO
maturities that immediately precede and immediately follow your FMO's
maturity date.
(d) We determine the present value of the fixed maturity amount payable at
the maturity date, using the period determined in (b) and the rate
determined in (c).
(2) We determine the fixed maturity amount as of the current date.
(3) We subtract (2) from the result in (1)(d). The result is the market value
adjustment applicable to such fixed maturity option, which may be positive
or negative.
If you withdraw only a portion of the amount in a fixed maturity option, the
market value adjustment will be a percentage of the market value adjustment
that would have applied if you had withdrawn the entire value in that fixed
maturity option. This percentage is equal to the percentage of the value in the
fixed maturity option that you are withdrawing. Any withdrawal charges that are
deducted from a fixed maturity option will result in a market value adjustment
calculated in the same way. See Appendix IV at the end of this Prospectus for
an example.
For purposes of calculating the rate to maturity for new allocations to a fixed
maturity option (see (1)(c) above), we use the rate we have in effect for new
allocations to that fixed maturity option. We use this rate even if new
allocations to that option would not be accepted at that time. This rate will
not be less than 3%. If we do not have a rate to maturity in effect for a fixed
maturity option to which the "current rate to maturity" in (1)(c) would apply,
we will use the rate at the next closest maturity date. If we are no longer
offering new fixed maturity options, the "current rate to maturity" will be
determined by using a widely published index. We reserve the right to add up to
0.25% to the current rate in (1)(c) above for purposes of calculating the
market value adjustment only.
INVESTMENTS UNDER THE FIXED MATURITY OPTIONS
Amounts allocated to the fixed maturity options are held in a "nonunitized"
separate account we have established under the New York Insurance Law. This
separate account provides an additional measure of assurance that we will make
full payment of amounts due under the fixed maturity options. Under New York
Insurance Law, the portion of the separate account's assets equal to the
reserves and other contract liabilities relating to the contracts are not
chargeable with liabilities from any other business we may conduct. We own the
assets of the separate account, as well as any favorable investment performance
on those assets. You do not participate in the performance of the assets held
in this separate account. We may, subject to state law that applies, transfer
all assets allocated to the separate account to our general account. We
guarantee all benefits relating to your value in the fixed maturity options,
regardless of whether assets supporting fixed maturity options are held in a
separate account or our general account.
We expect the rates to maturity for the fixed maturity options to be influenced
by, but not necessarily correspond to, among other things, the yields that we
can expect to realize on the separate account's investments from time to time.
Our current plans are to invest in fixed-income obligations, including
corporate bonds, mortgage-backed and asset-backed securities, and government
and agency issues having durations in the aggregate consistent with those of
the fixed maturity options.
Although the above generally describes our plans for investing the assets
supporting our obligations under the fixed maturity options under the
contracts, we are not obligated to invest those assets according to any
particular plan except as we may be required to by state insurance laws. We
will not determine the rates to maturity we establish by the performance of the
nonunitized separate account.
ABOUT THE GENERAL ACCOUNT
Our general account supports all of our policy and contract guarantees,
including those that apply to the guaranteed interest option and the fixed
maturity options and the account for special dollar cost averaging, as well as
our general obligations.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations
of all jurisdictions where we are authorized to do business. Because of
exemptions and exclusionary provisions that apply, interests in the general
account have not been registered under the Securities Act of 1933, nor is the
general account an investment company under the Investment Company Act of 1940.
However, the market value adjustment interests under the contracts are
registered under the Securities Act of 1933.
We have been advised that the staff of the SEC has not reviewed the portions of
this Prospectus that relate to the general account (other than market value
adjustment interests). The disclosure with regard to the general account,
however, may be subject to certain provisions of the federal securities laws
relating to the accuracy and completeness of statements made in prospectuses.
ABOUT OTHER METHODS OF PAYMENT
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept initial and subsequent contributions sent by wire to our processing
office by agreement with certain broker-dealers. Such transmittals must be
accompanied by information we require to allocate your contribution. Wire
orders not accompanied by complete information may be retained as described
under "How you can make your contributions" under "Contract features and
benefits" earlier in this Prospectus.
Even if we accept the wire order and essential information, a contract
generally will not be issued until we receive and accept a properly completed
application. In certain cases we may issue a contract based on information
provided through certain broker-dealers with which we
88 More information
have established electronic facilities. In any such cases, you must sign our
Acknowledgement of Receipt form.
Where we require a signed application, the above procedures do not apply and no
financial transactions will be permitted until we receive the signed
application and have issued the contract. Where we issue a contract based on
information provided through electronic facilities, we require an
Acknowledgement of Receipt form, and financial transactions are only permitted
if you request them in writing, sign the request and have its signature
guaranteed, until we receive the signed Acknowledgement of Receipt form. After
your contract has been issued, additional contributions may be transmitted by
wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
After your contract has been issued, additional contributions may be
transmitted by wire.
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ, FLEXIBLE PREMIUM IRA AND FLEXIBLE
PREMIUM ROTH IRA CONTRACTS ONLY
You may use our automatic investment program, or "AIP," to have a specified
amount automatically deducted from a checking account, money market account, or
credit union checking account and contributed as an additional contribution
into an NQ, Flexible Premium IRA or Flexible Premium Roth IRA contract on a
monthly or quarterly basis. AIP is not available for Rollover IRA, Roth
Conversion IRA, QP or Rollover TSA contracts, nor is it available with GPB
Option 2. Please see Appendix VIII later in this Prospectus to see if the
automatic investment program is available in your state.
For NQ contracts, the minimum amounts we will deduct are $100 monthly and $300
quarterly. Under Flexible Premium IRA and Flexible Premium Roth IRA contracts,
the minimum amount is $50. AIP additional contributions may be allocated to any
of the variable investment options and available fixed maturity options, but
not the account for special dollar cost averaging. You choose the day of the
month you wish to have your account debited. However, you may not choose a date
later than the 28th day of the month.
You may cancel AIP at any time by notifying our processing office. We are not
responsible for any debits made to your account before the time written notice
of cancellation is received at our processing office.
DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this Prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our business day, generally, is any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions. Our business day generally ends at 4:00 p.m. Eastern Time for
purposes of determining the date when contributions are applied and any other
transaction requests are processed. Contributions will be applied and any other
transaction requests will be processed when they are received along with all
the required information unless another date applies as indicated below.
o If your contribution, transfer, or any other transaction request, containing
all the required information, reaches us on a non-business day or after 4:00
p.m. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then the
transaction will occur on the 1st day of the next month.
o When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
o If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your contribution
will be considered received at the time your broker-dealer receives your
contribution and all information needed to process your application, along
with any required documents, and transmits your order to us in accordance
with our processing procedures. Such arrangements may apply to initial
contributions, subsequent contributions, or both, and may be commenced or
terminated at any time without prior notice. If required by law, the "closing
time" for such orders will be earlier than 4 p.m., Eastern Time.
CONTRIBUTIONS AND TRANSFERS
o Contributions allocated to the variable investment options are invested at
the value next determined after the close of the business day.
o Contributions allocated to the guaranteed interest option will receive the
crediting rate in effect on that business day for the specified time period.
o Contributions allocated to a fixed maturity option will receive the rate to
maturity in effect for that fixed maturity option on that business day
(unless a rate lock-in is applicable).
o Initial contributions allocated to the account for special dollar cost
averaging receive the interest rate in effect on that business day. At
certain times, we may offer the opportunity to lock in the interest rate for
an initial contribution to be received under Section 1035 exchanges and
trustee to trustee transfers. Your financial professional can provide
information or you can call our processing office.
More information 89
o Transfers to or from variable investment options will be made at the value
next determined after the close of the business day.
o Transfers to a fixed maturity option will be based on the rate to maturity in
effect for that fixed maturity option on the business day of the transfer.
o Transfers to the guaranteed interest option will receive the crediting rate
in effect on that business day for the specified time period.
o For the interest sweep option, the first monthly transfer will occur on the
last business day of the month following the month that we receive your
election form at our processing office.
ABOUT YOUR VOTING RIGHTS
As the owner of shares of the Trusts, we have the right to vote on certain
matters involving the portfolios, such as:
o the election of trustees;
o the formal approval of independent public accounting firms selected for each
Trust; or
o any other matters described in each prospectus for the Trusts or requiring a
shareholders' vote under the Investment Company Act of 1940.
We will give contract owners the opportunity to instruct us how to vote the
number of shares attributable to their contracts if a shareholder vote is
taken. If we do not receive instructions in time from all contract owners, we
will vote the shares of a portfolio for which no instructions have been
received in the same proportion as we vote shares of that portfolio for which
we have received instructions. We will also vote any shares that we are
entitled to vote directly because of amounts we have in a portfolio in the same
proportions that contract owners vote.
The Trusts sell their shares to AXA Equitable separate accounts in connection
with AXA Equitable's annuity and/or variable life insurance products, and to
separate accounts of insurance companies, both affiliated and unaffiliated with
AXA Equitable. EQ Advisors Trust and AXA Premier VIP Trust also sell their
shares to the trustee of a qualified plan for AXA Equitable. We currently do
not foresee any disadvantages to our policyowners arising out of these
arrangements. However, the Board of Trustees or Directors of each Trust intends
to monitor events to identify any material irreconcilable conflicts that may
arise and to determine what action, if any, should be taken in response. If we
believe that a Board's response insufficiently protects our policyowners, we
will see to it that appropriate action is taken to do so.
SEPARATE ACCOUNT NO. 49 VOTING RIGHTS
If actions relating to the Separate Account require contract owner approval,
contract owners will be entitled to one vote for each unit they have in the
variable investment options. Each contract owner who has elected a variable
annuity payout option may cast the number of votes equal to the dollar amount
of reserves we are holding for that annuity in a variable investment option
divided by the annuity unit value for that option. We will cast votes
attributable to any amounts we have in the variable investment options in the
same proportion as votes cast by contract owners.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this Prospectus are created under applicable
federal securities laws. To the extent that those laws or the regulations
published under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
ABOUT LEGAL PROCEEDINGS
AXA Equitable and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings would be considered material with respect
to a contract owner's interest in Separate Account No. 49, nor would any of
these proceedings be likely to have a material adverse effect upon the Separate
Account, our ability to meet our obligations under the contracts, or the
distribution of the contracts.
ABOUT OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The consolidated financial statements of AXA Equitable at December 31, 2004 and
2003, and for the three years ended December 31, 2004 incorporated in this
Prospectus by reference to the 2004 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent registered
public accounting firm, given on the authority of said firm as experts in
auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 49, as well as the
consolidated financial statements of AXA Equitable, are in the SAI. The SAI is
available free of charge. You may request one by writing to our processing
office or calling 1-800-789-7771.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING
You can transfer ownership of an NQ contract at any time before annuity
payments begin. We will continue to treat you as the owner until we receive
notification of any change at our processing office. You cannot assign your NQ
contract as collateral or security for a loan. Loans are also not available
under your NQ contract. In some cases, an assignment or change of ownership may
have adverse tax consequences. See "Tax information" earlier in this
Prospectus.
For NQ contracts only, subject to regulatory approval, if you elected the
Guaranteed minimum death benefit, Guaranteed minimum income benefit, Protection
Plus(SM), Guaranteed principal benefit option 2, and/or the Principal
Protector(SM) ("Benefit"), generally the Benefit will automatically terminate if
you change ownership of the contract or if you assign the owner's right to
change the beneficiary or person to whom annuity payments will be made. However,
the Benefit will not terminate if the ownership of the contract is transferred
to: (i) a family member (as defined in the contract); (ii) a trust created for
the benefit of a family member or members; (iii) a trust qualified under section
501(c) of the Internal Revenue Code; or (iv) a successor by operation
90 More information
of law, such as an executor or guardian. Please speak with your financial
professional for further information.
See Appendix VIII later in this Prospectus for any state variations with regard
to terminating any benefits under your contract.
You cannot assign or transfer ownership of an IRA, QP or Rollover TSA contract
except by surrender to us. If your individual retirement annuity contract is
held in your custodial individual retirement account, you may only assign or
transfer ownership of such an IRA contract to yourself. Loans are not available
and you cannot assign IRA and QP contracts as security for a loan or other
obligation. If the employer that provided the funds does not restrict them,
loans are available under a Rollover TSA contract.
For limited transfers of ownership after the owner's death see "Beneficiary
continuation option" in "Payment of death benefit" earlier in this Prospectus.
You may direct the transfer of the values under your IRA, QP or Rollover TSA
contract to another similar arrangement under federal income tax rules. In the
case of such a transfer, which involves a surrender of your contract, we will
impose a withdrawal charge, if one applies.
DISTRIBUTION OF THE CONTRACTS
The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and
AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The
Distributors serve as principal underwriters of Separate Account No. 49. The
offering of the contracts is intended to be continuous.
AXA Advisors (the successor to EQ Financial Consultants, Inc.), an affiliate of
AXA Equitable, and AXA Distributors, an indirect wholly owned subsidiary of AXA
Equitable, are registered with the SEC as broker-dealers and are members of the
National Association of Securities Dealers, Inc. ("NASD"). Their principal
business address is 1290 Avenue of the Americas, New York, NY 10104. Both
broker-dealers also act as distributors for other AXA Equitable annuity
products. AXA Distributors is a successor by merger to all of the functions,
rights and obligations of Equitable Distributors, Inc. ("EDI"). Like AXA
Distributors, EDI was owned by Equitable Holdings, LLC.
The contracts are sold by financial professionals of AXA Advisors and its
affiliates and by financial professionals of both affiliated and unaffiliated
broker-dealers that have entered into selling agreements with the Distributors
("Selling broker-dealers"). Affiliated broker-dealers include MONY Securities
Corporation ("MSC")* and Advest, Inc. The Distributors, MSC and Advest are all
under the common control of AXA Financial, Inc.
AXA Equitable pays sales compensation to both Distributors. In general,
broker-dealers receiving sales compensation will pay all or a portion of it to
its individual financial representatives (or to its Selling broker-dealers) as
commissions related to the sale of contracts.
Sales compensation paid to AXA Advisors will generally not exceed 8.5% of the
total contributions made under the contracts. AXA Advisors, in turn, may pay its
financial professionals (or Selling broker-- dealers) either a portion of the
contribution-based compensation or a reduced portion of the contribution-based
compensation in combination with ongoing annual compensation ("asset-based
compensation") up to 0.60% of the account value of the contract sold, based on
the financial professional's choice. Contribution-based compensation, when
combined with asset-based compensation, could exceed 8.5% of the total
contributions made under the contracts.
Sales compensation paid to AXA Distributors will generally not exceed 7.50% of
the total contributions made under the contracts. AXA Distributors passes all
sales compensation it receives through to the Selling broker-dealer. The
Selling broker-dealer may elect to receive reduced contribution-based
compensation in combination with asset-based compensation of up to 1.25% of the
account value of all or a portion of the contracts sold through the
broker-dealer. Contribution-based compensation, when combined with asset-based
compensation, could exceed 7.50% of the total contributions made under the
contracts. The sales compensation we pay varies among broker-dealers. AXA
Distributors may also receive compensation and reimbursement for its marketing
services under the terms of its distribution agreement with AXA Equitable.
The Distributors may also pay certain affiliated and/or unaffiliated
broker-dealers and other financial intermediaries additional compensation for
certain services and/or in recognition of certain expenses that may be incurred
by them or on their behalf (commonly referred to as "marketing allowances").
Services for which such payments are made may include, but are not limited to,
the preferred placement of AXA Equitable and/or Accumulator(R) on a company
and/or product list; sales personnel training; due diligence and related costs;
marketing and related services; conferences; and/or other support services,
including some that may benefit the contract owner. Payments may be based on
the amount of assets or purchase payments attributable to contracts sold
through a broker-dealer. We may also make fixed payments to broker-dealers in
connection with the initiation of a new relationship or the introduction of a
new product. These payments may serve as an incentive for Selling
broker-dealers to promote the sale of our products. Additionally, as an
incentive for financial professionals of Selling broker-dealers to promote the
sale of our products, we may increase the sales compensation paid to the
Selling broker-dealer for a period of time (commonly referred to as
"compensation enhancements"). These types of payments are made out of the
Distributors' assets. Not all Selling broker-dealers receive additional
compensation. For more information about any such arrangements, ask your
financial professional.
The Distributors will receive 12b-1 fees from certain portfolios for providing
certain distribution and/or shareholder support services. In connection with
portfolios offered through unaffiliated insurance trusts, the Distributors may
also receive other payments from the portfolio advisers and/or their affiliates
for administrative costs, as well as payments for sales meetings and/or seminar
sponsorships.
In an effort to promote the sale of our products, AXA Advisors may provide its
financial professionals and managerial personnel with a
- ------------------
* On or about June 6, 2005, MSC financial professionals are expected to become
financial professionals of AXA Advisors. From that date forward, former MSC
financial professionals will be compensated by AXA Advisors, and the
Distributors will replace MSC as the principal underwriters of its affiliated
products.
More information 91
higher percentage of sales commissions and/or compensation for the sale of an
affiliated variable product than it would the sale of an unaffiliated product.
Such practice is known as providing "differential compensation." Other forms of
compensation financial professionals may receive include health and retirement
benefits. In addition, managerial personnel may receive expense reimbursements,
marketing allowances and commission-based payments known as "overrides." For
tax reasons, AXA Advisors financial professionals qualify for health and
retirement benefits based solely on their sales of our affiliated products.
These payments and differential compensation (together, the "payments") can
vary in amount based on the applicable product and/or entity or individual
involved. As with any incentive, such payments may cause the financial
professional to show preference in recommending the purchase or sale of our
products. However, under applicable rules of the NASD, AXA Advisors may only
recommend to you products that they reasonably believe are suitable for you
based on facts that you have disclosed as to your other security holdings,
financial situation and needs. In making any recommendation, financial
professionals may nonetheless face conflicts of interest because of the
differences in compensation from one product category to another, and because
of differences in compensation between products in the same category.
In addition, AXA Advisors financial professionals who meet specified production
levels for the sale of both affiliated and unaffiliated products may qualify,
under sales incentive programs, to receive non-cash compensation such as stock
options awards and/or stock appreciation rights, expense-paid trips,
expense-paid educational seminars and merchandise.
Although AXA Equitable takes all of its costs into account in establishing the
level of fees and expenses in our products, any compensation paid will not
result in any separate charge to you under your contract. All payments made
will be in compliance with all applicable NASD rules and other laws and
regulations.
92 More information
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
AXA Equitable's Annual Report on Form 10-K for the year ended December 31, 2004
is considered to be a part of this Prospectus because it is incorporated by
reference.
After the date of this Prospectus and before we terminate the offering of the
securities under this Prospectus, all documents or reports we file with the SEC
under the Securities Exchange Act of 1934 ("Exchange Act"), will be considered
to become part of this Prospectus because they are incorporated by reference.
Any statement contained in a document that is, or becomes part of this
Prospectus, will be considered changed or replaced for purposes of this
Prospectus if a statement contained in this Prospectus changes or is replaced.
Any statement that is considered to be a part of this Prospectus because of its
incorporation will be considered changed or replaced for the purpose of this
Prospectus if a statement contained in any other subsequently filed document
that is considered to be part of this Prospectus changes or replaces that
statement. After that, only the statement that is changed or replaced will be
considered to be part of this Prospectus.
We file our Exchange Act documents and reports, including our Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR
under CIK No. 0000727920. The SEC maintains a website that contains reports,
proxy and information statements, and other information regarding registrants
that file electronically with the SEC. The address of the website is
www.sec.gov.
Upon written or oral request, we will provide, free of charge, to each person
to whom this Prospectus is delivered, a copy of any or all of the documents
considered to be part of this Prospectus because they are incorporated herein.
This does not include exhibits not specifically incorporated by reference into
the text of such documents. Requests for documents should be directed to AXA
Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New
York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234).
Incorporation of certain documents by reference 93
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account 49 with the same daily asset charges of 1.25%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004
- --------------------------------------------------------------------------------
For the year ending December 31,
------------------------------------------
2004 2003
- --------------------------------------------------------------------------------
AXA Aggressive Allocation
- --------------------------------------------------------------------------------
Unit value $ 11.79 $ 10.68
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 5,189 186
- --------------------------------------------------------------------------------
AXA/Conservative Allocation
- --------------------------------------------------------------------------------
Unit value $ 10.80 $ 10.32
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,608 153
- --------------------------------------------------------------------------------
AXA Conservative-Plus Allocation
- --------------------------------------------------------------------------------
Unit value $ 11.09 $ 10.42
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 3,924 78
- --------------------------------------------------------------------------------
AXA Moderate Allocation
- --------------------------------------------------------------------------------
Unit value $ 11.30 $ 10.52
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 22,917 1,082
- --------------------------------------------------------------------------------
AXA Moderate Plus-Allocation
- --------------------------------------------------------------------------------
Unit value $ 11.78 $ 10.68
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 20,548 815
- --------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- --------------------------------------------------------------------------------
Unit value $ 11.82 $ 10.68
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 354 14
- --------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- --------------------------------------------------------------------------------
Unit value $ 10.44 $ 10.18
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,892 202
- --------------------------------------------------------------------------------
AXA Premier VIP Health Care
- --------------------------------------------------------------------------------
Unit value $ 11.74 $ 10.60
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,325 79
- --------------------------------------------------------------------------------
AXA Premier VIP High Yield
- --------------------------------------------------------------------------------
Unit value $ 11.38 $ 10.60
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 3,911 371
- --------------------------------------------------------------------------------
AXA Premier VIP International Equity
- --------------------------------------------------------------------------------
Unit value $ 13.09 $ 11.25
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,558 68
- --------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- --------------------------------------------------------------------------------
Unit value $ 11.47 $ 10.59
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 424 26
- --------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 11.03 $ 10.47
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,580 113
- --------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- --------------------------------------------------------------------------------
Unit value $ 12.52 $ 11.08
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,540 106
- --------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 11.63 $ 10.54
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,570 142
- --------------------------------------------------------------------------------
A-1 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- --------------------------------------------------------------------------------
For the year ending December 31,
------------------------------------
2004 2003
- --------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- --------------------------------------------------------------------------------
Unit value $ 12.52 $ 11.01
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,454 126
- --------------------------------------------------------------------------------
AXA Premier VIP Technology
- --------------------------------------------------------------------------------
Unit value $ 10.70 $ 10.32
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 969 57
- --------------------------------------------------------------------------------
EQ/Alliance Common Stock
- --------------------------------------------------------------------------------
Unit value $ 12.32 $ 10.94
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 5,278 307
- --------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- --------------------------------------------------------------------------------
Unit value $ 12.14 $ 10.93
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 3,640 209
- --------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- --------------------------------------------------------------------------------
Unit value $ 10.17 $ 10.10
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,271 119
- --------------------------------------------------------------------------------
EQ/Alliance International
- --------------------------------------------------------------------------------
Unit value $ 13.07 $ 11.20
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,996 93
- --------------------------------------------------------------------------------
EQ/Alliance Large Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 11.08 $ 10.36
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 829 60
- --------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- --------------------------------------------------------------------------------
Unit value $ 10.46 $ 10.21
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,612 84
- --------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 12.12 $ 10.77
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,487 109
- --------------------------------------------------------------------------------
EQ/Bear Stearns Small Company Growth
- --------------------------------------------------------------------------------
Unit value $ 7.67 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 59 --
- --------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- --------------------------------------------------------------------------------
Unit value $ 12.26 $ 10.95
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 5,206 329
- --------------------------------------------------------------------------------
EQ/Boston Advisors Equity Income
- --------------------------------------------------------------------------------
Unit value $ 5.69 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 224 --
- --------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- --------------------------------------------------------------------------------
Unit value $ 10.74 $ 10.50
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 278 17
- --------------------------------------------------------------------------------
EQ/Capital Guardian Growth
- --------------------------------------------------------------------------------
Unit value $ 10.86 $ 10.42
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 271 34
- --------------------------------------------------------------------------------
EQ/Capital Guardian International
- --------------------------------------------------------------------------------
Unit value $ 12.55 $ 11.19
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 3,195 150
- --------------------------------------------------------------------------------
EQ/Capital Guardian Research
- --------------------------------------------------------------------------------
Unit value $ 11.75 $ 10.73
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,468 154
- --------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- --------------------------------------------------------------------------------
Unit value $ 11.66 $ 10.80
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 4,756 338
- --------------------------------------------------------------------------------
Appendix I: Condensed financial information A-2
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- --------------------------------------------------------------------------------
For the year ending December 31,
-------------------------------------------
2004 2003
- --------------------------------------------------------------------------------
EQ/Equity 500 Index
- --------------------------------------------------------------------------------
Unit value $ 11.73 $ 10.77
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 5,582 374
- --------------------------------------------------------------------------------
EQ/Evergreen Omega
- --------------------------------------------------------------------------------
Unit value $ 11.31 $ 10.70
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,379 85
- --------------------------------------------------------------------------------
EQ/FI Mid Cap
- --------------------------------------------------------------------------------
Unit value $ 13.00 $ 11.35
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 3,775 306
- --------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- --------------------------------------------------------------------------------
Unit value $ 12.87 $ 11.06
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,897 148
- --------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- --------------------------------------------------------------------------------
Unit value $ 10.50 $ 10.21
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 4,339 252
- --------------------------------------------------------------------------------
EQ/JP Morgan Value Opportunities
- --------------------------------------------------------------------------------
Unit value $ 12.02 $ 10.98
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 769 63
- --------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 11.60 $ 10.48
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 680 55
- --------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- --------------------------------------------------------------------------------
Unit value $ 12.66 $ 10.95
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 3,850 232
- --------------------------------------------------------------------------------
EQ/Marsico Focus
- --------------------------------------------------------------------------------
Unit value $ 11.55 $ 10.59
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 4,974 348
- --------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- --------------------------------------------------------------------------------
Unit value $ 11.94 $ 10.93
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 4,028 189
- --------------------------------------------------------------------------------
EQ/Mercury International Value
- --------------------------------------------------------------------------------
Unit value $ 13.34 $ 11.11
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,602 73
- --------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- --------------------------------------------------------------------------------
Unit value $ 11.40 $ 10.25
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 530 22
- --------------------------------------------------------------------------------
EQ/MFS Investors Trust
- --------------------------------------------------------------------------------
Unit value $ 11.64 $ 10.58
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 679 51
- --------------------------------------------------------------------------------
EQ/Money Market
- --------------------------------------------------------------------------------
Unit value $ 9.93 $ 9.98
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,335 252
- --------------------------------------------------------------------------------
EQ/Montag & Caldwell Growth
- --------------------------------------------------------------------------------
Unit value $ 4.46 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 143 --
- --------------------------------------------------------------------------------
EQ/Small Company Index
- --------------------------------------------------------------------------------
Unit value $ 12.47 $ 10.73
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,702 121
- --------------------------------------------------------------------------------
EQ/Small Company Value
- --------------------------------------------------------------------------------
Unit value $ 23.18 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 78 --
- --------------------------------------------------------------------------------
A-3 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- --------------------------------------------------------------------------------
For the year ending December 31,
----------------------------------
2004 2003
- --------------------------------------------------------------------------------
EQ/TCW Equity
- --------------------------------------------------------------------------------
Unit value $ 17.28 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 53 --
- --------------------------------------------------------------------------------
EQ/UBS Growth and Income
- --------------------------------------------------------------------------------
Unit value $ 5.19 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 96 --
- --------------------------------------------------------------------------------
EQ/Van Kampen Emerging Markets Equity
- --------------------------------------------------------------------------------
Unit value $ 14.04 $ 11.50
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,431 64
- --------------------------------------------------------------------------------
EQ/Wells Fargo Montgomery Small Cap
- --------------------------------------------------------------------------------
Unit value $ 11.37 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 4 --
- --------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity
- --------------------------------------------------------------------------------
Unit value $ 10.41 $ 10.17
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 417 19
- --------------------------------------------------------------------------------
U.S. Real Estate -- Class II
- --------------------------------------------------------------------------------
Unit value $ 14.79 $ 11.00
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,552 37
- --------------------------------------------------------------------------------
Appendix I: Condensed financial information A-4
Appendix II: Purchase considerations for QP contracts
- --------------------------------------------------------------------------------
Trustees who are considering the purchase of an Accumulator(R) QP contract
should discuss with their tax advisors whether this is an appropriate
investment vehicle for the employer's plan. Trustees should consider whether
the plan provisions permit the investment of plan assets in the QP contract,
the distribution of such an annuity, the purchase of the guaranteed minimum
income benefit, and the payment of death benefits in accordance with the
requirements of the federal income tax rules. The QP contract and this
prospectus should be reviewed in full, and the following factors, among others,
should be noted. Assuming continued plan qualification and operation, earnings
on qualified plan assets will accumulate value on a tax-deferred basis even if
the plan is not funded by the Accumulator(R) QP contract or another annuity.
Therefore, you should purchase an Accumulator(R) QP contract to fund a plan for
the contract's features and benefits other than tax deferral, after considering
the relative costs and benefits of annuity contracts and other types of
arrangements and funding vehicles. This QP contract accepts transfer
contributions only and not regular, ongoing payroll contributions. For 401(k)
plans under defined contribution plans, no employee after-tax contributions are
accepted.
We will not accept defined benefit plans. For defined contribution plans, we
will only accept transfers from another defined contribution plan or a change
of investment vehicles in the plan. Only one additional transfer contribution
may be made per contract year. If overfunding of a plan occurs or amounts
attributable to an excess contribution must be withdrawn, withdrawals from the
QP contract may be required. A withdrawal charge and/or market value adjustment
may apply.
AXA Equitable will not perform or provide any plan recordkeeping services with
respect to the QP contracts. The plan's administrator will be solely
responsible for performing or providing for all such services. There is no loan
feature offered under the QP contracts, so if the plan provides for loans and a
participant/employee takes a loan from the plan, other plan assets must be used
as the source of the loan and any loan repayments must be credited to other
investment vehicles and/or accounts available under the plan.
Given that required minimum distributions must generally commence from the plan
for annuitants after age 70-1/2, trustees should consider that:
o the QP contract may not be an appropriate purchase for annuitants approaching
or over age 70-1/2;
o provisions in the Treasury Regulations on required minimum distributions will
require, beginning in 2006, that the actuarial present value of additional
annuity contract benefits be added to the dollar amount credited for purposes
of calculating required minimum distributions. This could increase the
amounts required to be distributed from the contract; and
o the Guaranteed minimum income benefit may not be an appropriate feature for
annuitants who are older than age 60-1/2 when the contract is issued.
Finally, because the method of purchasing the QP contract, including the large
initial contribution, and the features of the QP contract may appeal more to
plan participants/employees who are older and tend to be highly paid, and
because certain features of the QP contract are available only to plan
participants/employees who meet certain minimum and/or maximum age
requirements, plan trustees should discuss with their advisers whether the
purchase of the QP contract would cause the plan to engage in prohibited
discrimination in contributions, benefits or otherwise.
B-1 Appendix II: Purchase considerations for QP contracts
Appendix III: Market value adjustment example
- --------------------------------------------------------------------------------
The example below shows how the market value adjustment would be determined and
how it would be applied to a withdrawal, assuming that $100,000 was allocated
on February 15, 2005 to a fixed maturity option with a maturity date of
February 15, 2014 (nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value of $183,914 on the maturity date. We
further assume that a withdrawal of $50,000 is made four years later on
February 15, 2009.
- ---------------------------------------------------------------------------------------------------------------
Hypothetical assumed rate to maturity on
February 15, 2009
----------------------------------------------
5.00% 9.00%
- ---------------------------------------------------------------------------------------------------------------
As of February 15, 2009 (before withdrawal)
- ---------------------------------------------------------------------------------------------------------------
(1) Market adjusted amount $144,082 $ 119,503
- ---------------------------------------------------------------------------------------------------------------
(2) Fixed maturity amount $131,104 $ 131,104
- ---------------------------------------------------------------------------------------------------------------
(3) Market value adjustment:
(1) - (2) $ 12,978 $ (11,601)
- ---------------------------------------------------------------------------------------------------------------
On February 15, 2009 (after withdrawal)
- ---------------------------------------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with withdrawal:
(3) x [$50,000/(1)] $ 4,504 $ (4,854)
- ---------------------------------------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount: [$50,000 - (4)] $ 45,496 $ 54,854
- ---------------------------------------------------------------------------------------------------------------
(6) Fixed maturity amount: (2) - (5) $ 85,608 $ 76,250
- ---------------------------------------------------------------------------------------------------------------
(7) Maturity value $120,091 $ 106,965
- ---------------------------------------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,082 $ 69,503
- ---------------------------------------------------------------------------------------------------------------
You should note that under this example, if a withdrawal is made when rates
have increased from 7.00% to 9.00% (right column), a portion of a negative
market value adjustment is realized. On the other hand, if a withdrawal is made
when rates have decreased from 7.00% to 5.00% (left column), a portion of a
positive market value adjustment is realized. The market value adjustment is
computed differently if you withdraw amounts on a date other than the
anniversary of the establishment of the fixed maturity option.
Appendix III: Market value adjustment example C-1
Appendix IV: Enhanced death benefit example
- --------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the enhanced death benefit, if elected.
The following illustrates the enhanced death benefit calculation. Assuming
$100,000 is allocated to the variable investment options (with no allocation to
the EQ/Alliance Intermediate Government Securities, EQ/Money Market, EQ/PIMCO
Real Return, EQ/Short Duration Bond, the guaranteed interest option, the fixed
maturity options or the Special 10 year fixed maturity option), no additional
contributions, no transfers, no withdrawals and no loans under a Rollover TSA
contract, the enhanced death benefit for an annuitant age 45 would be
calculated as follows:
- ----------------------------------------------------------------------------------------
End of
contract 6% Roll up to age 85 Annual Ratchet to age 85
year Account value enhanced death benefit enhanced death benefit
- ----------------------------------------------------------------------------------------
1 $105,000 $106,000 $105,000
- ----------------------------------------------------------------------------------------
2 $115,500 $112,360 $115,500
- ----------------------------------------------------------------------------------------
3 $129,360 $119,102 $129,360
- ----------------------------------------------------------------------------------------
4 $103,488 $126,248 $129,360
- ----------------------------------------------------------------------------------------
5 $113,837 $133,823 $129,360
- ----------------------------------------------------------------------------------------
6 $127,497 $141,852 $129,360
- ----------------------------------------------------------------------------------------
7 $127,497 $150,363 $129,360
- ----------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%.
We are using these rates solely to illustrate how the benefit is determined.
The return rates bear no relationship to past or future investment results.
ANNUAL RATCHET TO AGE 85
(1) At the end of contract years 1 through 3, the enhanced death benefit is the
current account value.
(2) At the end of contract years 4 through 7, the enhanced death benefit is the
enhanced death benefit at the end of the prior year since it is equal to or
higher than the current account value.
GREATER OF 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85
The enhanced death benefit under this option for each year shown would be the
greater of the amounts shown under the 6% Roll up to age 85 or the Annual
Ratchet to age 85.*
* At the end of contract years 4 through 7, the death benefit will be the
enhanced death benefit. At the end of contract years 1, 2 and 3, the death
benefit will be the current account value.
D-1 Appendix IV: Enhanced death benefit example
Appendix V: Hypothetical illustrations
- --------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM
BENEFITS
The following tables illustrate the changes in account value, cash value and
the values of the "greater of 6% Roll up to age 85 or the Annual Ratchet to age
85" guaranteed minimum death benefit, the Protection Plus(SM) benefit and the
Guaranteed minimum income benefit under certain hypothetical circumstances for
an Accumulator(R) contract. The table illustrates the operation of a contract
based on a male, issue age 60, who makes a single $100,000 contribution and
takes no withdrawals. The amounts shown are for the beginning of each contract
year and assume that all of the account value is invested in portfolios that
achieve investment returns at constant gross annual rates of 0% and 6% (i.e.,
before any investment management fees, 12b-1 fees or other expenses are
deducted from the underlying portfolio assets). After the deduction of the
arithmetic average of the investment management fees, 12b-1 fees and other
expenses of all of the underlying Portfolios (as described below), the
corresponding net annual rates of return would be (2.58)% and 3.42% for the
Accumulator(R) contract, at the 0% and 6% gross annual rates, respectively.
These net annual rates of return reflect the trust and separate account level
charges, but they do not reflect the charges we deduct from your account value
annually for the optional Guaranteed minimum death benefit, Protection Plus(SM)
benefit, and the Guaranteed minimum income benefit features, as well as the
annual administrative charge. If the net annual rates of return did reflect
these charges, the net annual rates of return shown would be lower; however,
the values shown in the following tables reflect all contract charges. The
values shown under "Lifetime annual guaranteed minimum income benefit" reflect
the lifetime income that would be guaranteed if the Guaranteed minimum income
benefit is selected at that contract anniversary. An "N/A" in these columns
indicates that the benefit is not exercisable in that year. A "0" under any of
the death benefit and/or "Lifetime annual guaranteed minimum income benefit"
columns indicates that the contract has terminated due to insufficient account
value and, consequently, the guaranteed benefit has no value.
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in all tables reflect (1) investment management
fees equivalent to an effective annual rate of 0.69%, and (2) an assumed
average asset charge for all other expenses of the underlying portfolios
equivalent to an effective annual rate of 0.39% and (3) 12b-1 fees equivalent
to an effective annual rate of 0.25%. These rates are the arithmetic average
for all portfolios that are available as investment options. In other words,
they are based on the hypothetical assumption that account values are allocated
equally among the variable investment options. The actual rates associated with
any contract will vary depending upon the actual allocation of policy values
among the investment options. These rates do not reflect expense limitation
arrangements in effect with respect to certain of the underlying portfolios as
described in the footnotes to the fee table for the underlying portfolios in
"Fee Table" earlier in this prospectus. With these arrangements, the charges
shown above would be lower. This would result in higher values than those shown
in the following tables.
Because your circumstances will no doubt differ from those in the illustrations
that follow, values under your contract will differ, in most cases
substantially. Upon request, we will furnish you with a personalized
illustration.
Appendix V: Hypothetical illustrations E-1
Variable deferred annuity
Accumulator(R)
$100,000 Single contribution and no withdrawals
Male, issue age 60
Benefits:
Greater of 6% Roll up to age 85 or the Annual Ratchet to age 85 Guaranteed
minimum death benefit
Protection Plus(SM)
Guaranteed minimum income benefit
Greater of 6% Roll up
to age 85 or the Annual
Ratchet to age 85 Guaranteed
Account Value Cash Value Minimum Death Benefit
Contract ------------------- ------------------ ------------------------------
Age Year 0% 6% 0% 6% 0% 6%
- ----- --------- --------- --------- -------- --------- --------------- --------------
60 1 100,000 100,000 93,000 93,000 100,000 100,000
61 2 95,754 101,733 88,754 94,733 106,000 106,000
62 3 91,553 103,440 85,553 97,440 112,360 112,360
63 4 87,390 105,114 81,390 99,114 119,102 119,102
64 5 83,259 106,750 78,259 101,750 126,248 126,248
65 6 79,154 108,342 76,154 105,342 133,823 133,823
66 7 75,069 109,882 74,069 108,882 141,852 141,852
67 8 70,997 111,363 70,997 111,363 150,363 150,363
68 9 66,931 112,776 66,931 112,776 159,385 159,385
69 10 62,864 114,113 62,864 114,113 168,948 168,948
74 15 42,200 119,293 42,200 119,293 226,090 226,090
79 20 20,261 120,795 20,261 120,795 302,560 302,560
84 25 0 116,489 0 116,489 0 404,893
89 30 0 118,589 0 118,589 0 429,187
94 35 0 124,178 0 124,178 0 429,187
95 36 0 125,400 0 125,400 0 429,187
Lifetime Annual
Guaranteed Minimum Income Benefit
Total Death Benefit ------------------------------------
with Protection Guaranteed Hypothetical
Plus(SM) Income Income
------------------- ------------------ -----------------
Age 0% 6% 0% 6% 0% 6%
- ----- --------- --------- --------- -------- --------- -------
60 100,000 100,000 N/A N/A N/A N/A
61 108,400 108,400 N/A N/A N/A N/A
62 117,304 117,304 N/A N/A N/A N/A
63 126,742 126,742 N/A N/A N/A N/A
64 136,747 136,747 N/A N/A N/A N/A
65 147,352 147,352 N/A N/A N/A N/A
66 158,593 158,593 N/A N/A N/A N/A
67 170,508 170,508 N/A N/A N/A N/A
68 183,139 183,139 N/A N/A N/A N/A
69 196,527 196,527 N/A N/A N/A N/A
74 276,527 276,527 14,266 14,266 14,266 14,266
79 383,584 383,584 20,393 20,393 20,393 20,393
84 0 493,179 0 34,821 0 34,821
89 0 517,472 N/A N/A N/A N/A
94 0 517,472 N/A N/A N/A N/A
95 0 517,472 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for
individual contract years. We can make no representation that these
hypothetical investment results can be achieved for any one year or continued
over any period of time. In fact, for any given period of time, the investment
results could be negative.
E-2 Appendix V: Hypothetical illustrations
Appendix VI: Guaranteed principal benefit example
- --------------------------------------------------------------------------------
For purposes of these examples, we assume that there is an initial contribution
of $100,000, made to the contract on February 15, 2005. We also assume that no
additional contributions, no transfers among options and no withdrawals from
the contract are made. For GPB Option 1, the example also assumes that a 10
year fixed maturity option is chosen. The hypothetical gross rates of return
with respect to amounts allocated to the variable investment options are 0%, 6%
and 10%. The numbers below reflect the deduction of all applicable separate
account and contract charges and also reflect the charge for GPB Option 2.
Also, for any given performance of your variable investment options, GPB Option
1 produces higher account values than GPB Option 2 unless investment
performance has been significantly positive. The examples should not be
considered a representation of past or future expenses. Similarly, the annual
rates of return assumed in the example are not an estimate or guarantee of
future investment performance.
Assuming 100%
in the variable
Assuming Under GPB Under GPB investment
100% in the FMO Option 1 Option 2 options
- ---------------------------------------------------------------------------------------------------------------
Amount allocated to FMO on February 15, 2005
based upon a 3.32% rate to maturity 100,000 72,120 40,000 --
- ---------------------------------------------------------------------------------------------------------------
Initial account value allocated to the variable
investment options on February 15, 2005 0 27,880 60,000 100,000
- ---------------------------------------------------------------------------------------------------------------
Account value in the fixed maturity option on
February 15, 2015 138,651 100,000 55,460 0
- ---------------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding
together the value at the maturity date of the
applicable fixed maturity option plus the value of
amounts in the variable investment options on
February 15, 2015, assuming a 0% gross rate of
return) 138,651 121,467 100,000* 76,998
- ---------------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding
together the value at the maturity date of the
applicable fixed maturity option plus the value of
amounts in the variable investment options on
February 15, 2015, assuming a 6% gross rate of
return) 138,651 139,025 132,616** 139,973
- ---------------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding
together the value at the maturity date of the
applicable fixed maturity option plus the value of
amounts in the variable investment options on
February 15, 2015, assuming a 10% gross rate of
return) 138,651 157,035 168,959** 204,574
- ---------------------------------------------------------------------------------------------------------------
* Since the annuity account value is less than the alternate benefit under GPB
Option 2, the annuity account value is adjusted upward to the guaranteed
amount or an increase of $2,715 in this example.
** Since the annuity account value is greater than the alternate benefit under
GPB Option 2, GPB Option 2 will not affect the annuity account value.
Appendix VI: Guaranteed principal benefit example F-1
Appendix VII: Protection Plus(SM) example
- --------------------------------------------------------------------------------
The following illustrates the calculation of a death benefit that includes
Protection Plus for an annuitant age 45. The example assumes a contribution of
$100,000 and no additional contributions. Where noted, a single withdrawal in
the amount shown is also assumed. The calculation is as follows:
No Withdrawal $3000 withdrawal $6000 withdrawal
- ----------------------------------------------------------------------------------------------------------------
A Initial Contribution 100,000 100,000 100,000
- ----------------------------------------------------------------------------------------------------------------
B Death Benefit: prior to withdrawal.* 104,000 104,000 104,000
- ----------------------------------------------------------------------------------------------------------------
Protection Plus Earnings: Death Benefit less net
C contributions (prior to the withdrawal in D). 4,000 4,000 4,000
B minus A.
- ----------------------------------------------------------------------------------------------------------------
D Withdrawal 0 3,000 6,000
- ----------------------------------------------------------------------------------------------------------------
Excess of the withdrawal over the Protection Plus
E earnings 0 0 2,000
greater of D minus C or zero
- ----------------------------------------------------------------------------------------------------------------
Net Contributions (adjusted for the withdrawal in D)
F A minus E 100,000 100,000 98,000
- ----------------------------------------------------------------------------------------------------------------
Death Benefit (adjusted for the withdrawal in D)
G B minus D 104,000 101,000 98,000
- ----------------------------------------------------------------------------------------------------------------
Death Benefit less Net Contributions
H G minus F 4,000 1,000 0
- ----------------------------------------------------------------------------------------------------------------
I Protection Plus Factor 40% 40% 40%
- ----------------------------------------------------------------------------------------------------------------
Protection Plus Benefit
J H times I 1,600 400 0
- ----------------------------------------------------------------------------------------------------------------
Death Benefit: Including Protection Plus
K G plus J 105,600 101,400 98,000
- ----------------------------------------------------------------------------------------------------------------
* The Death Benefit is the greater of the Account Value or any applicable death
benefit.
G-1 Appendix VII: Protection Plus(SM) example
Appendix VIII: State contract availability and/or variations of certain
features and benefits
- --------------------------------------------------------------------------------
The following information is a summary of the states where the Accumulator(R)
contract or certain features and/or benefits are either not available as of the
date of this Prospectus or vary from the contract's features and benefits as
previously described in this Prospectus.
STATES WHERE CERTAIN ACCUMULATOR(R) FEATURES AND/OR BENEFITS ARE NOT AVAILABLE
OR HAS CERTAIN VARIATIONS TO FEATURES AND/OR BENEFITS:
- ------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- ------------------------------------------------------------------------------------------------------------------------
CALIFORNIA See "Contract features and benefits"--"Your right to If you reside in the state of California and
cancel within a certain number of days" you are age 60 and older at the time the
contract is issued, you may return your vari-
able annuity contract within 30 days from the
date that you receive it and receive a refund
as described below.
If you allocate your entire initial
contribution to the money mar- ket account
(and/or guaranteed interest option, if
available), the amount of your refund will be
equal to your contribution less interest,
unless you make a transfer, in which case the
amount of your refund will be equal to your
account value on the date we receive your
request to cancel at our processing office.
This amount could be less than your initial
contribution. If you allo- cate any portion
of your initial contribution to the variable
investment options (other than the money
market account) and/or fixed maturity
options, your refund will be equal to your
account value on the date we receive your
request to cancel at our processing office.
- ------------------------------------------------------------------------------------------------------------------------
FLORIDA See "Transfer of ownership, collateral assignments, The second paragraph in this section is
loans and borrowing" in "More information" deleted.
- ------------------------------------------------------------------------------------------------------------------------
MARYLAND Fixed maturity options Not Available
Guaranteed principal benefit option1 and Guaranteed Not Available
principal benefit option 2
- ------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS Automatic investment program Not Available
Annual administrative charge The annual administrative charge will not be
deducted from amounts allocated to the
Guaranteed interest option.
See "How you can purchase and contribute to your Additional contributions are limited to the
contract" in "Contract features and benefits" first three years after the contract issue
date only.
See "Disability, terminal illness, or confinement to Item (i) is deleted in its entirety.
nursing home" under "Withdrawal charge" in
"Charges and expenses"
- ------------------------------------------------------------------------------------------------------------------------
NEW YORK Greater of the 6% roll up or Annual Ratchet Guaran- Not Available (you have a choice of the
teed minimum death benefit standard death benefit or the Annual Ratchet
to age 85 guaranteed minimum death benefit),
as described earlier in this Prospectus.
Principal Protector(SM) Not Available
Protection Plus(SM) Not Available
Variable Immediate Annuity payout options -- Life Not Available
annuity contracts
See "Contract features and benefits" -- "Self directed No more than 25% of any contribution may be
allocation" allocated to the guaranteed interest option.
- ------------------------------------------------------------------------------------------------------------------------
Appendix VIII: State contract availability and/or variations of certain features
and benefits H-1
- ------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- ------------------------------------------------------------------------------------------------------------------------
NEW YORK, See "Termination of your contract" in "Determining If your account value in the variable
CONTINUED your contract's value" investment options and the fixed maturity
options is insufficient to pay the annual
adminis- trative charge, or either enhanced
death benefit charge and/or the guaranteed
minimum income benefit charge, and you have
no account value in the guaranteed interest
option, your contract will terminate without
value, and you will lose any applicable
benefits. See "Charges and expenses" earlier
in this Prospectus.
See "Transferring your account value" in "Transferring The following information is added as the
your money among investment options" sixth and seventh bullets in this section:
o During the first contract year, transfers
into the guaranteed interest option are
not permitted.
o After the first contract year, a transfer
into the guaranteed interest option will
not be permitted if such transfer would
result in more than 25% of the annuity
account value being allocated to the
guaranteed interest option, based on the
annuity account value as of the previous
business day.
See "The amount applied to purchase an annuity For fixed annuity period certain payout
payout option" in "Accessing your money" options only, the amount applied to the
annuity benefit is the greater of the cash
value or 95% of what the account value would
be if no withdrawal charge applied. The
income provided, however, will never be less
than what would be provided by applying the
account value to the guaranteed annuity
purchase factors.
See "Annuity maturity date" in "Accessing your The maturity date by which you must take a lump sum with-
money" drawal or select an annuity payout option is as follows:
Maximum
Issue age Annuitization age
--------- -----------------
0-80 90
81 91
82 92
83 93
84 94
85 95
Please see this section earlier in this Prospectus for more
information.
See "Charges and expenses" With regard to the Annual administrative,
either enhanced death benefit, Guaranteed
principal benefit option 2 and Guaranteed
minimum income benefit charges, respectively,
we will deduct the related charge, as follows
for each: we will deduct the charge from your
value in the variable investment options on a
pro rata basis. If those amounts are
insufficient, we will deduct all or a portion
of the charge from the fixed maturity options
(other than the Special 1 year fixed maturity
option) in the order of the earliest maturity
date(s) first If such fixed maturity option
amounts are insufficient, we will deduct all
or a portion of the charge from the account
for special dollar cost averaging (not
available if the Guaranteed principal benefit
option is elected). If such amounts are still
insufficient, we will deduct any remaining
portion from the Special 10 year fixed
maturity option. If the contract is
surrendered or annuitized or a death benefit
is paid, we will deduct a pro rata portion of
the charge for that year. A market value
adjustment will apply to deductions from the
fixed maturity options (including the Special
10 year fixed maturity option).
- ------------------------------------------------------------------------------------------------------------------------
H-2 Appendix VIII: State contract availability and/or variations of certain
- ------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- ------------------------------------------------------------------------------------------------------------------------
NEW YORK Deductions from the fixed maturity options (including
CONTINUED the Special 10 year fixed maturity option) cannot cause
the credited net interest for the contract year to fall
below 1.5%.
With regard to the Annual administrative, either enhanced
death benefit and the Guaranteed minimum income benefit
charges only, if your account value in the variable investment
options and the fixed maturity options is insufficient to
pay the applicable charge, and you have no account value in
the guaranteed interest option, your contract will terminate
without value and you will lose any applicable guaranteed
benefits. Please see "Termination of your contract"
in "Determining your contract's value" earlier in this
Prospectus.
Fixed maturity options -- withdrawal charges The withdrawal charge that applies to withdrawals taken
from amounts in the fixed maturity options will never
exceed 7% and will be determined by applying the New
York Alternate Scale I shown below. If you withdraw
amounts that have been transferred from one fixed
maturity option to another, we use the New York
Alternate Scale II (also shown below) if it produces a
higher charge than Alternate Scale I.
Fixed maturity options -- withdrawal charges The withdrawal charge may not exceed the withdrawal
(continued) charge that would normally apply to the contract. If a
contribution has been in the contract for more than 7
years and therefore would have no withdrawal charge, no
withdrawal charge will apply. Use of a New York
Alternate Scale can only result in a lower charge. We
will compare the result of applying Alternate Scale I
or II, as the case may be, to the result of applying
the normal withdrawal charge, and will charge the lower
withdrawal charge.
-------------------------------------------------------------
NY Alternate Scale I NY Alternate Scale II
Year of investment in fixed Year of transfer within fixed
maturity option* maturity option*
-------------------------------------------------------------
Within year 1 7% Within year 1 5%
-------------------------------------------------------------
2 6% 2 4%
-------------------------------------------------------------
3 5% 3 3%
-------------------------------------------------------------
4 4% 4 2%
-------------------------------------------------------------
5 3% 5 1%
-------------------------------------------------------------
6 2% After year 5 0
-------------------------------------------------------------
7 1%
-------------------------------------------------------------
After year 7 0% Not to exceed 1% times the
number of years remaining in
the fixed maturity option,
rounded to the higher number
of years. In other words, if 4.3
years remain, it would be a 5%
charge.
-------------------------------------------------------------
* Measured from the contract date anniversary prior to the
date of the contribution or transfer
- ------------------------------------------------------------------------------------------------------------------------
Appendix VIII: State contract availability and/or variations of certain features
and benefits H-3
- ------------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- ------------------------------------------------------------------------------------------------------------------------------
NEW YORK, If you take a withdrawal from an investment option
CONTINUED other than the fixed maturity options, the amount
available for withdrawal without a withdrawal charge is
reduced. It will be reduced by the amount of the
contribution in the fixed maturity options to which no
withdrawal charge applies.
You should consider that on the maturity date of a
fixed maturity option if we have not received your
instructions for allocation of your maturity value, we
will transfer your maturity value to the fixed maturity
option with the shortest available maturity. If we are
not offering other fixed maturity options, we will
transfer your maturity value to the EQ/Money Market
option.
The potential for lower withdrawal charges for
withdrawals from the fixed maturity options and the
potential for a lower "free withdrawal amount" than
what would normally apply, should be taken into account
when deciding whether to allocate amounts to, or
transfer amounts to or from, the fixed maturity
options.
- ------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA Contribution age limitations The following contribution limits apply:
Maximum
Issue age Contribution age
--------- ----------------
0-75 79
76 80
77 81
78-80 82
81-83 84
84 85
85 86
Special dollar cost averaging program In Pennsylvania, we refer to this program as "enhanced
rate dollar cost averaging."
Withdrawal charge schedule for issue ages 84 and 85 For annuitants that are ages 84 and 85 when the
contract is issued in Pennsylvania, the withdrawal
charge will be computed in the same manner as for other
contracts as described in "Charges and expenses" under
"Withdrawal charge" earlier in this Prospectus, except
that the withdrawal charge schedule will be different.
For these contracts, the withdrawal charge schedule
will be 5% of each contribution made in the first
contract year, decreasing by 1% each subsequent
contract year to 0% in the sixth and later contract
years.
See "Annuity maturity date" in "Accessing your The maturity date by which you must take a lump sum
money" withdrawal or select an annuity payout option is as
follows:
Maximum
Issue age annuitization age
--------- -----------------
0-75 85
76 86
77 87
78-80 88
81-85 90
Loans under Rollover TSA contracts Taking a loan in excess of the Internal Revenue Code
limits may result in adverse tax consequences. Please
consult your tax adviser before taking a loan that
exceeds the Internal Revenue Code limits.
- ------------------------------------------------------------------------------------------------------------------------------
H-4 Appendix VIII: State contract availability and/or variations of certain
features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico IRA, Roth IRA, Inherited IRA and Rollover TSA Not Available
contracts
Beneficiary continuation option (IRA) Not Available
- ------------------------------------------------------------------------------------------------------------------------------------
Texas See "Annual administrative charge" in "Charges and The annual administrative charge will not be deducted
expenses" from amounts allocated to the Guaranteed interest
option.
- ------------------------------------------------------------------------------------------------------------------------------------
Utah See "Transfers of ownership, collateral assignments, The second paragraph in this section is deleted.
loans and borrowing" in "More information "'
- ------------------------------------------------------------------------------------------------------------------------------------
Vermont Loans under Rollover TSA contracts Taking a loan in excess of the Internal Revenue Code
limits may result in adverse tax consequences. Please
consult your tax adviser before taking a loan that
exceeds the Internal Revenue Code limits.
- ------------------------------------------------------------------------------------------------------------------------------------
Washington Guaranteed interest option Not Available
Investment simplifier -- Fixed-dollar option and Not Available
Interest sweep option
Fixed maturity options Not Available
Guaranteed Principal Benefit Options 1 and 2 Not Available
Income Manager(R) payout option Not Available
Protection Plus(SM) Not Available
Special dollar cost averaging program o Available only at issue.
o Subsequent contributions cannot be used to elect new
programs. You may make subsequent contributions to
the initial programs while they are still running.
See "Guaranteed minimum death benefit" in "Con- You have a choice of the standard death benefit, the
tract features and benefits" Annual Ratchet to age 85 enhanced death benefit, or the
Greater of 4% Roll up to age 85 or the Annual Ratchet
to age 85 enhanced death benefit.
See "Annual administrative charge" in "Charges and The annual administrative charge will be deducted from
expenses" the value in the variable investment options on a pro
rata basis.
See "Withdrawal charge" in "Charges and expenses" The 10% free withdrawal amount applies to full
surrenders.
See "Disability, terminal illness, or confinement to The annuitant has qualified to receive Social Security
nursing home" under "Withdrawal charge" in disability benefits as certified by the Social Security
"Charges and expenses" Administration or a statement from an independent U.S.
licensed physician stating that the annuitant meets the
definition of total disability for at least 6
continuous months prior to the notice of claim. Such
dis- ability must be re-certified every 12 months.
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix VIII: State contract availability and/or variations of certain features
and benefits H-5
Appendix IX: Contract variations
- --------------------------------------------------------------------------------
Although this Prospectus is primarily designed for potential purchasers of the
contract, you may be receiving it as a current contract owner. If you are a
current contract owner, you should note that your contract's options, features
and charges may vary from what is described in this Prospectus depending on the
date on which you purchased your contract. You may not change your contract or
its features after issue. This Appendix reflects contract variations that
differ from what is described in this Prospectus but may have been in effect at
the time your contract was issued.
In addition, options and/or features may vary among states in light of
applicable regulations or state approvals. Any such state variations are
generally not included here but instead included in Appendix VIII earlier in
this section. For more information about state variations applicable to you, as
well as particular features, charges and options available under your contract
based upon when you purchased it, please contact your financial
professional and/or refer to your contract.
- ---------------------------------------------------------------------------------------------------------------------------------
Approximate Time Period Feature/Benefit Variation
- ---------------------------------------------------------------------------------------------------------------------------------
September 2003 - January 2005 Guaranteed interest option Your lifetime minimum interest rate is either
1.5% or 3.0% (depending on the state where
your contract was issued).
- ---------------------------------------------------------------------------------------------------------------------------------
September 2003 - July 2004 Principal Protector(SM) benefit Unavailable.
- ---------------------------------------------------------------------------------------------------------------------------------
September 2003 - December 2004 Termination of guaranteed benefits Your guaranteed benefits will not automatically
terminate if you change ownership of your NQ
contract.
- ---------------------------------------------------------------------------------------------------------------------------------
September 2003 - January 2004 Guaranteed minimum income benefit:
o Benefit base crediting rate The effective annual interest credited to the
applicable benefit base is 5%.*
o Fee table Guaranteed minimum income benefit charge:
0.55%.*
- ---------------------------------------------------------------------------------------------------------------------------------
September 2003 - January 2004 Greater of the 6% Roll up to age 85 or the
Annual Ratchet to age 85 enhanced death
benefit:
o Benefit base crediting rate The effective annual interest credited to the
applicable benefit base is 5%.*
o Fee table Greater of the 5% Roll up to age 85 or the
Annual Ratchet to age 85 enhanced death
benefit charge: 0.50%.*
- ---------------------------------------------------------------------------------------------------------------------------------
September 2003 - January 2004 Effect of withdrawals on your Greater of the Withdrawals will reduce each of the benefit
6% Roll up to age 85 or the Annual Ratchet bases on a pro rata basis only.*
to age 85 enhanced death benefit
- ---------------------------------------------------------------------------------------------------------------------------------
* Contract owners who elected the Guaranteed minimum income benefit and/or the
Greater of the 5% Roll up to age 85 or the Annual Ratchet to age 85 enhanced
death benefit had a limited opportunity to change to the new versions of
these benefits, as they are described in "Contract features and benefits" and
"Accessing your money," earlier in this Prospectus.
I-1 Appendix IX: Contract variations
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Unit Values 2
Custodian and Independent Registered Public Accounting Firm 2
Distribution of the Contracts 2
Financial Statements 2
How to Obtain an Accumulator(R) Statement of Additional Information for
Separate Account No. 49
Send this request form to:
Accumulator(R)
P.O. Box 1547
Secaucus, NJ 07096-1547
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me an Accumulator(R) SAI for Separate Account No. 49 dated
May 1, 2005.
- --------------------------------------------------------------------------------
Name:
- --------------------------------------------------------------------------------
Address:
- --------------------------------------------------------------------------------
City State Zip
(SAI 13AMLF(5/05))
X00889/Core '02, OR and '04 Series
Accumulator(R) Elite(SM)
A combination variable and fixed deferred
annuity contract
PROSPECTUS DATED MAY 1, 2005
Please read and keep this Prospectus for future reference. It contains
important information that you should know before, or taking any action under
your contract. You should read the prospectuses for each Trust, which contain
important information about the portfolios.
- --------------------------------------------------------------------------------
WHAT IS THE ACCUMULATOR(R) ELITE(SM)?
Accumulator(R) Elite(SM) is a deferred annuity contract issued by AXA Equitable
Life Insurance Company. It provides for the accumulation of retirement savings
and for income. The contract offers income and death benefit protection. It
also offers a number of payout options. You invest to accumulate value on a
tax-deferred basis in one or more of our variable investment options, the
guaranteed interest option, fixed maturity options or the account for special
dollar cost averaging ("investment options"). Certain features and benefits
described in this Prospectus may vary in your state; all features and benefits
may not be available in all contracts or all states. Please contact your
financial professional and/or review your contract for state variations that
may apply to you.
- --------------------------------------------------------------------------------
Variable investment options
- --------------------------------------------------------------------------------
o AXA Aggressive Allocation(1) o EQ/Equity 500 Index
o AXA Conservative Allocation(1) o EQ/Evergreen Omega
o AXA Conservative-Plus Allocation(1) o EQ/FI Mid Cap
o AXA Moderate Allocation(1) o EQ/FI Small/Mid Cap Value
o AXA Moderate-Plus Allocation(1) o EQ/International Growth(3)
o AXA Premier VIP Aggressive Equity o EQ/J.P. Morgan Core Bond
o AXA Premier VIP Core Bond o EQ/JP Morgan Value Opportunities
o AXA Premier VIP Health Care o EQ/Janus Large Cap Growth
o AXA Premier VIP High Yield o EQ/Lazard Small Cap Value
o AXA Premier VIP International Equity o EQ/Long Term Bond(3)
o AXA Premier VIP Large Cap Core o EQ/Lord Abbett Growth and Income(3)
Equity o EQ/Lord Abbett Large Cap Core(3)
o AXA Premier VIP Large Cap Growth o EQ/Lord Abbett Mid Cap Value(3)
o AXA Premier VIP Large Cap Value o EQ/Marsico Focus
o AXA Premier VIP Small/Mid Cap o EQ/Mercury Basic Value Equity
Growth o EQ/Mercury International Value
o AXA Premier VIP Small/Mid Cap Value o EQ/Mergers and Acquisitions(3)
o AXA Premier VIP Technology o EQ/MFS Emerging Growth Companies
o EQ/Alliance Common Stock o EQ/MFS Investors Trust
o EQ/Alliance Growth and Income o EQ/Money Market
o EQ/Alliance Intermediate Government o EQ/Montag & Caldwell Growth(2)
Securities o EQ/PIMCO Real Return(3)
o EQ/Alliance International o EQ/Short Duration Bond(3)
o EQ/Alliance Large Cap Growth(2) o EQ/Small Company Index
o EQ/Alliance Quality Bond o EQ/Small Company Value(2)
o EQ/Alliance Small Cap Growth o EQ/TCW Equity(2)
o EQ/Bear Stearns Small Company o EQ/UBS Growth and Income(2)
Growth(2) o EQ/Van Kampen Comstock(3)
o EQ/Bernstein Diversified Value o EQ/Van Kampen Emerging Markets
o EQ/Boston Advisors Equity Income(2) Equity(2)
o EQ/Calvert Socially Responsible o EQ/Van Kampen Mid Cap Growth(3)
o EQ/Capital Guardian Growth o EQ/Wells Fargo Montgomery Small
o EQ/Capital Guardian International Cap(3)
o EQ/Capital Guardian Research o Laudus Rosenberg VIT Value Long/
o EQ/Capital Guardian U.S. Equity Short Equity
o EQ/Caywood-Scholl High Yield Bond(3) o U.S. Real Estate -- Class II
(1) The "AXA Allocation" portfolios.
(2) This is the option's new name, effective on or about May 9, 2005, subject
to regulatory approval. Please see "Portfolios of the Trusts" in
"Contract features and benefits" later in this Prospectus for the option's
former name.
(3) Available on or about May 9, 2005, subject to regulatory approval. Please
see "Portfolios of the Trusts" in "Contract features and benefits" later
in this Prospectus for more information on the new investment option.
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of Separate Account No. 49. Each
variable investment option, in turn, invests in a corresponding securities
portfolio ("portfolio") of EQ Advisors Trust, AXA Premier VIP Trust, The
Universal Institutional Funds, Inc. or Laudus Variable Insurance Trust (The
"Trusts"). Your investment results in a variable investment option will depend
on the investment performance of the related portfolio.
You may also allocate amounts to the guaranteed interest option, the fixed
maturity options and the account for the special dollar cost averaging, which
are discussed later in this Prospectus.
TYPES OF CONTRACTS. Contracts were offered for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only.
o An annuity that is an investment vehicle for a qualified defined contribution
plan ("QP").
o Traditional and Roth Inherited IRA beneficiary continuation contract
("Inherited IRA").
o An individual retirement annuity ("IRA"), either traditional IRA ("Rollover
IRA") or Roth IRA ("Roth Conversion IRA").
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") --
("Rollover TSA").
A contribution of at least $10,000 was required to purchase a contract.
Registration statements relating to this offering have been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2005, is part of the registration statement.
The SAI is available free of charge. You may request one by writing to our
processing office or calling 1-800-789-7771. The SAI has been incorporated by
reference into this Prospectus. This Prospectus and the SAI can also be
obtained from the SEC's website at www.sec.gov. The table of contents for the
SAI appears at the back of this Prospectus.
The SEC has not approved or disapproved these securities or determined if this
Prospectus is accurate or complete. Any representation to the contrary is a
criminal offense. The contracts are not insured by the FDIC or any other
agency. They are not deposits or other obligations of any bank and are not bank
guaranteed. They are subject to investment risks and possible loss of
principal.
X01000/Elite '02 Series
(R-4/15)
This contract is no longer available for new purchasers. This contract is no
longer being sold. This Prospectus is designed for current contract owners. In
addition to the possible state variations noted above, you should note that
your contract features and charges may vary depending on the date on which you
purchased your contract. For more information about the particular features,
charges and options applicable to you, please contact your financial
professional or refer to your contract, as well as review Appendix VI later in
this Prospectus for contract variation information and timing. You may not
change your contract or its features as issued.
Contents of this Prospectus
- --------------------------------------------------------------------
ACCUMULATOR(R) ELITE(SM)
- --------------------------------------------------------------------------------
Index of key words and phrases 5
Who is AXA Equitable? 6
How to reach us 7
Accumulator(R) Elite(SM) at a glance -- key features 9
- --------------------------------------------------------------------------------
FEE TABLE 11
- --------------------------------------------------------------------------------
Example 14
Condensed financial information 17
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 18
- --------------------------------------------------------------------------------
How you can contribute to your contract 18
Owner and annuitant requirements 21
How you can make your contributions 21
What are your investment options under the contract? 21
Portfolios of the Trusts 22
Allocating your contributions 28
Your benefit base 30
Annuity purchase factors 30
Our Living Benefit option 30
Guaranteed minimum death benefit 32
Inherited IRA beneficiary continuation contract 33
Your right to cancel within a certain number of days 34
- --------------------------------------------------------------------------------
2. DETERMINING YOUR CONTRACT'S VALUE 35
- --------------------------------------------------------------------------------
Your account value and cash value 35
Your contract's value in the variable investment options 35
Your contract's value in the guaranteed interest option 35
Your contract's value in the fixed maturity options 35
Your contract's value in the account for special dollar cost
averaging 35
Termination of your contract 35
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG
INVESTMENT OPTIONS 36
- --------------------------------------------------------------------------------
Transferring your account value 36
Disruptive transfer activity 36
Rebalancing your account value 37
- ----------------------
"We," "our," and "us" refer to AXA Equitable.
When we address the reader of this Prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the contract owner.
When we use the word "contract" it also includes certificates that are issued
under group contracts in some states.
Contents of this Prospectus 3
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 39
- --------------------------------------------------------------------------------
Withdrawing your account value 39
How withdrawals are taken from your account value 40
How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death
benefit 40
Loans under Rollover TSA contracts 41
Surrendering your contract to receive its cash value 41
When to expect payments 41
Your annuity payout options 41
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 44
- --------------------------------------------------------------------------------
Charges that AXA Equitable deducts 44
Charges that the Trusts deduct 46
Group or sponsored arrangements 47
Other distribution arrangements 47
- --------------------------------------------------------------------------------
6. PAYMENT OF DEATH BENEFIT 48
- --------------------------------------------------------------------------------
Your beneficiary and payment of benefit 48
How death benefit payment is made 48
Beneficiary continuation option 49
- --------------------------------------------------------------------------------
7. TAX INFORMATION 52
- --------------------------------------------------------------------------------
Overview 52
Contracts that fund a retirement arrangement 52
Transfers among investment options 52
Taxation of nonqualified annuities 52
Individual retirement arrangements (IRAs) 54
Tax-Sheltered Annuity contracts (TSAs) 63
Federal and state income tax withholding and
information reporting 66
Special rules for contracts funding qualified plans 67
Impact of taxes to AXA Equitable 67
- --------------------------------------------------------------------------------
8. MORE INFORMATION 68
- --------------------------------------------------------------------------------
About our Separate Account No. 49 68
About the Trusts 68
About our fixed maturity options 68
About the general account 69
About other methods of payment 69
Dates and prices at which contract events occur 70
About your voting rights 71
About legal proceedings 71
About our independent registered public accounting firm 71
Financial statements 71
Transfers of ownership, collateral assignments, loans
and borrowing 71
Distribution of the contracts 71
- --------------------------------------------------------------------------------
9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 74
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed financial information A-1
II -- Purchase considerations for QP contracts B-1
III -- Market value adjustment example C-1
IV -- Enhanced death benefit example D-1
V -- Hypothetical illustrations E-1
VI -- Contract variations F-1
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
4 Contents of this Prospectus
Index of key words and phrases
- --------------------------------------------------------------------------------
This index should help you locate more information on the terms used in this
Prospectus.
Page in
Term Prospectus
6% Roll up to age 85 enhanced death benefit 30
account value 35
administrative charge 44
annual administrative charge 44
Annual ratchet to age 85 enhanced death benefit 30
annuitant 18
annuity maturity date 43
annuity payout options 41
annuity purchase factors 30
automatic investment program 70
beneficiary 48
Beneficiary continuation option ("BCO") 49
benefit base 30
business day 70
cash value 35
charges for state premium and other applicable taxes 46
contract date 10
contract date anniversary 10
contract year 10
contributions to Roth IRAs 60
regular contributions 60
rollovers and direct transfers 61
conversion contributions 61
contributions to Traditional IRAs 55
regular contributions 55
rollovers and transfers 56
disability, terminal illness or confinement to nursing home 45
disruptive transfer activity 36
distribution charge 44
EQAccess 7
ERISA 41
fixed-dollar option 29
fixed maturity options 27
free look 34
free withdrawal amount 45
general account 69
general dollar cost averaging 29
guaranteed interest option 27
guaranteed minimum death benefit 32
guaranteed minimum death benefit charge 46
guaranteed minimum income benefit 31
Inherited IRA cover
investment options cover
investment simplifier 29
IRA cover
Term Prospectus
IRS 52
lifetime required minimum distribution withdrawals 40
living benefit 30
living benefit charge 30
loan reserve account 41
loans from Rollover TSAs 41
lump sum withdrawals 39
market adjusted amount 27
market timing 36
market value adjustment 27
maturity dates 27
maturity value 27
mortality and expense risks charge 44
NQ cover
participant 21
portfolio cover
Principal assurance allocation 28
processing office 7
Protection Plus(SM) 33
Protection Plus(SM) charge 46
QP cover
rate to maturity 27
Rebalancing 37
Rollover IRA cover
Rollover TSA cover
Roth Conversion IRA cover
Roth IRA cover
SAI cover
SEC cover
self-directed allocation 28
Separate Account No. 49 68
special dollar cost averaging 28
Standard death benefit 30
substantially equal withdrawals 39
Successor owner and annuitant 49
systematic withdrawals 39
TOPS 7
TSA cover
Traditional IRA cover
Trusts 68
unit 33
variable investment options 21
wire transmittals and electronic applications 69
withdrawal charge 44
To make this Prospectus easier to read, we sometimes use different words than
in the contract or supplemental materials. This is illustrated below. Although
we use different words, they have the same meaning in this Prospectus as in the
contract. Your financial professional can provide further explanation about
your contract or supplemental materials.
- --------------------------------------------------------------------------------------------------------------------
Prospectus Contract or Supplemental Materials
- --------------------------------------------------------------------------------------------------------------------
fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
Living Benefit Guaranteed Minimum Income Benefit
Guaranteed Interest Option Guaranteed Interest Account
- --------------------------------------------------------------------------------------------------------------------
Index of key words and phrases 5
Who is AXA Equitable?
- --------------------------------------------------------------------------------
We are AXA Equitable Life Insurance Company ("AXA Equitable") (previously, The
Equitable Life Assurance Society of the United States), a New York stock life
insurance corporation. We have been doing business since 1859. AXA Equitable is
a subsidiary of AXA Financial, Inc. AXA, a French holding company for an
international group of insurance and related financial services companies, is
the sole shareholder of AXA Financial, Inc. As the sole shareholder, and under
its other arrangements with AXA Equitable and AXA Equitable's parent, AXA
exercises significant influence over the operations and capital structure of
AXA Equitable and its parent. No company other than AXA Equitable, however, has
any legal responsibility to pay amounts that AXA Equitable owes under the
contracts.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$598 billion in assets as of December 31, 2004. For over 100 years AXA
Equitable has been among the largest insurance companies in the United States.
We are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office
is located at 1290 Avenue of the Americas, New York, N.Y. 10104.
6 Who is AXA Equitable?
HOW TO REACH US
You may communicate with our processing office as listed below for the purposes
described. Certain methods of contacting us, such as by telephone or
electronically, may be unavailable or delayed (for example our facsimile
service may not be available at all times and/or we may be unavailable due to
emergency closing). In addition, the level and type of service available may be
restricted based on criteria established by us.
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY REGULAR MAIL
- --------------------------------------------------------------------------------
Accumulator(R) Elite(SM)
P.O. Box 13014
Newark, NJ 07188-0014
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY
- --------------------------------------------------------------------------------
Accumulator(R) Elite(SM)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANS-
FERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR
MAIL
- --------------------------------------------------------------------------------
Accumulator(R) Elite(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANS-
FERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS
DELIVERY
- --------------------------------------------------------------------------------
Accumulator(R) Elite(SM)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year and any
calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract
year, including notification of eligibility to exercise the guaranteed
minimum income benefit, if applicable.
- --------------------------------------------------------------------------------
TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND
EQACCESS SYSTEMS:
- --------------------------------------------------------------------------------
TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQAccess is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for the fixed maturity options (not available through
EQAccess);
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
available through TOPS).
You can also:
o change your allocation percentages and/or transfer among the investment
options;
o elect to receive certain contract statements electronically;
o change your address (not available through TOPS);
o change your TOPS personal identification number ("PIN") (through TOPS only)
and your EQAccess password (through EQAccess only); and
o access Frequently Asked Questions and Service Forms (not available through
TOPS)
TOPS and EQAccess are normally available seven days a week, 24 hours a day. You
may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our website at www.axaonline.com and
logging in to access your account. All other clients may access EQAccess by
visiting our website at www.axa-equitable.com. Of course, for reasons beyond
our control, these services may sometimes be unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or the Internet are genuine. For example, we will
require certain personal identification information before we will act on
telephone or Internet instructions and we will provide written confirmation of
your transfers. If we do not employ reasonable procedures to confirm the
genuineness of telephone or Internet instructions, we may be liable for any
losses arising out of any act or omission that constitutes negligence, lack of
good faith, or willful misconduct. In light of our procedures, we will not be
liable for following telephone or Internet instructions we reasonably believe
to be genuine.
We reserve the right to limit access to these services if we determine that you
engaged in a disruptive transfer activity, such as "market timing" (see
"Disruptive transfer activity" in "Transferring your money among investment
options" later in this Prospectus).
CUSTOMER SERVICE REPRESENTATIVE:
You may also use our toll-free number (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
Who is AXA Equitable? 7
(2) conversion of a traditional IRA to a Roth Conversion IRA contract;
(3) election of the automatic investment program;
(4) election of the rebalancing program;
(5) requests for loans under Rollover TSA contracts;
(6) spousal consent for loans under Rollover TSA contracts;
(7) requests for withdrawals or surrenders from Rollover TSA contracts;
(8) tax withholding elections;
(9) election of the beneficiary continuation option;
(10) IRA contribution recharacterizations;
(11) certain Section 1035 exchanges;
(12) direct transfers;
(13) exercise of Guaranteed minimum income benefit; and
(14) death claims.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between investment options;
(4) contract surrender and withdrawal requests;
(5) general dollar cost averaging (including the fixed dollar and interest
sweep options); and
(6) special dollar cost averaging.
TO CANCEL OR CHANGE ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) automatic investment program;
(2) general dollar cost averaging (including the fixed dollar and interest
sweep options);
(3) rebalancing;
(4) special dollar cost averaging;
(5) substantially equal withdrawals;
(6) systematic withdrawals; and
(7) the date annuity payments are to begin.
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us to
take.
SIGNATURES:
The proper person to sign forms, notices and requests
would normally be the owner. If there are joint owners
all must sign.
8 Who is AXA Equitable?
Accumulator(R) Elite(SM) at a glance -- key features
- ---------------------------------------------------------------------------------------------------------------------------------
Professional investment Accumulator(R)Elite(SM)'s variable investment options invest in different portfolios managed by
management professional investment advisers.
- ---------------------------------------------------------------------------------------------------------------------------------
Fixed maturity options o Fixed maturity options with maturities ranging from approximately 1 to 10 years (subject to
availability).
o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it
to maturity.
----------------------------------------------------------------------------------------------------
If you make withdrawals or transfers from a fixed maturity option before maturity, there will
be a market value adjustment due to differences in interest rates. If you withdraw or transfer
only a portion of a fixed maturity amount, this may increase or decrease any value that you have
left in that fixed maturity option. If you surrender your contract, a market value adjustment
also applies.
- ---------------------------------------------------------------------------------------------------------------------------------
Guaranteed interest o Principal and interest guarantees.
option
o Interest rates set periodically.
- ---------------------------------------------------------------------------------------------------------------------------------
Account for special dollar Available for dollar cost averaging all or a portion of any eligible contribution to your contract.
cost averaging
- ---------------------------------------------------------------------------------------------------------------------------------
Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or
receive annuity payments.
o No tax on transfers among investment options inside the contract.
----------------------------------------------------------------------------------------------------
Annuity contracts that were purchased as an Individual Retirement Annuity (IRA) or Tax Sheltered
Annuity (TSA) or to fund an employer retirement plan (QP or Qualified Plan), do not provide tax
deferral benefits beyond those already provided by the Internal Revenue Code. Before you purchased
your contract, you should have considered its features and benefits beyond tax deferral -- as well
as its features, benefits and costs relative to any other investment that you may have chosen in
connection with your retirement plan or arrangement -- to determine whether it would meet your
needs and goals. Depending on your personal situation, the contract's guaranteed benefits may have
limited usefulness because of required minimum distributions ("RMDs").
- ---------------------------------------------------------------------------------------------------------------------------------
Living Benefit protection The Living Benefit provides a guaranteed minimum income benefit. The guaranteed minimum income
benefit provides income protection during the annuitant's life once you elect to annuitize the
contract.
- ---------------------------------------------------------------------------------------------------------------------------------
Contribution amounts o Initial minimum: $10,000
o Additional minimum: $500 (NQ, QP and Rollover TSA contracts)
$100 monthly and $300 quarterly under our automatic investment program
(NQ contracts)
$1,000 (Inherited IRA contracts)
$50 (IRA contracts)
Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million.
- ---------------------------------------------------------------------------------------------------------------------------------
Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Loans under Rollover TSA contracts
o Contract surrender
You may incur a withdrawal charge for certain withdrawals or if you surrender your contract.
You may also incur income tax and a tax penalty.
- ---------------------------------------------------------------------------------------------------------------------------------
Payout options o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout options
- ---------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) Elite(SM) at a glance -- key features 9
Additional features o Guaranteed minimum death benefit options
o Dollar cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually, and annually)
o Free transfers
o Waiver of withdrawal charge for disability, terminal illness, or confinement to a nursing home
o Protection Plus(SM), an optional death benefit available under certain contracts (subject to state
availability)
- ---------------------------------------------------------------------------------------------------------------------------------
Fees and charges o Daily charges on amounts invested in the variable investment options for mortality and expense
risks, administrative charges, and distribution charges at an annual rate of 1.60%.
o The charges for the guaranteed minimum death benefits range from 0.0% to 0.60%, annually, of
the applicable benefit base. The benefit base is described under "Your benefit base" in
"Contract features and benefits" later in this Prospectus.
o Annual 0.60% of the applicable benefit base charge for the optional Living Benefit until you
exercise your guaranteed minimum income benefit, elect another annuity payout option, or the
contract date anniversary after the annuitant reaches age 85, whichever occurs first. The
benefit base is described under "Your benefit base" in "Contract features and benefits" later
in this Prospectus.
o If your account value at the end of the contract year is less than $50,000, we deduct an annual
administrative charge equal to $30, or during the first two contract years, 2% of your account
value, if less. If your account value is, on the contract date anniversary, $50,000 or more, we
will not deduct the charge.
o An annual charge of 0.35% of the account value for the Protection Plus(SM) optional death
benefit.
o No sales charge deducted at the time you make contributions. During the first four contract
years following a contribution, a charge of up to 8% will be deducted from amounts that you
withdraw that exceed 10% of your account value. We use the account value at the beginning of
each contract year to calculate the 10% amount available. There is no withdrawal charge in the
fifth and later contract years following a contribution.
-------------------------------------------------------------------------------------------------------
The "contract date" is the effective date of a contract. This usually is the business day we
received the properly completed and signed application, along with any other required
documents, and your initial contribution. Your contract date appears in your contract. The
12-month period beginning on your contract date and each 12-month period after that date is a
"contract year." The end of each 12-month period is your "contract date anniversary." For
example, if your contract date is May 1, your contract date anniversary is April 30.
-------------------------------------------------------------------------------------------------------
o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as
premium taxes in your state. This charge is generally deducted from the amount applied to an
annuity payout option.
o We deduct a $350 annuity administrative fee from amounts applied to the Variable Immediate
Annuity payout options.
o Annual expenses of the Trusts' portfolios are calculated as a percentage of the average daily
net assets invested in each portfolio. These expenses include management fees ranging from
0.10% to 1.50% annually, 12b-1 fees of either 0.25% or 0.35% annually and other expenses.
- ---------------------------------------------------------------------------------------------------------------------------------
Annuitant issue ages NQ: 0-85
Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-85
Inherited IRA: 0-70
QP: 20-75
- ---------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the
contract. In some cases, restrictions or exceptions apply. Also, all features
of the contract are not necessarily available in your state or at certain ages.
For more detailed information, we urge you to read the contents of this
Prospectus, as well as your contract. Please feel free to speak with your
financial professional, or call us, if you have any questions.
Other contracts
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, credits, fees and/or charges that are
different from those in the contracts offered by this Prospectus. Not every
contract is offered through the same distributor. Upon request, your financial
professional can show you information regarding other AXA Equitable annuity
contracts that he or she distributes. You can also contact us to find out more
about any of the AXA Equitable annuity contracts.
10 Accumulator(R) Elite(SM) at a glance -- key features
Fee table
- --------------------------------------------------------------------------------
The following tables describe the fees and expenses that you pay when owning
and surrendering the contract. Each of the charges and expenses is more fully
described in "Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay at the time that
you surrender the contract or if you make certain withdrawals or apply your
cash value to certain payout options or if you purchase a Variable Immediate
Annuity. Charges designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state, may also apply. Charges for certain
features shown in the fee table are mutually exclusive.
- ----------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value at the time you request certain transactions
- ----------------------------------------------------------------------------------------------------------------------------
Maximum withdrawal charge as a percentage of contributions with-
drawn (deducted if you surrender your contract or make certain
withdrawals or apply your cash value to certain payout options).(1) 8.00%
Charge if you elect a Variable Immediate Annuity payout option $350
- ----------------------------------------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically during the time that you own the
contract, not including the underlying trust portfolio fees and expenses.
- ----------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your variable investment options expressed as an annual
percentage of daily net assets
- ----------------------------------------------------------------------------------------------------------------------------
Mortality and expense risks 1.10%
Administrative 0.25%
Distribution 0.25%
----
Total annual expenses 1.60%
- ----------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value on each contract date anniversary
- ----------------------------------------------------------------------------------------------------------------------------
Maximum annual administrative charge
If your account value on a contract date anniversary is less than
$50,000(2) $ 30
If your account value on a contract date anniversary is $50,000
or more $ 0
- ----------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value each year if you elect the optional benefit
- ----------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum death benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually
on each contract date anniversary for which the benefit is in effect.)
Standard death benefit 0.00%
Annual Ratchet to age 85 0.30% of the Annual Ratchet
to age 85 benefit base
6% Roll-up to age 85 0.45% of the 6% Roll-up to
age 85 benefit base
Greater of 6% Roll-up to age 85 or Annual Ratchet to age 85 0.60% of the greater of the 6%
Roll-up to age 85 benefit base
or the Annual Ratchet to age
85 benefit base, as applicable
- ----------------------------------------------------------------------------------------------------------------------------
Living Benefit charge (calculated as a percentage of the applicable
benefit base. Deducted annually on each contract date anniversary for
which the benefit is in effect.) 0.60%
- ----------------------------------------------------------------------------------------------------------------------------
Protection Plus(SM) benefit charge (calculated as a percentage of
the account value. Deducted annually on each contract date anniver-
sary for which the benefit is in effect.) 0.35%
- ----------------------------------------------------------------------------------------------------------------------------
Fee table 11
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net
asset value each day. Therefore, they reduce the investment return of the
Portfolio and the related variable investment option. Actual fees and expenses
are likely to fluctuate from year to year. More detail concerning each
Portfolio's fees and expenses is contained in the Trust prospectus for the
Portfolio.
- -------------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets
- -------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2004 (expenses that are deducted Lowest Highest
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ------ -------
other expenses)(3) 0.55% 7.61%
This table shows the fees and expenses for 2004 as an annual percentage of each
Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Manage- Portfolio (Before Expense After
ment 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name Fees(4) Fees(5) Expenses(6) Expenses(7) Limitation) ments(8) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 0.29% 0.99% 1.63% (0.29)% 1.34%
AXA Conservative Allocation 0.10% 0.25% 0.41% 0.75% 1.51% (0.41)% 1.10%
AXA Conservative-Plus Allocation 0.10% 0.25% 0.30% 0.80% 1.45% (0.30)% 1.15%
AXA Moderate Allocation 0.10% 0.25% 0.16% 0.83% 1.34% (0.16)% 1.18%
AXA Moderate-Plus Allocation 0.10% 0.25% 0.20% 1.02% 1.57% (0.20)% 1.37%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.18% -- 1.05% -- 1.05%
AXA Premier VIP Core Bond 0.60% 0.25% 0.20% -- 1.05% (0.10)% 0.95%
AXA Premier VIP Health Care 1.20% 0.25% 0.40% -- 1.85% 0.00% 1.85%
AXA Premier VIP High Yield 0.58% 0.25% 0.18% -- 1.01% -- 1.01%
AXA Premier VIP International Equity 1.05% 0.25% 0.50% -- 1.80% 0.00% 1.80%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.32% -- 1.47% (0.12)% 1.35%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.26% -- 1.41% (0.06)% 1.35%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.25% -- 1.40% (0.05)% 1.35%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.25% -- 1.60% 0.00% 1.60%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.25% -- 1.60% 0.00% 1.60%
AXA Premier VIP Technology 1.20% 0.25% 0.40% -- 1.85% 0.00% 1.85%
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.47% 0.25% 0.05% -- 0.77% -- 0.77%
EQ/Alliance Growth and Income 0.56% 0.25% 0.05% -- 0.86% -- 0.86%
EQ/Alliance Intermediate Government Securities 0.50% 0.25% 0.06% -- 0.81% -- 0.81%
EQ/Alliance International 0.73% 0.25% 0.12% -- 1.10% 0.00% 1.10%
EQ/Alliance Large Cap Growth* 0.90% 0.25% 0.05% -- 1.20% (0.10)% 1.10%
EQ/Alliance Quality Bond 0.50% 0.25% 0.06% -- 0.81% -- 0.81%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.06% -- 1.06% -- 1.06%
EQ/Bear Stearns Small Company Growth* 1.00% 0.25% 0.18% -- 1.43% (0.13)% 1.30%
EQ/Bernstein Diversified Value 0.63% 0.25% 0.07% -- 0.95% 0.00% 0.95%
EQ/Boston Advisors Equity Income* 0.75% 0.25% 0.21% -- 1.21% (0.16)% 1.05%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.29% -- 1.19% (0.14)% 1.05%
EQ/Capital Guardian Growth 0.65% 0.25% 0.09% -- 0.99% (0.04)% 0.95%
EQ/Capital Guardian International 0.85% 0.25% 0.17% -- 1.27% (0.07)% 1.20%
EQ/Capital Guardian Research 0.65% 0.25% 0.05% -- 0.95% 0.00% 0.95%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.05% -- 0.95% 0.00% 0.95%
EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.12% -- 0.97% (0.12)% 0.85%
EQ/Equity 500 Index 0.25% 0.25% 0.05% -- 0.55% -- 0.55%
EQ/Evergreen Omega 0.65% 0.25% 0.11% -- 1.01% (0.06)% 0.95%
EQ/FI Mid Cap 0.70% 0.25% 0.06% -- 1.01% (0.01)% 1.00%
EQ/FI Small/Mid Cap Value 0.74% 0.25% 0.08% -- 1.07% 0.00% 1.07%
EQ/International Growth 0.85% 0.25% 0.22% -- 1.32% 0.00% 1.32%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.06% -- 0.75% 0.00% 0.75%
EQ/JP Morgan Value Opportunities 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.08% -- 1.23% (0.08)% 1.15%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.05% -- 1.05% 0.00% 1.05%
EQ/Long Term Bond 0.50% 0.25% 0.25% -- 1.00% 0.00% 1.00%
- ------------------------------------------------------------------------------------------------------------------------------------
12 Fee table
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Manage- Portfolio (Before Expense After
ment 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name Fees(4) Fees(5) Expenses(6) Expenses(7) Limitation) ments(8) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.19% -- 1.14% (0.09)% 1.05%
EQ/Marsico Focus 0.88% 0.25% 0.06% -- 1.19% (0.04)% 1.15%
EQ/Mercury Basic Value Equity 0.58% 0.25% 0.05% -- 0.88% 0.00% 0.88%
EQ/Mercury International Value 0.85% 0.25% 0.15% -- 1.25% 0.00% 1.25%
EQ/Mergers and Acquisitions 0.90% 0.25% 1.21% -- 2.36% (0.91)% 1.45%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.06% -- 0.96% -- 0.96%
EQ/MFS Investors Trust 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Money Market 0.34% 0.25% 0.05% -- 0.64% -- 0.64%
EQ/Montag & Caldwell Growth* 0.75% 0.25% 0.12% -- 1.12% 0.00% 1.12%
EQ/PIMCO Real Return 0.55% 0.25% 0.20% -- 1.00% (0.35)% 0.65%
EQ/Short Duration Bond 0.45% 0.25% 0.52% -- 1.22% (0.57)% 0.65%
EQ/Small Company Index 0.25% 0.25% 0.13% -- 0.63% 0.00% 0.63%
EQ/Small Company Value* 0.80% 0.25% 0.12% -- 1.17% 0.00% 1.17%
EQ/TCW Equity* 0.80% 0.25% 0.12% -- 1.17% (0.02)% 1.15%
EQ/UBS Growth and Income* 0.75% 0.25% 0.16% -- 1.16% (0.11)% 1.05%
EQ/Van Kampen Comstock 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Van Kampen Emerging Markets Equity* 1.15% 0.25% 0.40% -- 1.80% 0.00% 1.80%
EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.19% -- 1.14% (0.09)% 1.05%
EQ/Wells Fargo Montgomery Small Cap 0.85% 0.25% 6.51% -- 7.61% (6.33)% 1.28%
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity 1.50% 0.25% 2.35% -- 4.10% (0.96)% 3.14%
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II** 0.76% 0.35% 0.26% -- 1.37% (0.10)% 1.27%
- ------------------------------------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject to
regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former name.
** Expense information has been restored to reflect current fees in effect as of
November 1, 2004.
Notes:
(1) Deducted upon a withdrawal of amounts in excess of the 10% free withdrawal
amount, if applicable
The withdrawal charge percentage we use is determined by the contract year Contract
in which you make the withdrawal or surrender your contract. For each Year
contribution, we consider the contract year in which we receive that 1 ................... 8.00%
contribution to be "contract year 1") 2 ................... 7.00%
3 ................... 6.00%
4 ................... 5.00%
5+ .................. 0.00%
(2) During the first two contract years this charge, if it applies, is equal to
the lesser of $30 or 2% of your account value. Thereafter, the charge is
$30 for each contract year.
(3) "Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2004 and for the
underlying portfolios.
(4) The management fees for each Portfolio cannot be increased without a vote
of that Portfolio's shareholders. See footnote (8) for any expense
limitation agreement information.
(5) Portfolio shares are all subject to fees imposed under the distribution
plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1
under the Investment Company Act of 1940. The 12b-1 fee will not be
increased for the life of the contracts.
(6) Other expenses shown are those incurred in 2004. The amounts shown as
"Other Expenses" will fluctuate from year to year depending on actual
expenses. See footnote (8) for any expense limitation agreement
information.
(7) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and AXA
Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolio's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocations
as of 12/31/04. A "--" indicates that the listed portfolio does not invest
in underlying portfolios, i.e., it is not an allocation portfolio.
(8) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A "--" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver reimbursement. AXA Equitable,
the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has
entered into Expense Limitation Agreements with respect to certain
Portfolios, which are effective through April 30, 2006. Under these
agreements AXA Equitable has agreed to waive or limit its fees and assume
other expenses of certain Portfolios, if necessary, in an amount that
limits each affected Portfolio's total Annual Expenses (exclusive of
interest, taxes, brokerage commissions, capitalized expenditures and
extraordinary expenses) to not more than specified amounts. Each Portfolio
may at a later date make a reimbursement to AXA Equitable for any of the
management fees waived or limited and other expenses assumed and paid by
AXA Equitable pursuant to the expense limitation agreement provided that
the Portfolio's current annual operating expenses do not exceed the
operating expense limit determined for such Portfolio. Morgan Stanley
Investment Management Inc., which does business in certain instances as
"Van Kampen," is the manager of The Universal Institutional Funds, Inc. -
U.S. Real Estate Portfolio - Class II, and has voluntarily agreed to reduce
its management fee and/or reimburse the Portfolio so that total annual
operating expenses of the Portfolio (exclusive of the investment related
expenses, such as foreign country tax expense and interest expense on
amounts borrowed) are not more than specified amounts. Additionally, the
distributor of The Universal Institutional Funds, Inc. has agreed to waive
a portion of the 12b-1 fee for Class II shares. Van Kampen and/or the
fund's distributor reserves the right to terminate any
Fee table 13
waiver and/or reimbursement at any time without notice. Charles Schwab
Investment Management, Inc., the manager of the Laudus Variable Insurance
Trust - Laudus Rosenberg VIT Value Long/Short Equity Portfolio has
voluntarily agreed to reimburse expenses in excess of specified amounts.
See this Prospectus for each applicable underlying Trust for more
information about the arrangements. In addition, a portion of the brokerage
commissions of certain portfolios of EQ Advisors Trust Portfolio and AXA
Premier VIP Trust portfolio is used to reduce the applicable Portfolio's
expenses. If the above table reflected both the expense limitation
arrangements plus the portion of the brokerage commissions used to reduce
portfolio expenses, the net expenses would be as shown in the table below:
- ----------------------------------------------------
Portfolio Name
- ----------------------------------------------------
AXA Moderate Allocation 1.17%
AXA Premier VIP Aggressive Equity 0.93%
AXA Premier VIP Health Care 1.81%
AXA Premier VIP International Equity 1.75%
AXA Premier VIP Large Cap Core Equity 1.32%
AXA Premier VIP Large Cap Growth 1.30%
AXA Premier VIP Large Cap Value 1.21%
AXA Premier VIP Small/Mid Cap Growth 1.50%
AXA Premier VIP Small/Mid Cap Value 1.54%
AXA Premier VIP Technology 1.75%
EQ/Alliance Common Stock 0.68%
EQ/Alliance Growth and Income 0.80%
EQ/Alliance International 1.08%
EQ/Alliance Large Cap Growth 1.04%
EQ/Alliance Small Cap Growth 0.98%
EQ/Calvert Socially Responsible 1.00%
EQ/Capital Guardian Growth 0.67%
EQ/Capital Guardian International 1.17%
EQ/Capital Guardian Research 0.90%
EQ/Capital Guardian U.S. Equity 0.93%
EQ/Evergreen Omega 0.57%
EQ/FI Mid Cap 0.96%
EQ/FI Small/Mid Cap Value 1.05%
EQ/JP Morgan Value Opportunities 0.76%
EQ/Lazard Small Cap Value 0.86%
EQ/Marsico Focus 1.12%
EQ/Mercury Basic Value Equity 0.86%
EQ/Mercury International Value 1.18%
EQ/MFS Emerging Growth Companies 0.91%
EQ/MFS Investors Trust 0.91%
EQ/Small Company Value 1.16%
EQ/TCW Equity 1.14%
EQ/Van Kampen Emerging Markets Equity 1.75%
EQ/Wells Fargo Montgomery Small Cap 1.26%
- ----------------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses).
The example below shows the expenses that a hypothetical contract owner (who
has elected the Living Benefit with the enhanced death benefit that provides
for the greater of the 6% Roll-up or the Annual Ratchet to age 85 and
Protection Plus(SM)) would pay in the situations illustrated. The annual
administrative charge is based on the charges that apply to a mix of estimated
contract sizes, resulting in an estimated administrative charge for the purpose
of these examples of $1.10 per $10,000.
The fixed maturity options, guaranteed interest option and the account for
special dollar cost averaging are not covered by the fee table and examples.
However, the annual administrative charge, the withdrawal charge, the charge
for any optional benefits and the charge if you elect a Variable Immediate
Annuity payout option do apply to the fixed maturity options, guaranteed
interest option and the account for special dollar cost averaging. A market
value adjustment (up or down) may apply as a result of a withdrawal, transfer,
or surrender of amounts from a fixed maturity option.
This example should not be considered a representation of past or future
expenses for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the example is not an
estimate or guarantee of future investment performance.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes your investment has a 5% return
each year. This example should not be considered a representation of past or
future expenses for each option. Actual expenses may be greater or less than
those shown. Similarly, the annual rate of return assumed in the example is not
an estimate or guarantee of future investment performance. Although your actual
costs may be higher or lower based on these assumptions, your costs would be:
14 Fee table
- ------------------------------------------------------------------------------------------------------------
If you surrender your contract at the end of the
applicable time period
- ------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,304.21 $ 2,135.23 $ 2,597.52 $ 5,400.11
AXA Conservative Allocation $ 1,291.62 $ 2,098.84 $ 2,539.33 $ 5,297.00
AXA Conservative-Plus Allocation $ 1,285.32 $ 2,080.61 $ 2,510.11 $ 5,244.94
AXA Moderate Allocation $ 1,273.56 $ 2,046.52 $ 2,455.38 $ 5,146.88
AXA Moderate-Plus Allocation $ 1,297.91 $ 2,117.05 $ 2,568.46 $ 5,348.72
AXA Premier VIP Aggressive Equity $ 1,243.32 $ 1,958.48 $ 2,313.38 $ 4,889.27
AXA Premier VIP Core Bond $ 1,243.32 $ 1,958.48 $ 2,313.38 $ 4,889.27
AXA Premier VIP Health Care $ 1,327.31 $ 2,201.69 $ 2,703.39 $ 5,585.72
AXA Premier VIP High Yield $ 1,239.12 $ 1,946.21 $ 2,293.52 $ 4,852.86
AXA Premier VIP International Equity $ 1,322.06 $ 2,186.62 $ 2,679.42 $ 5,543.92
AXA Premier VIP Large Cap Core Equity $ 1,287.42 $ 2,086.69 $ 2,519.86 $ 5,262.33
AXA Premier VIP Large Cap Growth $ 1,281.12 $ 2,068.45 $ 2,490.60 $ 5,210.05
AXA Premier VIP Large Cap Value $ 1,280.07 $ 2,065.40 $ 2,485.71 $ 5,201.31
AXA Premier VIP Small/Mid Cap Growth $ 1,301.06 $ 2,126.14 $ 2,583.00 $ 5,374.45
AXA Premier VIP Small/Mid Cap Value $ 1,301.06 $ 2,126.14 $ 2,583.00 $ 5,374.45
AXA Premier VIP Technology $ 1,327.31 $ 2,201.69 $ 2,703.39 $ 5,585.72
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 1,213.92 $ 1,872.36 $ 2,173.59 $ 4,631.15
EQ/Alliance Growth and Income $ 1,223.37 $ 1,900.10 $ 2,218.71 $ 4,714.95
EQ/Alliance Intermediate Government Securities $ 1,218.12 $ 1,884.70 $ 2,193.67 $ 4,668.49
EQ/Alliance International $ 1,248.57 $ 1,973.81 $ 2,338.16 $ 4,934.56
EQ/Alliance Large Cap Growth* $ 1,259.07 $ 2,004.40 $ 2,387.56 $ 5,024.43
EQ/Alliance Quality Bond $ 1,218.12 $ 1,884.70 $ 2,193.67 $ 4,668.49
EQ/Alliance Small Cap Growth $ 1,244.37 $ 1,961.55 $ 2,318.34 $ 4,898.35
EQ/Bear Stearns Small Company Growth* $ 1,283.22 $ 2,074.53 $ 2,500.36 $ 5,227.52
EQ/Bernstein Diversified Value $ 1,232.82 $ 1,927.78 $ 2,263.65 $ 4,797.96
EQ/Boston Advisors Equity Income* $ 1,260.12 $ 2,007.46 $ 2,392.49 $ 5,033.36
EQ/Calvert Socially Responsible $ 1,258.02 $ 2,001.35 $ 2,382.63 $ 5,015.48
EQ/Capital Guardian Growth $ 1,237.02 $ 1,940.07 $ 2,283.57 $ 4,834.60
EQ/Capital Guardian International $ 1,266.42 $ 2,025.78 $ 2,422.01 $ 5,086.76
EQ/Capital Guardian Research $ 1,232.82 $ 1,927.78 $ 2,263.65 $ 4,797.96
EQ/Capital Guardian U.S. Equity $ 1,232.82 $ 1,927.78 $ 2,263.65 $ 4,797.96
EQ/Caywood-Scholl High Yield Bond $ 1,234.92 $ 1,933.93 $ 2,273.62 $ 4,816.30
EQ/Equity 500 Index $ 1,190.83 $ 1,804.33 $ 2,062.54 $ 4,422.91
EQ/Evergreen Omega $ 1,239.12 $ 1,946.21 $ 2,293.52 $ 4,852.86
EQ/FI Mid Cap $ 1,239.12 $ 1,946.21 $ 2,293.52 $ 4,852.86
EQ/FI Small/Mid Cap Value $ 1,245.42 $ 1,964.61 $ 2,323.30 $ 4,907.41
EQ/International Growth $ 1,271.67 $ 2,041.04 $ 2,446.56 $ 5,131.01
EQ/J.P. Morgan Core Bond $ 1,211.82 $ 1,866.19 $ 2,163.54 $ 4,612.41
EQ/JP Morgan Value Opportunities $ 1,232.82 $ 1,927.78 $ 2,263.65 $ 4,797.96
EQ/Janus Large Cap Growth $ 1,262.22 $ 2,013.57 $ 2,402.34 $ 5,051.20
EQ/Lazard Small Cap Value $ 1,243.32 $ 1,958.48 $ 2,313.38 $ 4,889.27
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
If you annuitize at the end of the applicable time period
- ------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 854.21 $ 1,885.23 $ 2,947.52 $ 5,750.11
AXA Conservative Allocation $ 841.62 $ 1,848.84 $ 2,889.33 $ 5,647.00
AXA Conservative-Plus Allocation $ 835.32 $ 1,830.61 $ 2,860.11 $ 5,594.94
AXA Moderate Allocation $ 823.56 $ 1,796.52 $ 2,805.38 $ 5,496.88
AXA Moderate-Plus Allocation $ 847.91 $ 1,867.05 $ 2,918.46 $ 5,698.72
AXA Premier VIP Aggressive Equity $ 793.32 $ 1,708.48 $ 2,663.38 $ 5,239.27
AXA Premier VIP Core Bond $ 793.32 $ 1,708.48 $ 2,663.38 $ 5,239.27
AXA Premier VIP Health Care $ 877.31 $ 1,951.69 $ 3,053.39 $ 5,935.72
AXA Premier VIP High Yield $ 789.12 $ 1,696.21 $ 2,643.52 $ 5,202.86
AXA Premier VIP International Equity $ 872.06 $ 1,936.62 $ 3,029.42 $ 5,893.92
AXA Premier VIP Large Cap Core Equity $ 837.42 $ 1,836.69 $ 2,869.86 $ 5,612.33
AXA Premier VIP Large Cap Growth $ 831.12 $ 1,818.45 $ 2,840.60 $ 5,560.05
AXA Premier VIP Large Cap Value $ 830.07 $ 1,815.40 $ 2,835.71 $ 5,551.31
AXA Premier VIP Small/Mid Cap Growth $ 851.06 $ 1,876.14 $ 2,933.00 $ 5,724.45
AXA Premier VIP Small/Mid Cap Value $ 851.06 $ 1,876.14 $ 2,933.00 $ 5,724.45
AXA Premier VIP Technology $ 877.31 $ 1,951.69 $ 3,053.39 $ 5,935.72
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 763.92 $ 1,622.36 $ 2,523.59 $ 4,981.15
EQ/Alliance Growth and Income $ 773.37 $ 1,650.10 $ 2,568.71 $ 5,064.95
EQ/Alliance Intermediate Government Securities $ 768.12 $ 1,634.70 $ 2,543.67 $ 5,018.49
EQ/Alliance International $ 798.57 $ 1,723.81 $ 2,688.16 $ 5,284.56
EQ/Alliance Large Cap Growth* $ 809.07 $ 1,754.40 $ 2,737.56 $ 5,374.43
EQ/Alliance Quality Bond $ 768.12 $ 1,634.70 $ 2,543.67 $ 5,018.49
EQ/Alliance Small Cap Growth $ 794.37 $ 1,711.55 $ 2,668.34 $ 5,248.35
EQ/Bear Stearns Small Company Growth* $ 833.22 $ 1,824.53 $ 2,850.36 $ 5,577.52
EQ/Bernstein Diversified Value $ 782.82 $ 1,677.78 $ 2,613.65 $ 5,147.96
EQ/Boston Advisors Equity Income* $ 810.12 $ 1,757.46 $ 2,742.49 $ 5,383.36
EQ/Calvert Socially Responsible $ 808.02 $ 1,751.35 $ 2,732.63 $ 5,365.48
EQ/Capital Guardian Growth $ 787.02 $ 1,690.07 $ 2,633.57 $ 5,184.60
EQ/Capital Guardian International $ 816.42 $ 1,775.78 $ 2,772.01 $ 5,436.76
EQ/Capital Guardian Research $ 782.82 $ 1,677.78 $ 2,613.65 $ 5,147.96
EQ/Capital Guardian U.S. Equity $ 782.82 $ 1,677.78 $ 2,613.65 $ 5,147.96
EQ/Caywood-Scholl High Yield Bond $ 784.92 $ 1,683.93 $ 2,623.62 $ 5,166.30
EQ/Equity 500 Index $ 740.83 $ 1,554.33 $ 2,412.54 $ 4,772.91
EQ/Evergreen Omega $ 789.12 $ 1,696.21 $ 2,643.52 $ 5,202.86
EQ/FI Mid Cap $ 789.12 $ 1,696.21 $ 2,643.52 $ 5,202.86
EQ/FI Small/Mid Cap Value $ 795.42 $ 1,714.61 $ 2,673.30 $ 5,257.41
EQ/International Growth $ 821.67 $ 1,791.04 $ 2,796.56 $ 5,481.01
EQ/J.P. Morgan Core Bond $ 761.82 $ 1,616.19 $ 2,513.54 $ 4,962.41
EQ/JP Morgan Value Opportunities $ 782.82 $ 1,677.78 $ 2,613.65 $ 5,147.96
EQ/Janus Large Cap Growth $ 812.22 $ 1,763.57 $ 2,752.34 $ 5,401.20
EQ/Lazard Small Cap Value $ 793.32 $ 1,708.48 $ 2,663.38 $ 5,239.27
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end of
the applicable time period
- ------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 504.21 $ 1,535.23 $ 2,597.52 $ 5,400.11
AXA Conservative Allocation $ 491.62 $ 1,498.84 $ 2,539.33 $ 5,297.00
AXA Conservative-Plus Allocation $ 485.32 $ 1,480.61 $ 2,510.11 $ 5,244.94
AXA Moderate Allocation $ 473.56 $ 1,446.52 $ 2,455.38 $ 5,146.88
AXA Moderate-Plus Allocation $ 497.91 $ 1,517.05 $ 2,568.46 $ 5,348.72
AXA Premier VIP Aggressive Equity $ 443.32 $ 1,358.48 $ 2,313.38 $ 4,889.27
AXA Premier VIP Core Bond $ 443.32 $ 1,358.48 $ 2,313.38 $ 4,889.27
AXA Premier VIP Health Care $ 527.31 $ 1,601.69 $ 2,703.39 $ 5,585.72
AXA Premier VIP High Yield $ 439.12 $ 1,346.21 $ 2,293.52 $ 4,852.86
AXA Premier VIP International Equity $ 522.06 $ 1,586.62 $ 2,679.42 $ 5,543.92
AXA Premier VIP Large Cap Core Equity $ 487.42 $ 1,486.69 $ 2,519.86 $ 5,262.33
AXA Premier VIP Large Cap Growth $ 481.12 $ 1,468.45 $ 2,490.60 $ 5,210.05
AXA Premier VIP Large Cap Value $ 480.07 $ 1,465.40 $ 2,485.71 $ 5,201.31
AXA Premier VIP Small/Mid Cap Growth $ 501.06 $ 1,526.14 $ 2,583.00 $ 5,374.45
AXA Premier VIP Small/Mid Cap Value $ 501.06 $ 1,526.14 $ 2,583.00 $ 5,374.45
AXA Premier VIP Technology $ 527.31 $ 1,601.69 $ 2,703.39 $ 5,585.72
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 413.92 $ 1,272.36 $ 2,173.59 $ 4,631.15
EQ/Alliance Growth and Income $ 423.37 $ 1,300.10 $ 2,218.71 $ 4,714.95
EQ/Alliance Intermediate Government Securities $ 418.12 $ 1,284.70 $ 2,193.67 $ 4,668.49
EQ/Alliance International $ 448.57 $ 1,373.81 $ 2,338.16 $ 4,934.56
EQ/Alliance Large Cap Growth* $ 459.07 $ 1,404.40 $ 2,387.56 $ 5,024.43
EQ/Alliance Quality Bond $ 418.12 $ 1,284.70 $ 2,193.67 $ 4,668.49
EQ/Alliance Small Cap Growth $ 444.37 $ 1,361.55 $ 2,318.34 $ 4,898.35
EQ/Bear Stearns Small Company Growth* $ 483.22 $ 1,474.53 $ 2,500.36 $ 5,227.52
EQ/Bernstein Diversified Value $ 432.82 $ 1,327.78 $ 2,263.65 $ 4,797.96
EQ/Boston Advisors Equity Income* $ 460.12 $ 1,407.46 $ 2,392.49 $ 5,033.36
EQ/Calvert Socially Responsible $ 458.02 $ 1,401.35 $ 2,382.63 $ 5,015.48
EQ/Capital Guardian Growth $ 437.02 $ 1,340.07 $ 2,283.57 $ 4,834.60
EQ/Capital Guardian International $ 466.42 $ 1,425.78 $ 2,422.01 $ 5,086.76
EQ/Capital Guardian Research $ 432.82 $ 1,327.78 $ 2,263.65 $ 4,797.96
EQ/Capital Guardian U.S. Equity $ 432.82 $ 1,327.78 $ 2,263.65 $ 4,797.96
EQ/Caywood-Scholl High Yield Bond $ 434.92 $ 1,333.93 $ 2,273.62 $ 4,816.30
EQ/Equity 500 Index $ 390.83 $ 1,204.33 $ 2,062.54 $ 4,422.91
EQ/Evergreen Omega $ 439.12 $ 1,346.21 $ 2,293.52 $ 4,852.86
EQ/FI Mid Cap $ 439.12 $ 1,346.21 $ 2,293.52 $ 4,852.86
EQ/FI Small/Mid Cap Value $ 445.42 $ 1,364.61 $ 2,323.30 $ 4,907.41
EQ/International Growth $ 471.67 $ 1,441.04 $ 2,446.56 $ 5,131.01
EQ/J.P. Morgan Core Bond $ 411.82 $ 1,266.19 $ 2,163.54 $ 4,612.41
EQ/JP Morgan Value Opportunities $ 432.82 $ 1,327.78 $ 2,263.65 $ 4,797.96
EQ/Janus Large Cap Growth $ 462.22 $ 1,413.57 $ 2,402.34 $ 5,051.20
EQ/Lazard Small Cap Value $ 443.32 $ 1,358.48 $ 2,313.38 $ 4,889.27
- ------------------------------------------------------------------------------------------------------------
Fee table 15
- ------------------------------------------------------------------------------------------------------------
If you surrender your contract at the end of the
applicable time period
- ------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 1,238.07 $ 1,943.14 $ 2,288.54 $ 4,843.73
EQ/Lord Abbett Growth and Income $ 1,247.52 $ 1,970.74 $ 2,333.21 $ 4,925.52
EQ/Lord Abbett Large Cap Core $ 1,247.52 $ 1,970.74 $ 2,333.21 $ 4,925.52
EQ/Lord Abbett Mid Cap Value $ 1,252.77 $ 1,986.05 $ 2,357.95 $ 4,970.62
EQ/Marsico Focus $ 1,258.02 $ 2,001.35 $ 2,382.63 $ 5,015.48
EQ/Mercury Basic Value Equity $ 1,225.47 $ 1,906.26 $ 2,228.71 $ 4,733.46
EQ/Mercury International Value $ 1,264.32 $ 2,019.68 $ 2,412.18 $ 5,069.00
EQ/Mergers and Acquisitions $ 1,380.86 $ 2,354.55 $ 2,944.89 $ 5,999.43
EQ/MFS Emerging Growth Companies $ 1,233.87 $ 1,930.86 $ 2,268.64 $ 4,807.13
EQ/MFS Investors Trust $ 1,232.82 $ 1,927.78 $ 2,263.65 $ 4,797.96
EQ/Money Market $ 1,200.28 $ 1,832.20 $ 2,108.10 $ 4,508.68
EQ/Montag & Caldwell Growth* $ 1,250.67 $ 1,979.93 $ 2,348.06 $ 4,952.61
EQ/PIMCO Real Return $ 1,238.07 $ 1,943.14 $ 2,288.54 $ 4,843.73
EQ/Short Duration Bond $ 1,261.17 $ 2,010.52 $ 2,397.42 $ 5,042.28
EQ/Small Company Index $ 1,199.23 $ 1,829.11 $ 2,103.05 $ 4,499.19
EQ/Small Company Value* $ 1,255.92 $ 1,995.23 $ 2,372.77 $ 4,997.57
EQ/TCW Equity* $ 1,255.92 $ 1,995.23 $ 2,372.77 $ 4,997.57
EQ/UBS Growth and Income* $ 1,254.87 $ 1,992.17 $ 2,367.83 $ 4,988.59
EQ/Van Kampen Comstock $ 1,247.52 $ 1,970.74 $ 2,333.21 $ 4,925.52
EQ/Van Kampen Emerging Markets Equity* $ 1,322.06 $ 2,186.62 $ 2,679.42 $ 5,543.92
EQ/Van Kampen Mid Cap Growth $ 1,252.77 $ 1,986.05 $ 2,357.95 $ 4,970.62
EQ/Wells Fargo Montgomery Small Cap $ 1,932.04 $ 3,831.40 $ 5,129.71 $ 9,125.63
- ------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,563.54 $ 2,863.39 $ 3,728.32 $ 7,248.72
- ------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II $ 1,276.92 $ 2,056.27 $ 2,471.05 $ 5,175.02
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
If you annuitize at the end of the applicable time
period
- ------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 788.07 $ 1,693.14 $ 2,638.54 $ 5,193.73
EQ/Lord Abbett Growth and Income $ 797.52 $ 1,720.74 $ 2,683.21 $ 5,275.52
EQ/Lord Abbett Large Cap Core $ 797.52 $ 1,720.74 $ 2,683.21 $ 5,275.52
EQ/Lord Abbett Mid Cap Value $ 802.77 $ 1,736.05 $ 2,707.95 $ 5,320.62
EQ/Marsico Focus $ 808.02 $ 1,751.35 $ 2,732.63 $ 5,365.48
EQ/Mercury Basic Value Equity $ 775.47 $ 1,656.26 $ 2,578.71 $ 5,083.46
EQ/Mercury International Value $ 814.32 $ 1,769.68 $ 2,762.18 $ 5,419.00
EQ/Mergers and Acquisitions $ 930.86 $ 2,104.55 $ 3,294.89 $ 6,349.43
EQ/MFS Emerging Growth Companies $ 783.87 $ 1,680.86 $ 2,618.64 $ 5,157.13
EQ/MFS Investors Trust $ 782.82 $ 1,677.78 $ 2,613.65 $ 5,147.96
EQ/Money Market $ 750.28 $ 1,582.20 $ 2,458.10 $ 4,858.68
EQ/Montag & Caldwell Growth* $ 800.67 $ 1,729.93 $ 2,698.06 $ 5,302.61
EQ/PIMCO Real Return $ 788.07 $ 1,693.14 $ 2,638.54 $ 5,193.73
EQ/Short Duration Bond $ 811.17 $ 1,760.52 $ 2,747.42 $ 5,392.28
EQ/Small Company Index $ 749.23 $ 1,579.11 $ 2,453.05 $ 4,849.19
EQ/Small Company Value* $ 805.92 $ 1,745.23 $ 2,722.77 $ 5,347.57
EQ/TCW Equity* $ 805.92 $ 1,745.23 $ 2,722.77 $ 5,347.57
EQ/UBS Growth and Income* $ 804.87 $ 1,742.17 $ 2,717.83 $ 5,338.59
EQ/Van Kampen Comstock $ 797.52 $ 1,720.74 $ 2,683.21 $ 5,275.52
EQ/Van Kampen Emerging Markets Equity* $ 872.06 $ 1,936.62 $ 3,029.42 $ 5,893.92
EQ/Van Kampen Mid Cap Growth $ 802.77 $ 1,736.05 $ 2,707.95 $ 5,320.62
EQ/Wells Fargo Montgomery Small Cap $ 1,482.04 $ 3,581.40 $ 5,479.71 $ 9,475.63
- ------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,113.54 $ 2,613.39 $ 4,078.32 $ 7,598.72
- ------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II $ 826.92 $ 1,806.27 $ 2,821.05 $ 5,525.02
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end of
the applicable time period
- ------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 438.07 $ 1,343.14 $ 2,288.54 $ 4,843.73
EQ/Lord Abbett Growth and Income $ 447.52 $ 1,370.74 $ 2,333.21 $ 4,925.52
EQ/Lord Abbett Large Cap Core $ 447.52 $ 1,370.74 $ 2,333.21 $ 4,925.52
EQ/Lord Abbett Mid Cap Value $ 452.77 $ 1,386.05 $ 2,357.95 $ 4,970.62
EQ/Marsico Focus $ 458.02 $ 1,401.35 $ 2,382.63 $ 5,015.48
EQ/Mercury Basic Value Equity $ 425.47 $ 1,306.26 $ 2,228.71 $ 4,733.46
EQ/Mercury International Value $ 464.32 $ 1,419.68 $ 2,412.18 $ 5,069.00
EQ/Mergers and Acquisitions $ 580.86 $ 1,754.55 $ 2,944.89 $ 5,999.43
EQ/MFS Emerging Growth Companies $ 433.87 $ 1,330.86 $ 2,268.64 $ 4,807.13
EQ/MFS Investors Trust $ 432.82 $ 1,327.78 $ 2,263.65 $ 4,797.96
EQ/Money Market $ 400.28 $ 1,232.20 $ 2,108.10 $ 4,508.68
EQ/Montag & Caldwell Growth* $ 450.67 $ 1,379.93 $ 2,348.06 $ 4,952.61
EQ/PIMCO Real Return $ 438.07 $ 1,343.14 $ 2,288.54 $ 4,843.73
EQ/Short Duration Bond $ 461.17 $ 1,410.52 $ 2,397.42 $ 5,042.28
EQ/Small Company Index $ 399.23 $ 1,229.11 $ 2,103.05 $ 4,499.19
EQ/Small Company Value* $ 455.92 $ 1,395.23 $ 2,372.77 $ 4,997.57
EQ/TCW Equity* $ 455.92 $ 1,395.23 $ 2,372.77 $ 4,997.57
EQ/UBS Growth and Income* $ 454.87 $ 1,392.17 $ 2,367.83 $ 4,988.59
EQ/Van Kampen Comstock $ 447.52 $ 1,370.74 $ 2,333.21 $ 4,925.52
EQ/Van Kampen Emerging Markets Equity* $ 522.06 $ 1,586.62 $ 2,679.42 $ 5,543.92
EQ/Van Kampen Mid Cap Growth $ 452.77 $ 1,386.05 $ 2,357.95 $ 4,970.62
EQ/Wells Fargo Montgomery Small Cap $ 1,132.04 $ 3,231.40 $ 5,129.71 $ 9,125.63
- ------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 763.54 $ 2,263.39 $ 3,728.32 $ 7,248.72
- ------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II $ 476.92 $ 1,456.27 $ 2,471.05 $ 5,175.02
- ------------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject to
regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former name.
16 Fee table
CONDENSED FINANCIAL INFORMATION
Please see Appendix I at the end of this Prospectus for the unit values and the
number of units outstanding as of the end of the periods shown for each of the
variable investment options available as of December 31, 2004.
Fee table 17
1. Contract features and benefits
- --------------------------------------------------------------------------------
HOW YOU CAN CONTRIBUTE TO YOUR CONTRACT
You may make additional contributions of: (i) at least $500 each for NQ, QP and
Rollover TSA contracts; (ii) $50 each for Rollover IRA and Roth conversion IRA
contracts; and (iii) $1,000 for Inherited IRA contracts, subject to limitations
noted below. The following table summarizes our rules regarding contributions
to your contract. In some states, our rules may vary. All ages in the table
refer to the age of the annuitant named in the contract. Initial contribution
amounts are provided for informational purposes only. This contract is no
longer available to new purchasers.
We may refuse to accept any contribution if the sum of all contributions under
all Accumulator(R) series contracts with the same annuitant would then total
more than $1,500,000. We reserve the right to limit aggregate contributions
made after the first contract year to 150% of first-year contributions. We may
also refuse to accept any contribution if the sum of all contributions under
all AXA Equitable annuity accumulation contracts that you own would then total
more than $2,500,000.
- --------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining
contract benefits. The annuitant is not necessarily the contract owner.
- --------------------------------------------------------------------------------
- --------------------------------------
Annuitant
Contract type issue ages
- --------------------------------------
NQ 0 through 85
- --------------------------------------
Rollover IRA 20 through 85
- --------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Limitations on
Contract type Source of contributions contributions
- --------------------------------------------------------------------------------------------------------------------------------
NQ o After-tax money. o No additional contributions after attainment of
age 87.
o Paid to us by check or transfer of contract value
in a tax-deferred exchange under Section 1035
of the Internal Revenue Code.
- --------------------------------------------------------------------------------------------------------------------------------
Rollover IRA o Eligible rollover distributions from TSA contracts o No rollover or direct transfer contributions after
or other 403(b) arrangements, qualified plans, attainment of age 87.
and governmental employer 457(b) plans.
o Contributions after age 70-1/2 must be net of
o Rollovers from another traditional individual required minimum distributions.
retirement arrangement.
o Although we accept regular IRA contributions
o Direct custodian-to-custodian transfers from (limited to $4,000 for 2005; same for 2006),
another traditional individual retirement under the Rollover IRA contracts, we intend that
arrangement. this contract be used primarily for rollover and
direct transfer contributions.
o Regular IRA contributions.
o Additional catch-up contributions of up to $500
o Additional "catch-up" contributions. can be made for the calendar year 2005 ($1,000
for 2006) where the owner is at least age 50 but
under age 70-1/2 at any time during the calendar
year for which the contribution is made.
- --------------------------------------------------------------------------------------------------------------------------------
18 Contract features and benefits
- --------------------------------------
Annuitant
Contract type issue ages
- --------------------------------------
Roth Conversion 20 through 85
IRA
- --------------------------------------
Inherited IRA 0 through 70
Beneficiary Con-
tinuation Contract
(traditional IRA or
Roth IRA)
- --------------------------------------
Rollover TSA 20 through 85
- --------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Limitations on
Contract type Source of contributions contributions
- -----------------------------------------------------------------------------------------------------------------------------------
Roth Conversion o Rollovers from another Roth IRA. o No additional rollover or direct transfer contribu-
IRA tions after attainment of age 87.
o Conversion rollovers from a traditional IRA.
o Conversion rollovers after age 70-1/2 must be net
o Direct transfers from another Roth IRA. of required minimum distributions for the tradi-
tional IRA you are rolling over.
o Regular Roth IRA contributions.
o You cannot roll over funds from a traditional IRA
o Additional catch-up contributions. if your adjusted gross income is $100,000 or more.
o Although we accept regular Roth IRA contribu-
tions (limited to $4,000 for 2005; same for
2006) under the Roth IRA contracts, we intend
that this contract be used primarily for rollover
and direct transfer contributions.
o Additional catch-up contributions of up to $500
can be made for the calendar year 2005 ($1,000
for 2006) where the owner is at least age 50 at
any time during the calendar year for which the
contribution is made.
- -----------------------------------------------------------------------------------------------------------------------------------
Inherited IRA o Direct custodian-to-custodian transfers of your o Any additional contributions must be from same
Beneficiary Con- interest as a death beneficiary of the deceased type of IRA of same deceased owner.
tinuation Contract owner's traditional individual retirement
(traditional IRA or arrangement or Roth IRA to an IRA of the same
Roth IRA) type.
- -----------------------------------------------------------------------------------------------------------------------------------
Rollover TSA o Direct transfers of pre-tax funds from another o No additional rollover or direct transfer contribu-
contract or arrangement under Section 403(b) tions after attainment of age 87.
of the Internal Revenue Code, complying with
IRS Revenue Ruling 90-24. o Rollover or direct transfer contributions after age
70-1/2 must be net of any required minimum
o Eligible rollover distributions of pre-tax funds distributions.
from other 403(b) plans .
o We do not accept employer-remitted
o Subsequent contributions may also be rollovers contributions.
from qualified plans, governmental employer
457(b) plans and traditional IRAs.
- -----------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 19
- --------------------------------------
Annuitant
Contract type issue ages
- --------------------------------------
QP 20 through 75
- --------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Limitations on
Contract type Source of contributions contributions
- --------------------------------------------------------------------------------------------------------------------------------
QP o Only transfer contributions from an existing o We do not accept regular ongoing payroll
defined contribution qualified plan trust. contributions.
o The plan must be qualified under Section 401(a) o Only one additional transfer contribution may be
of the Internal Revenue Code. made during a contract year.
o For 401(k) plans, transferred contributions may o No additional transfer contributions after attain-
only include employee pre-tax contributions. ment of age 76 or, if later, the first contract
anniversary.
o A Separate QP contract must be established for
each plan participant.
o We do not accept employer-remitted
contributions.
o We do not accept contributions from defined
benefit plans.
Please refer to Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts.
- --------------------------------------------------------------------------------------------------------------------------------
See "Tax information" later in this Prospectus for a more detailed discussion
of sources of contributions and certain contribution limitations.
For information on when contributions are credited under your contract see
"Dates and prices at which contract events occur" in "More information" later
in this Prospectus.
20 Contract features and benefits
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from the owner. A joint
owner may also be named. Only natural persons can be joint owners. This means
that an entity such as a corporation cannot be a joint owner. In general, we
will not permit a contract to be owned by a minor unless it is pursuant to the
Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act in your
state.
Under all IRA and Rollover TSA contracts, the owner and annuitant must be the
same person. In some cases, an IRA contract may be held in a custodial
individual retirement account for the benefit of the individual annuitant. This
option may not be available under your contract.
Under QP contracts, the owner must be the trustee of the qualified plan and the
annuitant must be the plan participant/employee. See Appendix II at the end of
this Prospectus for more information on QP contracts.
- --------------------------------------------------------------------------------
A "participant" is an individual who is currently, or was formerly,
participating in an eligible employer's qualified plan or TSA plan.
- --------------------------------------------------------------------------------
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be by check drawn on a U.S. bank, in
U.S. dollars, and made payable to AXA Equitable. We may also apply
contributions made pursuant to a Section 1035 tax-free exchange or a direct
transfer. We do not accept third-party checks endorsed to us except for
rollover contributions, tax-free exchanges or trustee checks that involve no
refund. All checks are subject to our ability to collect the funds. We reserve
the right to reject a payment if it is received in an unacceptable form.
For your convenience, we will accept contributions by wire transmittal from
certain broker-dealers who have agreements with us for this purpose including
circumstances under which certain contributions are considered received by us
when your order is taken by such broker-dealer. Additional contributions may
also be made under our automatic investment program. These methods of payment
are discussed in detail in "More information" later in this Prospectus.
- --------------------------------------------------------------------------------
Our "business day" is generally any day the New York Stock Exchange is open for
trading and generally ends at 4:00 p.m. Eastern Time. A business day does not
include a day we choose not to open due to emergency conditions. We may also
close early due to emergency conditions.
- --------------------------------------------------------------------------------
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
Your investment options are the variable investment options, the guaranteed
interest option, the fixed maturity options and the account for special dollar
cost averaging.
VARIABLE INVESTMENT OPTIONS
Your investment results in any one of the variable investment options will
depend on the investment performance of the underlying portfolios. You can lose
your principal when investing in the variable investment options. In periods of
poor market performance, the net return, after charges and expenses, may result
in negative yields, including for the EQ/Money Market variable investment
option. Listed below are the currently available portfolios, their investment
objectives and their advisers. See "Inherited IRA beneficiary continuation
contract" later in this section for Inherited IRA owner and annuitant
requirements.
- --------------------------------------------------------------------------------
You can choose from among the variable investment options, the guaranteed
interest option, the fixed maturity options and the account for special dollar
cost averaging.
- --------------------------------------------------------------------------------
Contract features and benefits 21
PORTFOLIOS OF THE TRUSTS
You should note that some portfolios have objectives and strategies that are
substantially similar to those of certain funds that are purchased directly
rather than under a variable insurance product such as the Accumulator(R)
Elite(SM) contract. These portfolios may even have the same manager(s) and/or a
similar name. However, there are numerous factors that can contribute to
differences in performance between two investments, particularly over short
periods of time. Such factors include the timing of stock purchases and sales;
differences in fund cash flows; and specific strategies employed by the
portfolio manager.
AXA Equitable serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. As such, AXA Equitable oversees
the activities of the investment advisers with respect to the Trusts and is
responsible for retaining or discontinuing the services of those advisers. The
advisers for these Portfolios, listed in the chart below, are those who make
the investment decisions for each Portfolio. The chart also indicates the
investment manager for each of the other Portfolios.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o AXA Equitable
ALLOCATION greater emphasis on current income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o AXA Equitable
ALLOCATION with a greater emphasis on capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
EQUITY o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of risk. o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o AIM Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of current o Alliance Capital Management L.P.
income and capital appreciation. o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P., through
INTERNATIONAL EQUITY its Bernstein Investment Research and
Management Unit
o J.P. Morgan Investment Management Inc.
o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P., through
CORE EQUITY its Bernstein Investment Research and
Management Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
22 Contract features and benefits
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH o RCM Capital Management LLC
o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE o Institutional Capital Corporation
o MFS Investment Management
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management LLC
CAP VALUE o TCW Investment Management Company
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
GOVERNMENT SECURITIES relative stability of principal.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE LARGE CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH(1)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
moderate risk to capital.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BEAR STEARNS Seeks to achieve capital appreciation. o Bear Stearns Asset Management Inc.
SMALL COMPANY GROWTH(7)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment Research
and Management Unit
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BOSTON ADVISORS EQUITY Seeks a combination of growth and income to achieve o Boston Advisors, Inc.
INCOME(4) an above-average and consistent total return.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN GROWTH Seeks long-term growth of capital. o Capital Guardian Trust Company
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 23
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. o Caywood-Scholl Capital Management
YIELD BOND
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates o Alliance Capital Management L.P.
the total return performance of the S&P 500 Index,
including reinvestment of dividends, at a risk level
consistent with that of the S&P 500 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA Seeks long-term capital growth. o Evergreen Investment Management
Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o SSgA Funds Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent with mod- o J.P. Morgan Investment Management Inc.
erate risk to capital and maintenance of liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JP MORGAN VALUE Long-term capital appreciation. o J.P. Morgan Investment Management Inc.
OPPORTUNITIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LONG TERM BOND Seeks to maximize income and capital appreciation o Boston Advisors, Inc.
through investment in long-maturity debt obligations.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT GROWTH AND Capital appreciation and growth of income without o Lord, Abbett & Co. LLC
INCOME excessive fluctuation in market value.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT LARGE CAP Capital appreciation and growth of income with reason- o Lord, Abbett & Co. LLC
CORE able risk.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT MID CAP VALUE Capital appreciation. o Lord, Abbett & Co, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers
VALUE International Limited
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERGERS AND ACQUISITIONS Seeks to achieve capital appreciation. o GAMCO Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary objec- o MFS Investment Management
tive to seek reasonable current income.
- ------------------------------------------------------------------------------------------------------------------------------------
24 Contract features and benefits
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve o Alliance Capital Management L.P.
its assets and maintain liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. o Montag & Caldwell, Inc.
GROWTH(5)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PIMCO REAL RETURN Seeks maximum real return consistent with preservation o Pacific Investment Management
of real capital and prudent investment management. Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SHORT DURATION BOND Seeks current income with reduced volatility of principal. o Boston Advisors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o Alliance Capital Management L. P.
deduction of portfolio expenses) the total return of the
Russell 2000 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY VALUE(8) Seeks to maximize capital appreciation. o GAMCO Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/TCW EQUITY(3) Seeks to achieve long-term capital appreciation. o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/UBS GROWTH AND INCOME(6) Seeks to achieve total return through capital appreciation o UBS Global Asset Management
with income as a secondary consideration. (Americas) Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN COMSTOCK Capital growth and income. o Morgan Stanley Investment
Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN EMERGING Seeks long-term capital appreciation. o Morgan Stanley Investment
MARKETS EQUITY(2) Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN MID CAP Capital growth. o Morgan Stanley Investment
GROWTH Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/WELLS FARGO MONTGOMERY Seeks long-term capital appreciation. o Wells Capital Management Inc.
SMALL CAP
- ------------------------------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE
INSURANCE TRUST
PORTFOLIO NAME Objective Investment Manager/Adviser
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG VIT VALUE Seeks to increase the value of your investment in bull o Charles Schwab Investment
LONG/SHORT EQUITY markets and bear markets through strategies that are Management, Inc.
designed to have limited exposure to general equity o AXA Rosenberg Investment
market risk. Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL
FUNDS, INC.
PORTFOLIO NAME Objective Investment Manager
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. REAL ESTATE -- CLASS II Seeks to provide above average current income and long- o Van Kampen (is the name under which
term capital appreciation by investing primarily in equity Morgan Stanley Investment Management
securities of companies in the U.S. real estate industry, Inc. does business in certain
including real estate investment trusts. situations)
- ------------------------------------------------------------------------------------------------------------------------------------
* This portfolio information reflects the portfolio's name change effective
on or about May 9, 2005, subject to regulatory approval. The table below
reflects the portfolio name in effect until on or about May 9, 2005. The
number in the "FN" column corresponds with the number contained in the
chart above.
Contract features and benefits 25
- --------------------------------------------------
FN Portfolio Name until May 9, 2005
- --------------------------------------------------
(1) EQ/Alliance Premier Growth
(2) EQ/Emerging Markets Equity
(3) EQ/Enterprise Equity
(4) EQ/Enterprise Equity Income
(5) EQ/Enterprise Growth
(6) EQ/Enterprise Growth and Income
(7) EQ/Enterprise Small Company Growth
(8) EQ/Enterprise Small Company Value
- --------------------------------------------------
You should consider the investment objectives, risks and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may
call one of our customer service representatives at 1-800-789-7771.
26 Contract features and benefits
GUARANTEED INTEREST OPTION
The guaranteed interest option is part of our general account and pays interest
at guaranteed rates. We discuss our general account under "More information"
later in this Prospectus.
We assign an interest rate to each amount allocated to the guaranteed interest
option. This rate is guaranteed for a specified period. Therefore, different
interest rates may apply to different amounts in the guaranteed interest
option.
We credit interest daily to amounts in the guaranteed interest option. There
are three levels of interest in effect at the same time in the guaranteed
interest option:
(1) the minimum interest rate guaranteed over the life of the contract,
(2) the yearly guaranteed interest rate for the calendar year, and
(3) the current interest rate.
We set current interest rates periodically, according to our procedures that we
have in effect at the time. We reserve the right to change these procedures.
All interest rates are effective annual rates, but before deduction of annual
administrative charges (if permitted in your state), or any withdrawal charges
and any optional benefit charges.
The minimum yearly guaranteed interest rate is 3% for 2005. The minimum yearly
rates we set will never be less than the minimum guaranteed interest rate of 3%
for the life of the contract. Current interest rates will never be less than
the yearly guaranteed interest rate.
See "Transferring your money among the investment options" later in the
prospectus for restrictions on transfer from the Guaranteed Interest Option.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied the rate to maturity is 3%. This
means that at points in time there may be no fixed maturity options available.
You can allocate your contributions to one or more of these fixed maturity
options, however, you may not have more than 12 different maturities running
during any contract year. This limit includes any maturities that have had any
allocation or transfers even if the entire amount is withdrawn or transferred
during the contract year. These amounts become part of a non-unitized separate
account. They will accumulate interest at the "rate to maturity" for each fixed
maturity option. The total amount you allocate to and accumulate in each fixed
maturity option is called the "fixed maturity amount." The fixed maturity
options are not available in all states. Check with your financial professional
to see if fixed maturity options are available in your state.
- --------------------------------------------------------------------------------
Fixed maturity options range from one to ten years to maturity.
- --------------------------------------------------------------------------------
The rate to maturity you will receive for each fixed maturity option is the
rate to maturity in effect for new contributions allocated to that fixed
maturity option on the date we apply your contribution.
On the maturity date of a fixed maturity option your fixed maturity amount,
assuming you have not made any withdrawals or transfers, will equal your
contribution to that fixed maturity option plus interest, at the rate to
maturity for that contribution, to the date of the calculation. This is the
fixed maturity option's "maturity value." Before maturity, the current value we
will report for your fixed maturity amounts will reflect a market value
adjustment. Your current value will reflect the market value adjustment that we
would make if you were to withdraw all of your fixed maturity amounts on the
date of the report. We call this your "market adjusted amount."
FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with
maturity dates ranging from one to ten years. Not all of these fixed maturity
options will be available for annuitant ages 76 and older. See "Allocating your
contributions" below.
Each new contribution is applied to a new fixed maturity option. When you
applied for an Accumulator(R) Elite(SM) contract, a 60-day rate lock-in was
applied from the date the application was signed. Any contributions received
and designated for a fixed maturity option during that period received the then
current fixed maturity option rate or the rate that was in effect on the date
that the application was signed, whichever had been greater. There is no rate
lock available for subsequent contributions to the contract after 60 days,
transfers from the variable investment options or the guaranteed interest
option into a fixed maturity option, or transfers from one fixed maturity
option to another.
YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days
before each of your fixed maturity options is scheduled to mature. At that
time, you may choose to have one of the following take place on the maturity
date, as long as none of the restrictive conditions listed below in "Allocating
your contributions," would apply:
(a) transfer the maturity value into another available fixed maturity option,
any of the variable investment options or the guaranteed interest option;
or
(b) withdraw the maturity value (there may be a withdrawal charge).
If we do not receive your choice on or before the fixed maturity option's
maturity date, we will automatically transfer your maturity value into the
shortest available maturity option beginning on that date. As of February 15,
2005 the next available maturity date was February 15, 2013. If no fixed
maturity options are available we will transfer your maturity value to the
EQ/Money Market Option.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender of your contract or when we make deductions for charges) from a fixed
maturity option before it matures, we will make a market value adjustment,
which will increase or decrease any fixed maturity amount you have in that
fixed maturity option. The amount of the adjustment will depend on two factors:
(a) the difference between the rate to maturity that applies to the amount
being withdrawn and the rate we have in effect at that time for new fixed
maturity options (adjusted to reflect a similar maturity date), and
(b) the length of time remaining until the maturity date.
In general, if interest rates rise from the time that you originally allocate
an amount to a fixed maturity option to the time that you take a
Contract features and benefits 27
withdrawal, the market value adjustment will be negative. Likewise, if interest
rates drop at the end of that time, the market value adjustment will be
positive. Also, the amount of the market value adjustment, either up or down,
will be greater the longer the time remaining until the fixed maturity option's
maturity date. Therefore, it is possible that the market value adjustment could
greatly reduce your value in the fixed maturity options, particularly in the
fixed maturity options with later maturity dates.
We provide an illustration of the market adjusted amount of specified maturity
values, an explanation of how we calculate the market value adjustment, and
information concerning our general account and investments purchased with
amounts allocated to the fixed maturity options, in "More information" later in
this Prospectus. Appendix III at the end of this Prospectus provides an example
of how the market value adjustment is calculated.
ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING
The account for special dollar cost averaging is part of our general account.
We pay interest at guaranteed rates in this account. We will credit interest to
the amounts that you have in the account for special dollar cost averaging
every day. We set the interest rates periodically, according to procedures that
we have. We reserve the right to change these procedures.
We guarantee to pay our current interest rate that is in effect on the date
that your contribution is allocated to this account. Your guaranteed interest
rate for the time period you select will be shown in your contract for an
initial contribution. The rate will never be less than 3%. See "Allocating your
contributions" below for rules and restrictions that apply to the special
dollar cost averaging program.
ALLOCATING YOUR CONTRIBUTIONS
You may choose from among three ways to allocate your contributions under your
contract: self-directed, principal assurance (at contract issue only), or
dollar cost averaging. We allocate subsequent contributions according to
instructions on file unless you provide new instructions.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options, the guaranteed interest option and fixed maturity options.
Allocations must be in whole percentages and you may change your allocations at
any time. No more than 25% of any contribution may be allocated to the
guaranteed interest option. The total of your allocations into all available
investment options must equal 100%. If the annuitant is age 76-80, you may
allocate contributions to fixed maturity options with maturities of seven years
or less. If the annuitant is age 81 or older, you may allocate contributions to
fixed maturity options with maturities of five years or less. Also, you may not
allocate amounts to fixed maturity options with maturity dates that are later
than the date annuity payments are to begin.
PRINCIPAL ASSURANCE ALLOCATION
Principal assurance allocation is only available at contract issue. If you
chose this allocation program, you selected a fixed maturity option. We
specified a portion of your initial contribution and allocated it to that fixed
maturity option in an amount that will cause the maturity value to equal the
amount of your entire initial contribution on the fixed maturity option's
maturity date. The maturity date you selected generally could not be later than
10 years, or earlier than 7 years from your contract date. If you were to make
any withdrawals or transfers from the fixed maturity option before the option's
maturity date, the amount in the fixed maturity option will be adjusted and may
no longer grow to equal your initial contribution under the principal assurance
allocation. Principal assurance was not available if none of those maturity
dates were available at the time your contract was issued. You allocated the
remainder of your initial contribution to the variable investment options and
guaranteed interest option however you chose.
For example, if your initial contribution was $25,000, and on February 15, 2005
you chose the fixed maturity option with a maturity date of February 15, 2015
since the rate to maturity was 3.32% on February 15, 2005, we would have
allocated $18,031 to that fixed maturity option and the balance to your choice
of variable investment options. On the maturity date your value in the fixed
maturity option would be $25,000.
The principal assurance allocation was only available for annuitant ages 80 or
younger when the contract was issued. Had the annuitant been age 76-80, your
principal assurance allocation was limited to the seven year fixed maturity
option only. If you anticipated taking required minimum distributions, you
should have considered whether your values in the variable investment options
and guaranteed interest option would be sufficient to meet your required
minimum distributions. See "Tax information" later in this Prospectus.
DOLLAR COST AVERAGING
We offer a variety of dollar cost averaging programs. You may only participate
in one program at a time. Each program allows you to gradually allocate amounts
to the variable investment options by periodically transferring approximately
the same dollar amount to the variable investment options you select. This will
cause you to purchase more units if the unit value is low and fewer units if
the unit value is high. Therefore, you may get a lower average cost per unit
over the long term. These plans of investing, however, do not guarantee that
you will earn a profit or be protected against losses. You may not make
transfers to the fixed maturity options.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
SPECIAL DOLLAR COST AVERAGING PROGRAM. Subject to state availability, under the
special dollar cost averaging program, you may choose to allocate all or a
portion of any eligible contribution to the account for special dollar cost
averaging. Contributions into the account for special dollar cost averaging may
not be transfers from other investment options. Your initial allocation to any
special dollar cost averaging program time period must be at least $2,000 and
any subsequent contribution to that same time period must be at least $250. You
may only have one time period in effect at any time and once you select a time
period, you may not change it. In Pennsylvania, we refer to this program as
"enhanced rate dollar cost averaging."
28 Contract features and benefits
You may have your account value transferred to any of the variable investment
options. We will transfer amounts from the account for special dollar cost
averaging into the variable investment options over an available time period
that you select. We offer time periods of 3, 6 or 12 months during which you
will receive an enhanced interest rate. We may also offer other time periods.
Your financial professional can provide information on the time periods and
interest rates currently available in your state, or you may contact our
processing office. If the special dollar cost averaging program was selected at
the time you applied to purchase the Accumulator(R) Elite(SM) contract, a 60 day
rate lock was applied from the date of application. Any contribution(s)
received during that 60 day period were credited with the interest rate offered
on the date of application for the remainder of the time period selected at
application. Any contribution(s) received after the 60 day rate lock period
ended will be credited with the then current interest rate for the remainder of
the time period selected at application. Contribution(s) made to a special
dollar cost averaging program selected after the Accumulator(R) Elite(SM)
contract has been issued will be credited with the then current interest rate
on the date the contribution is received by AXA Equitable for the time period
initially selected by you. Once the time period you selected has run, you may
then select another time period for future contributions. At that time, you may
also select a different allocation for transfers to the variable investment
options, or, if you wish, we will continue to use the selection that you have
previously made. Currently, your account value will be transferred from the
account for special dollar cost averaging into the variable investment options
on a monthly basis. We may offer this program in the future with transfers on a
different basis.
We will transfer all amounts out of the account for special dollar cost
averaging by the end of the chosen time period. The transfer date will be the
same day of the month as the contract date, but not later than the 28th day of
the month. For a special dollar cost averaging program selected after
application, the first transfer date and each subsequent transfer date for the
time period selected will be one month from the date the first contribution is
made into the special dollar cost averaging program, but not later than the
28th of the month.
If you choose to allocate only a portion of an eligible contribution to the
account for special dollar cost averaging, the remaining balance of that
contribution will be allocated to the variable investment options, guaranteed
interest option or fixed maturity options according to your instructions.
The only amounts that should be transferred from the account for special dollar
cost averaging are your regularly scheduled transfers to the variable
investment options. No amounts may be transferred from the account for special
dollar cost averaging to the guaranteed interest option or the fixed maturity
options. If you request to transfer or withdraw any other amounts from the
account for special dollar averaging, we will transfer all of the value that
you have remaining in the account for special dollar cost averaging to the
investment options according to the allocation percentages for special dollar
cost averaging we have on file for you. You may ask us to cancel your
participation at any time.
GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market
option is at least $5,000, you may choose, at any time, to have a specified
dollar amount or percentage of your value transferred from that option to the
other variable investment options. You can select to have transfers made on a
monthly, quarterly or annual basis. The transfer date will be the same calendar
day of the month as the contract date, but not later than the 28th day of the
month. You can also specify the number of transfers or instruct us to continue
making the transfers until all amounts in the EQ/Money Market option have been
transferred out.
The minimum amount that we will transfer each time is $250. The maximum amount
we will transfer is equal to your value in the EQ/Money Market option at the
time the program is elected, divided by the number of transfers scheduled to be
made.
If, on any transfer date, your value in the EQ/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The general dollar cost averaging program will then end.
You may change the transfer amount once each contract year or cancel this
program at any time.
INVESTMENT SIMPLIFIER
Fixed-dollar option. Under this option, you may elect to have a fixed-dollar
amount transferred out of the guaranteed interest option and into the variable
investment options of your choice. Transfers may be made on a monthly,
quarterly or annual basis. You can specify the number of transfers or instruct
us to continue to make transfers until all available amounts in the guaranteed
interest option have been transferred out.
In order to elect the fixed-dollar option, you must have a minimum of $5,000 in
the guaranteed interest option on the date we receive your election form at our
processing office. The transfer date will be the same calendar day of the month
as the contract date but not later than the 28th day of the month. The minimum
transfer amount is $50. Unlike the account for special dollar cost averaging,
this option does not offer enhanced rates. Also, this option is subject to the
guaranteed interest option transfer limitations described under "Transferring
your account value" in "Transferring your money among investment options" later
in this Prospectus. While the program is running, any transfer that exceeds
those limitations will cause the program to end for that contract year. You
will be notified. You must send in a request form to resume the program in the
next or subsequent contract years.
If, on any transfer date, your value in the guaranteed interest option is equal
to or less than the amount you have elected to have transferred, the entire
amount will be transferred, and the program will end. You may change the
transfer amount once each contract year or cancel this program at any time.
Interest sweep option. Under this option, you may elect to have monthly
transfers from amounts in the guaranteed interest option into the variable
investment options of your choice. The transfer date will be the last business
day of the month. The amount we will transfer will be the interest credited to
amounts you have in the guaranteed interest option from the last business day
of the prior month to the last business day of the current month. You must have
at least $7,500 in the guaranteed interest option on the date we receive your
election and on the last business day of each month thereafter to participate
in the interest sweep option. We will automatically cancel the interest sweep
program if the amount in the guaranteed interest option is less
Contract features and benefits 29
than $7,500 on the last day of the month for two months in a row. For the
interest sweep option, the first monthly transfer will occur on the last
business day of the month following the month that we receive your election
form at our processing office.
----------------------------------
You may not participate in any dollar cost averaging program if you are
participating in the rebalancing program. See "Transferring your money among
investment options" later in this Prospectus. You may not elect the special
dollar cost averaging program if the principal assurance program is in effect.
YOUR BENEFIT BASE
A benefit base is used to calculate the guaranteed minimum income benefit and
any death benefit, as described in this section. Your benefit base is not an
account value or a cash value. See also "Our Living Benefit option" and
"Guaranteed minimum death benefit" below.
STANDARD DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money" later in this Prospectus).
6% ROLL UP TO AGE 85 ENHANCED DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
o daily interest; less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money" later in this Prospectus).
The effective annual interest rate credited to this benefit base is:
o 6% (4% in Washington for the enhanced death benefit only) with respect to
the variable investment options (other than EQ/Alliance Intermediate
Government Securities, EQ/Money Market, EQ/PIMCO Real Return and EQ/Short
Duration Bond) and the account for special dollar cost averaging; and
o 3% with respect to the EQ/Alliance Intermediate Government Securities,
EQ/Money Market, EQ/PIMCO Real Return and EQ/Short Duration Bond, the fixed
maturity options, the guaranteed interest option and the loan reserve
account under Rollover TSA (if applicable).
No interest is credited to the benefit base after the contract anniversary
following the annuitant's 85th birthday.
ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT. Your benefit base is equal to
the greater of either:
o your initial contribution to the contract (plus any additional
contributions), or
o your highest account value of any contract anniversary up to the contract
anniversary following the annuitant's 85th birthday, plus any contribution
made since the most recent contract anniversary,
less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money" later in this Prospectus).
GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED
DEATH BENEFIT AND THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is
equal to the greater of the benefit base computed for the 6% Roll up to age 85
or the benefit base computed for the Annual ratchet to age 85, as described
immediately above, on each contract anniversary. For the guaranteed minimum
income benefit, the benefit base is reduced by any applicable withdrawal charge
remaining when the option is exercised.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the guaranteed minimum income benefit and annuity payout
options. The guaranteed minimum income benefit is discussed in "Our Living
Benefit option" below and annuity payout options are discussed in "Accessing
your money" later in this Prospectus. The guaranteed annuity purchase factors
are those factors specified in your contract. The current annuity purchase
factors are those factors that are in effect at any given time. Annuity
purchase factors are based on interest rates, mortality tables, frequency of
payments, the form of annuity benefit, and the annuitant's (and any joint
annuitant's) age and sex in certain instances.
OUR LIVING BENEFIT OPTION
The following section provides information about the Living Benefit option,
which was only available at the time you purchased your contract, if the
annuitant was age 20 through 75. The Living Benefit option is a guaranteed
minimum income benefit. If you elected the Living Benefit option at purchase,
you pay an additional charge that is described under "Living Benefit charge" in
"Charges and expenses" or in Appendix VI, depending on when the contract was
issued, later in this Prospectus. The Living Benefit may not have been
available in your state at the time of your purchase. If you purchased your
contract as an Inherited IRA, the guaranteed minimum income benefit was not
available to you. If you purchased your contract to fund a Charitable Remainder
Trust, the guaranteed minimum income benefit was, generally, not available to
you. Subject to our rules, the guaranteed minimum income benefit might have
been available for certain split-funded Charitable Remainder Trusts.
The guaranteed minimum income benefit guarantees you a minimum amount of fixed
income under your choice of a life annuity fixed payout option or an Income
Manager(R) level payment life with a period certain payout option, subject to
state availability. You choose which of these payout options you want and
whether you want the option to be paid on a single or joint life basis at the
time you exercise your guaranteed minimum income benefit. The maximum period
certain
30 Contract features and benefits
available under the Income Manager(R) payout option is 10 years. This period
may be shorter, depending on the annuitant's age as follows:
- --------------------------------------------
Level payments
- --------------------------------------------
Period certain years
-----------------------
Annuitant's age at
exercise IRAs NQ
- --------------------------------------------
60 to 75 10 10
76 9 10
77 8 10
78 7 10
79 7 10
80 7 10
81 7 9
82 7 8
83 7 7
84 6 6
85 5 5
- --------------------------------------------
We may also make other forms of payout options available. For a description of
payout options, see "Your annuity payout options" in "Accessing your money"
later in this Prospectus.
- --------------------------------------------------------------------------------
The guaranteed minimum income benefit, which is also known as a living benefit,
should be regarded as a safety net only. It provides income protection if you
elect an income payout while the annuitant is alive.
- --------------------------------------------------------------------------------
When you exercise the guaranteed minimum income benefit, the annual lifetime
income that you will receive will be the greater of (i) your guaranteed minimum
income benefit which is calculated by applying your guaranteed minimum income
benefit base, less any applicable withdrawal charge remaining, at guaranteed
annuity purchase factors, or (ii) the income provided by applying your account
value at our then current annuity purchase factors. For Rollover TSA only, we
will subtract from the benefit base or account value any outstanding loan,
including interest accrued but not paid. You may also elect to receive monthly
or quarterly payments as an alternative. The payments will be less than 1/12 or
1/4 of the annual payments, respectively, due to the effect of interest
compounding. The benefit base is applied only to the Living Benefit guaranteed
purchase annuity factors in your contract and not to any other guaranteed or
current annuity purchase rates. The amount of income you actually receive will
be determined when we receive your request to exercise the benefit.
When you elect to receive annual lifetime income, your contract will terminate
and you will receive a new contract for the annuity payout option. For a
discussion of when your payments will begin and end, see "Exercise of
guaranteed minimum income benefit" below.
The guaranteed minimum income benefit provides a form of insurance and is based
on conservative actuarial factors. The guaranteed annuity purchase factors we
use to determine your Income Manager(R) benefit under the Living Benefit are
more conservative than the guaranteed annuity purchase factors we use for the
Income Manager(R) payout annuity option. This means that, assuming the same
amount is applied to purchase the benefit and that we use guaranteed annuity
purchase factors to compute the benefit, each periodic payment under the Living
Benefit Income Manager(R) will be smaller than each periodic payment under the
Income Manager(R) payout annuity option. Therefore, even if your account value
is less than your benefit base, you may generate more income by applying your
account value to current annuity purchase factors. We will make this comparison
for you when the need arises.
ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll up to
age 85 benefit base, the table below illustrates the guaranteed minimum income
benefit amounts per $100,000 of initial contribution, for a male annuitant age
60 (at issue) on the contract date anniversaries indicated, who has elected the
life annuity fixed payout option, using the guaranteed annuity purchase factors
as of the date of this Prospectus, assuming no additional contributions,
withdrawals or loans under Rollover TSA contracts, and assuming there were no
allocations to EQ/Alliance Intermediate Government Securities, EQ/Money Market,
EQ/PIMCO Real Return, EQ/Short Duration Bond, the guaranteed interest option,
the fixed maturity options or the loan reserve account under rollover TSA
contracts.
- ------------------------------------------------------------
Guaranteed minimum income
Contract date benefit -- annual income
anniversary at exercise payable for life
- ------------------------------------------------------------
10 $11,891
15 $18,597
- ------------------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date
anniversary that you are eligible to exercise the guaranteed minimum income
benefit, we will send you an eligibility notice illustrating how much income
could be provided as of the contract date anniversary. You must notify us
within 30 days following the contract date anniversary if you want to exercise
the guaranteed minimum income benefit. You must return your contract to us
along with any required information within 30 days following your contract date
anniversary, in order to exercise this benefit. You will begin receiving annual
payments one year after the annuity payout contract is issued. If you choose
monthly or quarterly payments, you will receive your payment one month or one
quarter after the annuity payout contract is issued. Payments are always made
on the 15th of the month and generally begin one payment mode from issue. You
may choose to take a withdrawal prior to exercising the guaranteed minimum
income benefit, which will reduce your payments. You may not partially exercise
this benefit. See "Accessing your money" under "Withdrawing your account value"
later in this Prospectus. Payments end with the last payment before the
annuitant's (or joint annuitant's, if applicable) death, or if later, the end
of the period certain (where the payout option chosen includes a period
certain).
You will be eligible to exercise the guaranteed minimum income benefit during
your life and the annuitant's life, as follows:
o If the annuitant was at least age 20 and no older than age 44 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 15th contract date anniversary.
o If the annuitant was at least age 45 and no older than age 49 when the
contract was issued, you are eligible to exercise the guaranteed
Contract features and benefits 31
minimum income benefit within 30 days following each contract date
anniversary after the annuitant is age 60.
o If the annuitant was at least age 50 and no older than age 75 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 10th contract date anniversary.
Please note:
(i) the latest date you may exercise the guaranteed minimum income benefit is
the contract date anniversary following the annuitant's 85th birthday;
(ii) if the annuitant was age 75 when the contract was issued, the only time you
may exercise the guaranteed minimum income benefit is within 30 days
following the first contract date anniversary that it becomes available;
(iii) if the annuitant was older than age 60 at the time an IRA, QP or Rollover
TSA contract was issued, the Living Benefit option may not be an
appropriate feature because the minimum distributions required by tax law
generally must begin before the guaranteed minimum income benefit can be
exercised;
(iv) for Accumulator(R) Elite(SM) QP contracts, the Plan participant can
exercise the Living Benefit option only if he or she elects to take a
distribution from the Plan and, in connection with this distribution, the
Plan's trustee changes the ownership of the contract to the participant.
This effects a rollover of the Accumulator(R) Elite(SM) QP contract into an
Accumulator(R) Elite(SM) Rollover IRA. This process must be completed
within the 30-day timeframe following the contract date anniversary in
order for the Plan participant to be eligible to exercise;
(v) for Accumulator(R) Elite(SM) Rollover TSA contracts, you may exercise the
Living Benefit option only if you effect a rollover of the TSA contract to
an Accumulator(R) Elite(SM) Rollover IRA. This may only occur when you are
eligible for a distribution from the TSA. This process must be completed
within the 30-day timeframe following the contract date anniversary in
order for you to be eligible to exercise;
(vi) for a successor owner/annuitant, the earliest exercise date is based on the
original contract issue date and the age of the successor owner/annuitant
as of the Processing Date successor owner/annuitant takes effect; and
(vii) if you are the owner but not the annuitant and you die prior to exercise,
then the following applies:
o A successor owner who is not the annuitant may not be able to exercise
the Living Benefit option without causing a tax problem. You should
consider naming the annuitant as successor owner, or if you do not
name a successor owner, as the sole primary beneficiary. You should
carefully review your successor owner and/or beneficiary designations
at least one year prior to the first contract anniversary on which you
could exercise the benefit.
o If the successor owner is the annuitant, the Living Benefit option
continues only if the benefit could be exercised under the rules
described above on a contract anniversary that is within one year
following the owner's death. This would be the only opportunity for
the successor owner to exercise. If the Living Benefit option cannot
be exercised within this timeframe, the benefit will terminate and the
charge for it will no longer apply as of the date we receive proof of
your death and any required information.
o If you designate your surviving spouse as successor owner, o the
Living Benefit option continues and your surviving spouse may exercise
the benefit according to the rules described above even if your spouse
is not the annuitant and even if the benefit is exercised more than
one year after your death. If your surviving spouse dies prior to
exercise, the rule described in the previous bullet applies.
o A successor owner or beneficiary that is a trust or other non-o
natural person may not exercise the benefit; in this case, the benefit
will terminate and the charge for it will no longer apply as of the
date we receive proof of your death and any required information.
See "When an NQ contract owner dies before the annuitant" under "Payment of
death benefit" later in this Prospectus for more information.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
GUARANTEED MINIMUM DEATH BENEFIT
Your contract provides a death benefit. If you did not elect one of the
enhanced death benefits described below, the death benefit is equal to your
account value (without adjustment for any otherwise applicable negative market
value adjustment) as of the date we receive satisfactory proof of death, any
required instructions for the method of payment, information and forms
necessary to effect payment OR the standard death benefit, whichever provides
the highest amount. The standard death benefit is equal to your total
contributions, adjusted for any withdrawals (and any associated withdrawal
charges) and any taxes that apply. The standard death benefit was the only
death benefit available for annuitants who were age 85 at issue.
If you elected one of the enhanced death benefits, the death benefit is equal
to your account value as of the date we receive satisfactory proof of the
annuitant's death, any required instructions for the method of payment,
information and forms necessary to effect payment OR your elected enhanced
death benefit on the date of the annuitant's death (adjusted for any subsequent
withdrawals, withdrawal charges and taxes that apply), whichever provides the
highest amount.
OPTIONAL ENHANCED DEATH BENEFITS APPLICABLE FOR ANNUITANTS WHO WERE AGES 0
THROUGH 84 AT ISSUE OF NQ CONTRACTS; 20 THROUGH 84 AT ISSUE OF ROLLOVER IRA,
ROTH CONVERSION IRA AND ROLLOVER TSA CONTRACTS; 0 THROUGH 70 AT ISSUE OF
INHERITED IRA CONTRACTS; AND 20 THROUGH 75 AT ISSUE OF QP CONTRACTS.
Subject to state availability, you may have elected one of the following
enhanced death benefits:
32 Contract features and benefits
6% ROLL UP TO AGE 85.
ANNUAL RATCHET TO AGE 85.
THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85.
Each enhanced death benefit is equal to its corresponding benefit base
described earlier in "Your benefit base." Your enhanced death benefit election
may not be changed.
In New York only the standard death benefit and the Annual ratchet to age 85
enhanced death benefit were available.
----------------------------------
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
See Appendix IV at the end of this Prospectus for an example of how we
calculate an enhanced death benefit.
Protection Plus(SM)
The following section provides information about the Protection Plus(SM) option,
which was only available at the time you purchased your contract. If Protection
Plus(SM) was not elected when the contract was first issued, neither the owner
nor the successor owner/annuitant can add it subsequently. Protection Plus(SM)
is an additional death benefit as described below. See the appropriate part of
"Tax information" later in this Prospectus for the potential tax consequences of
having purchased the Protection Plus(SM) feature in an NQ, IRA or Rollover TSA
contract.
If the annuitant was 70 or younger when we issued your contract (or if the
successor owner/annuitant is 70 or younger when he or she becomes the successor
owner/annuitant), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit less total net contributions, multiplied by 40%.
For purposes of calculating your Protection Plus(SM) benefit, the following
applies: (i) "Net contributions" are the total contributions made (or, if
applicable, the total amount that would otherwise have been paid as a death
benefit had the successor owner/annuitant election not been made plus any
subsequent contributions) reduced on a pro rata basis to reflect withdrawals
(including withdrawal charges and loans). Reduction on a pro rata basis means
that we calculate the percentage of the current account value that is being
withdrawn and we reduce net contributions by that percentage. For example, if
the account value is $30,000 and you withdraw $12,000, you have withdrawn 40%
of your account value. If contributions aggregated $40,000 before the
withdrawal, it would be reduced by $16,000 ($40,000 x .40) and net
contributions after the withdrawal would be $24,000 ($40,000-$16,000); (ii)
"Death benefit" is equal to the greater of the account value as of the date we
receive satisfactory proof of death or any applicable guaranteed minimum death
benefit as of the date of death.
If the annuitant was age 71 through 79 when we issued your contract (or if the
successor owner/annuitant is between the ages of 71 and 79 when he or she
becomes the successor owner/annuitant under a contract where Protection Plus(SM)
had been elected at issue), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit (as described above) less total net contributions,
multiplied by 25%.
The value of the Protection Plus(SM) death benefit is frozen on the first
contract date anniversary after the annuitant turns age 80, except that the
benefit will be reduced for withdrawals on a pro rata basis. This feature is
not available in every state.
INHERITED IRA BENEFICIARY CONTINUATION CONTRACT
This contract was available to an individual beneficiary of a traditional IRA
or a Roth IRA where the deceased owner held the individual retirement account
or annuity (or Roth individual retirement account or annuity) with an insurance
company or financial institution other than AXA Equitable. The purpose of the
inherited IRA beneficiary continuation contract is to permit the beneficiary to
change the funding vehicle that the deceased owner selected ("original IRA")
while taking the required minimum distribution payments that must be made to
the beneficiary after the deceased owner's death. This contract is intended
only for beneficiaries who want to take payments at least annually over their
life expectancy. These payments generally must begin (or must have begun) no
later than December 31 of the calendar year following the year the deceased
owner died. This contract is not suitable for beneficiaries electing the
"5-year rule." See "Beneficiary continuation option for IRA and Roth IRA
contracts" under "Beneficiary continuation option" in "Payment of death
benefit" later in this Prospectus. You should discuss with your tax adviser
your own personal situation. This contract may not be available in all states.
Please speak with your financial professional for further information.
The inherited IRA beneficiary continuation contrac could only have been
purchased by a direct transfer of the beneficiary's interest under the deceased
owner's original IRA. The owner of the inherited IRA beneficiary continuation
contract is the individual who is the beneficiary of the original IRA. (Certain
trusts with only individual beneficiaries are treated as individuals for this
purpose). The contract also contains the name of the deceased owner. In this
discussion, "you" refers to the owner of the inherited IRA beneficiary
continuation contract.
The inherited IRA beneficiary continuation contract could have been purchased
whether or not the deceased owner had begun taking required minimum
distribution payments during his or her life from the original IRA or whether
you had already begun taking required mini-
Contract features and benefits 33
mum distribution payments of your interest as a beneficiary from the deceased
owner's original IRA. You should discuss with your own tax adviser when
payments must begin or must be made.
Under the inherited IRA beneficiary continuation contract:
o You must receive payments at least annually (but may have elected to
receive payments monthly or quarterly). Payments are generally made over
your life expectancy determined in the calendar year after the deceased
owner's death and determined on a term certain basis.
o The beneficiary of the original IRA is the annuitant under the inherited
IRA beneficiary continuation contract. In the case where the beneficiary is
a "See Through Trust," the oldest beneficiary of the trust is the
annuitant.
o An inherited IRA beneficiary continuation contract was not available for
annuitants over age 70.
o The initial contribution had to be a direct transfer from the deceased
owner's original IRA and was subject to minimum contribution amounts. See
"How you can contribute to your contract" earlier in this section.
o Subsequent contributions of at least $1,000 are permitted but must be
direct transfers of your interest as a beneficiary from another IRA with a
financial institution other than AXA Equitable, where the deceased owner is
the same as under the original IRA contract.
o You may make transfers among the investment options.
o You may choose at any time to withdraw all or a portion of the account
value. Any partial withdrawal must be at least $300. Withdrawal charges, if
applicable under your contract, will apply as described in "Charges and
expenses" later in this Prospectus.
o The Living benefit, successor owner/annuitant feature, special dollar cost
averaging program (if applicable), automatic investment program and
systematic withdrawals are not available under the Inherited IRA
beneficiary continuation contract.
o If you die, we will pay to a beneficiary that you choose the greater of the
annuity account value or the applicable death benefit.
o Upon your death, your beneficiary has the option to continue taking
required minimum distributions based on your remaining life expectancy or
to receive any remaining interest in the contract in a lump sum. The option
elected will be processed when we receive satisfactory proof of death, any
required instructions for the method of payment and any required
information and forms necessary to effect payment. If your beneficiary
elects to continue to take distributions, we will increase the account
value to equal the applicable death benefit if such death benefit is
greater than such account value as of the date we receive satisfactory
proof of death and any required instructions, information and forms.
Thereafter, withdrawal charges (if applicable under your contract) will no
longer apply. If you had elected any enhanced death benefits, they will no
longer be in effect and charges for such benefits will stop. The minimum
guaranteed death benefit will also no longer be in effect.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
This is provided for informational purposes only. Since this contract is no
longer available to new purchasers, this cancellation provision is no longer
applicable.
If for any reason you are not satisfied with your contract, you may return it
to us for a refund. To exercise this cancellation right you must mail the
contract, with a signed letter of instruction electing this right, to our
processing office within 10 days after you receive it. If state law requires,
this "free look" period may be longer.
Generally, your refund will equal your account value (less loan reserve
account) under the contract on the day we receive notification of your decision
to cancel the contract and will reflect (i) any investment gain or loss in the
variable investment options (less the daily charges we deduct), (ii) any
guaranteed interest in the guaranteed interest option, (iii) any positive or
negative market value adjustments in the fixed maturity options through the
date we receive your contract, and (iv) any interest in the account for special
dollar cost averaging through the date we receive your contract. Some states
require that we refund the full amount of your contribution (not reflecting
(i), (ii), (iii), or (iv) above). For any IRA contract returned to us within
seven days after you receive it, we are required to refund the full amount of
your contribution.
We may require that you wait six months before you may apply for a contract
with us again if:
o you cancel your contract during the free look period; or
o you change your mind before you receive your contract whether we have
received your contribution or not.
Please see "Tax information" later in this Prospectus for possible consequences
of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA contract, you may
cancel your Roth Conversion IRA contract and return to a Rollover IRA contract.
Our processing office, or your financial professional, can provide you with the
cancellation instructions.
34 Contract features and benefits
2. Determining your contract's value
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the values you have in: (i) the variable
investment options; (ii) the guaranteed interest option; (iii) market adjusted
amounts in the fixed maturity options; (iv) the account for special dollar cost
averaging and (v) the loan reserve account (applicable to Rollover TSA
contracts only).
Your contract also has a "cash value." At any time before annuity payments
begin, your contract's cash value is equal to the account value, less: (i) the
total amount or a pro rata portion of the annual administrative charge, as well
as optional benefit charges; (ii) any applicable withdrawal charges and (iii)
the amount of any outstanding loan plus accrued interest (applicable to
Rollover TSA contracts only). Please see "Surrendering your contract to receive
its cash value" in "Accessing your money" later in this Prospectus.
YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS
Each variable investment option invests in shares of a corresponding portfolio.
Your value in each variable investment option is measured by "units." The value
of your units will increase or decrease as though you had invested it in the
corresponding portfolio's shares directly. Your value, however, will be reduced
by the amount of the fees and charges that we deduct under the contract.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
The unit value for each variable investment option depends on the investment
performance of that option, less daily charges for:
(i) mortality and expense;
(ii) administrative expenses; and
(iii) distribution charges.
On any day, your value in any variable investment option equals the number of
units credited to that option, adjusted for any units purchased for or deducted
from your contract under that option, multiplied by that day's value for one
unit. The number of your contract units in any variable investment option does
not change unless they are:
(i) increased to reflect additional contributions;
(ii) decreased to reflect a withdrawal (plus applicable withdrawal charges);
(iii) increased to reflect a transfer into, or decreased to reflect a
transfer out of, a variable investment option; or
(iv) increased or decreased to reflect a transfer of your loan amount from
or to the loan reserve account under a Rollover TSA
contract.
In addition, when we deduct the enhanced death benefits Living Benefit charge
and/or the Protection Plus(SM) benefit charges, the number of |units credited to
your contract will be reduced. Your units are also reduced when we deduct the
annual administrative charge. A description of how unit values are calculated
is found in the SAI.
YOUR CONTRACT'S VALUE IN THE GUARANTEED
INTEREST OPTION
Your value in the guaranteed interest option at any time will equal: your
contributions and transfers to that option, plus interest, minus withdrawals
out of the option, and charges we deduct.
YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS
Your value in each fixed maturity option at any time before the maturity date
is the market adjusted amount in each option, provided there have been no
withdrawals. This is equivalent to your fixed maturity amount increased or
decreased by the market value adjustment. Your value, therefore, may be higher
or lower than your contributions (less withdrawals) accumulated at the rate to
maturity. At the maturity date, your value in the fixed maturity option will
equal its maturity value, provided there have been no withdrawals or transfers.
YOUR CONTRACT'S VALUE IN THE ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING
Your value in the account for special dollar cost averaging at any time will
equal your contribution allocated to that option, plus interest, less the sum
of all amounts that have been transferred to the variable investment options
you have selected.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose all of your rights under your contract and any
applicable guaranteed benefits.
Determining your contract's value 35
3. Transferring your money among investment options
- --------------------------------------------------------------------------------
TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer
some or all of your account value among the investment options, subject to the
following:
o You may not transfer any amount to the account for special dollar cost
averaging.
o You may not transfer to a fixed maturity option that has a rate to maturity
of 3% or less.
o If the annuitant is age 76-80, you must limit your transfers to fixed
maturity options with maturities of seven years or less. If the annuitant
is age 81 or older, you must limit your transfers to fixed maturity options
of five years or less. As of February 15, 2005, maturities of less than
eight years were not available. Also, the maturity dates may be no later
than the date annuity payments are to begin.
o If you make transfers out of a fixed maturity option other than at its
maturity date, the transfer may cause a market value adjustment.
o During the first contract year, transfers into the guaranteed interest
option are not permitted.
o After the first contract year, a transfer into the guaranteed interest
option will not be permitted if such transfer would result in more than 25%
of the annuity account value being allocated to the guaranteed interest
option, based on the annuity account value as of the previous business day.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency, or dollar amount of transfers.
The maximum amount that may be transferred from the guaranteed interest option
to any investment option (including amounts transferred pursuant to the
fixed-dollar option and interest sweep option dollar cost averaging programs
described under "Allocating your contributions" in "Contract features and
benefits" earlier in this Prospectus) in any contract year is the greatest of:
(a) 25% of the amount you have in the guaranteed interest option on the last
day of the prior contract year; or,
(b) the total of all amounts transferred at your request from the guaranteed
interest option to any of the investment options in the prior contract
year; or
(c) 25% of amounts transferred or allocated to the guaranteed interest option
during the current contract year.
From time to time, we may remove the restrictions regarding transferring
amounts out of the guaranteed interest option. If we do so, we will tell you.
We will also tell you at least 45 days in advance of the day that we intend to
reimpose the transfer restrictions. When we reimpose the transfer restrictions,
if any dollar cost averaging transfer out of the guaranteed interest option
causes a violation of the 25% outbound restriction, that dollar cost averaging
program will be terminated for the current contract year. A new dollar cost
averaging program can be started in the next or subsequent contract years.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value to be
transferred, and
(3) the investment options to and from which you are transferring.
We will confirm all transfers in writing.
DISRUPTIVE TRANSFER ACTIVITY
You should note that the contract is not designed for professional "market
timing" organizations, or other organizations or individuals engaging in a
market timing strategy. The contract is not designed for programmed transfers,
frequent transfers or transfers that are large in relation to the total assets
of the underlying portfolio.
Frequent transfers, including market timing and other program trading or
short-term trading strategies, may be disruptive to the underlying portfolios
in which the variable investment options invest. Disruptive transfer activity
may adversely affect performance and the interests of long-term investors by
requiring a portfolio to maintain larger amounts of cash or to liquidate
portfolio holdings at a disadvantageous time or price. For example, when market
timing occurs, a portfolio may have to sell its holdings to have the cash
necessary to redeem the market timer's investment. This can happen when it is
not advantageous to sell any securities, so the portfolio's performance may be
hurt. When large dollar amounts are involved, market timing can also make it
difficult to use long-term investment strategies because a portfolio cannot
predict how much cash it will have to invest. In addition, disruptive transfers
or purchases and redemptions of portfolio investments may impede efficient
portfolio management and impose increased transaction costs, such as brokerage
costs, by requiring the portfolio manager to effect more frequent purchases and
sales of portfolio securities. Similarly, a portfolio may bear increased
administrative costs as a result of the asset level and investment volatility
that accompanies patterns of excessive or short-term trading. Portfolios that
invest a significant portion of their assets in foreign securities or the
securities of small- and mid-capitalization companies tend to be subject to the
risks associated with market timing and short-term trading strategies to a
greater extent than portfolios that do not. Securities trading in overseas
markets present time zone arbitrage opportunities when events affecting
portfolio securities values occur after the close of the overseas market but
prior to the close of the U.S. markets. Securities of small- and
mid-capitalization companies present arbitrage opportunities because the market
for such securities may be less liquid than the market for securities of larger
companies,
36 Transferring your money among investment options
which could result in pricing inefficiencies. Please see the prospectuses for
the underlying portfolios for more information on how portfolio shares are
priced.
We currently use the procedures described below to discourage disruptive
transfer activity. You should understand, however, that these procedures are
subject to the following limitations: (1) they primarily rely on the policies
and procedures implemented by the underlying portfolios; (2) they do not
eliminate the possibility that disruptive transfer activity, including market
timing, will occur or that portfolio performance will be affected by such
activity; and (3) the design of market timing procedures involves inherently
subjective judgments, which we seek to make in a fair and reasonable manner
consistent with the interests of all policy and contract owners.
The AXA Premier VIP Trust and EQ Advisors Trust (the "affiliated trusts") have
adopted policies and procedures designed to discourage disruptive transfers by
contract owners investing in the portfolios of the affiliated trusts. The
affiliated trusts discourage frequent purchases and redemptions of portfolio
shares and will not make special arrangements to accommodate such transactions.
As a general matter, the affiliated trusts reserve the right to refuse or limit
any purchase or exchange order by a particular investor (or group of related
investors) if the transaction is deemed harmful to the portfolio's other
investors or would disrupt the management of the portfolio. The affiliated
trusts monitor aggregate inflows and outflows for each portfolio on a daily
basis. On any day when a portfolio's net inflows or outflows exceed an
established monitoring threshold, the affiliated trust obtains from us contract
owner trading activity. The affiliated trusts currently consider transfers into
and out of (or vice versa) the same variable investment option within a five
business day period as potentially disruptive transfer activity. When a
contract owner is identified as having engaged in a potentially disruptive
transfer for the first time, a letter is sent to the contract owner explaining
that there is a policy against disruptive transfer activity and that if such
activity continues certain transfer privileges may be eliminated. If and when
the contract owner is identified a second time as engaged in potentially
disruptive transfer activity, we currently prohibit the use of voice, fax and
automated transaction services. We currently apply such action for the
remaining life of each affected contract. We or the affiliated trusts may
change the definition of potentially disruptive transfer activity, the
monitoring procedures and thresholds, any notification procedures, and the
procedures to restrict this activity. Any new or revised policies and
procedures will apply to all contract owners uniformly. We do not permit
exceptions to our policies restricting disruptive transfer activity.
We may also offer investment options with underlying portfolios that are not
part of the AXA Premier VIP Trust or EQ Advisors Trust (the "unaffiliated
trusts"). Each unaffiliated trust may have its own policies and procedures
regarding disruptive transfer activity, which may be different than those
applied by the affiliated trusts. In most cases, the unaffiliated trust
reserves the right to reject a transfer that it believes, in its sole
discretion, is disruptive (or potentially disruptive) to the management of one
of its portfolios. Please see the prospectus for the underlying trust for
information regarding the policies and procedures, if any, employed by that
trust and any associated risks of investing in that trust. If an unaffiliated
trust advises us that there may be disruptive transfer activity from our
contract owners, we will work with the unaffiliated trust to review contract
owner trading activity. If the underlying trust determines that the trading
activity of a particular contract owner is disruptive, we will take action to
limit the disruptive trading activity of that contract owner as discussed
above.
Contract owners should note that it is not always possible for us and the
underlying trusts to identify and prevent disruptive transfer activity. Our
ability to monitor potentially disruptive transfer activity is limited in
particular with respect to certain group contracts. Group annuity contracts may
be owned by retirement plans on whose behalf we provide transfer instructions
on an omnibus (aggregate) basis, which may mask the disruptive transfer
activity of individual plan participants, and/or interfere with our ability to
restrict communication services. In addition, because we do not monitor for all
frequent trading at the separate account level, contract owners may engage in
frequent trading which may not be detected, for example, due to low net inflows
or outflows on the particular day(s). Therefore, no assurance can be given that
we or the trusts will successfully impose restrictions on all disruptive
transfers. Because there is no guarantee that disruptive trading will be
stopped, some contract owners/ participants may be treated differently than
others, resulting in the risk that some contract owners/participants may be
able to engage in frequent transfer activity while others will bear the effect
of that frequent transfer activity. The potential affects of frequent transfer
activity are discussed above.
REBALANCING YOUR ACCOUNT VALUE
We currently offer a rebalancing program that you can use to automatically
reallocate your account value among the variable investment options. You must
tell us:
(a) the percentage you want invested in each variable investment option (whole
percentages only), and
(b) how often you want the rebalancing to occur (quarterly, semiannually, or
annually on a contract year basis).
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options so that the percentage of your account value that
you specify is invested in each option at the end of each rebalancing date.
Your entire account value in the variable investment options must be included
in the rebalancing program.
- --------------------------------------------------------------------------------
Rebalancing does not assure a profit or protect against loss. You should
periodically review your allocation percentages as your needs change. You may
want to discuss the rebalancing program with your financial professional before
electing the program.
- --------------------------------------------------------------------------------
You may elect the rebalancing program at any time. You may also change your
allocation instructions or cancel the program at any time. If you request a
transfer while the rebalancing program is in effect, we will process the
transfer as requested; your rebalancing allocations will
Transferring your money among investment options 37
not be changed, and the rebalancing program will remain in effect unless you
request that it be canceled in writing. There is no charge for the rebalancing
feature.
You may not elect the rebalancing program if you are participating in any
dollar cost averaging program. Rebalancing is not available for amounts you
have allocated in the guaranteed interest option or the fixed maturity options.
38 Transferring your money among investment options
4. Accessing your money
- --------------------------------------------------------------------------------
WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your account value before annuity payments
begin. The table below shows the methods available under each type of contract.
More information follows the table. If you withdraw more than 90% of a
contract's current cash value, we will treat it as a request to surrender the
contract for its cash value. See "Surrendering your contract to receive its
cash value" below. For the tax consequences of withdrawals, see "Tax
information" later in this Prospectus.
Please see "Termination of your contract" in "Determining your contract's
value" earlier in this Prospectus and "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" below for more
information on how withdrawals affect your guaranteed benefits and could
potentially cause your contract to terminate.
- -----------------------------------------------------------------------------
Method of withdrawal
Lifetime
required
Substantially minimum
Contract Lump sum Systematic equal distribution
- -----------------------------------------------------------------------------
NQ Yes Yes No No
- -----------------------------------------------------------------------------
Rollover IRA Yes Yes Yes Yes
- -----------------------------------------------------------------------------
Roth
Conversion
IRA Yes Yes Yes No
- -----------------------------------------------------------------------------
Inherited IRA Yes No No **
- -----------------------------------------------------------------------------
QP Yes No No Yes
- -----------------------------------------------------------------------------
Rollover
TSA* Yes Yes No Yes
- -----------------------------------------------------------------------------
* For some Rollover TSA contracts, your ability to take withdrawals, loans or
surrender your contract may be limited. You must provide withdrawal
restriction information when you apply for a contract. See "Tax Sheltered
Annuity contracts (TSAs)" in "Tax information" later in this Prospectus.
** This contract pays out post-death required minimum distributions. See
"Inherited IRA beneficiary continuation contract" in "Contract features
and benefits" earlier in this Prospectus.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time.
(Rollover TSA contracts may have restrictions.) The minimum amount you may
withdraw is $300.
Lump sum withdrawals will be subject to a withdrawal charge if they exceed the
10% free withdrawal amount (see "10% free withdrawal amount" in "Charges and
expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is
outstanding, you may only take lump sum withdrawals as long as the cash value
remaining after any withdrawal equals at least 10% of the outstanding loan plus
accrued interest.
SYSTEMATIC WITHDRAWALS
(All contracts except Inherited IRAs and QP)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value. (Rollover TSA contracts may have
restrictions).
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 0.8% monthly, 2.4% quarterly and 10.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would
be less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
We will make the withdrawals on any day of the month that you select as long as
it is not later than the 28th day of the month. If you do not select a date, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59-1/2 and 70-1/2.
You may change the payment frequency, or the amount or percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
lump sum withdrawal. You can cancel the systematic withdrawal option at any
time.
Systematic withdrawals are not subject to a withdrawal charge, except to the
extent that, when added to a lump sum withdrawal previously taken in the same
contract year, the systematic withdrawal exceeds the 10% free withdrawal
amount.
SUBSTANTIALLY EQUAL WITHDRAWALS
(Rollover IRA and Roth Conversion IRA contracts)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus. We use one of the
IRS-approved methods for doing this; this is not the exclusive method of
meeting this exception. After consultation with your tax adviser, you may
decide to use another method which would require you to compute amounts
yourself and request lump sum withdrawals. In such a case, a withdrawal charge
may apply. Once you begin to take substantially equal withdrawals, you should
not stop them or change the pattern of your withdrawals until after the later
of age 59-1/2 or five full years after the first withdrawal. If you stop or
change the withdrawals or take a lump sum withdrawal, you may be liable for the
10% federal tax penalty that would have otherwise been due on prior withdrawals
made under this option and for any interest on the delayed payment of the
penalty. In accordance with IRS guid-
Accessing your money 39
ance, an individual who has elected to receive substantially equal withdrawals
may change, without penalty, from one of the IRS-approved methods of
calculating fixed payments to another IRS-approved method (similar to the
required minimum distribution rules) of calculating payments which vary each
year.
You may elect to take substantially equal withdrawals at any time before age
59-1/2. We will make the withdrawal on any day of the month that you select as
long as it is not later than the 28th day of the month. You may not elect to
receive the first payment in the same contract year in which you took a lump
sum withdrawal. We will calculate the amount of your substantially equal
withdrawals using the IRS-approved method we offer. The payments will be made
monthly, quarterly or annually as you select. These payments will continue
until we receive written notice from you to cancel this option or you take a
lump sum withdrawal. You may elect to start receiving substantially equal
withdrawals again, but the payments may not restart in the same contract year
in which you took a lump sum withdrawal. We will calculate the new withdrawal
amount.
Substantially equal withdrawals are not subject to a withdrawal charge.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA, QP and Rollover TSA contracts only -- See "Tax information"
later in this Prospectus)
We offer our "automatic required minimum distribution (RMD) service" to help
you meet lifetime required minimum distributions under federal income tax
rules. This is not the exclusive way for you to meet these rules. After
consultation with your tax adviser, you may decide to compute required minimum
distributions yourself and request lump sum withdrawals. In such a case, a
withdrawal charge may apply. Before electing this account based withdrawal
option, you should consider whether annuitization might be better in your
situation. If you have elected certain additional benefits, such as the
Guaranteed minimum death benefit, amounts withdrawn from the contract to meet
RMDs will reduce the benefit base and may limit the utility of the benefit.
Also, please refer to "Tax information" later in this Prospectus for
considerations on annuity contracts funding qualified plans, TSAs, and IRAs.
You may elect this service in the year in which you reach age 70-1/2 or in any
later year. The minimum amount we will pay out is $250. Currently, minimum
distribution withdrawal payments will be made annually. See "Required minimum
distributions" in "Tax information" later in this Prospectus for your specific
type of retirement arrangement.
Currently, we do not impose a withdrawal charge on minimum distribution
withdrawals if you are enrolled in our "automatic required minimum distribution
(RMD) service" except if, when added to a lump sum withdrawal previously taken
in the same contract year, the minimum distribution withdrawal exceeds the 10%
free withdrawal amount.
Under Rollover TSA contracts, you may not elect minimum distribution
withdrawals if a loan is outstanding.
- --------------------------------------------------------------------------------
For Rollover IRA and Rollover TSA contracts, we will send a form outlining the
distribution options available in the year you reach age 70-1/2 (if you have not
begun your annuity payments before that time).
- --------------------------------------------------------------------------------
HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your value in the variable investment options and the guaranteed
interest option. If there is insufficient value or no value in the variable
investment options and the guaranteed interest option, any additional amount of
the withdrawal required or the total amount of the withdrawal will be withdrawn
from the fixed maturity options in order of the earliest maturity date(s)
first. A market value adjustment may apply to withdrawals from the fixed
maturity options. If the FMO amounts are insufficient, we will deduct all or a
portion of the withdrawal from the account for special dollar cost averaging.
HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED
MINIMUM DEATH BENEFIT
Withdrawals will reduce your guaranteed benefits on either a dollar-for-dollar
basis or on a pro rata basis as explained below:
INCOME BENEFIT AND DEATH BENEFIT
Your applicable benefit base will be reduced on a dollar-for-dollar basis as
long as the sum of your withdrawals in a contract year is 6% or less of the
applicable benefit base on the most recent contract date anniversary. Any
portion of a withdrawal that causes the sum of your withdrawals in a contract
year to exceed 6% of the applicable benefit base on the most recent contract
date anniversary, and any subsequent withdrawals in that same contract year
will reduce your applicable benefit base on a pro rata basis. Additional
contributions made during the contract year do not affect the amount of
withdrawals that can be taken on a dollar-for-dollar basis in that contract
year.
The timing of your withdrawals and whether they exceed the 6% threshold
described above can have significant impact on your guaranteed minimum income
benefit or guaranteed minimum death benefit.
----------------------------------
Reduction on a dollar-for-dollar basis means that your current benefit will be
reduced by the dollar amount of the withdrawal. Reduction on a pro rata basis
means that we calculate the percentage of your current account value that is
being withdrawn and we reduce your current benefit by that same percentage. For
example, if your account value is $30,000 and you withdraw $12,000, you have
withdrawn 40% of your account value. If your death benefit was $40,000 before
the withdrawal, it would be reduced by $16,000 ($40,000 x .40) and your new
40 Accessing your money
death benefit after the withdrawal would be $24,000 ($40,000 - $16,000). This
pro rata example assumes that the annual 6% threshold described above has
already been exceeded.
LOANS UNDER ROLLOVER TSA CONTRACTS
You may take loans from a Rollover TSA unless restricted by the employer who
provided the Rollover TSA funds. If you cannot take a loan, or cannot take a
loan without approval from the employer who provided the funds, we will have
this information in our records based on what you and the employer who provided
the funds told us when you purchased your contract. The employer must also tell
us whether special employer plan rules of the Employee Retirement Income
Security Act of 1974 ("ERISA") apply. We will not permit you to take a loan
while you are enrolled in our "automatic required minimum distribution (RMD)
service."
You should read the terms and conditions on our loan request form carefully
before taking out a loan. Under Rollover TSA contracts subject to ERISA, you
may only take a loan with the written consent of your spouse. Your contract
contains further details of the loan provision. Also, see "Tax information"
later in this Prospectus for general rules applicable to loans.
We will permit you to have only one loan outstanding at a time. The minimum
loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your
account value, subject to any limits under the federal income tax rules. The
term of a loan is five years. However, if you use the loan to acquire your
primary residence, the term is 10 years. The term may not extend beyond the
earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
(3) the date a death benefit is paid (the outstanding loan will be deducted
from the death benefit amount).
A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the properly completed
loan request form is received. Interest will accrue daily on your outstanding
loan at a rate we set. The loan interest rate will be equal to the Moody's
Corporate Bond Yield Averages for Baa bonds for the calendar month ending two
months before the first day of the calendar quarter in which the rate is
determined.
LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the
amount of your loan to the loan reserve account. Unless you specify otherwise,
we will subtract your loan on a pro rata basis from your value in the variable
investment options and the guaranteed interest option. If these amounts are
insufficient, any additional amount of the loan will be subtracted from the
fixed maturity options in order of the earliest maturity date(s) first. A
market value adjustment may apply. If the FMO amounts are insufficient, we will
deduct all or a portion of the loan from the account for special dollar cost
averaging.
We will credit interest to the amount in the loan reserve account at a rate of
2% lower than the loan interest rate that applies for the time your loan is
outstanding. On each contract date anniversary after the date the loan is
processed, we will transfer the amount of interest earned in the loan reserve
account to the variable investment options on a pro rata basis. When you make a
loan repayment, unless you specify otherwise, we will transfer the dollar
amount of the loan repaid from the loan reserve account to the investment
options according to the allocation percentages we have on our records.
SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time while the
annuitant is living and before you begin to receive annuity payments. (Rollover
TSA contracts may have restrictions.) For a surrender to be effective, we must
receive your written request and your contract at our processing office. We
will determine your cash value on the date we receive the required information.
All benefits under the contract will terminate as of that date.
You may receive your cash value in a single sum payment or apply it to one or
more of the annuity payout options. See "Your annuity payout options" below.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments out of the variable investment
options within seven calendar days after the date of the transaction to which
the request relates. These transactions may include applying proceeds to a
variable annuity, payment of a death benefit, payment of any amount you
withdraw (less any withdrawal charges) and, upon surrender, payment of the cash
value. We may postpone such payments or applying proceeds for any period during
which:
(1) the New York Stock Exchange is closed or restricts trading,
(2) sales of securities or determination of the fair value of a variable
investment option's assets is not reasonably practicable because of an
emergency, or
(3) the SEC, by order, permits us to defer payment to protect people remaining
in the variable investment options.
We can defer payment of any portion of your value in the guaranteed interest
option, fixed maturity options and the account for special dollar cost
averaging (other than for death benefits) for up to six months while you are
living. We also may defer payments for a reasonable amount of time (not to
exceed 10 days) while we are waiting for a contribution check to clear.
All payments are made by check and are mailed to you (or the payee named in a
tax-free exchange) by U.S. mail, unless you request that we use an express
delivery service at your expense.
YOUR ANNUITY PAYOUT OPTIONS
Accumulator(R) Elite(SM) offers you several choices of annuity payout options.
Some enable you to receive fixed annuity payments, which can be either level or
increasing, and others enable you to receive variable annuity payments.
You can choose from among the annuity payout options listed below. Restrictions
may apply, depending on the type of contract you own or
Accessing your money 41
the annuitant's age when the contract was issued. In addition, if you are
exercising your guaranteed minimum income benefit under the Living Benefit,
your choice of payout options are those that are available under the Living
Benefit (see "Our Living Benefit option" in "Contract features and benefits"
earlier in this Prospectus).
- ----------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period
certain
Life annuity with refund
certain
Period certain annuity
- ----------------------------------------------------------------------
Variable Immediate Annuity Life annuity (not available
payout options in New York)
Life annuity with period
certain
- ----------------------------------------------------------------------
Income Manager(R) payout options Life annuity with period
(available for annuitants age 83 certain
or less at contract issue) Period certain annuity
- ----------------------------------------------------------------------
o Life annuity: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment before the
annuitant's death. Because there is no continuation of benefits following
the annuitant's death with this payout option, it provides the highest
monthly payment of any of the life annuity options, so long as the
annuitant is living.
o Life annuity with period certain: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the end of a
selected period of time ("period certain"), payments continue to the
beneficiary for the balance of the period certain. The period certain
cannot extend beyond the annuitant's life expectancy. A life annuity with a
period certain is the form of annuity under the contracts that you will
receive if you do not elect a different payout option. In this case, the
period certain will be based on the annuitant's age and will not exceed 10
years.
o Life annuity with refund certain: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the amount
applied to purchase the annuity option has been recovered, payments to the
beneficiary will continue until that amount has been recovered. This payout
option is available only as a fixed annuity.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15, or 20 years. This guaranteed period may
not exceed the annuitant's life expectancy. This option does not guarantee
payments for the rest of the annuitant's life. It does not permit any
repayment of the unpaid principal, so you cannot elect to receive part of
the payments as a single sum payment with the rest paid in monthly annuity
payments. This payout option is available only as a fixed annuity.
The life annuity, life annuity with period certain, and life annuity with
refund certain payout options are available on a single life or joint and
survivor life basis. The joint and survivor life annuity guarantees payments
for the rest of the annuitant's life and, after the annuitant's death, payments
continue to the survivor. We may offer other payout options not outlined here.
Your financial professional can provide details.
FIXED ANNUITY PAYOUT OPTIONS
With fixed annuities, we guarantee fixed annuity payments will be based either
on the tables of guaranteed annuity purchase factors in your contract or on our
then current annuity purchase factors, whichever is more favorable for you.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS
Variable Immediate Annuities are described in a separate prospectus that is
available from your financial professional. Before you select a Variable
Immediate Annuity payout option, you should read the prospectus which contains
important information that you should know.
Variable Immediate Annuities may be funded through your choice of available
variable investment options investing in portfolios of EQ Advisors Trust and
AXA Premier VIP Trust. The contract also offers a fixed income annuity payout
option that can be elected in combination with the variable annuity payout
option. The amount of each variable income annuity payment will fluctuate,
depending upon the performance of the variable investment options, and whether
the actual rate of investment return is higher or lower than an assumed base
rate.
INCOME MANAGER(R) PAYOUT OPTIONS
The Income Manager(R) payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts may provide higher or
lower income levels, but do not have all the features of the Income Manager(R)
payout annuity contract. You may request an illustration of the Income
Manager(R) payout annuity contract from your financial professional. Income
Manager(R) payout options are described in a separate prospectus that is
available from your financial professional. Before you select an Income
Manager(R) payout option, you should read the prospectus which contains
important information that you should know.
Both NQ and IRA Income Manager(R) payout options provide guaranteed level
payments. The Income Manager(R) (life annuity with period certain) also
provides guaranteed increasing payments (NQ contracts only). You may not elect
an Income Manager(R) payout option without life contingencies unless withdrawal
charges are no longer in effect under your contract.
For QP and Rollover TSA contracts, if you want to elect an Income Manager(R)
payout option, we will first roll over amounts in such contract to a Rollover
IRA contract with the plan participant as owner. You must be eligible for a
distribution under the QP or Rollover TSA contract.
You may choose to apply your account value of your Accumulator(R) Elite(SM)
contract to an Income Manager(R) payout annuity. In this case, we will consider
any amounts applied as a withdrawal from your Accumulator(R) Elite(SM), and we
will deduct any applicable withdrawal charge. For the tax consequences of
withdrawals, see "Tax information" later in this Prospectus.
Depending upon your circumstances, an Income Manager(R) contract may be
purchased on a tax-free basis. Please consult your tax adviser. The Income
Manager(R) payout options are not available in all states.
If you purchase an Income Manager(R) contract in connection with the exercise
of the Living Benefit option, different payout options may
42 Accessing your money
apply as well as other various differences. See "Our Living Benefit Option" in
"Contract features and benefits" earlier in this Prospectus as well as the
Income Manager(R) Prospectus.
THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION
The amount applied to purchase an annuity payout option varies, depending on
the payout option that you choose, and the timing of your purchase as it
relates to any withdrawal charges or market value adjustments.
If amounts in a fixed maturity option are used to purchase any annuity payout
option, prior to the maturity date, a market value adjustment will apply.
For the fixed annuity payout options and Variable Immediate Annuity payout
options, no withdrawal charge is imposed if you select a life annuity, life
annuity with period certain or life annuity with refund certain.
For the fixed annuity payout option, the withdrawal charge applicable under our
contract is imposed if you select a period certain. If the period certain is
more than 5 years, then the withdrawal charge deducted will not exceed 5% of
the account value.
For the Income Manager(R) life contingent payout options no withdrawal charge
is imposed under your contract. If the withdrawal charge that otherwise would
have been applied to your account value under your contract is greater than 2%
of the contributions that remain in your contract at the time you purchase your
payout option, the withdrawal charges under the Income Manager(R) will apply.
The year in which your account value is applied to the payout option will be
"contract year 1."
SELECTING AN ANNUITY PAYOUT OPTION
When you select a payout option, we will issue you a separate written agreement
confirming your right to receive annuity payments. We require you to return
your contract before annuity payments begin. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
thirteen months from the Accumulator(R) Elite(SM) contract date. Except with
respect to the Income Manager(R) annuity payout options, where payments are
made on the 15th day of each month, you can change the date your annuity
payments are to begin anytime before that date as long as you do not choose a
date later than the 28th day of any month. Also, that date may not be later
than the annuity maturity date described below.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier.
In no event will you ever receive payments under a fixed option or an initial
payment under a variable option of less than the minimum amounts guaranteed by
the contract.
If, at the time you elect a payout option, the amount to be applied is less
than $2,000 or the initial payment under the form elected is less than $20
monthly, we reserve the right to pay the account value in a single sum rather
than as payments under the payout option chosen.
ANNUITY MATURITY AGE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 95th birthday.
For contracts issued in Pennsylvania and New York, the maturity date is related
to the contract issue date, as follows:
- ---------------------------------------------------------------
New York Pennsylvania
- ---------------------------------------------------------------
Maximum Maximum
annuitization annuitization
Issue age age Issue age age
- ---------------------------------------------------------------
0-80 90 0-75 85
81 91 76 86
82 92 77 87
83 93 78-80 88
84 94 81-85 90
85 95
- ---------------------------------------------------------------
Before the last day by which your annuity payments must begin, we will notify
you by letter. Once you have selected an annuity payout option and payments
have begun, no change can be made other than: (i) transfers (if permitted in
the future) among the variable investment options if a Variable Immediate
Annuity payout option is selected; and (ii) withdrawals or contract surrender
(subject to a market value adjustment) if an Income Manager(R) payout option is
chosen.
Accessing your money 43
5. Charges and expenses
- --------------------------------------------------------------------------------
CHARGES THAT AXA EQUITABLE DEDUCTS
We deduct the following charges each day from the net assets of each variable
investment option. These charges are reflected in the unit values of each
variable investment option:
o A mortality and expense risks charge
o An administrative charge
o A distribution charge
We deduct the following charges from your account value. When we deduct these
charges from your variable investment options, we reduce the number of units
credited to your contract:
o On each contract date anniversary -- an annual administrative charge, if
applicable.
o At the time you make certain withdrawals or surrender your contract -- a
withdrawal charge.
o On each contract date anniversary -- a charge if you elect a death benefit
(other than the Standard death benefit).
o On each contract date anniversary -- a charge for the Living Benefit, if
you elect this optional benefit.
o At the time annuity payments are to begin -- charges designed to
approximate certain taxes that may be imposed on us, such as premium taxes
in your state. An annuity administrative fee may also apply.
o On each contract date anniversary -- a charge for Protection Plus(SM), if
you elect this optional benefit.
More information about these charges appears below. We will not increase these
charges for the life of your contract, except as noted. We may reduce certain
charges under group or sponsored arrangements. See "Group or sponsored
arrangements" later in this section.
To help with your retirement planning, we may offer other annuities with
different charges, benefits and features. Please contact your financial
professional for more information.
MORTALITY AND EXPENSE RISKS CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for mortality and expense risks, including the Standard death
benefit. The daily charge is equivalent to an annual rate of 1.10% of the net
assets in each variable investment option.
The mortality risk we assume is the risk that annuitants as a group will live
for a longer time than our actuarial tables predict. If that happens, we would
be paying more in annuity income than we planned. We also assume a risk that
the mortality assumptions reflected in our guaranteed annuity payment tables,
shown in each contract, will differ from actual mortality experience. Lastly,
we assume a mortality risk to the extent that at the time of death, the
guaranteed minimum death benefit exceeds the cash value of the contract. The
expense risk we assume is the risk that it will cost us more to issue and
administer the contracts than we expect.
ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for administrative expenses under the contracts. The daily
charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
DISTRIBUTION CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for a portion of our sales expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on each contract
date anniversary. We deduct the charge if your account value on the last
business day of the contract year is less than $50,000. If your account value
on such date is $50,000 or more, we do not deduct the charge. During the first
two contract years, the charge is equal to $30 or, if less, 2% of your account
value. The charge is $30 for contract years three and later.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (if permitted in your state) on a pro rata
basis. If those amounts are insufficient, we will deduct all or a portion of
the charge from the fixed maturity options in order of the earliest maturity
date(s) first. A market value adjustment may apply. If the FMO amounts are
insufficient, we will deduct all or a portion of the charge from the account
for special dollar cost averaging. If you surrender your contract during the
contract year, we will deduct a pro rata portion of the charge.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract's
value" earlier in this Prospectus.
WITHDRAWAL CHARGE
A withdrawal charge applies in two circumstances:
(1) if you make one or more withdrawals during a contract year that, in total,
exceeds the 10% free withdrawal amount, described below, or
(2) if you surrender your contract to receive its cash value or to apply your
cash value to a non-life contingent annuity payout option.
The withdrawal charge equals a percentage of the contributions withdrawn in any
of the first four years after we receive a contribution. We determine the
withdrawal charge separately for each contribution
44 Charges and expenses
according to the following table:
- ----------------------------------------------------------------------
Contract year
- ----------------------------------------------------------------------
1 2 3 4 5
Percentage of contribution 8 % 7 % 6 % 5 % 0 %
- ----------------------------------------------------------------------
For purposes of calculating the withdrawal charge, we treat the contract year
in which we receive a contribution as "contract year 1." Amounts withdrawn up
to the free withdrawal amount are not considered withdrawals of any
contribution. We also treat contributions that have been invested the longest
as being withdrawn first. We treat contributions as withdrawn before earnings
for purposes of calculating the withdrawal charge. However, federal income tax
rules treat earnings under your contract as withdrawn first. See "Tax
information" later in this Prospectus.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and withdrawal charge from your account
value. The amount deducted to pay withdrawal charges is also subject to that
same withdrawal charge percentage. We deduct the charge in proportion to the
amount of the withdrawal subtracted from each investment option. The withdrawal
charge helps cover sales expenses.
The withdrawal charge does not apply in the circumstances described below.
10% free withdrawal amount. Each contract year you can withdraw up to 10% of
your account value without paying a withdrawal charge. The 10% free withdrawal
amount is determined using your account value at the beginning of each contract
year, or in the case of the first contract year, your initial contribution,
minus any other withdrawals made during the contract year. Additional
contributions during the contract year do not increase your 10% free withdrawal
amount. The 10% free withdrawal amount does not apply if you surrender your
contract except where required by law.
For NQ contracts issued to a charitable remainder trust, the free withdrawal
amount will equal the greater of: (1) the current account value less
contributions that have not been withdrawn (earnings in the contract), and (2)
the 10% free withdrawal amount defined above.
Disability, terminal illness or confinement to nursing home. The withdrawal
charge does not apply if:
(i) The annuitant has qualified to receive Social Security disability benefits
as certified by the Social Security Administration; or
(ii) We receive proof satisfactory to us (including certification by a licensed
physician) that the annuitant's life expectancy is six months or less; or
(iii) The annuitant has been confined to a nursing home for more than 90 days
(or such other period, as required in your state) as verified by a licensed
physician. A nursing home for this purpose means one that is (a) approved
by Medicare as a provider of skilled nursing care service, or (b) licensed
as a skilled nursing home by the state or territory in which it is located
(it must be within the United States, Puerto Rico, or U.S. Virgin Islands)
and meets all of the following:
-- its main function is to provide skilled, intermediate, or custodial
nursing care;
-- it provides continuous room and board to three or more persons;
-- it is supervised by a registered nurse or licensed practical nurse;
-- it keeps daily medical records of each patient;
-- it controls and records all medications dispensed; and
-- its primary service is other than to provide housing for residents.
We reserve the right to impose a withdrawal charge, in accordance with your
contract and applicable state law, if the conditions as described in (i), (ii)
or (iii) above existed at the time a contribution was remitted or if the
condition began within 12 months of the period following remittance. Some
states may not permit us to waive the withdrawal charge in the above
circumstances, or may limit the circumstances for which the withdrawal charge
may be waived. Your financial professional can provide more information or you
may contact our processing office.
FOR ALL CONTRACTS ISSUED IN NEW YORK -- FIXED MATURITY OPTIONS
For contracts issued in New York, the withdrawal charge that applies to
withdrawals taken from amounts in the fixed maturity options will never exceed
7% and will be determined by applying the New York Alternate Scale I shown
below. If you withdraw amounts that have been transferred from one fixed
maturity option to another, we use the New York Alternate Scale II (also shown
below) if it produces a higher charge than Alternate Scale I.
The New York withdrawal charge may not exceed the withdrawal charge that would
normally apply to the contract. If a contribution has been in the contract for
more than 4 years and therefore would have no withdrawal charge, no withdrawal
charge will apply. Use of a New York Alternate Scale can only result in a lower
charge. We will compare the result of applying Alternate Scale I or II, as the
case may be, to the result of applying the normal withdrawal charge, and will
charge the lower withdrawal charge.
- --------------------------------------------------------------------------------
NY Alternate Scale I NY Alternate Scale II
- --------------------------------------------------------------------------------
Year of investment in fixed maturity Year of transfer within fixed maturity
option* option*
- --------------------------------------------------------------------------------
Within year 1 7% Within year 1 5%
2 6% 2 4%
3 5% 3 3%
4 4% 4 2%
After year 5 0% After year 5 0%
- --------------------------------------------------------------------------------
Not to exceed 1% times the number of years remaining in the fixed maturity
option, rounded to the higher number of years. In other words, if 4.3 years
remain, it would be a 5% charge.
- --------------------------------------------------------------------------------
* Measured from the contract date anniversary prior to the date of the
contribution or transfer.
If you take a withdrawal from an investment option other than the fixed
maturity options, the amount available for withdrawal without a
Charges and expenses 45
withdrawal charge is reduced. It will be reduced by the amount of the
contribution in the fixed maturity options to which no withdrawal charge
applies.
For contracts issued in New York, you should consider that on the maturity date
of a fixed maturity option if we have not received your instructions for
allocation of your maturity value, we will transfer your maturity value to the
fixed maturity option with the shortest available maturity. If we are not
offering other fixed maturity options, we will transfer your maturity value to
the EQ/Money Market option.
The potential for lower withdrawal charges for withdrawals from the fixed
maturity options and the potential for a lower free withdrawal amount than what
that would normally apply, should be taken into account when deciding whether
to allocate amounts to, or transfer amounts to or from, the fixed maturity
options.
We will deduct the annual administrative charge and the withdrawal charge from
the variable investment options and the guaranteed interest option as discussed
above. If the amounts in those options are insufficient to cover the charges,
we reserve the right to deduct the charge from the fixed maturity options.
Charges deducted from the fixed maturity options are considered withdrawals
and, as such, will result in a market value adjustment.
GUARANTEED MINIMUM DEATH BENEFIT CHARGE
ANNUAL RATCHET TO AGE 85. If you elected the Annual ratchet to age 85 enhanced
death benefit, we deduct a charge annually from your account value on each
contract date anniversary for which it is in effect. The charge is equal to
0.30% of the Annual ratchet to age 85 benefit base.
6% ROLL UP TO AGE 85. If you elected the 6% Roll up to age 85 enhanced death
benefit, we deduct a charge annually from your account value on each contract
date anniversary for which it is in effect. The charge is equal to 0.45% of the
6% Roll up to age 85 benefit base.
GREATER OF 6% ROLL UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elected
this enhanced death benefit, we deduct a charge annually from your account
value on each contract date anniversary for which it is in effect. The charge
is equal to 0.60% of the greater of the 6% Roll up to age 85 or the Annual
ratchet to age 85 benefit base.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro-rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in order of the earliest maturity date(s) first. A market
value adjustment may apply. If the FMO amounts are insufficient, we will deduct
all or a portion of the charge from the account for special dollar cost
averaging.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract's
value" earlier in this Prospectus.
STANDARD DEATH BENEFIT. There is no additional charge for the Standard death
benefit.
LIVING BENEFIT CHARGE
If you elected the Living Benefit, we deduct a charge annually from your
account value on each contract date anniversary until such time as you exercise
the guaranteed minimum income benefit, elect another annuity payout option, or
the contract date anniversary after the annuitant reaches 85, whichever occurs
first. The charge is equal to 0.60% of the applicable benefit base in effect on
the contract date anniversary.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in order of the earliest maturity date(s) first. A market
value adjustment may apply. If the FMO amounts are insufficient, we will deduct
all or a portion of the charge from the account for special dollar cost
averaging.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract's
value" earlier in this Prospectus.
PROTECTION PLUS(SM) CHARGE
If you elected Protection Plus(SM), we deduct a charge annually from your
account value on each contract date anniversary for which it is in effect. The
charge is equal to 0.35% of the account value on each contract date anniversary.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in the order of the earliest maturity date(s) first. A market
value adjustment may apply. If the FMO amounts are insufficient, we will deduct
all or a portion of the charge from the account for special dollar cost
averaging.
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state. Generally, we deduct the charge from
the amount applied to provide an annuity payout option. The current tax charge
that might be imposed varies by jurisdiction and ranges from 0% to 3.5%.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $350 from the amount to be applied to the Variable Immediate
Annuity payout option.
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
o Management fees ranging from 0.10% to 1.50%.
o 12b-1 fees of either 0.25% or 0.35%.
o Operating expenses, such as trustees' fees, independent public accounting
firms' fees, legal counsel fees, administrative service fees, custodian
fees and liability insurance.
46 Charges and expenses
o Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of each Trust are purchased at their net asset value, these fees and
expenses are, in effect, passed on to the variable investment options and are
reflected in their unit values. For more information about these charges,
please refer to the prospectuses for the Trusts.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the withdrawal
charge or the mortality and expense risks charge or change the minimum initial
contribution requirements. We also may change the guaranteed minimum income
benefit or the guaranteed minimum death benefit, or offer variable investment
options that invest in shares of the Trusts that are not subject to the 12b-1
fee. Group arrangements include those in which a trustee or an employer, for
example, purchases contracts covering a group of individuals on a group basis.
Group arrangements are not available for Rollover IRA and Roth Conversion IRA
contracts. Sponsored arrangements include those in which an employer allows us
to sell contracts to its employees or retirees on an individual basis.
Our costs for sales, administration and mortality generally vary with the size
and stability of the group or sponsoring organization, among other factors. We
take all these factors into account when reducing charges. To qualify for
reduced charges, a group or sponsored arrangement must meet certain
requirements, such as requirements for size and number of years in existence.
Group or sponsored arrangements that have been set up solely to buy contracts
or that have been in existence less than six months will not qualify for
reduced charges.
We also may establish different rates to maturity for the fixed maturity
options under different classes of contracts for group or sponsored
arrangements.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these rules from time to
time. Any variation will reflect differences in costs or services and will not
be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules,
ERISA or both. We make no representations with regard to the impact of these
and other applicable laws on such programs. We recommend that employers,
trustees, and others purchasing or making contracts available for purchase
under such programs seek the advice of their own legal and benefits advisers.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that results
in savings of sales and administrative expenses, such as sales through persons
who are compensated by clients for recommending investments and who receive no
commission or reduced commissions in connection with the sale of the contracts.
We will not permit a reduction or elimination of charges where it would be
unfairly discriminatory.
Charges and expenses 47
6. Payment of death benefit
- --------------------------------------------------------------------------------
YOUR BENEFICIARY AND PAYMENT OF BENEFIT
You designated your beneficiary when you applied for your contract. You may
change your beneficiary at any time. The change will be effective on the date
the written request for the change is received in our processing office. We are
not responsible for any beneficiary change request that we do not receive. We
will send you written confirmation when we receive your request.
Under jointly owned contracts, the surviving owner is considered the
beneficiary, and will take the place of any other beneficiary. You may be
limited as to the beneficiary you can designate in a Rollover TSA contract. In
a QP contract, the beneficiary must be the trustee. Where an NQ contract is
owned by a minor pursuant to the Uniform Gift to Minors Act or the Uniform
Transfers to Minors Act, the beneficiary must be the estate of the annuitant.
Where an IRA contract is owned in a custodial individual retirement account,
the custodian must be the beneficiary so that the custodian can reinvest or
distribute the death benefit as the beneficiary of the account desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
applicable guaranteed minimum death benefit. We determine the amount of the
death benefit (other than the applicable guaranteed minimum death benefit) and
any amount applicable under the Protection Plus(SM) feature, as of the date we
receive satisfactory proof of the annuitant's death, any required instructions
for the method of payment, information and forms necessary to effect payment.
The amount of the applicable guaranteed minimum death benefit will be such
guaranteed minimum death benefit as of the date of the annuitant's death,
adjusted for any subsequent withdrawals. The death benefit will be less a
deduction for any outstanding loan plus accrued interest on the date that the
death benefit payment is made (applies to Rollover TSA only).
EFFECT OF THE ANNUITANT'S DEATH
If the annuitant dies before the annuity payments begin, we will pay the death
benefit to your beneficiary.
Generally, the death of the annuitant terminates the contract. However, a
surviving spouse of the deceased owner/annuitant can choose to be treated as
the successor owner/annuitant and continue the contract. Only a spouse who is
the sole primary beneficiary can be a successor owner/annuitant. The successor
owner/annuitant feature is only available under NQ and individually owned IRA
(other than Inherited IRAs) contracts. See "Inherited IRA beneficiary
continuation contract" in "Contract features and benefits" earlier in this
Prospectus.
For NQ and all types of IRA contracts, a beneficiary may be able to have
limited ownership as discussed under "Beneficiary continuation option" below.
WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT
Under certain conditions the owner changes after the original owner's death,
for purposes of federal tax law required distribution from the contract. When
the owner is not the annuitant under an NQ contract and the owner dies before
annuity payments begin, unless you specify otherwise, the beneficiary named to
receive this death benefit upon the annuitant's death will become the successor
owner. If you do not want this beneficiary to be the successor owner, you
should name a specific successor owner. You may name a successor owner at any
time during your life by sending satisfactory notice to our processing office.
If the contract is jointly owned and the first owner to die is not the
annuitant, the surviving owner becomes the sole contract owner. This person
will be considered the successor owner for purposes of the distribution rules
described in this section. The surviving owner automatically takes the place of
any other beneficiary designation.
You should carefully consider the following if you have elected the Living
Benefit and you are the owner, but not the annuitant. Because the payments
under the Living Benefit are based on the life of the annuitant, and the
federal tax law required distributions described below are based on the life of
the successor owner, a successor owner who is not also the annuitant may not be
able to exercise the Living Benefit option, if you die before annuity payments
begin. Therefore, one year before you become eligible to exercise the Living
Benefit option, you should consider the effect of your beneficiary designations
on potential payments after your death. For more information, see "Exercise of
guaranteed minimum income benefit," under "Our Living Benefit option," in
"Contract features and benefits" earlier in this Prospectus.
Unless the surviving spouse of the owner who has died (or in the case of a
joint ownership situation, the surviving spouse of the first owner to die) is
the successor owner for this purpose, the entire interest in the contract must
be distributed under the following rules:
o The cash value of the contract must be fully paid to the successor owner
(new owner) within five years after your death (or in a joint ownership
situation, the death of the first owner to die).
o The successor owner may instead elect to receive the cash value as a life
annuity (or payments for a period certain of not longer than the new
owner's life expectancy). Payments must begin within one year after the
non-annuitant owner's death. Unless this alternative is elected, we will
pay any cash value five years after your death (or the death of the first
owner to die).
o A successor owner should name a new beneficiary.
If the surviving spouse is the successor owner or joint owner, the spouse may
elect to continue the contract. No distributions are required as long as the
surviving spouse and annuitant are living. An eligible successor owner,
including a surviving joint owner after the first owner dies, may elect the
beneficiary continuation option for NQ contracts discussed in "Beneficiary
continuation option" below.
HOW DEATH BENEFIT PAYMENT IS MADE
We will pay the death benefit to the beneficiary in the form of the annuity
payout option you have chosen. If you have not chosen an
48 Payment of death benefit
annuity payout option as of the time of the annuitant's death, the beneficiary
will receive the death benefit in a single sum. However, subject to any
exceptions in the contract, our rules and any applicable requirements under
federal income tax rules, the beneficiary may elect to apply the death benefit
to one or more annuity payout options we offer at the time.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may elect to
receive the death benefit or continue the contract as successor
owner/annuitant.
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required instructions,
information and forms necessary to effect the successor owner/annuitant
feature, we will increase the account value to equal your elected guaranteed
minimum death benefit as of the date of your death if such death benefit is
greater than such account value, plus any amount applicable under the
Protection Plus(SM) feature and adjusted for any subsequent withdrawals. The
increase in the account value will be allocated to the investment options
according to the allocation percentages we have on file for your contract.
Thereafter, withdrawal charges will no longer apply to contributions made
before your death. Withdrawal charges will apply if additional contributions
are made. These additional contributions will be considered to be withdrawn
only after all other amounts have been withdrawn. In determining whether your
applicable guaranteed minimum death benefit option will continue to grow, we
will use your surviving spouse's age (as of the date we receive satisfactory
proof of your death, any required instructions and the information and forms
necessary to effect the successor owner/annuitant feature).
Where an NQ contract is owned by a Living Trust, as defined in the contract,
and at the time of the annuitant's death the annuitant's spouse is the sole
beneficiary of the Living Trust, the Trustee, as owner of the contract, may
request that the spouse be substituted as annuitant as of the date of the
annuitant's death. No further change of annuitant will be permitted.
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole beneficiary of the account, the custodian may
request that the spouse be substituted as annuitant after your death.
BENEFICIARY CONTINUATION OPTION
This feature permits a designated individual, on the contract owner's death, to
maintain a contract in the deceased contract owner's name and receive
distributions under the contract, instead of receiving the death benefit in a
single sum. We make this option available to beneficiaries under traditional
IRA, Roth IRA and NQ contracts, subject to state availability. Please speak
with your financial professional for further information.
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. The beneficiary continuation option must be elected by September 30th of
the year following calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this option. If the election is made, then, as of the
date we receive satisfactory proof of death, any required instructions,
information and forms necessary to effect the beneficiary continuation option
feature, we will increase the account value to equal the applicable death
benefit if such death benefit is greater than such account value plus any
amount applicable under the Protection Plus(SM) feature, adjusted for any
subsequent withdrawals. Where an IRA contract is owned in a custodial
individual retirement account, the custodian may reinvest the death benefit in
an individual retirement annuity contract, using the account beneficiary as the
annuitant. Please speak with your financial professional for further
information.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy (determined in the calendar year after your death
and determined on a term certain basis). These payments must begin no later
than December 31st of the calendar year after the year of your death. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70-1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed later in the Prospectus in
"Tax Information" under "Individual retirement arrangements (IRAs)," the
beneficiary may choose the "5-year rule" option instead of annual payments over
life expectancy. The 5-year rule is always available to beneficiaries under
Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may
take withdrawals as desired, but the entire account value must be fully
withdrawn by December 31st of the calendar year which contains the fifth
anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA contracts:
o The contract continues in your name for the benefit of your beneficiary.
o This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals
for this purpose.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's own
life expectancy, if payments over life expectancy are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the guaranteed minimum income benefit or an optional
enhanced death benefit under the contract, they will no longer be in effect
and charges for such benefits will stop. Also, any minimum death benefit
feature will no longer be in effect.
o The beneficiary may choose at any time to withdraw all or a portion of the
account value and no withdrawal charges, if any, will apply.
o Any partial withdrawal must be at least $300.
Payment of death benefit 49
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking required minimum distributions based
on the remaining life expectancy of the deceased beneficiary or to receive
any remaining interest in the contract in a lump sum. The option elected
will be processed when we receive satisfactory proof of death, any required
instructions for the method of payment and any required information and
forms necessary to effect payment.
BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known
as Inherited annuity, may only be elected when the NQ contract owner dies
before the annuity commencement date, whether or not the owner and the
annuitant are the same person. If the owner and annuitant are different and the
owner dies before the annuitant, for purposes of this discussion, "beneficiary"
refers to the successor owner. For a discussion of successor owner, see "When
an NQ contract owner dies before the annuitant" earlier in this section. This
feature must be elected within 9 months following the date of your death and
before any inconsistent election is made. Beneficiaries who do not make a
timely election will not be eligible for this option.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy, determined on a term certain basis and in the
year payments start. These payments must begin no later than one year after the
date of your death and are referred to as "scheduled payments." The beneficiary
may choose the "5-year rule" instead of scheduled payments over life
expectancy. If the beneficiary chooses the 5-year rule, there will be no
scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals
as desired, but the entire account value must be fully withdrawn by the fifth
anniversary of your death.
Under the beneficiary continuation option for NQ contracts (regardless of
whether the owner and the annuitant are the same person):
o This feature is only available if the beneficiary is an individual. It is
not available for any entity such as a trust, even if all of the
beneficiaries of the trust are individuals.
o The contract continues in your name for the benefit of your beneficiary.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the respective
beneficiary's own life expectancy, if scheduled payments are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the guaranteed minimum income benefit or an optional
enhanced death benefit under the contract, they will no longer be in effect
and charges for such benefits will stop. Also, any minimum death benefit
feature will no longer be in effect.
o If the beneficiary chooses the "5-year rule," withdrawals may be made at
any time. If the beneficiary instead chooses scheduled payments, the
beneficiary must also choose between two potential withdrawal options at
the time of election. If the beneficiary chooses "Withdrawal Option 1", the
beneficiary cannot later withdraw funds in addition to the scheduled
payments the beneficiary is receiving: "Withdrawal Option 1" permits total
surrender only. "Withdrawal Option 2" permits the beneficiary to take
withdrawals, in addition to scheduled payments, at any time. However, the
scheduled payments under "Withdrawal Option 1" are afforded favorable tax
treatment as "annuity payments." See "Taxation of nonqualifed annuities" in
"Tax Information" later in this Prospectus.
o Any partial withdrawals must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract on the beneficiary's death.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking scheduled payments based on the
remaining life expectancy of the deceased beneficiary (if scheduled
payments were chosen) or to receive any remaining interest in the contract
in a lump sum. We will pay any remaining interest in the contract in a lump
sum if your beneficiary elects the 5-year rule. The option elected will be
processed when we receive satisfactory proof of death, any required
instructions for the method of payment and any required information and
forms necessary to effect payment.
If you are both the owner and annuitant:
o As of the date we receive satisfactory proof of death, any required
instructions, information and forms necessary to effect the beneficiary
continuation option feature, we will increase the annuity account value to
equal the applicable death benefit if such death benefit is greater than
such account value, plus any amount applicable under the Protection
Plus(SM) feature, adjusted for any subsequent withdrawals.
o No withdrawal charges, if any, will apply to any withdrawals by the
beneficiary.
If the owner and annuitant are not the same person:
o If the beneficiary continuation option is elected, the beneficiary
automatically becomes the new annuitant of the contract, replacing the
existing annuitant.
o The annuity account value will not be reset to the death benefit amount.
o The contract's withdrawal charge schedule will continue to be applied to
any withdrawal or surrender other than scheduled payments; the contract's
free corridor amount will continue to apply to withdrawals but does not
apply to surrenders.
o We do not impose a withdrawal charge on scheduled payments except if, when
added to any withdrawals previously taken in the same contract year,
including for this purpose a contract surrender, the total amount of
withdrawals and scheduled payments exceed the free corridor amount. See the
"Withdrawal charges" in "Charges and expenses" earlier in this Prospectus.
50 Payment of death benefit
If a contract is jointly owned:
o The surviving owner supersedes any other named beneficiary and may elect
the beneficiary continuation option.
o If the deceased joint owner was also the annuitant, see "If you are both
the owner and annuitant" earlier in this section.
o If the deceased joint owner was not the annuitant, see "If the owner and
annuitant are not the same person" earlier in this section.
Payment of death benefit 51
7. Tax information
- --------------------------------------------------------------------------------
OVERVIEW
In this part of the prospectus, we discuss the current federal income tax rules
that generally apply to Equitable Accumulator(R) Elite(SM) contracts owned by
United States individual taxpayers. The tax rules can differ, depending on the
type of contract, whether NQ, traditional IRA, Roth Conversion IRA, QP or TSA.
Therefore, we discuss the tax aspects of each type of contract separately.
Federal income tax rules include the United States laws in the Internal Revenue
Code, and Treasury Department Regulations and Internal Revenue Service ("IRS")
interpretations of the Internal Revenue Code. These tax rules may change
without notice. We cannot predict whether, when, or how these rules could
change. Any change could affect contracts purchased before the change. Congress
may also consider proposals in the future to comprehensively reform or overhaul
the United States tax and retirement systems, which if enacted, could affect
the tax benefits of a contract.
We cannot provide detailed information on all tax aspects of the contracts.
Moreover, the tax aspects that apply to a particular person's contract may vary
depending on the facts applicable to that person. We do not discuss state
income and other state taxes, federal income tax and withholding rules for
non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the
contract, rights or values under the contract, or payments under the contract,
for example, amounts due to beneficiaries, may be subject to federal or state
gift, estate, or inheritance taxes. You should not rely only on this document,
but should consult your tax adviser before your purchase.
President Bush signed the Economic Growth and Tax Relief Reconciliation Act of
2001 ("EGTRRA") on June 7, 2001. Many of the provisions of EGTRRA became
effective on January 1, 2002, and are phased in during the first decade of the
twenty-first century. In the absence of future legislation, all of the
amendments made by EGTRRA will no longer apply after December 31, 2010, and the
law in effect in 2001 will apply again. In general, EGTRRA liberalizes
contributions that can be made to all types of tax-favored retirement plans. In
addition to increasing amounts that can be contributed and permitting
individuals over age 50 to make additional contributions, EGTRRA also permits
rollover contributions to be made between different types of tax-favored
retirement plans. Please discuss with your tax adviser how EGTRRA affects your
personal financial situation.
CONTRACTS THAT FUND A RETIREMENT ARRANGEMENT
Generally, there are two types of funding vehicles that are available for
Individual Retirement Arrangements ("IRAs") and Code Section 403(b)
Arrangements ("TSAs"), respectively: an IRA or 403(b) annuity contract such as
this one, or an IRA or 403(b)(7) custodial or other qualified account. Annuity
contracts can also be purchased in connection with retirement plans qualified
under Code Section 401 ("QP contracts"). How these arrangements work, including
special rules applicable to each, are described in the specific sections for
each type of arrangement, below. You should be aware that the funding vehicle
for a qualified arrangement does not provide any tax deferral benefit beyond
that already provided by the Code for all permissible funding vehicles.
Therefore, you should consider the annuity's features and benefits, such as
Accumulator(R) Elite(SM)'s Living Benefit guaranteed minimum income benefit,
Dollar Cost Averaging, choice of death benefits, selection of investment funds,
guaranteed interest option, fixed maturity options and its choices of pay-out
options, as well as the features and benefits of other permissible funding
vehicles and the relative costs of annuities and other arrangements. You should
be aware that cost may vary depending on the features and benefits made
available and the charges and expenses of the investment options or funds that
you elect.
Beginning in 2006, certain provisions of the Treasury Regulations on required
minimum distributions concerning the actuarial present value of additional
contract benefits could increase the amount required to be distributed from
annuity contracts funding qualified plans, TSAs and IRAs. You should consider
the potential implication of these Regulations before you purchase additional
features under this annuity contract. See also Appendix II at the end of this
Prospectus for a discussion of QP contracts.
TRANSFERS AMONG INVESTMENT OPTIONS
You can make transfers among investment options inside the contract without
triggering taxable income.
TAXATION OF NONQUALIFIED ANNUITIES
CONTRIBUTIONS
You may not deduct the amount of your contributions to a nonqualified annuity
contract.
CONTRACT EARNINGS
Generally, you are not taxed on contract earnings until you receive a
distribution from your contract, whether as a withdrawal or as an annuity
payment. However, earnings are taxable, even without a distribution:
o if a contract fails investment diversification requirements as specified in
federal income tax rules (these rules are based on or are similar to those
specified for mutual funds under the securities laws);
o if you transfer a contract, for example, as a gift to someone other than
your spouse (or former spouse);
o if you use a contract as security for a loan (in this case, the amount
pledged will be treated as a distribution); and
o if the owner is other than an individual (such as a corporation,
partnership, trust, or other non-natural person).
52 Tax information
All nonqualified deferred annuity contracts that AXA Equitable and its
affiliates issue to you during the same calendar year are linked together and
treated as one contract for calculating the taxable amount of any distribution
from any of those contracts.
ANNUITY PAYMENTS
Once annuity payments begin, a portion of each payment is taxable as ordinary
income. You get back the remaining portion without paying taxes on it. This is
your "investment in the contract." Generally, your investment in the contract
equals the contributions you made, less any amounts you previously withdrew
that were not taxable.
For fixed annuity payments, the tax-free portion of each payment is determined
by (1) dividing your investment in the contract by the total amount you are
expected to receive out of the contract, and (2) multiplying the result by the
amount of the payment. For variable annuity payments, your tax-free portion of
each payment is your investment in the contract divided by the number of
expected payments.
Once you have received the amount of your investment in the contract, all
payments after that are fully taxable. If payments under a life annuity stop
because the annuitant dies, there is an income tax deduction for any
unrecovered investment in the contract.
PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN
If you make withdrawals before annuity payments begin under your contract, they
are taxable to you as ordinary income if there are earnings in the contract.
Generally, earnings are your account value less your investment in the
contract. If you withdraw an amount which is more than the earnings in the
contract as of the date of the withdrawal, the balance of the distribution is
treated as a return of your investment in the contract and is not taxable.
PROTECTION PLUS(SM) FEATURE
In order to enhance the amount of the death benefit to be paid at the
Annuitant's death, you may have purchased a Protection Plus(SM) rider for your
NQ contract. Although we regard this benefit as an investment protection feature
which should have no adverse tax effect, it is possible that the IRS could take
a contrary position or assert that the Protection Plus(SM) rider is not part of
the contract. In such a case, the charges for the Protection Plus(SM) rider
could be treated for federal income tax purposes as a partial withdrawal from
the contract. If this were so, such a deemed withdrawal could be taxable, and
for contract owners under age 59-1/2, also subject to a tax penalty. Were the
IRS to take this position, Equitable would take all reasonable steps to attempt
to avoid this result, which could include amending the contract (with
appropriate notice to you).
CONTRACTS PURCHASED THROUGH EXCHANGES
The following information applies if you purchased your NQ contract through an
exchange of another contract. Normally, exchanges of contracts are taxable
events. The exchange was not taxable under Section 1035 of the Internal Revenue
Code if:
o the contract that was the source of the funds you used to purchase the NQ
contract was another nonqualified deferred annuity contract (or life
insurance or endowment contract).
o The owner and the annuitant were the same under the source contract and the
Accumulator(R) Elite(SM) NQ contract. If you used a life insurance or
endowment contract, the owner and the insured must have been the same on
both sides of the exchange transaction.
The tax basis, also referred to as your investment in the contract, of the
source contract carried over to the Accumulator(R) Elite(SM) NQ contract.
An owner may direct the proceeds of a partial withdrawal from one nonqualified
deferred annuity contract to a different insurer to purchase a new nonqualified
deferred annuity contract on a tax-deferred basis. Special forms, agreement
between carriers, and provision of cost basis information may be required to
process this type of an exchange.
SURRENDERS
If you surrender or cancel the contract, the distribution is taxable as
ordinary income (not capital gain) to the extent it exceeds your investment in
the contract.
DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER
YOUR DEATH
For the rules applicable to death benefits, see "Payment of death benefit"
earlier in this Prospectus. The tax treatment of a death benefit taken as a
single sum is generally the same as the tax treatment of a withdrawal from or
surrender of your contract. The tax treatment of a death benefit taken as
annuity payments is generally the same as the tax treatment of annuity payments
under your contract.
Beneficiary continuation option
We have received a private letter ruling from the IRS regarding certain tax
consequences of scheduled payments under the beneficiary continuation option
for NQ contracts. See the discussion "Beneficiary continuation option for NQ
Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among
other things, the IRS rules that:
o scheduled payments under the beneficiary continuation option for NQ
contracts satisfy the death of owner rules of Section 72(s)(2) of the Code,
regardless of whether the beneficiary elects Withdrawal Option 1 or
Withdrawal Option 2;
o scheduled payments, any additional withdrawals under Withdrawal Option 2,
or contract surrenders under Withdrawal Option 1 will only be taxable to
the beneficiary when amounts are actually paid, regardless of the
Withdrawal Option selected by the beneficiary;
o a beneficiary who irrevocably elects scheduled payments with Withdrawal
Option 1 will receive "excludable amount" tax treatment on scheduled
payments. See "Annuity payments" earlier in this section. If the
beneficiary elects to surrender the contract before all scheduled payments
are paid, the amount received upon surrender is a non-annuity payment
taxable to the extend it exceeds any remaining investment in the contract.
The ruling does not specifically address the taxation of any payments received
by a beneficiary electing Withdrawal Option 2 (whether scheduled payments or
any withdrawal that might be taken). Before electing the beneficiary
continuation option feature, the individuals you designate as beneficiary or
successor owner should discuss with their tax advisers the consequences of such
elections.
Tax information 53
The tax treatment of a withdrawal after the death of the owner taken as a
single sum or taken as withdrawals under the 5-year rule is generally the same
as the tax treatment of a withdrawal from or surrender of your contract.
EARLY DISTRIBUTION PENALTY TAX
If you take distributions before you are age 59-1/2 a penalty tax of 10% of the
taxable portion of your distribution applies in addition to the income tax.
Some of the available exceptions to the pre-age 59-1/2 penalty tax include
distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o in the form of substantially equal periodic annuity payments for your life
(or life expectancy), or the joint lives (or joint life expectancy) of you
and a beneficiary, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If
you were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. The IRS has said that the owners of variable annuities will
not be treated as owning the separate account assets provided the underlying
portfolios are restricted to variable life and annuity assets. The variable
annuity owners must have the right only to choose among the portfolios, and
must have no right to direct the particular investment decisions within the
portfolios.
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some
issues that remain unclear. For example, the IRS has not issued any guidance as
to whether having a larger number of portfolios available, or an unlimited
right to transfer among them, could cause you to be treated as the owner. We do
not know whether the IRS will ever provide such guidance or whether such
guidance, if unfavorable, would apply retroactively to your contract.
Furthermore, the IRS could reverse its current guidance at any time. We reserve
the right to modify your contract as necessary to prevent you from being
treated as the owner of the assets of Separate Accounts 45 and 49.
SPECIAL RULES FOR NQ CONTRACTS ISSUED IN PUERTO RICO
Income from NQ contracts we issue is U.S. source. A Puerto Rico resident is
subject to U.S. taxation on such U.S. source income. Only Puerto Rico source
income of Puerto Rico residents is excludable from U.S. taxation. Income from
NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable
portion of amounts distributed from a contract may differ in the two
jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax
returns, showing different amounts of income from the contract for each tax
return. Puerto Rico generally provides a credit against Puerto Rico tax for
U.S. tax paid. Depending on your personal situation and the timing of the
different tax liabilities, you may not be able to take full advantage of this
credit.
INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS)
GENERAL
"IRA" stands for individual retirement arrangement. There are two basic types
of such arrangements, individual retirement accounts and individual retirement
annuities. In an individual retirement account, a trustee or custodian holds
the assets for the benefit of the IRA owner. The assets funding the account
typically include mutual funds and/or individual stocks and/or securities in a
custodial account and bank certificates of deposit in a trusteed account. In an
individual retirement annuity, an insurance company issues an annuity contract
that serves as the IRA.
There are two basic types of IRAs, as follows:
o Traditional IRAs, typically funded on a pre-tax basis, including SEP-IRAs
and SIMPLE IRAs issued and funded in connection with employer-sponsored
retirement plans; and
o Roth IRAs funded on an after-tax basis.
Regardless of the type of IRA, your ownership interest in the IRA cannot be
forfeited. You or your beneficiaries who survive you are the only ones who can
receive the IRA's benefits or payments. All types of IRAs qualify for tax
deferral regardless of the funding vehicle selected.
You can hold your IRA assets in as many different accounts and annuities as you
would like, as long as you meet the rules for setting up and making
contributions to IRAs. However, if you own multiple IRAs, you may be required
to combine IRA values or contributions for tax purposes. For further
information about individual retirement arrangements, you can read Internal
Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)").
This publication is usually updated annually, and can be obtained from any IRS
district office or the IRS website (www.irs.gov).
AXA Equitable designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may have
purchased the contract as either a traditional IRA ("Rollover IRA") or Roth IRA
("Roth Conversion IRA"). We also offered the Inherited IRA for payment of
post-death required minimum distributions in traditional IRA and Roth IRA. The
first part of this section covers some of the special tax rules that apply to
traditional IRAs. The next part of this section covers Roth IRAs. The
disclosure generally assumes direct ownership of the individual retirement
annuity contract. For contracts owned in a custodial individual retirement
account, the disclosure will apply only if you terminate your account or
transfer ownership of the contract to yourself.
We have received an opinion letter from the IRS approving the respective forms
of the Accumulator(R) traditional and Roth IRA contracts, as amended to reflect
recent tax law changes, for use as a traditional IRA and a Roth IRA,
respectively. This IRS approval is a determination only as to the form of the
annuity. It does not represent a determination of the merits of the annuity as
an investment. The contracts submitted for IRS approval do not include every
feature possibly available under the Accumulator(R) traditional and Roth IRA
contracts.
The Inherited IRA beneficiary continuation contract has not been submitted to
the IRS for approval as to form for use as a traditional IRA or Roth IRA.
54 Tax information
PROTECTION PLUS(SM) FEATURE
The Protection Plus(SM) feature was offered for IRA contracts, subject to state
and contract availability. We have received IRS opinion letters that the
contract with a Protection Plus(SM) feature qualifies as to form for use as a
traditional IRA and Roth IRA, respectively. This IRS approval is a determination
only as to the form of the annuity. It does not represent a determination of the
merits of the annuity as an investment. The contracts submitted for IRS approval
do not include every feature possibly available under the Accumulator(R)
Elite(SM) traditional and Roth IRA contracts. You should consult with your tax
adviser for further information.
Your right to cancel within a certain number of days
This is provided for informational purposes only. Since this contract is no
longer available to new purchasers, this cancellation provision is no longer
applicable.
You can cancel any version of the Accumulator(R) Elite(SM) IRA contract
(traditional IRA or Roth IRA) by following the directions in "Your right to
cancel within a certain number of days" under "Contract features and benefits"
earlier in this Prospectus. If you cancel a traditional IRA or Roth IRA
contract, we may have to withhold tax, and we must report the transaction to
the IRS. A contract cancellation could have an unfavorable tax impact.
Traditional individual retirement annuities (traditional IRAs)
Contributions to traditional IRAs. Individuals may make three different types
of contributions to a traditional IRA:
o regular contributions out of earned income or compensation;
o tax-free "rollover" contributions; or
o direct custodian-to-custodian transfers from other traditional
IRAs ("direct transfers").
Regular contributions to traditional IRAs
Limits on contributions. The "maximum regular contribution amount" for any
taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $4,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for each of the taxable years 2005
and 2006. When your earnings are below $4,000, your earned income or
compensation for the year is the most you can contribute. This limit does not
apply to rollover contributions or direct custodian-to-custodian transfers into
a traditional IRA. You cannot make regular traditional IRA contributions for
the tax year in which you reach age 70-1/2 or any tax year after that.
If you reach age 50 before the close of the taxable year for which you are
making a regular contribution to your IRA, you may be eligible to make an
additional "catch up contribution" of up to $500 to your traditional IRA for
2005. This amount increases to $1,000 for the taxable year 2006.
Special rules for spouses. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to traditional IRAs
(and Roth IRAs discussed below). Even if one spouse has no compensation or
compensation under $4,000, married individuals filing jointly can contribute up
to $8,000 for each of the taxable years 2005 and 2006 to any combination of
traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the
ability to contribute to traditional IRAs and vice versa. The maximum amount
may be less if earned income is less and the other spouse has made IRA
contributions. No more than a combined total of $4,000 can be contributed
annually to either spouse's traditional and Roth IRAs. Each spouse owns his or
her traditional IRAs and Roth IRAs even if the other spouse funded the
contributions. A working spouse age 70-1/2 or over can contribute up to the
lesser of $4,000 or 100% of "earned income" to a traditional IRA for a
nonworking spouse until the year in which the nonworking spouse reaches age
70-1/2. Catch-up contributions may be made as described above for spouses who
are at least age 50 but under age 70-1/2 at any time during the taxable year
for which the contribution is made.
Deductibility of contributions. The amount of traditional IRA contributions
that you can deduct for a taxable year depends on whether you are covered by an
employer-sponsored tax-favored retirement plan, as defined under special
federal income tax rules. Your Form W-2 will indicate whether or not you are
covered by such a retirement plan.
If you are not covered by a retirement plan during any part of the year, you
can make fully deductible contributions to your traditional IRAs for the
taxable year up to the maximum amount discussed earlier in this section under
"Limits on contributions". That is, for each of the taxable years 2005 and
2006, your fully deductible contribution can be up to $4,000, or if less, your
earned income. The dollar limit is $4,500 for people eligible to make age
50-70-1/2 catch-up contributions for 2005 and $5,000 for 2006, respectively.
If you are covered by a retirement plan during any part of the year, and your
adjusted gross income (AGI) is below the lower dollar figure in a phase-out
range, you can make fully deductible contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls within a phase-out range, you can make partially deductible
contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls above the higher figure in the phase-out range, you may not deduct
any of your regular contributions to your traditional IRAs.
If you are single and covered by a retirement plan during any part of the
taxable year, the deduction for traditional IRA contributions phases out with
AGI between $50,000 and $60,000 in 2005 and later years.
If you are married and file a joint return, and you are covered by a retirement
plan during any part of the taxable year, the deduction for traditional IRA
contributions phases out with AGI between $70,000 and $80,000 in 2005 and AGI
between $75,000 and $85,000 in 2006. In 2007, the deduction will phase out for
AGI between $80,000 and $100,000.
Tax information 55
Married individuals filing separately and living apart at all times are not
considered married for purposes of this deductible contribution calculation.
Generally, the active participation in an employer-sponsored retirement plan of
an individual is determined independently for each spouse. Where spouses have
"married filing jointly" status, however, the maximum deductible traditional
IRA contribution for an individual who is not an active participant (but whose
spouse is an active participant) is phased out for taxpayers with an AGI
between $150,000 and $160,000.
To determine the deductible amount of the contribution for 2005, for example,
you determine AGI and subtract $50,000 if you are single, or $70,000 if you are
married and file a joint return with your spouse. The resulting amount is your
excess AGI. You then determine the limit on the deduction for traditional IRA
contributions using the following formula:
($10,000-excess AGI) times the maximum Equals the adjusted
-------------------- x regular = deductible
divided by $10,000 contribution contribution
for the year limit
Additional "Saver's Credit" for contributions to a
traditional IRA or Roth IRA
You may be eligible for a nonrefundable income tax credit for contributions you
make to a traditional IRA or Roth IRA. The final year this credit is available
is 2006. If you qualify, you may take this credit even though your traditional
IRA contribution is already fully or partially deductible. To take advantage of
this "saver's credit" you must be 18 or over before the end of the taxable year
for which the contribution is made. You cannot be a full-time student or
claimed as a dependent on another's tax return, and your adjusted gross income
cannot exceed $50,000. The amount of the tax credit you can get varies from 10%
of your contribution to 50% of your contribution and depends on your income tax
filing status and your adjusted gross income. The maximum annual contribution
eligible for the saver's credit is $2,000. If you and your spouse file a joint
return, and each of you qualifies, each is eligible for a maximum annual
contribution of $2,000. Your saver's credit may also be reduced if you take or
have taken a taxable distribution from any plan eligible for a saver's credit
contribution -- even if you make a contribution to one plan and take the
distribution from another plan -- during the "testing period." The "testing
period" begins two years before the year for which you make the contribution
and ends when your tax return is due for the year for which you make the
contribution. Saver's-credit-eligible contributions may be made to a 401(k)
plan, 403(b) TSA, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA,
as well as a traditional IRA or Roth IRA.
Nondeductible regular contributions. If you are not eligible to deduct part or
all of the traditional IRA contribution, you may still make nondeductible
contributions on which earnings will accumulate on a tax-deferred basis. The
combined deductible and nondeductible contributions to your traditional IRA (or
the nonworking spouse's traditional IRA) may not, however, exceed the maximum
dollar per person limit for the applicable taxable year ($4,000 for 2005 and
2006) . The dollar limit is $4,500 in 2005 and $5,000 in 2006 for people
eligible to make ages 50 - 70-1/2 catch-up contributions. See "Excess
contributions" later in this section. You must keep your own records of
deductible and nondeductible contributions in order to prevent double taxation
on the distribution of previously taxed amounts. See "Withdrawals, payments and
transfers of funds out of traditional IRAs" later in this section.
If you are making nondeductible contributions in any taxable year, or you have
made nondeductible contributions to a traditional IRA in prior years and are
receiving distributions from any traditional IRA, you must file the required
information with the IRS. Moreover, if you are making nondeductible traditional
IRA contributions, you must retain all income tax returns and records
pertaining to such contributions until interests in all traditional IRAs are
fully distributed.
When you can make regular contributions. If you file your tax returns on a
calendar year basis like most taxpayers, you have until the April 15 return
filing deadline (without extensions) of the following calendar year to make
your regular traditional IRA contributions for a tax year.
Rollover and transfer contributions to traditional IRAs
Rollover contributions may be made to a traditional IRA from these "eligible
retirement plans":
o qualified plans;
o governmental employer 457(b) plans;
o TSAs (including Internal Revenue Code Section 403(b)(7) custo
dial accounts); and
o other traditional IRAs.
Direct transfer contributions may only be made from one traditional IRA to
another. Any amount contributed to a traditional IRA after you reach age 70-1/2
must be net of your required minimum distribution for the year in which the
rollover or direct transfer contribution is made.
Rollovers from "eligible retirement plans" other than
traditional IRAs
Your plan administrator will tell you whether or not your distribution is
eligible to be rolled over. Spousal beneficiaries and spousal alternate payees
under qualified domestic relations orders may roll over funds on the same basis
as the plan participant.
There are two ways to do rollovers:
o Do it yourself:
You actually receive a distribution that can be rolled over and you roll it
over to a traditional IRA within 60 days after the date you receive the
funds. The distribution from your eligible retirement plan will be net of
20% mandatory federal income tax withholding. If you want, you can replace
the withheld funds yourself and roll over the full amount.
o Direct rollover:
You tell the trustee or custodian of the eligible retirement plan to send
the distribution directly to your traditional IRA issuer. Direct rollovers
are not subject to mandatory federal income tax withholding.
56 Tax information
All distributions from a TSA, qualified plan or governmental employer 457(b)
plan are eligible rollover distributions, unless the distributions are:
o "required minimum distributions" after age 70-1/2 or retirement
from service with the employer; or
o substantially equal periodic payments made at least annually for
your life (or life expectancy) or the joint lives (or joint life
expectancies) of you and your designated beneficiary; or
o substantially equal periodic payments made for a specified period
of 10 years or more; or
o hardship withdrawals; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o death benefit payments to a beneficiary who is not your surviving
spouse; or
o qualified domestic relations order distributions to a beneficiary
who is not your current spouse or former spouse.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental employer 457(b) plan are not subject to the
additional 10% federal income tax penalty for premature distributions, but they
may become subject to this penalty if you roll the funds to a different type of
eligible retirement plan such as a traditional IRA, and subsequently take a
premature distribution.
Rollovers of after-tax contributions from eligible retirement plans other than
traditional IRAs
Any after-tax contributions you have made to a qualified plan or TSA (but not a
governmental employer 457(b) plan) may be rolled over to a traditional IRA
(either in a direct rollover or a rollover you do yourself). When the recipient
plan is a traditional IRA, you are responsible for recordkeeping and
calculating the taxable amount of any distributions you take from that
traditional IRA. See "Taxation of Payments" later in this section under
"Withdrawals, payments and transfers of funds out of traditional IRAs."
After-tax contributions in a traditional IRA cannot be rolled over from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan.
Rollovers from traditional IRAs to traditional IRAs
You may roll over amounts from one traditional IRA to one or more of your other
traditional IRAs if you complete the transaction within 60 days after you
receive the funds. You may make such a rollover only once in every 12-month
period for the same funds. Trustee-to-trustee or custodian-to-custodian direct
transfers are not rollover transactions. You can make these more frequently
than once in every 12-month period.
SPOUSAL ROLLOVERS AND DIVORCE-RELATED DIRECT TRANSFERS
The surviving spouse beneficiary of a deceased individual can roll over funds
from, or directly transfer funds from, an inherited traditional IRA to one or
more other traditional IRAs. Also, in some cases, traditional IRAs can be
transferred on a tax-free basis between spouses or former spouses as a result
of a court-ordered divorce or separation decree.
Excess contributions
Excess contributions to IRAs are subject to a 6% excise tax for the year in
which made and for each year after until withdrawn. The following are excess
contributions to IRAs:
o regular contributions of more than the maximum regular contri
bution amount for the applicable taxable year; or
o regular contributions to a traditional IRA made after you reach
age 70-1/2; or
o rollover contributions of amounts, which are not eligible to be
rolled over, for example, minimum distributions required to be made after
age 70-1/2.
You can avoid the excise tax by withdrawing an excess contribution (rollover or
regular) before the due date (including extensions) for filing your federal
income tax return for the year. If it is an excess regular traditional IRA
contribution, you cannot take a tax deduction for the amount withdrawn. You do
not have to include the excess contribution withdrawn as part of your income.
It is also not subject to the 10% additional penalty tax on early
distributions, discussed later in this section under "Early distribution
penalty tax." You do have to withdraw any earnings that are attributed to the
excess contribution. The withdrawn earnings would be included in your gross
income and could be subject to the 10% penalty tax.
Even after the due date for filing your return, you may withdraw an excess
rollover contribution, without income inclusion or 10% penalty, if:
(1) the rollover was from an eligible retirement plan to a traditional IRA;
(2) the excess contribution was due to incorrect information that the plan
provided; and
(3) you took no tax deduction for the excess contribution.
Recharacterizations
Amounts that have been contributed as traditional IRA funds may subsequently be
treated as Roth IRA funds. Special federal income tax rules allow you to change
your mind again and have amounts that are subsequently treated as Roth IRA
funds, once again treated as traditional IRA funds. You do this by using the
forms we prescribe. This is referred to as having "recharacterized" your
contribution.
Withdrawals, payments and transfers of funds out of
traditional IRAs
No federal income tax law restrictions on withdrawals. You can withdraw any or
all of your funds from a traditional IRA at any time. You do not need to wait
for a special event like retirement.
Taxation of payments. Earnings in traditional IRAs are not subject to federal
income tax until you or your beneficiary receive them. Tax-
Tax information 57
able payments or distributions include withdrawals from your contract,
surrender of your contract and annuity payments from your contract. Death
benefits are also taxable.
Except as discussed below, the total amount of any distribution from a
traditional IRA must be included in your gross income as ordinary income. We
report all payments from traditional IRA contracts on IRS Form 1099R as fully
taxable.
If you have ever made nondeductible IRA contributions to any traditional IRA
(it does not have to be to this particular traditional IRA contract), those
contributions are recovered tax free when you get distributions from any
traditional IRA. It is your responsibility to keep permanent tax records of all
of your nondeductible contributions to traditional IRAs so that you can
correctly report the taxable amount of any distribution on your own tax return.
At the end of any year in which you have received a distribution from any
traditional IRA, you calculate the ratio of your total nondeductible
traditional IRA contributions (less any amounts previously withdrawn tax free)
to the total account balances of all traditional IRAs you own at the end of the
year plus all traditional IRA distributions made during the year. Multiply this
by all distributions from the traditional IRA during the year to determine the
nontaxable portion of each distribution.
A distribution from a traditional IRA is not taxable if:
o the amount received is a withdrawal of excess contributions, as
described under "Excess contributions" earlier in this section; or
o the entire amount received is rolled over to another traditional
IRA or other eligible retirement plan which agrees to accept the funds.
(See "Rollovers from eligible retirement plans other than traditional
IRAs" under "Rollovers and transfer contributions to traditional IRAs"
earlier in this section.)
The following are eligible to receive rollovers of distributions from a
traditional IRA: a qualified plan, a TSA or a governmental employer 457(b)
plan. After-tax contributions in a traditional IRA cannot be rolled from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan. Before you decide to roll over a distribution from a
traditional IRA to another eligible retirement plan, you should check with the
administrator of that plan about whether the plan accepts rollovers and, if so,
the types it accepts. You should also check with the administrator of the
receiving plan about any documents required to be completed before it will
accept a rollover.
Distributions from a traditional IRA are not eligible for favorable ten-year
averaging or long-term capital gain treatment available under limited
circumstances for certain distributions from qualified plans. If you might be
eligible for such tax treatment from your qualified plan, you may be able to
preserve such tax treatment even though an eligible rollover from a qualified
plan is temporarily rolled into a "conduit IRA" before being rolled back into a
qualified plan. See your tax adviser.
Required minimum distributions
Background on Regulations -- Required Minimum Distri-butions. Distributions
must be made from traditional IRAs according to rules contained in the Code and
Treasury Regulations. Certain provisions of the Treasury Regulations will
require, beginning in 2006, that the actuarial present value of additional
annuity contract benefits be added to the dollar amount credited for purposes
of calculating certain types of required minimum distributions from individual
retirement annuity contracts. This could increase the amount required to be
distributed from these contracts if you take annual withdrawals instead of
annuitizing. Please consult your tax adviser concerning applicability of these
complex rules to your situation.
Lifetime required minimum distributions. You must start taking annual
distributions from your traditional IRAs for the year in which you turn 70-1/2.
When you have to take the first lifetime required minimum distribution. The
first required minimum distribution is for the calendar year in which you turn
age 70-1/2. You have the choice to take this first required minimum
distribution during the calendar year you actually reach age 70-1/2, or to
delay taking it until the first three-month period in the next calendar year
(January 1 - April 1). Distributions must start no later than your "Required
Beginning Date," which is April 1st of the calendar year after the calendar
year in which you turn age 70-1/2. If you choose to delay taking the first
annual minimum distribution, then you will have to take two minimum
distributions in that year -- the delayed one for the first year and the one
actually for that year. Once minimum distributions begin, they must be made at
some time each year.
How you can calculate required minimum distributions.
There are two approaches to taking required minimum distributions --
"account-based" or "annuity-based."
ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the
value of your traditional IRA as of December 31st of the past calendar year by
a number corresponding to your age from an IRS table. This gives you the
required minimum distribution amount for that particular IRA for that year. If
your spouse is your sole beneficiary and more than 10 years younger than you,
the dividing number you use may be from another IRS table and may produce a
smaller lifetime required minimum distribution amount. Regardless of the table
used, the required minimum distribution amount will vary each year as the
account value and the divisor change. If you initially choose an account-based
method, you may later apply your traditional IRA funds to a life annuity-based
payout with any certain period not exceeding remaining life expectancy,
determined in accordance with IRS tables.
ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to
do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a designated beneficiary or for a
period certain not extending beyond applicable life expectancies, determined in
accordance with IRS tables
Do you have to pick the same method to calculate your required minimum
distributions for all of your traditional IRAs and other retirement plans? No.
If you want, you can choose a different method for each of your traditional
IRAs and other retirement plans. For example, you can choose an annuity payout
from one IRA, a different annuity payout from a qualified plan and an
account-based annual withdrawal from another IRA.
58 Tax information
Will we pay you the annual amount every year from your traditional IRA based on
the method you choose? We will only pay you automatically if you affirmatively
select an annuity payout option or an account-based withdrawal option such as
our "automatic required minimum distribution (RMD) service." Even if you do not
enroll in our service, we will calculate the amount of the required minimum
distribution withdrawal for you, if you so request in writing. However, in that
case you will be responsible for asking us to pay the required minimum
distribution withdrawals to you.
Also, the IRS will let you calculate the required minimum distribution for each
traditional IRA that you maintain, using the method that you picked for that
particular IRA. You can add these required minimum distribution amount
calculations together. As long as the total amount you take out every year
satisfies your overall traditional IRA required minimum distribution amount,
you may choose to take your annual required minimum distribution from any one
or more traditional IRAs that you own.
What if you take more than you need to for any year? The required minimum
distribution amount for your traditional IRAs is calculated on a year-by-year
basis. There are no carry-back or carry-forward provisions. Also, you cannot
apply required minimum distribution amounts you take from your qualified plans
to the amounts you have to take from your traditional IRAs and vice versa.
What if you take less than you need to for any year? Your IRA could be
disqualified, and you could have to pay tax on the entire value. Even if your
IRA is not disqualified, you could have to pay a 50% penalty tax on the
shortfall (required amount for traditional IRAs less amount actually taken). It
is your responsibility to meet the required minimum distribution rules. We will
remind you when our records show that you are within the age group which must
take lifetime required minimum distributions. If you do not select a method
with us, we will assume you are taking your required minimum distribution from
another traditional IRA that you own.
What are the required minimum distribution payments after you die? These could
vary depending on whether you die before or after your Required Beginning Date
for lifetime required minimum distribution payments, and the status of your
beneficiary. The following assumes that you have not yet elected an
annuity-based payout at the time of your death. If you elect an annuity-based
payout, payments (if any) after your death must be made at least as rapidly as
when you were alive.
Individual beneficiary. Regardless of whether your death occurs before or after
your Required Beginning Date, an individual death beneficiary calculates annual
post-death required minimum distribution payments based on the beneficiary's
life expectancy using the "term certain method." That is, he or she determines
his or her life expectancy using the IRS-provided life expectancy tables as of
the calendar year after the owner's death and reduces that number by one each
subsequent year.
If you die before your Required Beginning Date, the rules permit any individual
beneficiary, including a spousal beneficiary, to elect instead to apply the
"5-year rule." Under this rule, instead of annual payments having to be made
beginning with the first in the year following the owner's death, the entire
account must be distributed by the end of the calendar year which contains the
fifth anniversary of the owner's death. No distribution is required before that
fifth year.
Spousal beneficiary. If you die after your Required Beginning Date, and your
death beneficiary is your surviving spouse, your spouse has a number of
choices. The revised proposed rules permit Post-death distributions may be made
over your spouse's single life expectancy. Any amounts distributed after that
surviving spouse's death are made over the spouse's life expectancy calculated
in the year of his/her death, reduced by one for each subsequent year. In some
circumstances, your surviving spouse may elect to become the owner of the
traditional IRA and halt distributions until he or she reaches age 70-1/2, or
roll over amounts from your traditional IRA into his/her own traditional IRA or
other eligible retirement plan.
If you die before your Required Beginning Date, and the death beneficiary is
your surviving spouse, the rules permit the spouse to delay starting payments
over his/her life expectancy until the year in which you would have attained
age 70-1/2.
Non-individual beneficiary. If you die after your Required Beginning Date, and
your death beneficiary is a non-individual such as the estate, the rules permit
the beneficiary to calculate post-death required minimum distribution amounts
based on the owner's life expectancy in the year of death. However, note that
we need an individual annuitant to keep an annuity contract in force. If the
beneficiary is not an individual, we must distribute amounts remaining in the
annuity contract after the death of the annuitant.
If you die before your Required Beginning Date for lifetime required minimum
distribution payments, and the death beneficiary is a non-individual such as
the estate, the rules continue to apply the 5-year rule discussed earlier under
"Individual beneficiary." Please note that we need an individual annuitant to
keep an annuity contract in force. If the beneficiary is not an individual, we
must distribute amounts remaining in the annuity contract after the death of
the annuitant.
Successor owner and annuitant
If your spouse is the sole primary beneficiary and elects to become the
successor owner and annuitant, no death benefit is payable until your surviving
spouse's death.
Payments to a beneficiary after your death
IRA death benefits are taxed the same as IRA distributions.
Borrowing and loans are prohibited transactions
You cannot get loans from a traditional IRA. You cannot use a traditional IRA
as collateral for a loan or other obligation. If you borrow against your IRA or
use it as collateral, its tax-favored status will be lost as of the first day
of the tax year in which this prohibited event occurs. If this happens, you
must include the value of the traditional
Tax information 59
IRA in your federal gross income. Also, the early distribution penalty tax of
10% may apply if you have not reached age 59-1/2 before the first day of that
tax year.
Early distribution penalty tax
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a traditional IRA made before you reach age 59-1/2 . Some of
the available exceptions to the pre-age 59-1/2 penalty tax include
distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition);
or
o used to pay certain extraordinary medical expenses (special fed
eral income tax definition); or
o used to pay medical insurance premiums for unemployed indi
viduals (special federal income tax definition); or
o used to pay certain first-time home buyer expenses (special fed
eral income tax definition); or
o used to pay certain higher education expenses (special federal
income tax definition); or
o in the form of substantially equal periodic payments made at
least annually over your life (or your life expectancy) or over the joint
lives of you and your beneficiary (or your joint life expectancies) using
an IRS-approved distribution method.
To meet this last exception, you could elect to apply your contract value to an
Income Manager(R) (life annuity with a period certain) payout annuity contract
(level payments version). You could also elect the substantially equal
withdrawals option. We will calculate the substantially equal annual payments
using your choice of IRS-approved methods we offer. Although substantially
equal withdrawals and Income Manager(R) payments are not subject to the 10%
penalty tax, they are taxable as discussed in "Withdrawals, payments and
transfers of funds out of traditional IRAs" earlier in this section. Once
substantially equal withdrawals or Income Manager(R) annuity payments begin,
the distributions should not be stopped or changed until after the later of
your reaching age 59-1/2 or five years after the date of the first distribution
or the penalty tax, including an interest charge for the prior penalty
avoidance, may apply to all prior distributions under either option. Also, it
is possible that the IRS could view any additional withdrawal or payment you
take from your contract as changing your pattern of substantially equal
withdrawals or Income Manager(R) payments for purposes of determining whether
the penalty applies.
Roth individual retirement annuities (Roth IRAs)
This section of the Prospectus covers some of the special tax rules that apply
to Roth IRAs. If the rules are the same as those that apply to the traditional
IRA, we will refer you to the same topic under "traditional IRAs."
The Accumulator(R) Elite(SM) Roth Conversion IRA contract is designed to qualify
as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of
the Internal Revenue Code.
Contributions to Roth IRAs
Individuals may make four different types of contributions to a Roth IRA:
o regular after-tax contributions out of earnings; or
o taxable rollover contributions from traditional IRAs ("conversion"
contributions); or
o tax-free rollover contributions from other Roth IRAs; or
o tax-free direct custodian-to-custodian transfers from other Roth
IRAs ("direct transfers").
Regular after-tax, direct transfer and rollover contributions may be made to a
Roth Conversion IRA contract. See "Rollovers and direct transfers" later in
this section. If you use the forms we require, we will also accept traditional
IRA funds which are subsequently recharacterized as Roth IRA funds following
special federal income tax rules.
Regular contributions to Roth IRAs
Limits on regular contributions. The "maximum regular contribution amount" for
any taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $4,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for each of the taxable years 2005
and 2006. This limit does not apply to rollover contributions or direct
custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth
IRAs reduce your ability to contribute to traditional IRAs and vice versa. When
your earnings are below $4,000, your earned income or compensation for the year
is the most you can contribute. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to Roth IRAs and
traditional IRAs. See the discussion earlier in this section under traditional
IRAs. If you or your spouse are at least age 50 at any time during the taxable
year for which you are making a regular contribution, additional catch-up
contributions totaling up to $500 can be made for the taxable year 2005. This
amount increases to $1,000 for the taxable year 2006.
With a Roth IRA, you can make regular contributions when you reach age 70-1/2,
as long as you have sufficient earnings. But, you cannot make contributions,
regardless of your age, for any year that:
o your federal income tax filing status is "married filing jointly" and
your modified adjusted gross income is over $160,000; or
o your federal income tax filing status is "single" and your modified
adjusted gross income is over $110,000.
However, you can make regular Roth IRA contributions in reduced amounts when:
o your federal income tax filing status is "married filing jointly" and
your modified adjusted gross income is between $150,000 and $160,000; or
60 Tax information
your federal income tax filing status is "single" and your modified o
adjusted gross income is between $95,000 and $110,000.
If you are married and filing separately and your modified adjusted gross
income is between $0 and $10,000 the amount of regular contributions you are
permitted to make is phased out. If your modified adjusted gross income is more
than $10,000 you cannot make regular Roth IRA contributions.
When you can make contributions. Same as traditional IRAs.
Deductibility of contributions. Roth IRA contributions are not tax deductible.
Rollovers and direct transfers
What is the difference between rollover and direct transfer transactions? You
may make rollover contributions to a Roth IRA from only two sources:
o another Roth IRA ("tax-free rollover contribution"); or
o another traditional IRA, including a SEP-IRA or SIMPLE IRA (after
a two-year rollover limitation period for SIMPLE IRA funds), in a taxable
conversion rollover ("conversion contribution").
You may not make contributions to a Roth IRA from a qualified plan under
Section 401(a) of the Internal Revenue Code, a TSA under Section 403(b) of the
Internal Revenue Code or any other eligible retirement plan. You may make
direct transfer contributions to a Roth IRA only from another Roth IRA.
The difference between a rollover transaction and a direct transfer transaction
is the following: in a rollover transaction you actually take possession of the
funds rolled over or are considered to have received them under tax law in the
case of a change from one type of plan to another. In a direct transfer
transaction, you never take possession of the funds, but direct the first Roth
IRA custodian, trustee or issuer to transfer the first Roth IRA funds directly
to the recipient Roth IRA custodian, trustee or issuer. You can make direct
transfer transactions only between identical plan types (for example, Roth IRA
to Roth IRA). You can also make rollover transactions between identical plan
types. However, you can only use rollover transactions between different plan
types (for example, traditional IRA to Roth IRA).
You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to
Roth IRA direct transfer transactions. This can be accomplished on a completely
tax-free basis. However, you may make Roth IRA to Roth IRA rollover
transactions only once in any 12-month period for the same funds.
Trustee-to-trustee or custodian-to-custodian direct transfers can be made more
frequently than once a year. Also, if you send us the rollover contribution to
apply it to a Roth IRA, you must do so within 60 days after you receive the
proceeds from the original IRA to get rollover treatment.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some
cases, Roth IRAs can be transferred on a tax-free basis between spouses or
former spouses as a result of a court-ordered divorce or separation decree.
Conversion contributions to Roth IRAs
In a conversion rollover transaction, you withdraw (or are considered to have
withdrawn) all or a portion of funds from a traditional IRA you maintain and
convert it to a Roth IRA within 60 days after you receive (or are considered to
have received) the traditional IRA proceeds. Unlike a rollover from a
traditional IRA to another traditional IRA, the conversion rollover transaction
is not tax free. Instead, the distribution from the traditional IRA is
generally fully taxable. For this reason, we are required to withhold 10%
federal income tax from the amount converted unless you elect out of such
withholding. If you have ever made nondeductible regular contributions to any
traditional IRA -- whether or not it is the traditional IRA you are converting
- -- a pro rata portion of the distribution is tax free.
There is, however, no early distribution penalty tax on the traditional IRA
withdrawal that you are converting to a Roth IRA, even if you are under age
59-1/2.
You cannot make conversion contributions to a Roth IRA for any taxable year in
which your modified adjusted gross income exceeds $100,000. (For this purpose,
your modified adjusted gross income is calculated without the gross income
stemming from the traditional IRA conversion. Beginning in 2005, modified
adjusted gross income for this purpose will also exclude any lifetime required
minimum distribution from a traditional IRA.) You also cannot make conversion
contributions to a Roth IRA for any taxable year in which your federal income
tax filing status is "married filing separately."
You cannot make conversion contributions to a Roth IRA to the extent that the
funds in your traditional IRA are subject to the annual required minimum
distribution rule applicable to traditional IRAs beginning at age 70-1/2.
You cannot convert and reconvert an amount during the same taxable year, or if
later, during the 30-day period following a recharacterization. If you
reconvert during either of these periods, it will be a failed Roth IRA
conversion.
Recharacterizations
You may be able to treat a contribution made to one type of IRA as having been
made to a different type of IRA. This is called recharacterizing the
contribution.
How to recharacterize. To recharacterize a contribution, you generally must
have the contribution transferred from the first IRA (the one to which it was
made) to the second IRA in a deemed trustee-to-trustee transfer. If the
transfer is made by the due date (including extensions) for your tax return for
the year during which the contribution was made, you can elect to treat the
contribution as having been originally made to the second IRA instead of to the
first IRA. It will be treated as having been made to the second IRA on the date
that it was actually made to the first IRA. You must report the
recharacterization and must treat the contribution as having been made to the
second IRA, instead of the first IRA, on your tax return for the year during
which the contribution was made.
Tax information 61
The condition will not be treated as having been made to the second IRA unless
the transfer includes any net income allocable to the contribution. You can
take into account any loss on the contribution while it was in the IRA when
calculating the amount that must be transferred. If there was a loss, the net
income you must transfer may be a negative amount.
No deduction is allowed for the contribution to the first IRA and any net
income transferred with the recharacterized contribution is treated as earned
in the second IRA. The contribution will not be treated as having been made to
the second IRA to the extent any deduction was allowed with respect to the
contribution to the first IRA.
For recharacterization purposes, a distribution from a traditional IRA that is
received in one tax year and rolled over into a Roth IRA in the next year, but
still within 60 days of the distribution from the traditional IRA, is treated
as a contribution to the Roth IRA in the year of the distribution from the
traditional IRA.
Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be
recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or
SIMPLE-IRA).
To recharacterize a contribution, you must use our forms.
The recharacterization of a contribution is not treated as a rollover for
purposes of the 12-month period described above. This rule applies even if the
contribution would have been treated as a rollover contribution by the second
IRA if it had been made directly to the second IRA rather than as a result of a
recharacterization of a contribution to the first IRA.
Withdrawals, payments and transfers of funds out of Roth IRAs
No federal income tax law restrictions on withdrawals. You can withdraw any or
all of your funds from a Roth IRA at any time; you do not need to wait for a
special event like retirement.
Distributions from Roth IRAs
Distributions include withdrawals from your contract, surrender of your
contract and annuity payments from your contract. Death benefits are also
distributions.
You must keep your own records of regular and conversion contributions to all
Roth IRAs to assure appropriate taxation. You may have to file information on
your contributions to and distributions from any Roth IRA on your tax return.
You may have to retain all income tax returns and records pertaining to such
contributions and distributions until your interests in all Roth IRAs are
distributed.
Like traditional IRAs, taxable distributions from a Roth IRA are not entitled
to the special favorable ten-year averaging and long-term capital gain
treatment available in limited cases to certain distributions from qualified
plans.
The following distributions from Roth IRAs are free of income tax:
o rollovers from a Roth IRA to another Roth IRA;
o direct transfers from a Roth IRA to another Roth IRA;
o qualified distributions from a Roth IRA; and
o return of excess contributions or amounts recharacterized to a
traditional IRA.
Qualified distributions from Roth IRAs. Qualified distributions from Roth IRAs
made because of one of the following four qualifying events or reasons are not
includable in income:
o you are age 59-1/2 or older; or
o you die; or
o you become disabled (special federal income tax definition); or
o your distribution is a "qualified first-time home buyer distribu
tion" (special federal income tax definition; $10,000 lifetime total limit
for these distributions from all of your traditional and Roth IRAs).
You also have to meet a five-year aging period. A qualified distribution is any
distribution made after the five-taxable-year period beginning with the first
taxable year for which you made any contribution to any Roth IRA (whether or
not the one from which the distribution is being made).
Nonqualified distributions from Roth IRAs. Nonqualified distributions from Roth
IRAs are distributions that do not meet both the qualifying event and five-year
aging period tests described above. If you receive such a distribution, part of
it may be taxable. For purposes of determining the correct tax treatment of
distributions (other than the withdrawal of excess contributions and the
earnings on them) there is a set order in which contributions (including
conversion contributions) and earnings are considered to be distributed from
your Roth IRA. The order of distributions is as follows:
(1) Regular contributions.
(2) Conversion contributions, on a first-in-first-out basis (generally, total
conversions from the earliest year first). These conversion contributions
are taken into account as follows:
(a) Taxable portion (the amount required to be included in gross income
because of conversion) first, and then the
(b) Nontaxable portion.
(3) Earnings on contributions.
Rollover contributions from other Roth IRAs are disregarded for this purpose.
To determine the taxable amount distributed, distributions and contributions
are aggregated or grouped together as follows:
(1) All distributions made during the year from all Roth IRAs you maintain --
with any custodian or issuer -- are added together.
(2) All regular contributions made during and for the year (contribu tions made
after the close of the year, but before the due date of your return) are
added together. This total is added to the total undistributed regular
contributions made in prior years.
(3) All conversion contributions made during the year are added together. For
purposes of the ordering rules, in the case of any
62 Tax information
conversion in which the conversion distribution is made in 2005 and the
conversion contribution is made in 2006, the conversion contribution is
treated as contributed prior to other conversion contributions made in
2006.
Any recharacterized contributions that end up in a Roth IRA are added to the
appropriate contribution group for the year that the original contribution
would have been taken into account if it had been made directly to the Roth
IRA.
Any recharacterized contribution that ends up in an IRA other than a Roth IRA
is disregarded for the purpose of grouping both contributions and
distributions. Any amount withdrawn to correct an excess contribution
(including the earnings withdrawn) is also disregarded for this purpose.
Required minimum distributions during life
Lifetime required minimum distributions do not apply.
Required minimum distributions at death
Same as traditional IRA under "What are the required minimum distribution
payments after you die?"
Payments to a beneficiary after your death
Distributions to a beneficiary generally receive the same tax treatment as if
the distribution had been made to you.
Borrowing and loans are prohibited transactions
Same as traditional IRA.
Excess contributions
Generally the same as traditional IRA, except that regular contributions made
after age 70-1/2 are not excess contributions.
Excess rollover contributions to Roth IRAs are contributions not eligible to be
rolled over (for example, conversion contributions from a traditional IRA if
your modified adjusted gross income is in excess of $100,000 in the conversion
year).
You can withdraw or recharacterize any contribution to a Roth IRA before the
due date (including extensions) for filing your federal income tax return for
the tax year. If you do this, you must also withdraw or recharacterize any
earnings attributable to the contribution.
Early distribution penalty tax
Same as traditional IRA.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
General
This section of the Prospectus covers some of the special tax rules that apply
to TSA contracts under Section 403(b) of the Internal Revenue Code (TSAs). If
the rules are the same as those that apply to another kind of contract, for
example, traditional IRAs, we will refer you to the same topic under
"traditional IRAs."
PLEASE NOTE: The following discussion reflects our understanding of some of the
current federal income tax rules applicable to Section 403(b) of the Code. The
IRS and Treasury have recently issued Proposed Regulations on Section 403(b) of
the Code. If finalized in their current form, these Proposed Regulations would
affect the establishment and operation of plans and arrangements under Section
403(b) of the Code, and the contracts issued to fund such plans. Please consult
your tax adviser concerning how these Proposed Regulations could affect you.
Generally, there are two types of funding vehicles available for 403(b)
arrangements--an annuity contract under Section 403(b)(1) of the Internal
Revenue Code or a custodial account that invests only in mutual funds and which
is treated as an annuity contract under Section 403(b)(7) of the Code. Both
types of 403(b) arrangements qualify for tax deferral.
Protection Plus(SM) feature
The Protection Plus(SM) feature was offered for Rollover TSA contracts, subject
to state and contract availability. There is no assurance that the contract with
the Protection Plus(SM) feature meets the IRS qualification requirements for
TSAs. There is a limit to the amount of life insurance benefits that TSAs may
offer. Although we view the optional Protection Plus(SM) benefit as an
investment protection feature which should have no adverse tax effect and not as
a life insurance benefit, it is possible that the IRS could take a contrary
position regarding tax qualification or assert that the Protection Plus(SM)
rider is not a permissible part of a TSA contract. If the IRS were to take the
position that the optional Protection Plus(SM) benefit is not part of the
contract, in such a case, the charges for the Protection Plus(SM) rider could be
treated for federal income tax purposes as a partial withdrawal from the
contract. If this were so, such a deemed withdrawal could affect the tax
qualification of the TSA and could be taxable. Were the IRS to take any adverse
position, Equitable would take all reasonable steps to attempt to avoid any
adverse result, which would include amending the contract (with appropriate
notice to you). You should consult with your tax adviser for further
information.
Contributions to TSAs
There were two ways you might have contributed to establish your Accumulator(R)
Elite(SM) Rollover TSA contract:
o a full or partial direct transfer of assets ("direct transfer") from
another contract or arrangement that met the requirements of Section 403(b)
of the Internal Revenue Code by means of IRS Revenue Ruling 90-24; and
o a rollover from another 403(b) arrangement.
If you made a direct transfer, you filled out our transfer form.
We do not accept after-tax contribution rollovers to the Accumulator(R)
Elite(SM) Rollover TSA.
Employer-remitted contributions. The Rollover TSA contract does not accept
employer-remitted contributions. However, we provide the following discussion
as part of our description of restrictions on the distribution of funds
directly transferred, which include employer-remitted contributions to other
TSAs.
Employer-remitted contributions to TSAs made through the employer's payroll are
subject to annual limits. (Tax-free direct transfer contributions from another
403(b) arrangement and rollover contributions from another eligible retirement
plan are not subject to these annual
Tax information 63
contribution limits.) Commonly, some or all of the contributions made to a TSA
are made under a salary reduction agreement between the employee and the
employer. These contributions are called "salary reduction" or "elective
deferral" contributions. However, a TSA can also be wholly or partially funded
through non-elective employer contributions or after-tax employee
contributions. Amounts attributable to salary reduction contributions to TSAs
are generally subject to withdrawal restrictions. Also, all amounts
attributable to investments in a 403(b)(7) custodial account are subject to
withdrawal restrictions discussed below.
Rollover or direct transfer contributions. Once you establish your Rollover TSA
contract with 403(b)-source funds, you may make subsequent rollover
contributions to your Rollover TSA contract from these sources: qualified
plans, governmental employer 457(b) plans and traditional IRAs, as well as
other TSAs and 403(b) arrangements. All rollover contributions must be pre-tax
funds only with appropriate documentation satisfactory to us.
Generally, you may make a rollover contribution to your TSA when you have a
distributable event from an existing TSA or other eligible retirement plan as a
result of your:
o termination of employment with the employer who provided the
funds for the plan; or
o reaching age 59-1/2 even if you are still employed; or
o disability (special federal income tax definition).
You can roll over pre-tax funds from traditional IRA to a TSA at any time.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental employer 457(b) plan are not subject to the
additional 10% federal income tax penalty for premature distributions, but they
may become subject to this penalty if you roll the funds to a different type of
eligible retirement plan and subsequently take a premature distribution.
If the recipient plan separately accounts for funds rolled over from another
eligible retirement plan, the IRS has ruled that an exception is available in
certain situations to withdrawal restrictions that would otherwise apply to the
rollover contribution funds in the recipient plan. We do not currently
separately account for rollover contributions from other eligible retirement
plans.
A transfer occurs when changing the funding vehicle, even if there is no
distributable event. Under a direct transfer, you do not receive a
distribution. We accept direct transfers of TSA funds under Revenue Ruling
90-24 only if:
o you give us acceptable written documentation as to the source of
the funds, and
o the Accumulator(R) Elite(SM) contract receiving the funds has provi
sions at least as restrictive as the source contract.
Before you transfer funds to a Rollover TSA contract, you may have to obtain
your employer's authorization or demonstrate that you do not need employer
authorization. For example, the transferring TSA may be subject to Title I of
ERISA if the employer makes matching contributions to salary reduction
contributions made by employees. In that case, the employer must continue to
approve distributions from the plan or contract.
Your contribution to the Rollover TSA must be net of the required minimum
distribution for the tax year in which we issue the contract if:
o you are or will be at least age 70-1/2 in the current calendar year,
and
o you have retired from service with the employer who provided the
funds to purchase the TSA you are transferring or rolling over to the
Rollover TSA.
This rule applies regardless of whether the source of funds is a:
o rollover by check of the proceeds from another TSA or eligible
retirement plan; or
o direct rollover from another TSA or eligible retirement plan; or
o direct transfer under Revenue Ruling 90-24 from another TSA.
Distributions from TSAs
General. Depending on the terms of the employer plan and your employment
status, you may have to get your employer's consent to take a loan or
withdrawal. Your employer will tell us this when you establish the TSA through
a direct transfer.
Withdrawal restrictions. If this is a Revenue Ruling 90-24 direct transfer, we
will treat all amounts transferred to this contract and any future earnings on
the amount transferred as not eligible for withdrawal until one of the
following events happens:
o you are severed from employment with the employer who pro
vided the funds to purchase the TSA you are transferring to the Rollover
TSA; or
o you reach age 59-1/2 ; or
o you die; or
o you become disabled (special federal income tax definition); or
o you take a hardship withdrawal (special federal income tax
definition).
If any portion of the funds directly transferred to your TSA contract is
attributable to the amounts that you invested in a 403(b)(7) custodial account,
such amounts, including earnings, are subject to withdrawal restrictions. With
respect to the portion of the funds that were never invested in a 403(b)(7)
custodial account, these restrictions apply to the salary reduction (elective
deferral) contributions to a TSA annuity contract you made and any earnings on
them. These restrictions do not apply to the amount directly transferred to
your TSA contract that represents your December 31, 1988, account balance
attributable to salary reduction contributions to a TSA annuity contract and
earnings. To take advantage of this grandfathering, you must properly notify us
in writing at our processing office of your December 31, 1988, account balance
if you have qualifying amounts transferred to your TSA contract.
64 Tax information
This paragraph applies only to participants in a Texas Optional Retirement
Program. Texas Law permits withdrawals only after one of the following
distributable events occurs:
(1) the requirements for minimum distribution (discussed under "Required
minimum distributions" later in this section) are met; or
(2) death; or
(3) retirement; or
(4) termination of employment in all Texas public institutions of higher
education.
For you to make a withdrawal, we must receive a properly completed written
acknowledgment from the employer. If a distributable event occurs before you
are vested, we will refund to the employer any amounts provided by an
employer's first-year matching contributions. We reserve the right to change
these provisions without your consent, but only to the extent necessary to
maintain compliance with applicable law. Loans are not permitted under Texas
Optional Retirement Programs.
Tax treatment of distributions. Amounts held under TSAs are generally not
subject to federal income tax until benefits are distributed. Distributions
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSAs are includable in
gross income as ordinary income. Distributions from TSAs may be subject to 20%
federal income tax withholding. See "Federal and state income tax withholding
and information reporting" later in this section. In addition, TSA
distributions may be subject to additional tax penalties.
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since we currently do not accept
after-tax funds, we do not track your investment in the contract, if any. We
will report all distributions from this Rollover TSA as fully taxable. It is
your responsibility to determine how much of the distribution is taxable.
Distributions before annuity payments begin. On a total surrender, the amount
received in excess of the investment in the contract is taxable. The amount of
any partial distribution from a TSA prior to the annuity starting date is
generally taxable, except to the extent that the distribution is treated as a
withdrawal of after-tax contributions. Distributions are normally treated as
pro rata withdrawals of any after-tax contributions and earnings on those
contributions.
Annuity payments. If you elect an annuity payout option, you will recover any
investment in the contract as each payment is received by dividing the
investment in the contract by an expected return determined under an IRS table
prescribed for qualified annuities. The amount of each payment not excluded
from income under this exclusion ratio is fully taxable. The full amount of the
payments received after your investment in the contract is recovered is fully
taxable. If you (and your beneficiary under a joint and survivor annuity) die
before recovering the full investment in the contract, a deduction is allowed
on your (or your beneficiary's) final tax return.
Payments to a beneficiary after your death. Death benefit distributions from a
TSA generally receive the same tax treatment as distribution during your
lifetime. In some instances, distributions from a TSA made to your surviving
spouse may be rolled over to a traditional IRA or other eligible retirement
plan.
Loans from TSAs. You may take loans from a TSA unless restricted by the
employer (for example, under an employer plan subject to ERISA). If you cannot
take a loan, or cannot take a loan without approval from the employer who
provided the funds, we will have this information in our records based on what
you and the employer who provided the TSA funds told us when you purchased your
contract.
Loans are generally not treated as a taxable distribution. If the amount of the
loan when made exceeds permissible limits under federal income tax rules, the
amount of the excess is treated (solely for tax purposes) as a taxable
distribution. Additionally, if the loan is not repaid at least quarterly,
amortizing (paying down) interest and principal, the amount not repaid when due
will be treated as a taxable distribution. The entire unpaid balance of the
loan is includable in income in the year of the default.
TSA loans are subject to federal income tax limits and may also be subject to
limits of the plan from which the funds came. Federal income tax rule
requirements apply even if the plan is not subject to ERISA. For example, loans
offered by TSAs are subject to the following conditions:
o The amount of a loan to a participant, when combined with all other loans
to the participant from all qualified plans of the employer, cannot exceed
the lesser of:
(1) the greater of $10,000 or 50% of the participant's nonforfeit able
accrued benefits; and
(2) $50,000 reduced by the excess (if any) of the highest out standing
loan balance over the previous twelve months over the outstanding loan
balance of plan loans on the date the loan was made.
o In general, the term of the loan cannot exceed five years unless the loan
is used to acquire the participant's primary residence. Rollover TSA
contracts have a term limit of 10 years for loans used to acquire the
participant's primary residence.
o All principal and interest must be amortized in substantially level
payments over the term of the loan, with payments being made at least
quarterly. In very limited circumstances, the repayment obligation may be
temporarily suspended during a leave of absence.
The amount borrowed and not repaid may be treated as a distribution if:
Tax information 65
o the loan does not qualify under the conditions above;
o the participant fails to repay the interest or principal when due; or
o in some instances, the participant separates from service with the employer
who provided the funds or the plan is terminated.
In this case, the participant may have to include the unpaid amount due as
ordinary income. In addition, the 10% early distribution penalty tax may apply.
The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as
a distribution.
Tax-deferred rollovers and direct transfers. You may roll over an "eligible
rollover distribution" from a TSA into another eligible retirement plan which
agrees to accept the rollover. The rollover may be a direct rollover or one you
do yourself within 60 days after you receive the distribution. To the extent
rolled over, a distribution remains tax-deferred.
You may roll over a distribution from a TSA to any of the following: a
qualified plan, a governmental employer 457(b) plan (separate accounting
required) or a traditional IRA. A spousal beneficiary may also roll over death
benefits as above.
The taxable portion of most distributions will be eligible for rollover except
as specifically excluded under federal income tax rules. Distributions that you
cannot roll over generally include periodic payments for life or for a period
of 10 years or more, hardship withdrawals and required minimum distributions
under federal income tax rules.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling
90-24 are not distributions.
Required minimum distributions
Generally the same as traditional IRA with these differences:
When you have to take the first required minimum distribution. The minimum
distribution rules force TSA participants to start calculating and taking
annual distribution from their TSAs by a required date. Generally you must take
the first required minimum distribution for the calendar year in which you turn
age 70-1/2. You may be able to delay the start of required minimum
distributions for all or part of your account balance until after age 70-1/2,
as follows:
o For TSA participants who have not retired from service with the
employer who provided the funds for the TSA by the calendar year the
participant turns age 70-1/2, the required beginning date for minimum
distribution is extended to April 1 following the calendar year of
retirement.
o TSA plan participants may also delay the start of required mini
mum distribution to age 75 of the portion of their account value
attributable to their December 31, 1986, TSA account balance, even if
retired at age 70-1/2. We will know whether or not you qualify for this
exception because it will only apply to people who establish their
Rollover TSA by direct Revenue Ruling 90-24 transfers. If you do not give
us the amount of your December 31, 1986, account balance that is being
transferred to the Rollover TSA on the form used to establish the TSA, you
do not qualify.
Spousal consent rules
This only applies to you if you established your Accumulator(R) Elite(SM)
Rollover TSA by direct Revenue Ruling 90-24 transfer. Your employer will tell
us on the form used to establish the TSA whether or not you need to get spousal
consent for loans, withdrawals or other distributions. If you do, you will need
such consent if you are married when you request a withdrawal under the TSA
contract. In addition, unless you elect otherwise with the written consent of
your spouse, the retirement benefits payable under the plan must be paid in the
form of a qualified joint and survivor annuity. A qualified joint and survivor
annuity is payable for the life of the annuitant with a survivor annuity for
the life of the spouse in an amount not less than one-half of the amount
payable to the annuitant during his or her lifetime. In addition, if you are
married, the beneficiary must be your spouse, unless your spouse consents in
writing to the designation of another beneficiary.
If you are married and you die before annuity payments have begun, payments
will be made to your surviving spouse in the form of a life annuity unless at
the time of your death a contrary election was in effect. However, your
surviving spouse may elect, before payments begin, to receive payments in any
form permitted under the terms of the TSA contract and the plan of the employer
who provided the funds for the TSA.
Early distribution penalty tax
A penalty tax of 10% of the taxable portion of a distribution applies to
distribution from a TSA before you reach age 59-1/2. This is in addition to any
income tax. Some of the available exceptions to the pre-age 59-1/2 penalty tax
include distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition);
or
o to pay for certain extraordinary medical expenses (special federal
income tax definition); or
o in any form of payout after you have separated from service (only
if the separation occurs during or after the calendar year you reach age
55); or
o in a payout in the form of substantially equal periodic payments
made at least annually over your life (or your life expectancy), or over
the joint lives of you and your beneficiary (or your joint life
expectancies) using an IRS-approved distribution method (only after you
have separated from service at any age).
FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING
We must withhold federal income tax from distributions from annuity contracts.
You may be able to elect out of this income tax withholding in some cases.
Generally, we do not have to withhold if your distributions are not taxable.
The rate of withholding will depend on the type of distribution and, in certain
cases, the amount of your distribution.
66 Tax information
Any income tax withheld is a credit against your income tax liability. If you
do not have sufficient income tax withheld or do not make sufficient estimated
income tax payments, you may incur penalties under the estimated income tax
rules.
You must file your request not to withhold in writing before the payment or
distribution is made. Our processing office will provide forms for this
purpose. You cannot elect out of withholding unless you provide us with your
correct Taxpayer Identification Number and a United States residence address.
You cannot elect out of withholding if we are sending the payment out of the
United States.
You should note the following special situations:
o We might have to withhold and/or report on amounts we pay
under a free look or cancellation.
o We are generally required to withhold on conversion rollovers of
traditional IRAs to Roth IRAs, as it is considered a withdrawal from the
traditional IRA and is taxable.
o We are required to withhold on the gross amount of a distribu
tion from a Roth IRA to the extent it is reasonable for us to believe that
a distribution is includable in your gross income. This may result in tax
being withheld even though the Roth IRA distribution is ultimately not
taxable. You can elect out of withholding, as described below.
Special withholding rules apply to foreign recipients and United States
citizens residing outside the United States. We do not discuss these rules here
in detail. However, we may require additional documentation in the case of
payments made to non United States persons and United States persons living
abroad prior to processing any requested transaction.
Certain states have indicated that state income tax withholding will also apply
to payments from the contracts made to residents. In some states, you may elect
out of state withholding, even if federal withholding applies. Generally, an
election out of federal withholding will also be considered an election out of
state withholding. If you need more information concerning a particular state
or any required forms, call our processing office at the toll-free number.
Federal income tax withholding on periodic annuity
payments
We withhold differently on "periodic" and "non-periodic" payments. For a
periodic annuity payment, for example, unless you specify a different number of
withholding exemptions, we withhold assuming that you are married and claiming
three withholding exemptions. If you do not give us your correct Taxpayer
Identification Number, we withhold as if you are single with no exemptions.
Based on the assumption that you are married and claiming three withholding
exemptions, if you receive less than $17,760 in periodic annuity payments in
2005, your payments will generally be exempt from federal income tax
withholding. You could specify a different choice of withholding exemption or
request that tax be withheld. Your withholding election remains effective
unless and until you revoke it. You may revoke or change your withholding
election at any time.
Federal income tax withholding on non-periodic annuity
payments (withdrawals)
For a non-periodic distribution (total surrender or partial withdrawal), we
generally withhold at a flat 10% rate. We apply that rate to the taxable amount
in the case of nonqualified contracts, and to the payment amount in the case of
traditional IRAs and Roth IRAs where it is reasonable to assume an amount is
includable in gross income.
You cannot elect out of withholding if the payment is an eligible rollover
distribution from a qualified plan or TSA. If a non-periodic distribution from
a qualified plan or TSA is not an eligible rollover distribution then the 10%
withholding rate applies.
Mandatory withholding from TSA and qualified plan
distributions
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans and TSAs are subject to mandatory 20%
withholding. The plan administrator is responsible for withholding from
qualified plan distributions. An eligible rollover distribution from a TSA or a
qualified plan can be rolled over to another eligible retirement plan. All
distributions from a TSA or qualified plan are eligible rollover distributions
unless they are on the following list of exceptions:
o any distributions which are required minimum distributions after
age 70-1/2 or retirement from service with the employer; or
o substantially equal periodic payments made at least annually for
your life (or life expectancy) or the joint lives (or joint life
expectancies) of you and your designated beneficiary; or
o substantially equal periodic payments made for a specified period
of 10 years or more; or
o hardship withdrawals; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviv
ing spouse; or
o a qualified domestic relations order distribution to a beneficiary
who is not your current spouse or former spouse.
A death benefit payment to your surviving spouse, or a qualified domestic
relations order distribution to your current or former spouse, may be a
distribution subject to mandatory 20% withholding.
SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS
For QP contracts, your plan administrator or trustee notifies you as to tax
consequences. See Appendix II at the end of this Prospectus.
IMPACT OF TAXES TO AXA EQUITABLE
The contracts provide that we may charge Separate Account No. 49 for taxes. We
do not now, but may in the future set up reserves for such taxes.
Tax information 67
8. More information
- --------------------------------------------------------------------------------
ABOUT OUR SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 49. We
established Separate Account No. 49 in 1996 under special provisions of the New
York Insurance Law. These provisions prevent creditors from any other business
we conduct from reaching the assets we hold in our variable investment options
for owners of our variable annuity contracts. We are the legal owner of all of
the assets in Separate Account No. 49 and may withdraw any amounts that exceed
our reserves and other liabilities with respect to variable investment options
under our contracts. The results of the Separate Account's operations are
accounted for without regard to AXA Equitable's other operations.
The Separate Account is registered under the Investment Company Act of 1940 and
is classified by that act as a "unit investment trust." The SEC, however, does
not manage or supervise AXA Equitable or the Separate Account.
Each subaccount (variable investment option) within the Separate Account
invests solely in Class IB/B shares issued by the corresponding portfolio of
its Trusts.
We reserve the right subject to compliance with laws that apply:
(1) to add variable investment options to, or to remove variable investment
options from the Separate Account or to add other separate accounts;
(2) to combine any two or more variable investment options;
(3) to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment option
to another variable investment option;
(4) to operate the Separate Account or any variable investment option as a
management investment company under the Investment Company Act of 1940 (in
which case, charges and expenses that otherwise would be assessed against
an underlying mutual fund would be assessed against the Separate Account or
a variable investment option directly);
(5) to deregister the Separate Account under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to the Separate Account; and
(7) to cause one or more variable investment options to invest some or all of
their assets in one or more other trusts or investment companies.
ABOUT THE TRUSTS
The Trusts are registered under the Investment Company Act of 1940. They are
classified as "open-end management investment companies," more commonly called
mutual funds. Each Trust issues different shares relating to each portfolio.
The Trusts do not impose sales charges or "loads" for buying and selling their
shares. All dividends and other distributions on the Trusts' shares are
reinvested in full. The Board of Trustees of each Trust may establish
additional portfolios or eliminate existing portfolios at any time. More
detailed information about the Trusts, its portfolio investment objectives,
policies, restrictions, risks, expenses, its Rule 12b-1 Plan, and other aspects
of its operations, appears in the prospectuses for each Trust, which are
generally attached at the end of this Prospectus, or in the respective SAIs
which are available upon request.
ABOUT OUR FIXED MATURITY OPTIONS
RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE
We can determine the amount required to be allocated to one or more fixed
maturity options in order to produce specified maturity values. For example, we
can tell you how much you need to allocate per $100 of maturity value.
FMO rates are determined daily. The rates in the table below are illustrative
only and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
For example, the rates to maturity for new allocations as of February 15, 2005
and the related price per $100 of maturity value were as shown below:
- -----------------------------------------------------------------------
Fixed maturity options
with February 15th Rate to maturity
maturity date of as of Price per $100
maturity year February 15, 2005 of maturity value
- -----------------------------------------------------------------------
2006 3.00%* $ 97.09
2007 3.00%* $ 94.26
2008 3.00%* $ 91.51
2009 3.00%* $ 88.84
2010 3.00%* $ 86.25
2011 3.00%* $ 83.74
2012 3.00%* $ 81.30
2013 3.08% $ 78.44
2014 3.22% $ 75.17
2015 3.32% $ 72.12
- -----------------------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated to
these options.
HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT
We use the following procedure to calculate the market value adjustment (up or
down) we make if you withdraw any of your value from a fixed maturity option
before its maturity date.
(1) We determine the market adjusted amount on the date of the withdrawal as
follows:
(a) We determine the fixed maturity amount that would be payable on the
maturity date, using the rate to maturity for the fixed maturity
option.
68 More information
(b) We determine the period remaining in your fixed maturity option (based
on the withdrawal date) and convert it to fractional years based on a
365-day year. For example, three years and 12 days becomes 3.0329.
(c) We determine the current rate to maturity for your FMO based on the
rate for a new FMO issued on the same date and having the same
maturity date as your FMO; if the same maturity date is not available
for new FMOs, we determine a rate that is between the rates for new
FMO maturities that immediately precede and immediately follow your
FMOs maturity date.
(d) We determine the present value of the fixed maturity amount payable at
the maturity date, using the period determined in (b) and the rate
determined in (c).
(2) We determine the fixed maturity amount as of the current date.
(3) We subtract (2) from the result in (1)(d). The result is the market value
adjustment applicable to such fixed maturity option, which may be positive
or negative.
If you withdraw only a portion of the amount in a fixed maturity option, the
market value adjustment will be a percentage of the market value adjustment
that would have applied if you had withdrawn the entire value in that fixed
maturity option. This percentage is equal to the percentage of the value in the
fixed maturity option that you are withdrawing. Any withdrawal charges that are
deducted from a fixed maturity option will result in a market value adjustment
calculated in the same way. See Appendix II at the end of this Prospectus for
an example.
For purposes of calculating the rate to maturity for new allocations to a fixed
maturity option (see (1)(c) above), we use the rate we have in effect for new
allocations to that fixed maturity option. We use this rate even if new
allocations to that option would not be accepted at that time. This rate will
not be less than 3%. If we do not have a rate to maturity in effect for a fixed
maturity option to which the "current rate to maturity" in (1)(c) above would
apply, we will use the rate at the next closest maturity date. If we are no
longer offering new fixed maturity options, the "current rate to maturity" will
be determined by using a widely published index. We reserve the right to add up
to 0.25% to the current rate in (1)(c) above for purposes of calculating the
market value adjustment only.
INVESTMENTS UNDER THE FIXED MATURITY OPTIONS
Amounts allocated to the fixed maturity options are held in a "nonunitized"
separate account we have established under the New York Insurance Law. This
separate account provides an additional measure of assurance that we will make
full payment of amounts due under the fixed maturity options. Under New York
Insurance Law, the portion of the separate account's assets equal to the
reserves and other contract liabilities relating to the contracts are not
chargeable with liabilities from any other business we may conduct. We own the
assets of the separate account, as well as any favorable investment performance
on those assets. You do not participate in the performance of the assets held
in this separate account. We may, subject to state law that applies, transfer
all assets allocated to the separate account to our general account. We
guarantee all benefits relating to your value in the fixed maturity options,
regardless of whether assets supporting fixed maturity options are held in a
separate account or our general account.
We expect the rates to maturity for the fixed maturity options to be influenced
by, but not necessarily correspond to, among other things, the yields that we
can expect to realize on the separate account's investments from time to time.
Our current plans are to invest in fixed-income obligations, including
corporate bonds, mortgage-backed and asset-backed securities, and government
and agency issues having durations in the aggregate consistent with those of
the fixed maturity options.
Although the above generally describes our plans for investing the assets
supporting our obligations under the fixed maturity options under the
contracts, we are not obligated to invest those assets according to any
particular plan except as we may be required to by state insurance laws. We
will not determine the rates to maturity we establish by the performance of the
nonunitized separate account.
ABOUT THE GENERAL ACCOUNT
Our general account supports all of our policy and contract guarantees,
including those that apply to the guaranteed interest option and the fixed
maturity options, as well as our general obligations.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations
of all jurisdictions where we are authorized to do business. Because of
exemptions and exclusionary provisions that apply, interests in the general
account have not been registered under the Securities Act of 1933, nor is the
general account an investment company under the Investment Company Act of 1940.
However, the market value adjustment interests under the contracts are
registered under the Securities Act of 1933.
We have been advised that the staff of the SEC has not reviewed the portions of
this Prospectus that relate to the general account (other than market value
adjustment interests). The disclosure with regard to the general account,
however, may be subject to certain provisions of the federal securities laws
relating to the accuracy and completeness of statements made in prospectuses.
ABOUT OTHER METHODS OF PAYMENT
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept subsequent contributions sent by wire to our processing office by
agreement with certain broker-dealers. Such transmittals must be accompanied by
information we require to allocate your contribution. Wire orders not
accompanied by complete information may be retained as described under "How you
can make your contributions" in "Contract features and benefits" earlier in
this Prospectus.
Even if we accepted the wire order and essential information, a contract
generally was not issued until we received and accepted a properly completed
application. In certain cases, we may have issued a contract based on
information provided through certain broker-dealers with whom we have
established electronic facilities. In any such case, you must have signed our
Acknowledgment of Receipt form.
More information 69
Where we required a signed application, the above procedures did not apply and
no financial transactions were permitted until we received the signed
application and issued the contract. Where we issued a contract based on
information provided through electronic facilities, we required an
Acknowledgment of Receipt form. Financial transactions were only permitted if
you requested them in writing, signed the request and had it signature
guaranteed, until we received the signed Acknowledgment of Receipt form. After
a contract is issued, additional contributions are allowed by wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY
You may use our automatic investment program, or "AIP," to have a specified
amount automatically deducted from a checking account, money market account, or
credit union checking account and contributed as an additional contribution
into an NQ contract on a monthly or quarterly basis. AIP is not available for
Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contracts.
The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP
additional contributions may be allocated to any of the variable investment
options and available fixed maturity options. You choose the day of the month
you wish to have your account debited. However, you may not choose a date later
than the 28th day of the month.
You may cancel AIP at any time by notifying our processing office. We are not
responsible for any debits made to your account before the time written notice
of cancellation is received at our processing office.
DATES AND PRICES AT WHICH CONTRACT
EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this Prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our business day, generally, is any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions. Our business day generally ends at 4:00 p.m. Eastern Time for
purposes of determining the date when contributions are applied and any other
transaction requests are processed. Contributions will be applied and any other
transaction requests will be processed when they are received along with all
the required information unless another date applies as indicated below.
o If your contribution, transfer, or any other transaction request,
containing all the required information, reaches us on a non-business day
or after 4:00 p.m. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then
the transaction will occur on the 1st day of the next month.
o When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
o If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your
contribution will be considered received at the time your broker-dealer
receives your contribution and all information needed to process your
application, along with any required documents, and transmits your order to
us in accordance with our processing procedures. Such arrangements may
apply to initial contributions, subsequent contributions, or both, and may
be commenced or terminated at any time without prior notice. If required by
law, the "closing time" for such orders will be earlier than 4 p.m.,
Eastern Time.
CONTRIBUTIONS AND TRANSFERS
o Contributions allocated to the variable investment options are invested at
the value next determined after the close of the business day.
o Contributions allocated to the guaranteed interest option will receive the
crediting rate in effect on that business day for the specified time
period.
o Contributions allocated to a fixed maturity option will receive the rate to
maturity in effect for that fixed maturity option on that business day
(unless a rate lock-in is applicable).
o Initial contributions allocated to the account for special dollar cost
averaging received the interest rate in effect on that business day. At
certain times, we may have offered the opportunity to lock in the interest
rate for an initial contribution to be received under Section 1035
exchanges and trustee to trustee transfers. Your financial professional can
provide information, or you can call our processing office.
o Transfers to or from variable investment options will be made at the value
next determined after the close of the business day.
o Transfers to the guaranteed interest option will receive the crediting rate
in effect on that business day for the specified time period.
o For the interest sweep option, the first monthly transfer will occur on the
last business day of the month following the month that we receive your
election form at our processing office.
70 More information
ABOUT YOUR VOTING RIGHTS
As the owner of the shares of the Trusts we have the right to vote on certain
matters involving the portfolios, such as:
o the election of trustees; or
o the formal approval of independent public accounting firms selected for
each Trust; or
o any other matters described in the prospectuses for the Trusts or requiring
a shareholders' vote under the Investment Company Act of 1940.
We will give contract owners the opportunity to instruct us how to vote the
number of shares attributable to their contracts if a shareholder vote is
taken. If we do not receive instructions in time from all contract owners, we
will vote the shares of a portfolio for which no instructions have been
received in the same proportion as we vote shares of that portfolio for which
we have received instructions. We will also vote any shares that we are
entitled to vote directly because of amounts we have in a portfolio in the same
proportions that contract owners vote.
VOTING RIGHTS OF OTHERS
Currently, we control the Trusts. Their shares are sold to our separate
accounts and an affiliated qualified plan trust. In addition, shares of the
Trusts are held by separate accounts of insurance companies both affiliated and
unaffiliated with us. Shares held by these separate accounts will probably be
voted according to the instructions of the owners of insurance policies and
contracts issued by those insurance companies. While this will dilute the
effect of the voting instructions of the contract owners, we currently do not
foresee any disadvantages because of this. The Board of Trustees of each Trust
intends to monitor events in order to identify any material irreconcilable
conflicts that may arise and to determine what action, if any, should be taken
in response. If we believe that a response to any of those events
insufficiently protects our contract owners, we will see to it that appropriate
action is taken.
SEPARATE ACCOUNT NO. 49 VOTING RIGHTS
If actions relating to the Separate Account require contract owner approval,
contract owners will be entitled to one vote for each unit they have in the
variable investment options. Each contract owner who has elected a variable
annuity payout option may cast the number of votes equal to the dollar amount
of reserves we are holding for that annuity in a variable investment option
divided by the annuity unit value for that option. We will cast votes
attributable to any amounts we have in the variable investment options in the
same proportion as votes cast by contract owners.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this Prospectus are created under applicable
federal securities laws. To the extent that those laws or the regulations
published under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
ABOUT LEGAL PROCEEDINGS
AXA Equitable and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings would be considered material with respect
to a contract owner's interest in Separate Account No. 49, nor would any of
these proceedings be likely to have a material adverse effect upon the Separate
Account, our ability to meet our obligations under the contracts, or the
distribution of the contracts.
ABOUT OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The consolidated financial statements of AXA Equitable at December 31, 2004 and
2003, and for the three years ended December 31, 2004 incorporated in this
Prospectus by reference to the 2004 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent registered
public accounting firm, given on the authority of said firm as experts in
auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 49, as well as the
consolidated financial statements of AXA Equitable, are in the SAI. The SAI is
available free of charge. You may request one by writing to our processing
office or calling 1-800-789-7771.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING
You can transfer ownership of an NQ contract at any time before annuity
payments begin. We will continue to treat you as the owner until we receive
written notification of any change at our processing office. You cannot assign
your NQ contract as collateral or security for a loan. Loans are also not
available under your NQ contract. In some cases, an assignment or change of
ownership may have adverse tax consequences. See "Tax information" earlier in
this Prospectus.
You cannot assign or transfer ownership of Rollover IRA, Roth Conversion IRA,
QP or Rollover TSA contract except by surrender to us. If your individual
retirement annuity contract is held in your custodial individual retirement
account, you may only assign or transfer ownership of such an IRA contract to
yourself. Loans are not available and you cannot assign Rollover IRA, Roth
Conversion IRA, QP or Rollover TSA contracts as security for a loan or other
obligation. If the employer that provided the funds does not restrict them,
loans are available under a Rollover TSA contract.
For limited transfers of ownership after the owner's death see "Beneficiary
continuation option" in "Payment of death benefit" earlier in this Prospectus.
You may direct the transfer of the values under your Rollover IRA, Roth
Conversion IRA, QP or Rollover TSA contract to another similar arrangement
under federal income tax rules. In the case of such a transfer, which involves
a surrender of your contract, we will impose a withdrawal charge, if one
applies.
DISTRIBUTION OF THE CONTRACTS
The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and
AXA Distributors, LLC ("AXA Distributors") (together, the
More information 71
"Distributors"). The Distributors serve as principal underwriters of Separate
Account No. 49. The offering of the contracts is intended to be continuous.
AXA Advisors (the successor to EQ Financial Consultants, Inc.), an affiliate of
AXA Equitable, and AXA Distributors, an indirect wholly owned subsidiary of AXA
Equitable, are registered with the SEC as broker-dealers and are members of the
National Association of Securities Dealers, Inc. ("NASD"). Their principal
business address is 1290 Avenue of the Americas, New York, NY 10104. Both
broker-dealers also act as distributors for other AXA Equitable annuity
products. AXA Distributors is a successor by merger to all of the functions,
rights and obligations of Equitable Distributors, Inc. ("EDI"). Like AXA
Distributors, EDI was owned by Equitable Holdings, LLC.
The contracts are sold by financial professionals of AXA Advisors and its
affiliates and by financial professionals of both affiliated and unaffiliated
broker-dealers that have entered into selling agreements with the Distributors
("Selling broker-dealers"). Affiliated broker-dealers include MONY Securities
Corporation ("MSC")* and Advest, Inc. The Distributors, MSC and Advest are all
under the common control of AXA Financial, Inc.
AXA Equitable pays sales compensation to both Distributors. In general,
broker-dealers receiving sales compensation will pay all or a portion of it to
its individual financial representatives (or to its Selling broker-dealers) as
commissions related to the sale of contracts.
Sales compensation paid to AXA Advisors will generally not exceed 8.5% of the
total contributions made under the contracts. AXA Advisors, in turn, may pay
its financial professionals (or Selling broker-dealers) either a portion of the
contribution-based compensation or a reduced portion of the contribution-based
compensation in combination with ongoing annual compensation ("asset-based
compensation") up to 1.20% of the account value of the contract sold, based on
the financial professional's choice. Contribution-based compensation, when
combined with asset-based compensation, could exceed 8.5% of the total
contributions made under the contracts.
Sales compensation paid to AXA Distributors will generally not exceed 6.50% of
the total contributions made under the contracts. AXA Distributors passes all
sales compensation it receives through to the Selling broker-dealer. The
Selling broker-dealer may elect to receive reduced contribution-based
compensation in combination with asset-based compensation of up to 1.25% of the
account value of all or a portion of the contracts sold through the
broker-dealer. Contribution-based compensation, when combined with asset-based
compensation, could exceed 6.50% of the total contributions made under the
contracts. The sales compensation we pay varies among broker-dealers. AXA
Distributors may also receive compensation and reimbursement for its marketing
services under the terms of its distribution agreement with AXA Equitable.
The Distributors may also pay certain affiliated and/or unaffiliated
broker-dealers and other financial intermediaries additional compensation for
certain services and/or in recognition of certain expenses that may be incurred
by them or on their behalf (commonly referred to as "marketing allowances").
Services for which such payments are made may include, but are not limited to,
the preferred placement of AXA Equitable and/or Accumulator(R) Elite(SM) on a
company and/or product list; sales personnel training; due diligence and related
costs; marketing and related services; conferences; and/or other support
services, including some that may benefit the contract owner. Payments may be
based on the amount of assets or purchase payments attributable to contracts
sold through a broker-dealer. We may also make fixed payments to broker-dealers
in connection with the initiation of a new relationship or the introduction of a
new product. These payments may serve as an incentive for Selling broker-dealers
to promote the sale of our products. Additionally, as an incentive for financial
professionals of Selling broker-dealers to promote the sale of our products, we
may increase the sales compensation paid to the Selling broker-dealer for a
period of time (commonly referred to as "compensation enhancements"). These
types of payments are made out of the Distributors' assets. Not all Selling
broker-dealers receive additional compensation. For more information about any
such arrangements, ask your financial professional.
The Distributors will receive 12b-1 fees from certain portfolios for providing
certain distribution and/or shareholder support services. In connection with
portfolios offered through unaffiliated insurance trusts, the Distributors may
also receive other payments from the portfolio advisers and/or their affiliates
for administrative costs, as well as payments for sales meetings and/or seminar
sponsorships.
In an effort to promote the sale of our products, AXA Advisors may provide its
financial professionals and managerial personnel with a higher percentage of
sales commissions and/or compensation for the sale of an affiliated variable
product than it would the sale of an unaffiliated product. Such practice is
known as providing "differential compensation." Other forms of compensation
financial professionals may receive include health and retirement benefits. In
addition, managerial personnel may receive expense reimbursements, marketing
allowances and commission-based payments known as "overrides." For tax reasons,
AXA Advisors financial professionals qualify for health and retirement benefits
based solely on their sales of our affiliated products.
These payments and differential compensation (together, the "payments") can
vary in amount based on the applicable product and/or entity or individual
involved. As with any incentive, such payments may cause the financial
professional to show preference in recommending the purchase or sale of our
products. However, under applicable rules of the NASD, AXA Advisors may only
recommend to you products that they reasonably believe are suitable for you
based on facts that you have disclosed as to your other security holdings,
financial situation and needs. In making any recommendation, financial
professionals may nonetheless face conflicts of interest because of the
differences in compensation from one product category to another, and because
of differences in compensation between products in the same category.
In addition, AXA Advisors financial professionals who meet specified production
levels for the sale of both affiliated and unaffiliated prod-
- ----------------------
* On or about June 6, 2005, MSC financial professionals are expected to
become financial professionals of AXA Advisors. From that date forward,
former MSC financial professionals will be compensated by AXA Advisors, and
the Distributors will replace MSC as the principal underwriters of its
affiliated products.
72 More information
ucts may qualify, under sales incentive programs, to receive non-cash
compensation such as stock options awards and/or stock appreciation rights,
expense-paid trips, expense-paid educational seminars and merchandise.
Although AXA Equitable takes all of its costs into account in establishing the
level of fees and expenses in our products, any compensation paid will not
result in any separate charge to you under your contract. All payments made
will be in compliance with all applicable NASD rules and other laws and
regulations.
More information 73
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
AXA Equitable's annual report on Form 10-K for the year ended December 31, 2004
is considered to be a part of this Prospectus because they are incorporated by
reference.
After the date of this Prospectus and before we terminate the offering of the
securities under this Prospectus, all documents or reports we file with the SEC
under the Securities Exchange Act of 1934 ("Exchange Act"), will be considered
to become part of this Prospectus because they are incorporated by reference.
Any statement contained in a document that is or becomes part of this
Prospectus, will be considered changed or replaced for purposes of this
Prospectus if a statement contained in this Prospectus changes or is replaced.
Any statement that is considered to be a part of this Prospectus because of its
incorporation will be considered changed or replaced for the purpose of this
Prospectus if a statement contained in any other subsequently filed document
that is considered to be part of this Prospectus changes or replaces that
statement. After that, only the statement that is changed or replaced will be
considered to be part of this Prospectus.
We file our Exchange Act documents and reports, including our Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR
under CIK No. 0000727920. The SEC maintains a website that contains reports,
proxy and information statements, and other information regarding registrants
that file electronically with the SEC. The address of the website is
www.sec.gov.
Upon written or oral request, we will provide, free of charge, to each person
to whom this Prospectus is delivered, a copy of any or all of the documents
considered to be part of this Prospectus because they are incorporated herein.
This does not include exhibits not specifically incorporated by reference into
the text of such documents. Requests for documents should be directed to AXA
Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New
York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234).
74 Incorporation of certain documents by reference
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account 49 with the same daily asset charges of 1.60%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.59 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 726 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Conservative Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.27 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 686 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Conservative-Plus Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.37 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 787 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Moderate Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 42.17 $ 39.41 $ 33.62 $ 39.15 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,907 2,733 598 97 --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Moderate-Plus Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.61 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,664 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 51.36 $ 46.56 $ 34.41 $ 49.16 $ 66.77
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 388 429 338 402 420
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.11 $ 10.87 $ 10.64 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 8,293 8,217 3,282 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.96 $ 9.93 $ 7.88 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,231 1,758 398 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 28.15 $ 26.32 $ 21.83 $ 22.86 $ 23.07
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,526 5,467 2,248 1,835 1,211
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.94 $ 10.29 $ 7.79 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,160 1,684 553 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.37 $ 9.61 $ 7.62 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,038 1,850 635 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.13 $ 8.70 $ 6.77 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,852 4,258 1,299 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.46 $ 10.17 $ 7.89 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,712 3,848 1,272 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.38 $ 8.53 $ 6.18 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6,078 5,628 1,488 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
1999 1998 1997
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Conservative Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Conservative-Plus Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Moderate Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Moderate-Plus Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 78.30 $ 67.13 $ 68.19
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 141 16 --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 25.73 $ 27.12 $ 29.13
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 574 170 2
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.53 $ 10.17 $ 7.35 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,059 3,927 1,262 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.05 $ 8.76 $ 5.65 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,725 1,117 205 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 220.94 $ 196.75 $ 133.70 $ 203.81 $ 232.08
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 683 689 581 661 618
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 27.49 $ 24.85 $ 19.37 $ 25.00 $ 25.80
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,420 3,013 1,002 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 18.01 $ 17.95 $ 17.86 $ 16.72 $ 15.75
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,326 3,448 2,501 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.97 $ 11.15 $ 8.38 $ 9.48 $ 12.56
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,337 4,026 604 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 6.19 $ 5.81 $ 4.79 $ 7.07 $ 9.45
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 15,822 17,115 16,550 18,765 17,412
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 15.45 $ 15.13 $ 14.85 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,951 3,122 1,064 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 15.07 $ 13.43 $ 9.69 $ 14.11 $ 16.53
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,346 4,534 3,377 3,423 3,189
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Bear Stearns Small Company Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 7.51 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 22 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.16 $ 12.68 $ 10.01 $ 11.78 $ 11.61
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 17,155 15,959 8,615 6,000 3,700
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Boston Advisors Equity Income
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 5.57 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 370 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.01 $ 7.86 $ 6.24 $ 8.62 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 498 478 128 13 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.71 $ 11.27 $ 9.24 $ 12.75 $ 17.16
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,715 2,971 2,171 2,221 1,658
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.53 $ 9.42 $ 7.22 $ 8.64 $ 11.09
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 11,933 10,611 5,973 5,697 5,514
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.14 $ 10.21 $ 7.89 $ 10.65 $ 11.04
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 12,694 12,682 9,408 3,151 2,953
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.94 $ 10.17 $ 7.57 $ 10.09 $ 10.46
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 15,720 14,963 8,308 6,886 5,538
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
1999 1998 1997
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 275.01 $ 223.79 $ 176.22
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 255 35 1
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 24.13 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.70 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 16.61 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.77 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,630 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.78 $ 11.77 $ 12.52
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 818 211 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Bear Stearns Small Company Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.04 $ 11.81 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,532 315 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Boston Advisors Equity Income
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 21.20 $ 16.54 $ 12.33
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 576 282 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.93 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,286 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.60 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 987 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.26 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,436 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 24.94 $ 22.99 $ 18.28 $ 23.93 $ 27.69
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 11,584 11,512 7,152 6,601 6,057
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.20 $ 7.79 $ 5.73 $ 7.66 $ 9.38
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,500 2,016 424 141 78
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.02 $ 9.65 $ 6.83 $ 8.51 $ 9.99
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 11,422 10,509 4,322 2,644 617
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.13 $ 12.18 $ 9.29 $ 11.07 $ 10.82
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 7,736 7,229 3,714 2,090 251
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.60 $ 13.28 $ 13.05 $ 12.10 $ 11.40
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 15,208 16,175 13,419 10,537 5,112
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JP Morgan Value Opportunities
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.94 $ 11.86 $ 9.51 $ 11.94 $ 13.02
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,325 5,701 4,777 4,156 1,755
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 5.96 $ 5.40 $ 4.36 $ 6.36 $ 8.39
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6,714 6,805 4,722 3,856 1,315
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 16.33 $ 14.17 $ 10.49 $ 12.37 $ 10.68
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 7,850 7,354 5,021 3,274 2,109
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.84 $ 12.72 $ 9.86 $ 11.33 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 11,463 10,296 2,423 78 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 19.58 $ 17.99 $ 13.94 $ 17.00 $ 16.37
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,909 4,335 2,235 1,559 1,079
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury International Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 16.57 $ 13.84 $ 10.98 $ 13.39 $ 17.34
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,077 5,316 3,555 3,126 2,033
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.94 $ 11.68 $ 9.18 $ 14.20 $ 21.88
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,258 4,710 4,660 5,707 5,759
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.84 $ 8.07 $ 6.72 $ 8.64 $ 10.45
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 8,941 9,707 8,237 8,655 7,052
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 26.55 $ 26.78 $ 27.06 $ 27.16 $ 26.65
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,693 6,370 9,288 13,759 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Montag & Caldwell Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 4.36 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 19 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.10 $ 12.18 $ 8.48 $ 10.90 $ 10.86
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3.996 4,084 1,913 1,535 1,382
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 21.86 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 74 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
1999 1998 1997
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.80 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.45 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.39 $ 10.73 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,026 379 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JP Morgan Value Opportunities
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.39 $ 12.76 $ 11.50
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 978 714 17
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.15 $ 9.14 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 98 344 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.88 $ 12.71 $ 11.58
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 173 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury International Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 20.10 $ 12.75 $ 10.84
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 771 422 4
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 27.40 $ 16.03 $ 12.11
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,680 200 2
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.70 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,906 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 25.55 $ 24.80 $ 23.98
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 9,875 5,805 349
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Montag & Caldwell Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.42 $ 9.61 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 522 211 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------
2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------
EQ/TCW Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 16.30 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 19 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/UBS Growth and Income
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 5.08 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 69 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Van Kampen Emerging Markets Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.45 $ 8.58 $ 5.59 $ 6.04 $ 6.47
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,587 4,232 2,823 3,043 2,958
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.12 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 360 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.69 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 435 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------
1999 1998 1997
- ------------------------------------------------------------------------------------------------------------------------------
EQ/TCW Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/UBS Growth and Income
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Van Kampen Emerging Markets Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.97 $ 5.70 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 962 203 --
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
A-4 Appendix I: Condensed financial information
Appendix II: Purchase considerations for QP contracts
- --------------------------------------------------------------------------------
Trustees who are considering the purchase of an Accumulator(R) Elite(SM) QP
contract should discuss with their tax advisors whether this is an appropriate
investment vehicle for the employer's plan. Trustees should consider whether
the plan provisions permit the investment of plan assets in the QP contract,
the distribution of such an annuity, the purchase of the guaranteed minimum
income benefit, and the payment of death benefits in accordance with the
requirements of the federal income tax rules. The QP contract and this
Prospectus should be reviewed in full, and the following factors, among others,
should be noted. Assuming continued plan qualification and operation, earnings
on qualified plan assets will accumulate value on a tax-deferred basis even if
the plan is not funded by the Accumulator(R) Elite(SM) QP contract or another
annuity. Therefore, you should purchase an Accumulator(R) Elite(SM) QP contract
to fund a plan for the contract's features and benefits other than tax
deferral, after considering the relative costs and benefits of annuity
contracts and other types of arrangements and funding vehicles. This QP
contract accepts transfer contributions only and not regular, ongoing payroll
contributions. For 401(k) plans under defined contribution plans, no employee
after-tax contributions are accepted.
We will not accept defined benefit plans. For defined contribution plans, we
will only accept transfers from another defined contribution plan or a change
of investment vehicles in the plan. Only one additional transfer contribution
may be made per contract year. If overfunding of a plan occurs or amounts
attributable to an excess contribution must be withdrawn, withdrawals from the
QP contract may be required. A withdrawal charge and/or market value adjustment
may apply.
AXA Equitable will not perform or provide any plan recordkeeping services with
respect to the QP contracts. The plan's administrator will be solely
responsible for performing or providing for all such services. There is no loan
feature offered under the QP contracts, so if the plan provides for loans and a
participant/employee takes a loan from the plan, other plan assets must be used
as the source of the loan and any loan repayments must be credited to other
investment vehicles and/or accounts available under the plan.
Given that required minimum distributions must generally commence from the plan
for annuitants after age 70-1/2, trustees should consider that:
o the QP contract may not be an appropriate purchase for annuitants approaching
or over age 70-1/2;
o provisions in the Treasury Regulations on required minimum distributions will
require, beginning in 2006, that the actuarial present value of additional
annuity contract benefits be added to the dollar amount credited for
purposes of calculating required minimum distributions. This could increase
the amounts required to be distributed from the contract; and
o the guaranteed minimum income benefit under the Living Benefit may not be an
appropriate feature for annuitants who are older than age 60-1/2 when the
contract is issued.
Finally, because the method of purchasing the QP contract, including the large
initial contribution and the features of the QP contract may appeal more to
plan participants/employees who are older and tend to be highly paid, and
because certain features of the QP contract are available only to plan
participants/employees who meet certain minimum and/or maximum age
requirements, plan trustees should discuss with their advisers whether the
purchase of the QP contract would cause the plan to engage in prohibited
discrimination in contributions, benefits or otherwise.
Appendix II: Purchase considerations for QP contracts B-1
Appendix III: Market value adjustment example
- --------------------------------------------------------------------------------
The example below shows how the market value adjustment would be determined and
how it would be applied to a withdrawal, assuming that $100,000 was allocated
on February 15, 2005 to a fixed maturity option with a maturity date of
February 15, 2014 (nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value of $183,914 on the maturity date. We
further assume that a withdrawal of $50,000 is made four years later on
February 15, 2009.
- -------------------------------------------------------------------------------------------------------------------------
Hypothetical assumed rate to maturity on February 15, 2009
------------------------------------------------------------
5.00% 9.00%
- -------------------------------------------------------------------------------------------------------------------------
As of February 15, 2009 (before withdrawal)
- -------------------------------------------------------------------------------------------------------------------------
(1) Market adjusted amount $144,082 $ 119,503
- -------------------------------------------------------------------------------------------------------------------------
(2) Fixed maturity amount $131,104 $ 131,104
- -------------------------------------------------------------------------------------------------------------------------
(3) Market value adjustment:
(1) - (2) $ 12,978 $ (11,601)
- -------------------------------------------------------------------------------------------------------------------------
On February 15, 2009 (after withdrawal)
- -------------------------------------------------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with withdrawal:
(3) x [$50,000/(1)] $ 4,504 $ (4,854)
- -------------------------------------------------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount: [$50,000 - (4)] $ 45,496 $ 54,854
- -------------------------------------------------------------------------------------------------------------------------
(6) Fixed maturity amount: (2) - (5) $ 85,608 $ 76,250
- -------------------------------------------------------------------------------------------------------------------------
(7) Maturity value $120,091 $ 106,965
- -------------------------------------------------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,082 $ 69,503
- -------------------------------------------------------------------------------------------------------------------------
You should note that under this example if a withdrawal is made when rates have
increased from 7.00% to 9.00% (right column), a portion of a negative market
value adjustment is realized. On the other hand, if a withdrawal is made when
rates have decreased from 7.00% to 5.00% (left column), a portion of a positive
market value adjustment is realized. The market value is computed differently
if you withdraw amounts on a date other than the anniversary of the
establishment of the fixed maturity option.
C-1 Appendix III: Market value adjustment example
Appendix IV: Enhanced death benefit example
- --------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the enhanced death benefit, if elected.
The following illustrates the enhanced death benefit calculation. Assuming
$100,000 is allocated to the variable investment options (with no allocation to
the EQ/Alliance Intermediate Government Securities, EQ/Money Market, EQ/PIMCO
Real Return, EQ/Short Duration Bond, the guaranteed interest option or the
fixed maturity options), no additional contributions, no transfers, no
withdrawals and no loans under a Rollover TSA contract, the enhanced death
benefit for an annuitant age 45 would be calculated as follows:
- ----------------------------------------------------------------------------------------
End of 6% Roll-up to age 85 Annual ratchet to age 85
contract enhanced enhanced
year Account value death benefit(1) death benefit
- ----------------------------------------------------------------------------------------
1 $105,000 $ 106,000(1) $ 105,000(3)
- ----------------------------------------------------------------------------------------
2 $115,500 $ 112,360(2) $ 115,500(3)
- ----------------------------------------------------------------------------------------
3 $129,360 $ 119,102(2) $ 129,360(3)
- ----------------------------------------------------------------------------------------
4 $103,488 $ 126,248(1) $ 129,360(4)
- ----------------------------------------------------------------------------------------
5 $113,837 $ 133,823(1) $ 129,360(4)
- ----------------------------------------------------------------------------------------
6 $127,497 $ 141,852(1) $ 129,360(4)
- ----------------------------------------------------------------------------------------
7 $127,497 $ 150,363(1) $ 129,360(4)
- ----------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%.
We are using these rates solely to illustrate how the benefit is determined.
The return rates bear no relationship to past or future investment results.
6% ROLL-UP TO AGE 85
(1) At the end of contract year 1, and again at the end of contract years 4
through 7, the death benefit will be the enhanced death benefit.
(2) At the end of contract years 2 and 3, the death benefit will be the current
account value since it is higher than the current enhanced death benefit.
ANNUAL RATCHET TO AGE 85
(3) At the end of contract years 1 through 3, the enhanced death benefit is the
current account value.
(4) At the end of contract years 4 through 7, the enhanced death benefit is the
enhanced death benefit at the end of the prior year since it is equal to or
higher than the current account value.
GREATER OF THE 6% ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85
The enhanced death benefit under this option for each year shown would be the
greater of the amounts shown under the 6% Roll-up to age 85 or the Annual
ratchet to age 85.
Appendix IV: Enhanced death benefit example D-1
Appendix V: Hypothetical illustrations
- --------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM
BENEFITS
The following tables illustrate the changes in account value, cash value and
the values of the "greater of 6% Roll up to Age 85 or the Annual Ratchet to Age
85" guaranteed minimum death benefit, the Protection Plus(SM) benefit and the
Guaranteed minimum income benefit under certain hypothetical circumstances for
an Accumulator(R) Elite(SM) contract. The table illustrates the operation of a
contract based on a male, issue age 60, who makes a single $100,000
contribution and takes no withdrawals. The amounts shown are for the beginning
of each contract year and assume that all of the account value is invested in
portfolios that achieve investment returns at constant gross annual rates of 0%
and 6% (i.e., before any investment management fees, 12b-1 fees or other
expenses are deducted from the underlying portfolio assets). After the
deduction of the arithmetic average of the investment management fees, 12b-1
fees and other expenses of all of the underlying portfolios (as described
below), the corresponding net annual rates of return would be (2.93)% and 3.07%
for the Accumulator(R) Elite(SM) Contract, at the 0% and 6% gross annual rates,
respectively. These net annual rates of return reflect the trust and separate
account level charges, but they do not reflect the charges we deduct from your
account value annually for the Guaranteed minimum death benefit, Protection
Plus(SM) benefit and the Guaranteed minimum income benefit features, as well as
the annual administrative charge. If the net annual rates of return did reflect
these charges, the net annual rates of return would be lower; however, the
values shown in the following tables reflect all contract charges. The values
shown under "Lifetime Annual Guaranteed Minimum Income Benefit" reflect the
lifetime income that would be guaranteed if the Guaranteed minimum income
benefit is selected at that contract anniversary. An "N/A" in these columns
indicates that the benefit is not exercisable in that year. A "0" under any of
the Death Benefit and/or "Lifetime Annual Guaranteed Minimum Income Benefit"
columns indicates that the contract has terminated due to insufficient account
value and, consequently, the guaranteed benefit has no value.
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in all tables reflect (1) investment management
fees equivalent to an effective annual rate of 0.69%, and (2) an assumed
average asset charge for all other expenses of the underlying portfolios
equivalent to an effective annual rate of 0.39% and (3) 12b-1 fees equivalent
to an effective annual rate of 0.25%. These rates are the arithmetic average
for all portfolios that are available as investment options. In other words,
they are based on the hypothetical assumption that account values are allocated
equally among the variable investment options. The actual rates associated with
any contract will vary depending upon the actual allocation of contract values
among the investment options. These rates do not reflect expense limitation
arrangements in effect with respect to certain of the underlying portfolios, as
described in the footnotes to the fee table for the underlying portfolios in
"Fee Table" earlier in this Prospectus. With these arrangements, the charges
shown above would be lower. This would result in higher values than those shown
in the following tables.
Because your circumstances will no doubt differ from those in the illustrations
that follow, values under your contract will differ, in most cases
substantially. Upon request, we will furnish you with a personalized
illustration.
E-1 Appendix V: Hypothetical illustrations
Variable deferred annuity
Accumulator Elite
$100,000 Single contribution and no withdrawals
Male, issue age 60
Benefits:
Greater of 6% Roll up to age 85 or the Annual Ratchet to age 85 Guaranteed
minimum death benefit
Protection Plus
Guaranteed minimum income benefit
Greater of 6% Roll up
to age 85 or the Annual
Ratchet to age 85
Guaranteed
Minimum Death
Account Value Cash Value Benefit
Contract ------------------- ------------------ ----------------------
Year 0% 6% 0% 6% 0% 6%
Age --------- --------- --------- -------- --------- ---------- ----------
60 1 100,000 100,000 92,000 92,000 100,000 100,000
61 2 95,458 101,437 88,458 94,437 106,000 106,000
62 3 90,989 102,837 84,989 96,837 112,360 112,360
63 4 86,584 104,194 81,584 99,194 119,102 119,102
64 5 82,238 105,502 82,238 105,502 126,248 126,248
65 6 77,943 106,754 77,943 106,754 133,823 133,823
66 7 73,693 107,944 73,693 107,944 141,852 141,852
67 8 69,479 109,065 69,479 109,065 150,363 150,363
68 9 65,294 110,107 65,294 110,107 159,385 159,385
69 10 61,132 111,062 61,132 111,062 168,948 168,948
74 15 40,320 114,196 40,320 114,196 226,090 226,090
79 20 18,761 113,466 18,761 113,466 302,560 302,560
84 25 0 106,860 0 106,860 0 404,893
89 30 0 105,684 0 105,684 0 429,187
94 35 0 107,204 0 107,204 0 429,187
95 36 0 107,534 0 107,534 0 429,187
Lifetime Annual
Total Death Benefit Guaranteed Minimum Income Benefit
with Protection Guaranteed Hypothetical
Plus Income Income
------------------- ------------------ -----------------
0% 6% 0% 6% 0% 6%
Age --------- --------- --------- -------- --------- -------
60 100,000 100,000 N/A N/A N/A N/A
61 108,400 108,400 N/A N/A N/A N/A
62 117,304 117,304 N/A N/A N/A N/A
63 126,742 126,742 N/A N/A N/A N/A
64 136,747 136,747 N/A N/A N/A N/A
65 147,352 147,352 N/A N/A N/A N/A
66 158,593 158,593 N/A N/A N/A N/A
67 170,508 170,508 N/A N/A N/A N/A
68 183,139 183,139 N/A N/A N/A N/A
69 196,527 196,527 N/A N/A N/A N/A
74 276,527 276,527 14,266 14,266 14,266 14,266
79 383,584 383,584 20,393 20,393 20,393 20,393
84 0 493,179 0 34,821 0 34,821
89 0 517,472 N/A N/A N/A N/A
94 0 517,472 N/A N/A N/A N/A
95 0 517,472 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for
individual contract years. We can make no representation that these
hypothetical investment results can be achieved for any one year or continued
over any period of time. In fact, for any given period of time, the investment
results could be negative.
Appendix V: Hypothetical illustrations E-2
Appendix VI: Contract variations
- --------------------------------------------------------------------------------
The contract described in this Prospectus is no longer sold. You should note
that your contract features and charges may vary from what is described in this
Prospectus depending on the date on which you purchased your contract. You may
not change your contract or its features after issue. This Appendix reflects
contract variations that differ from what is described in this Prospectus but
may have been in effect at the time your purchased your contract.
In addition, options and/or features may vary among states in light of
applicable regulations or state approvals. Any such state variations are
generally not included here. For more information about state variations
applicable to you, as well as particular features, charges and options available
under your contract based upon when you purchased it, please contact your
financial professional and/or refer to your contract.
- --------------------------------------------------------------------------------------------------------------------------------
Approximate Time Period Feature/Benefit Variation
- --------------------------------------------------------------------------------------------------------------------------------
April 2002 - July 2003 Guaranteed interest option No limitations regarding allocations or transfers into
the guaranteed interest account.
- --------------------------------------------------------------------------------------------------------------------------------
April 2002 - November 2002 Inherited IRA beneficiary continuation Unavailable.
contract
- --------------------------------------------------------------------------------------------------------------------------------
April 2002 - February 2003 Fee table Guaranteed minimum death benefit charge:
Annual Ratchet to age 85: 0.20%
6% Roll up to age 85: 0.35%
The Greater of the 6% Roll up to age 85
or the Annual Ratchet to age 85: 0.45%
Guaranteed minimum income benefit: 0.45%
- --------------------------------------------------------------------------------------------------------------------------------
April 2002 - May 2002 Annuity maturity date For New York contract owners only, the maturity date is
annuitant age 90.
- --------------------------------------------------------------------------------------------------------------------------------
F-1 Appendix VI: Contract variations
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Unit Values 2
Custodian and Independent Registered Public Accounting Firm 2
Distribution of the Contracts 2
Financial Statements 2
How to obtain an Accumulator(R) Elite(SM) Statement of Additional Information
for Separate Account No. 49
Send this request form to:
Accumulator(R) Elite(SM)
P.O. Box 1547 Secaucus, NJ 07096-1547
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me an Accumulator(R) Elite(SM) SAI for Separate Account No. 49 dated
May 1, 2005.
- --------------------------------------------------------------------------------
Name:
- --------------------------------------------------------------------------------
Address:
- --------------------------------------------------------------------------------
City State Zip
X01000/Elite '02 and '04 Series
Accumulator(R) Elite(SM)
A combination variable and fixed deferred
annuity contract
PROSPECTUS MAY 1, 2005
Please read and keep this Prospectus for future reference. It contains
important information that you should know before purchasing, or taking any
other action under your contract. You should read the prospectuses for each
Trust, which contain important information about the portfolios.
- --------------------------------------------------------------------------------
WHAT IS THE ACCUMULATOR(R) ELITE(SM)?
Accumulator(R) Elite((SM)) is a deferred annuity contract issued by AXA
EQUITABLE LIFE INSURANCE COMPANY. It provides for the accumulation of retirement
savings and for income. The contract offers income and death benefit protection.
It also offers a number of payout options. You invest to accumulate value on a
tax-deferred basis in one or more of our variable investment options, the
guaranteed interest option, fixed maturity options or the account for special
dollar cost averaging ("investment options"). This contract may not currently be
available in all states. Certain features and benefits described in this
Prospectus may vary in your state; all features and benefits may not be
available in all contracts or all states. Please see Appendix VIII later in this
Prospectus for more information on state availability and/or variations of
certain features and benefits.
- --------------------------------------------------------------------------------
VARIABLE INVESTMENT OPTIONS
- --------------------------------------------------------------------------------
o AXA Aggressive Allocation(1) o EQ/Equity 500 Index
o AXA Conservative Allocation(1) o EQ/Evergreen Omega
o AXA Conservative-Plus Allocation(1) o EQ/FI Mid Cap
o AXA Moderate Allocation(1) o EQ/FI Small/Mid Cap Value
o AXA Moderate-Plus Allocation(1) o EQ/International Growth(3)
o AXA Premier VIP Aggressive Equity o EQ/J.P. Morgan Core Bond
o AXA Premier VIP Core Bond o EQ/JP Morgan Value Opportunities
o AXA Premier VIP Health Care o EQ/Janus Large Cap Growth
o AXA Premier VIP High Yield o EQ/Lazard Small Cap Value
o AXA Premier VIP International Equity o EQ/Long Term Bond(3)
o AXA Premier VIP Large Cap Core o EQ/Lord Abbett Growth and Income(3)
Equity o EQ/Lord Abbett Large Cap Core(3)
o AXA Premier VIP Large Cap Growth o EQ/Lord Abbett Mid Cap Value(3)
o AXA Premier VIP Large Cap Value o EQ/Marsico Focus
o AXA Premier VIP Small/Mid Cap o EQ/Mercury Basic Value Equity
Growth o EQ/Mercury International Value
o AXA Premier VIP Small/Mid Cap Value o EQ/Mergers and Acquisitions(3)
o AXA Premier VIP Technology o EQ/MFS Emerging Growth Companies
o EQ/Alliance Common Stock o EQ/MFS Investors Trust
o EQ/Alliance Growth and Income o EQ/Money Market
o EQ/Alliance Intermediate Government o EQ/Montag & Caldwell Growth(2)
Securities o EQ/PIMCO Real Return(3)
o EQ/Alliance International o EQ/Short Duration Bond(3)
o EQ/Alliance Large Cap Growth(2) o EQ/Small Company Index
o EQ/Alliance Quality Bond o EQ/Small Company Value(2)
o EQ/Alliance Small Cap Growth o EQ/TCW Equity(2)
o EQ/Bear Stearns Small Company o EQ/UBS Growth and Income(2)
Growth(2) o EQ/Van Kampen Comstock(3)
o EQ/Bernstein Diversified Value o EQ/Van Kampen Emerging Markets
o EQ/Boston Advisors Equity Income(2) Equity(2)
o EQ/Calvert Socially Responsible o EQ/Van Kampen Mid Cap Growth(3)
o EQ/Capital Guardian Growth o EQ/Wells Fargo Montgomery Small Cap
o EQ/Capital Guardian International o Laudus Rosenberg VIT Value Long/
o EQ/Capital Guardian Research Short Equity
o EQ/Capital Guardian U.S. Equity o U.S. Real Estate -- Class II
o EQ/Caywood-Scholl High Yield Bond(3)
- --------------------------------------------------------------------------------
(1) The "AXA Allocation" portfolios.
(2) This is the option's new name, effective on or about May 9, 2005, subject
to regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former
name.
(3) Available on or about May 9, 2005, subject to regulatory approval. . Please
see "Portfolios of the Trusts" in "Contract features and benefits" later in
this Prospectus for more information on the new investment option.
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of Separate Account No. 49. Each
variable investment option, in turn, invests in a corresponding securities
portfolio of EQ Advisors Trust, AXA Premier VIP Trust, The Universal
Institutional Funds, Inc., or Laudus Variable Insurance Trust (the "Trusts").
Your investment results in a variable investment option will depend on the
investment performance of the related portfolio.
You may also allocate amounts to the guaranteed interest option, the fixed
maturity option and the account for special dollar cost averaging, which are
discussed later in this Prospectus.
TYPES OF CONTRACTS. We offer the contracts for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only.
o An annuity that is an investment vehicle for a qualified defined contribution
plan ("QP").
o Traditional and Roth Inherited IRA beneficiary continuation contract
("Inherited IRA").
o An individual retirement annuity ("IRA"), either traditional IRA ("Rollover
IRA") or Roth IRA ("Roth Conversion IRA").
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") --
("Rollover TSA").
A contribution of at least $10,000 is required to purchase a contract.
Registration statements relating to this offering have been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2005, is part of the registration statement.
The SAI is available free of charge. You may request one by writing to our
processing office or calling 1-800-789-7771. The SAI has been incorporated by
reference into this Prospectus. This prospectus and the SAI can also be
obtained from the SEC's website at www.sec.gov. The table of contents for the
SAI appears at the back of this Prospectus.
The SEC has not approved or disapproved these securities or determined if this
Prospectus is accurate or complete. Any representation to the contrary is a
criminal offense. the contracts are not insured by the fdic or any other
agency. they are not deposits or other obligations of any bank and are not bank
guaranteed. They are subject to investment risks and possible loss of
principal.
X00996/Elite '04 Series
(R-4/15)
Although this Prospectus is primarily designed for potential purchasers of the
contract, you may have previously purchased a contract and be receiving this
Prospectus as a current contract owner. If you are a current contract owner,
you should note that the options, features and charges of the contract may have
varied over time (and, as noted above, may vary depending on your state) and
you may not change your contract or its features as issued. For more
information about the particular options, features and charges applicable to
you, please contact your financial professional and/or refer to your contract
and/or see Appendix IX for contract variations later in this Prospectus.
Contents of this Prospectus
- --------------------------------------------------------------------------------
ACCUMULATOR(R) ELITE(SM)
- --------------------------------------------------------------------------------
Index of key words and phrases 5
Who is AXA Equitable? 7
How to reach us 8
Accumulator(R) Elite(SM) at a glance -- key features 10
- --------------------------------------------------------------------------------
FEE TABLE 13
- --------------------------------------------------------------------------------
Example 17
Condensed financial information 20
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 21
- --------------------------------------------------------------------------------
How you can purchase and contribute to your contract 21
Owner and annuitant requirements 24
How you can make your contributions 24
What are your investment options under the contract? 24
Portfolios of the Trusts 25
Allocating your contributions 30
Your Guaranteed minimum death benefit and
Guaranteed minimum income benefit base 33
Annuity purchase factors 34
Our Guaranteed minimum income benefit option 34
Guaranteed minimum death benefit 36
Principal Protector(SM) 37
Inherited IRA beneficiary continuation contract 40
Your right to cancel within a certain number of days 41
- --------------------------------------------------------------------------------
2. DETERMINING YOUR CONTRACT'S VALUE 42
- --------------------------------------------------------------------------------
Your account value and cash value 42
Your contract's value in the variable investment options 42
Your contract's value in the guaranteed interest option 42
Your contract's value in the fixed maturity options 42
Your contract's value in the account for special dollar cost
averaging 42
Termination of your contract 42
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG
INVESTMENT OPTIONS 44
- --------------------------------------------------------------------------------
Transferring your account value 44
Disruptive transfer activity 44
Rebalancing your account value 45
- ----------------------
"We," "our," and "us" refer to AXA Equitable.
When we address the reader of this Prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the contract owner.
When we use the word "contract" it also includes certificates that are issued
under group contracts in some states.
Contents of this Prospectus 3
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 47
- --------------------------------------------------------------------------------
Withdrawing your account value 47
How withdrawals are taken from your account value 48
How withdrawals (and transfers out of the Special 10 year fixed
maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death
benefit and Guaranteed principal benefit option 2 48
How withdrawals affect Principal Protector(SM) 49
Withdrawals treated as surrenders 49
Loans under Rollover TSA contracts 49
Surrendering your contract to receive its cash value 50
When to expect payments 50
Your annuity payout options 50
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 53
- --------------------------------------------------------------------------------
Charges that AXA Equitable deducts 53
Charges that the Trusts deduct 56
Group or sponsored arrangements 56
Other distribution arrangements 57
- --------------------------------------------------------------------------------
6. PAYMENT OF DEATH BENEFIT 58
- --------------------------------------------------------------------------------
Your beneficiary and payment of benefit 58
How death benefit payment is made 59
Beneficiary continuation option 60
- --------------------------------------------------------------------------------
7. TAX INFORMATION 64
- --------------------------------------------------------------------------------
Overview 64
Buying a contract to fund a retirement arrangement 64
Transfers among investment options 64
Taxation of nonqualified annuities 64
Individual retirement arrangements (IRAs) 66
Tax-Sheltered Annuity contracts (TSAs) 75
Federal and state income tax withholding and
information reporting 78
Special rules for contracts funding qualified plans 79
Impact of taxes to AXA Equitable 79
- --------------------------------------------------------------------------------
8. MORE INFORMATION 80
- --------------------------------------------------------------------------------
About our Separate Account No. 49 80
About the Trusts 80
About our fixed maturity options 80
About the general account 81
About other methods of payment 81
Dates and prices at which contract events occur 82
About your voting rights 83
About legal proceedings 83
About our independent registered public accounting firm 83
Financial statements 83
Transfers of ownership, collateral assignments, loans
and borrowing 83
Distribution of the contracts 84
- --------------------------------------------------------------------------------
9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 86
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed financial information A-1
II -- Purchase considerations for QP contracts B-1
III -- Market value adjustment example C-1
IV -- Enhanced death benefit example D-1
V -- Hypothetical illustrations E-1
VI -- Guaranteed principal benefit
example F-1
VII -- Protection Plus(SM) example G-1
VIII -- State contract availability and/or variations of
certain features and benefits H-1
IX -- Contract variations I-1
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
4 Contents of this Prospectus
Index of key words and phrases
- --------------------------------------------------------------------------------
This index should help you locate more information on the terms used in this
Prospectus.
Page in
Term Prospectus
6% Roll up to age 85 33
account value 42
administrative charge 53
annual administrative charge 53
Annual Ratchet to age 85 enhanced death benefit 33
annuitant 21
annuity maturity date 52
annuity payout options 50
annuity purchase factors 34
automatic investment program 82
beneficiary 58
Beneficiary continuation option ("BCO") 60
benefit base 33
business day 82
cash value 42
charges for state premium and other applicable taxes 56
contract date 12
contract date anniversary 12
contract year 12
contributions to Roth IRAs 72
regular contributions 72
rollovers and direct transfers 73
conversion contributions 73
contributions to traditional IRAs 67
regular contributions 67
rollovers and transfers 68
disability, terminal illness or confinement to nursing home 54
disruptive transfer activity 44
distribution charge 53
EQAccess 8
ERISA 49
fixed-dollar option 32
fixed maturity options 29
free look 41
free withdrawal amount 54
general account 81
general dollar cost averaging 32
guaranteed interest option 29
Guaranteed minimum death benefit 36
Guaranteed minimum income benefit 34
Guaranteed minimum income benefit charge 55
Guaranteed principal benefits 30
Inherited IRA cover
investment options cover
Investment simplifier 32
IRA cover
IRS 64
lifetime required minimum distribution withdrawals 48
loan reserve account 49
loans under rollover TSA 49
lump sum withdrawals 47
market adjusted amount 29
market timing 44
market value adjustment 29
maturity dates 29
maturity value 29
Mortality and expense risks charge 53
Page in
Term Prospectus
NQ cover
Optional step up charge 56
participant 24
portfolio cover
Principal Protector(SM) 37
Principal Protector(SM) charge 56
processing office 8
Protection Plus(SM) 36
Protection Plus(SM) charge 55
QP cover
rate to maturity 29
Rebalancing 33
Rollover IRA cover
Rollover TSA cover
Roth Conversion IRA cover
Roth IRA cover
SAI cover
SEC cover
self-directed allocation 30
Separate Account No. 49 80
special dollar cost averaging 32
Spousal protection 59
standard death benefit 33
substantially equal withdrawals 47
Successor owner and annuitant 59
systematic withdrawals 47
TOPS 8
TSA cover
traditional IRA cover
Trusts 80
unit 42
variable investment options 24
wire transmittals and electronic applications 81
withdrawal charge 54
Index of key words and phrases 5
To make this Prospectus easier to read, we sometimes use different words than
in the contract or supplemental materials. This is illustrated below. Although
we use different words, they have the same meaning in this Prospectus as in the
contract. Your financial professional can provide further explanation about
your contract or supplemental materials.
- ------------------------------------------------------------------------------------------------------------------------
PROSPECTUS CONTRACT OR SUPPLEMENTAL MATERIALS
- ------------------------------------------------------------------------------------------------------------------------
fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
Guaranteed minimum death benefit Guaranteed death benefit
Guaranteed minimum income benefit Guaranteed Income Benefit
guaranteed interest option Guaranteed Interest Account
Principal Protector(SM) Guaranteed withdrawal benefit
GWB benefit base Principal Protector(SM) benefit base
GWB Annual withdrawal amount Principal Protector(SM) Annual withdrawal amount
GWB Annual withdrawal option Principal Protector(SM) Annual withdrawal option
GWB Excess withdrawal Principal Protector(SM) Excess withdrawal
- ------------------------------------------------------------------------------------------------------------------------
6 Index of key words and phrases
WHO IS AXA EQUITABLE?
- --------------------------------------------------------------------------------
We are AXA Equitable Life Insurance Company ("AXA Equitable") (previously, The
Equitable Life Assurance Society of the United States), a New York stock life
insurance corporation. We have been doing business since 1859. AXA Equitable is
a subsidiary of AXA Financial, Inc. AXA, a French holding company for an
international group of insurance and related financial services companies, is
the sole shareholder of AXA Financial, Inc. As the sole shareholder, and under
its other arrangements with AXA Equitable and AXA Equitable's parent, AXA
exercises significant influence over the operations and capital structure of
AXA Equitable and its parent. No company other than AXA Equitable, however, has
any legal responsibility to pay amounts that AXA Equitable owes under the
contracts.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$598 billion in assets as of December 31, 2004. For over 100 years AXA
Equitable has been among the largest insurance companies in the United States.
We are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office
is located at 1290 Avenue of the Americas, New York, N.Y. 10104.
Who is AXA Equitable? 7
HOW TO REACH US
You may communicate with our processing office as listed below for the purposes
described. Certain methods of contacting us, such as by telephone or
electronically, may be unavailable or delayed (for example our facsimile
service may not be available at all times and/or we may be unavailable due to
emergency closing). In addition, the level and type of service available may be
restricted based on criteria established by us.
- -------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY REGULAR MAIL
- -------------------------------------------------------------------------------
Accumulator(R) Elite(SM)
P.O. Box 13014
Newark, NJ 07188-0014
- -------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY
- -------------------------------------------------------------------------------
Accumulator(R) Elite(SM)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANS-
FERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR
MAIL
- --------------------------------------------------------------------------------
Accumulator(R) Elite(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANS-
FERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS
DELIVERY
- --------------------------------------------------------------------------------
Accumulator(R) Elite(SM)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year and any
calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract
year, including notification of eligibility to exercise the guaranteed
minimum income benefit, if applicable.
- -------------------------------------------------------------------------------
TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND
EQACCESS SYSTEMS:
- -------------------------------------------------------------------------------
TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQAccess is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for the fixed maturity options (not available through
EQAccess);
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
available through TOPS).
You can also:
o change your allocation percentages and/or transfer among the investment
options;
o elect to receive certain statements electronically;
o change your address (not available through TOPS);
o change your TOPS personal identification number ("PIN") (through TOPS only)
and your EQAccess password (through EQAccess only); and
o access Frequently Asked Questions and Service Forms (not available through
TOPS).
TOPS and EQAccess are normally available seven days a week, 24 hours a day. You
may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our website at www.axaonline.com and
logging in to access your account. All other clients may access EQAccess by
visiting our website at www.axa-equitable.com. Of course, for reasons beyond
our control, these services may sometimes be unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or the Internet are genuine. For example, we will
require certain personal identification information before we will act on
telephone or Internet instructions and we will provide written confirmation of
your transfers. If we do not employ reasonable procedures to confirm the
genuineness of telephone or Internet instructions, we may be liable for any
losses arising out of any act or omission that constitutes negligence, lack of
good faith, or willful misconduct. In light of our procedures, we will not be
liable for following telephone or Internet instructions we reasonably believe
to be genuine.
We reserve the right to limit access to these services if we determine that you
engaged in a disruptive transfer activity, such as "market timing" (see
"Disruptive transfer activity" in "Transferring your money among investment
options" later in this Prospectus).
- -------------------------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVE:
- -------------------------------------------------------------------------------
You may also use our toll-free number (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
8 Who is AXA Equitable?
(2) conversion of a traditional IRA to a Roth Conversion IRA contract;
(3) election of the automatic investment program;
(4) election of the rebalancing program;
(5) requests for loans under Rollover TSA contracts;
(6) spousal consent for loans under Rollover TSA contracts;
(7) requests for withdrawals or surrenders from Rollover TSA contracts;
(8) tax withholding elections;
(9) election of the beneficiary continuation option;
(10) IRA contribution recharacterizations;
(11) certain Section 1035 exchanges;
(12) direct transfers;
(13) exercise of the Guaranteed minimum income benefit;
(14) requests to step up your Guaranteed withdrawal benefit ("GWB") benefit
base under the Optional step up provision;
(15) requests to terminate or reinstate your Guaranteed withdrawal benefit
under the Beneficiary continuation option, if applicable;
(16) death claims; and
(17) change in ownership (NQ only).
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between investment options;
(4) contract surrender and withdrawal requests;
(5) general dollar cost averaging (including the fixed dollar and interest
sweep options); and
(6) special dollar cost averaging.
TO CANCEL OR CHANGE ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) automatic investment program;
(2) general dollar cost averaging (including the fixed dollar and interest
sweep options);
(3) rebalancing;
(4) special dollar cost averaging;
(5) substantially equal withdrawals;
(6) systematic withdrawals; and
(7) the date annuity payments are to begin.
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us to
take.
SIGNATURES:
The proper person to sign forms, notices and requests
would normally be the owner. If there are joint owners
all must sign.
Who is AXA Equitable? 9
Accumulator(R) Elite((SM)) at a glance -- key features
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Professional investment Accumulator(R) Elite(SM)'s variable investment options invest in different portfolios managed by
management professional investment advisers.
- -----------------------------------------------------------------------------------------------------------------------------------
Fixed maturity options o Fixed maturity options with maturities ranging from approximately 1 to 10 years (subject to
availability).
o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to
maturity.
o Special 10 year fixed maturity option (available under Guaranteed principal benefit option 2
only).
------------------------------------------------------------------------------------------------------
If you make withdrawals or transfers from a fixed maturity option before maturity, there will be
a market value adjustment due to differences in interest rates. If you withdraw or transfer only
a portion of a fixed maturity amount, this may increase or decrease any value that you have left
in that fixed maturity option. If you surrender your contract, a market value adjustment also
applies.
- -----------------------------------------------------------------------------------------------------------------------------------
Guaranteed interest o Principal and interest guarantees.
option
o Interest rates set periodically.
- -----------------------------------------------------------------------------------------------------------------------------------
Account for special dollar Available for dollar cost averaging all or a portion of any eligible contribution to your
cost averaging contract.
- -----------------------------------------------------------------------------------------------------------------------------------
Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or
receive annuity payments.
o No tax on transfers among investment options inside the contract.
------------------------------------------------------------------------------------------------------
If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA) or Tax Sheltered
Annuity (TSA) or to fund an employer retirement plan (QP or Qualified Plan), you should be aware that
such annuities do not provide tax deferral benefits beyond those already provided by the Internal
Revenue Code. Before purchasing one of these annuities, you should consider whether its features and
benefits beyond tax deferral meet your needs and goals. You may also want to consider the relative
features, benefits and costs of these annuities compared with any other investment that you may use in
connection with your retirement plan or arrangement. Depending on your personal situation, the
contract's guaranteed benefits may have limited usefulness because of required minimum distributions
("RMDs").
- -----------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum The Guaranteed minimum income benefit provides income protection for you during the annuitant's
income benefit life once you elect to annuitize the contract.
- -----------------------------------------------------------------------------------------------------------------------------------
Principal Protector(SM) Principal Protector(SM) is our optional Guaranteed withdrawal benefit ("GWB"), which provides for
recovery of your total contributions through withdrawals, even if your account value falls to zero,
provided that during each contract year, your total withdrawals do not exceed a specified amount.
- -----------------------------------------------------------------------------------------------------------------------------------
Contribution amounts o Initial minimum: $10,000
o Additional minimum: $500 (NQ, QP and Rollover TSA contracts)
$100 monthly and $300 quarterly under our automatic investment program
(NQ contracts)
$1,000 (Inherited IRA contracts)
$50 (IRA contracts)
Maximum contribution limitations may apply. In general, contributions are limited to $1.5
million ($500,000 for owners or annuitants who are age 81 and older at contract issue).
- -----------------------------------------------------------------------------------------------------------------------------------
10 Accumulator(R) Elite(SM) at a glance -- key features
- -----------------------------------------------------------------------------------------------------------------------------------
Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Loans under Rollover TSA contracts
o Contract surrender
You may incur a withdrawal charge for certain withdrawals or if you surrender your contract. You may
also incur income tax and a tax penalty.
- -----------------------------------------------------------------------------------------------------------------------------------
Payout options o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout options
- -----------------------------------------------------------------------------------------------------------------------------------
Additional features o Guaranteed minimum death benefit options
o Guaranteed principal benefit options
o Dollar cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually, and annually)
o Free transfers
o Waiver of withdrawal charge for disability, terminal illness, confinement to a nursing home and certain
other withdrawals
o Protection Plus(SM), an optional death benefit available under certain contracts
o Spousal protection
o Successor owner/annuitant
o Beneficiary continuation option
- -----------------------------------------------------------------------------------------------------------------------------------
Fees and charges o Daily charges on amounts invested in the variable investment options for mortality and expense risks,
administrative charges, and distribution charges at an annual rate of 1.65%.
o The charges for the Guaranteed minimum death benefits range from 0.0% to 0.60%, annually, of the
applicable benefit base. The benefit base is described under "Your Guaranteed minimum death
benefit and Guaranteed minimum income benefit base" in "Contract features and benefits" later in
this Prospectus.
o Annual 0.65% of the applicable benefit base charge for the optional Guaranteed minimum income benefit
until you exercise the benefit, elect another annuity payout option, or the contract date
anniversary after the annuitant reaches age 85, whichever occurs first. The benefit base is described under
"Your Guaranteed minimum death benefit and Guaranteed minimum income benefit base" in "Contract
features and benefits" later in this Prospectus.
o An annual charge for the optional Guaranteed principal benefit option 2 deducted on the first 10 contract
date anniversaries equal to 0.50% of the account value.
o If your account value at the end of the contract year is less than $50,000, we deduct an annual
administrative charge equal to $30, or during the first two contract years, 2% of your account value, if
less. If your account value is, on the contract date anniversary, $50,000 or more, we will not deduct the
charge.
o An annual charge of 0.35% of the account value for the Protection Plus(SM) optional death benefit.
o An annual charge of 0.35% of account value for the 5% GWB Annual withdrawal option or 50% of
account value for the 7% GWB Annual withdrawal option for
the optional Principal Protector(SM) benefit. If you "step up" your GWB benefit base, we reserve the right
to raise the charge up to 0.60% and 0.80%, respectively. See "Principal Protector(SM) " in "Contract
features and benefits" later in this Prospectus.
o No sales charge deducted at the time you make contributions. During the first four contract years following
a contribution, a charge of up to 8% will be deducted from amounts that you withdraw that exceed 10% of
your account value. We use the account value at the beginning of each contract year to calculate the 10%
amount available. There is no withdrawal charge in the fifth and later contract years following a
contribution. Certain exemptions may apply.
- -----------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) Elite(SM) at a glance-- key features 11
- ------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
The "contract date" is the effective date of a contract. This usually is the business day we receive
the properly completed and signed application, along with any other required documents, and your
initial contribution. Your contract date will be shown in your contract. The 12-month period beginning
on your contract date and each 12-month period after that date is a "contract year." The end of each
12-month period is your "contract date anniversary." For example, if your contract date is May 1, your
contract date anniversary is April 30.
------------------------------------------------------------------------------------------------------------
o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes
in your state. This charge is generally deducted from the amount applied to an annuity payout option.
o We deduct a $350 annuity administrative fee from amounts applied to the Variable Immediate Annuity
payout options.
o Annual expenses of the Trusts' portfolios are calculated as a percentage of the average daily net assets
invested in each portfolio. These expenses include management fees ranging from 0.10% to 1.50% annually,
12b-1 fees of either 0.25% or 0.35% annually and other expenses.
- -----------------------------------------------------------------------------------------------------------------------------------
Annuitant issue ages NQ: 0-85
Rollover IRA, Roth Conversion
IRA and Rollover TSA: 20-85
Inherited IRA: 0-70
QP: 20-75
- -----------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the
contract. In some cases, restrictions or exceptions apply. Also, all features
of the contract are not necessarily available in your state or at certain ages.
Please see Appendix VIII later in this Prospectus for more information on state
availability and/or variations of certain features and benefits.
For more detailed information, we urge you to read the contents of this
Prospectus, as well as your contract. Please feel free to speak with your
financial professional, or call us, if you have any questions.
Other contracts
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, credits, fees and/or charges that are
different from those in the contracts offered by this Prospectus. Not every
contract is offered through the same distributor. At their sole discretion,
some distributors may eliminate and/or limit the availability of certain
features or options, as well as limit the availability of the contracts, based
on annuitant issue age or other criteria. Upon request, your financial
professional can show you information regarding other AXA Equitable annuity
contracts that he or she distributes. You can also contact us to find out more
about any of the AXA Equitable annuity contracts.
12 Accumulator(R) Elite(SM) at a glance -- key features
Fee table
- --------------------------------------------------------------------------------
The following tables describe the fees and expenses that you will pay when
buying, owning, and surrendering the contract. Each of the charges and expenses
is more fully described in "Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay at the time that
you surrender the contract or if you make certain withdrawals or apply your
cash value to certain payout options or if you purchase a Variable Immediate
Annuity. Charges designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state, may also apply. Charges for certain
features shown in the fee table are mutually exclusive.
- -----------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value at the time you request certain transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Maximum withdrawal charge as a percentage of contributions with-
drawn (deducted if you surrender your contract or make certain
withdrawals or apply your cash value to certain payout options).(1) 8.00%
Charge if you elect a Variable Immediate Annuity payout option $350
- -----------------------------------------------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically
during the time that you own the contract, not including the
underly-ing trust portfolio fees and expenses.
- -----------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets
- -----------------------------------------------------------------------------------------------------------------------------------
Mortality and expense risks 1.10%
Administrative 0.30%
Distribution 0.25%
----
Total annual expenses 1.65%
- -----------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value on each contract date anniversary
- -----------------------------------------------------------------------------------------------------------------------------------
Maximum annual administrative charge(3)
If your account value on a contract date anniversary is less than
$50,000(2) $ 30
If your account value on a contract date anniversary is $50,000
or more $ 0
- -----------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value each year if you elect the optional benefit
- -----------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum death benefit charge (calculated as a
percentage of the applicable benefit base. Deducted annually(3) on
each contract date anniversary for which the benefit is in effect.)
Standard death benefit 0.00%
Annual Ratchet to age 85 0.25% of the Annual Ratchet to age 85 benefit base
Greater of 6% Roll up to age 85 or Annual Ratchet to age 85 0.60% of the greater of 6% Roll up to age 85
benefit base or the Annual Ratchet to age 85
benefit base, as applicable
- -----------------------------------------------------------------------------------------------------------------------------------
Guaranteed principal benefit charge for option 2 (calculated as
a percentage of the account value. Deducted annually(3) on the first 10
contract date anniversaries.) 0.50%
- -----------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum income benefit charge (calculated as a
percentage of the applicable benefit base. Deducted annually(3) on each
contract date anniversary for which the benefit is in effect.) 0.65%
- -----------------------------------------------------------------------------------------------------------------------------------
Protection Plus(SM) benefit charge (calculated as a percentage of
the account value. Deducted annually(3) on each contract date anniver-
sary for which the benefit is in effect.) 0.35%
- -----------------------------------------------------------------------------------------------------------------------------------
Fee table 13
- ------------------------------------------------------------------------------------------------------------------------------------
Principal Protector(SM) benefit charge(3) (calculated as a percentage 0.35% for the 5% GWB
of the account value. Deducted annually on each contract date anniver- Annual withdrawal option
sary, provided your GWB benefit base is greater than zero.) 0.50% for the 7% GWB
Annual withdrawal option
If you "step up" your GWB benefit base, we reserve the right to 0.60% for the 5% GWB
increase your charge up to: Annual withdrawal option
0.80% for the 7% GWB
Annual withdrawal option
Please see "Principal Protector(SM)" in "Contract features and benefits" for more information about this feature, including its
benefit base and the Optional step up provision, and "Principal Protector(SM) charge" in "Charges and expenses," both later in this
Prospectus, for more information about when the charge applies.
- ------------------------------------------------------------------------------------------------------------------------------------
Net loan interest charge - Rollover TSA contracts only (calcu-
lated and deducted daily as a percentage of the outstanding loan amount) 2.00%(4)
- ------------------------------------------------------------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net
asset value each day. Therefore, they reduce the investment return of the
Portfolio and the related variable investment option. Actual fees and expenses
are likely to fluctuate from year to year. More detail concerning each
Portfolio's fees and expenses is contained in the Trust prospectus for the
Portfolio.
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2004 (expenses that are deducted Lowest Highest
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ------ -------
other expenses)(5) 0.55% 7.61%
This table shows the fees and exenses for 2004 as as annual percentage of each Portfolio's daily net assets.
- -----------------------------------------------------------------------------------------------------------------------------------
Total
Annual Fee Waivers Net Annual
Underlying Expenses and/or Expenses
Manage- Portfolio (Before Expense After
ment 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name Fees(6) Fees(7) Expenses(8) Expenses(9) Limitation) ments(10) Limitations
- -----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST -- -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 0.29% 0.99% 1.63% (0.29)% 1.34%
AXA Conservative Allocation 0.10% 0.25% 0.41% 0.75% 1.51% (0.41)% 1.10%
AXA Conservative-Plus Allocation 0.10% 0.25% 0.30% 0.80% 1.45% (0.30)% 1.15%
AXA Moderate Allocation 0.10% 0.25% 0.16% 0.83% 1.34% (0.16)% 1.18%
AXA Moderate-Plus Allocation 0.10% 0.25% 0.20% 1.02% 1.57% (0.20)% 1.37%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.18% -- 1.05% -- 1.05%
AXA Premier VIP Core Bond 0.60% 0.25% 0.20% -- 1.05% (0.10)% 0.95%
AXA Premier VIP Health Care 1.20% 0.25% 0.40% -- 1.85% 0.00% 1.85%
AXA Premier VIP High Yield 0.58% 0.25% 0.18% -- 1.01% -- 1.01%
AXA Premier VIP International Equity 1.05% 0.25% 0.50% -- 1.80% 0.00% 1.80%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.32% -- 1.47% (0.12)% 1.35%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.26% -- 1.41% (0.06)% 1.35%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.25% -- 1.40% (0.05)% 1.35%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.25% -- 1.60% 0.00% 1.60%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.25% -- 1.60% 0.00% 1.60%
AXA Premier VIP Technology 1.20% 0.25% 0.40% -- 1.85% 0.00% 1.85%
- -----------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.47% 0.25% 0.05% -- 0.77% -- 0.77%
EQ/Alliance Growth and Income 0.56% 0.25% 0.05% -- 0.86% -- 0.86%
EQ/Alliance Intermediate Government Securities 0.50% 0.25% 0.06% -- 0.81% -- 0.81%
EQ/Alliance International 0.73% 0.25% 0.12% -- 1.10% 0.00% 1.10%
EQ/Alliance Large Cap Growth* 0.90% 0.25% 0.05% -- 1.20% (0.10)% 1.10%
EQ/Alliance Quality Bond 0.50% 0.25% 0.06% -- 0.81% -- 0.81%
- -----------------------------------------------------------------------------------------------------------------------------------
14 Fee table
This table shows the fees and exenses for 2004 as an annual percentage of each
Portfolio's daily average net assets.
- -------------------------------------------------------------------------------
Total Fee Waiv- Net Total
Annual ers Annual
Underlying Expenses and/or Expenses
Manage- Portfolio (Before Expense After
ment 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name Fees(6) Fees(7) Expenses(8) Expenses(9) Limitation) ments(10) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.06% -- 1.06% -- 1.06%
EQ/Bear Stearns Small Company Growth* 1.00% 0.25% 0.18% -- 1.43% (0.13)% 1.30%
EQ/Bernstein Diversified Value 0.63% 0.25% 0.07% -- 0.95% 0.00% 0.95%
EQ/Boston Advisors Equity Income* 0.75% 0.25% 0.21% -- 1.21% (0.16)% 1.05%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.29% -- 1.19% (0.14)% 1.05%
EQ/Capital Guardian Growth 0.65% 0.25% 0.09% -- 0.99% (0.04)% 0.95%
EQ/Capital Guardian International 0.85% 0.25% 0.17% -- 1.27% (0.07)% 1.20%
EQ/Capital Guardian Research 0.65% 0.25% 0.05% -- 0.95% 0.00% 0.95%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.05% -- 0.95% 0.00% 0.95%
EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.12% -- 0.97% (0.12)% 0.85%
EQ/Equity 500 Index 0.25% 0.25% 0.05% -- 0.55% -- 0.55%
EQ/Evergreen Omega 0.65% 0.25% 0.11% -- 1.01% (0.06)% 0.95%
EQ/FI Mid Cap 0.70% 0.25% 0.06% -- 1.01% (0.01)% 1.00%
EQ/FI Small/Mid Cap Value 0.74% 0.25% 0.08% -- 1.07% 0.00% 1.07%
EQ/International Growth 0.85% 0.25% 0.22% -- 1.32% 0.00% 1.32%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.06% -- 0.75% 0.00% 0.75%
EQ/JP Morgan Value Opportunities 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.08% -- 1.23% (0.08)% 1.15%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.05% -- 1.05% 0.00% 1.05%
EQ/Long Term Bond 0.50% 0.25% 0.25% -- 1.00% 0.00% 1.00%
EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.19% -- 1.14% (0.09)% 1.05%
EQ/Marsico Focus 0.88% 0.25% 0.06% -- 1.19% (0.04)% 1.15%
EQ/Mercury Basic Value Equity 0.58% 0.25% 0.05% -- 0.88% 0.00% 0.88%
EQ/Mercury International Value 0.85% 0.25% 0.15% -- 1.25% 0.00% 1.25%
EQ/Mergers and Acquisitions 0.90% 0.25% 1.21% -- 2.36% (0.91)% 1.45%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.06% -- 0.96% -- 0.96%
EQ/MFS Investors Trust 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Money Market 0.34% 0.25% 0.05% -- 0.64% -- 0.64%
EQ/Montag & Caldwell Growth* 0.75% 0.25% 0.12% -- 1.12% 0.00% 1.12%
EQ/PIMCO Real Return 0.55% 0.25% 0.20% -- 1.00% (0.35)% 0.65%
EQ/Short Duration Bond 0.45% 0.25% 0.52% -- 1.22% (0.57)% 0.65%
EQ/Small Company Index 0.25% 0.25% 0.13% -- 0.63% 0.00% 0.63%
EQ/Small Company Value* 0.80% 0.25% 0.12% -- 1.17% 0.00% 1.17%
EQ/TCW Equity* 0.80% 0.25% 0.12% -- 1.17% (0.02)% 1.15%
EQ/UBS Growth and Income* 0.75% 0.25% 0.16% -- 1.16% (0.11)% 1.05%
EQ/Van Kampen Comstock 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Van Kampen Emerging Markets Equity* 1.15% 0.25% 0.40% -- 1.80% 0.00% 1.80%
EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.19% -- 1.14% (0.09)% 1.05%
EQ/Wells Fargo Montgomery Small Cap 0.85% 0.25% 6.51% -- 7.61% (6.33)% 1.28%
- ------------------------------------------------------------------------------- ----------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------- ----------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity 1.50% 0.25% 2.35% -- 4.10% (0.96)% 3.14%
- ------------------------------------------------------------------------------- ----------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------- ----------------------------------------------
U.S. Real Estate - Class II** 0.76% 0.35% 0.26% -- 1.37% (0.10)% 1.27%
* This is the option's new name, effective on or about May 9, 2005, subject to
regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former name.
** Expense information has been restored to reflect current fees in effect as of
November 1, 2004.
Notes:
(1) Deducted upon a withdrawal of amounts in excess of the 10% free withdrawal
amount, if applicable
Fee table 15
The withdrawal charge percentage we use is determined by the contract year in which you Contract
make the withdrawal or surrender your contract. For each contribution, we consider the Year
contract year in which we receive that contribution to be "contract year 1") 1.........................8.00%
2.........................7.00%
3.........................6.00%
4.........................5.00%
5+........................0.00%
(2) During the first two contract years this charge, if applicable, is equal to
the lesser of $30 or 2% of your account value. Thereafter, if applicable,
the charge is $30 for each contract year
(3) If the contract is surrendered or annuitized or a death benefit is paid on
any date other than the contract date anniversary, we will deduct a pro
rata portion of the charge for that year. For Principal Protector(SM) only,
if the contract and benefit is continued under the Beneficiary continuation
option with Principal Protector(SM), the pro rata deduction for the
Principal Protector(SM) charge is waived.
(4) We charge interest on loans under Rollover TSA contracts but also credit
you interest on your loan reserve account. Our net loan interest charge is
determined by the excess between the interest rate we charge over the
interest rate we credit. See "Loans under Rollover TSA contracts" later in
this Prospectus for more information on how the loan interest is calculated
and for restrictions that may apply.
(5) "Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2004 and for the
underlying portfolios.
(6) The management fees for each Portfolio cannot be increased without a
vote of that Portfolio's shareholders. See footnote (10) for any expense
limitation agreement information.
(7) Portfolio shares are all subject to fees imposed under the distribution
plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1
under the Investment Company Act of 1940. The 12b-1 fee will not be
increased for the life of the contracts.
(8) Other expenses shown are those incurred in 2004. The amounts shown as
"Other Expenses" will fluctuate from year to year depending on actual
expenses. See footnote (10) for any expense limitation agreement
information.
(9) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and AXA
Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolio's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocations
as of 12/31/04. A "--" indicates that the listed portfolio does not invest
in underlying portfolios, i.e., it is not an allocation portfolio.
(10) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A"--" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver or reimbursement. AXA Equitable,
the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has
entered into Expense Limitation Agreements with respect to certain
Portfolios, which are effective through April 30, 2006. Under these
agreements AXA Equitable has agreed to waive or limit its fees and assume
other expenses of certain Portfolios, if necessary, in an amount that
limits each affected Portfolio's total Annual Expenses (exclusive of
interest, taxes, brokerage commissions, capitalized expenditures and
extraordinary expenses) to not more than specified amounts. Therefore, each
Portfolio may at a later date make a reimbursement to AXA Equitable for any
of the management fees waived or limited and other expenses assumed and
paid by AXA Equitable pursuant to the expense limitation agreement provided
that the Portfolio's current annual operating expenses do not exceed the
operating expense limit determined for such Portfolio. Morgan Stanley
Investment Management Inc., which does business in certain instances as
"Van Kampen," is the manager of the Universal Institutional Funds, Inc. --
U.S. Real Estate Portfolio -- Class II and has voluntarily agreed to reduce
its management fee and/or reimburse the Portfolio so that total annual
operating expenses of the Portfolio (exclusive of investment related
expenses, such as foreign country tax expense and interest expense on
amounts borrowed) are not more than specified amounts. Additionally, the
distributor of The Universal Institutional Funds, Inc. has agreed to waive
a portion of the 12b-1 fee for Class II shares. Van Kampen and/or the
fund's distributor reserves the right to terminate any waiver and/or
reimbursement at any time without notice. Charles Schwab Investment
Management, Inc., the manager of the Laudus Variable Insurance Trust --
Laudus Rosenberg VIT Value Long/Short Equity Portfolio has voluntarily
agreed to reimburse expenses in excess of specified amounts. See this
Prospectus for each applicable underlying Trust for more information about
the arrangements. In addition, a portion of the brokerage commissions of
certain Portfolios of EQ Advisors Trust Portfolio and AXA Premier VIP Trust
portfolio is used to reduce the applicable Portfolio's expenses. If the
above table reflected both the expense limitation arrangements plus the
portion of the brokerage commissions used to reduce portfolio expenses, the
net expenses would be as shown in the table below:
- ------------------------------------------------
Portfolio Name
- ------------------------------------------------
AXA Moderate Allocation 1.17%
- ------------------------------------------------
AXA Premier VIP Aggressive Equity 0.93%
- ------------------------------------------------
AXA Premier VIP Health Care 1.81%
- ------------------------------------------------
AXA Premier VIP International Equity 1.75%
- ------------------------------------------------
AXA Premier VIP Large Cap Core Equity 1.32%
- ------------------------------------------------
AXA Premier VIP Large Cap Growth 1.30%
- ------------------------------------------------
AXA Premier VIP Large Cap Value 1.21%
- ------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth 1.50%
- ------------------------------------------------
AXA Premier VIP Small/Mid Cap Value 1.54%
- ------------------------------------------------
AXA Premier VIP Technology 1.75%
- ------------------------------------------------
EQ/Alliance Common Stock 0.68%
- ------------------------------------------------
EQ/Alliance Growth and Income 0.80%
- ------------------------------------------------
EQ/Alliance International 1.08%
- ------------------------------------------------
EQ/Alliance Large Cap Growth 1.04%
- ------------------------------------------------
EQ/Alliance Small Cap Growth 0.98%
- ------------------------------------------------
EQ/Calvert Socially Responsible 1.00%
- ------------------------------------------------
EQ/Capital Guardian Growth 0.67%
- ------------------------------------------------
EQ/Capital Guardian International 1.17%
- ------------------------------------------------
EQ/Capital Guardian Research 0.90%
- ------------------------------------------------
EQ/Capital Guardian U.S. Equity 0.93%
- ------------------------------------------------
EQ/Evergreen Omega 0.57%
- ------------------------------------------------
EQ/FI Mid Cap 0.96%
- ------------------------------------------------
EQ/FI Small/Mid Cap Value 1.05%
- ------------------------------------------------
EQ/JP Morgan Value Opportunities 0.76%
- ------------------------------------------------
EQ/Lazard Small Cap Value 0.86%
- ------------------------------------------------
EQ/Marsico Focus 1.12%
- ------------------------------------------------
EQ/Mercury Basic Value Equity 0.86%
- ------------------------------------------------
EQ/Mercury International Value 1.18%
- ------------------------------------------------
EQ/MFS Emerging Growth Companies 0.91%
- ------------------------------------------------
16 Fee table
- --------------------------------------------------
Portfolio Name
- --------------------------------------------------
EQ/MFS Investors Trust 0.91%
- ------------------------------------------------
EQ/Small Company Value 1.16%
- ------------------------------------------------
EQ/TCW Equity 1.14%
- ------------------------------------------------
EQ/Van Kampen Emerging Markets Equity 1.75%
- ------------------------------------------------
EQ/Wells Fargo Montgomery Small Cap 1.26%
- ------------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses).
The example below shows the expenses that a hypothetical contract owner (who
has elected the Guaranteed minimum income benefit with the enhanced death
benefit that provides for the greater of the 6% Roll up to age 85 or the Annual
Ratchet to age 85 and Protection Plus) would pay in the situations illustrated.
The annual administrative charge is based on the charges that apply to a mix of
estimated contract sizes, resulting in an estimated administrative charge for
the purpose of these examples of $1.10 per $10,000.
The fixed maturity options, guaranteed interest option and the account for
special dollar cost averaging are not covered by the fee table and examples.
However, the annual administrative charge, the withdrawal charge, the charge
for any optional benefits and the charge if you elect a Variable Immediate
Annuity payout option do apply to the fixed maturity options, guaranteed
interest option and the account for special dollar cost averaging. A market
value adjustment (up or down) may apply as a result of a withdrawal, transfer,
or surrender of amounts from a fixed maturity option.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes that your investment has a 5%
return each year. This example should not be considered a representation of
past or future expenses for each option. Actual expenses may be greater or less
than those shown. Similarly, the annual rate of return assumed in the example
is not an estimate or guarantee of future investment performance.
Although your actual costs may be higher or lower, based on these assumptions,
your costs would be:
Fee table 17
- ----------------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of the applicable time period
--------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ---------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,314.76 $ 2,166.61 $ 2,649.37 $ 5,501.47
AXA Conservative Allocation $ 1,302.16 $ 2,130.29 $ 2,591.38 $ 5,399.24
AXA Conservative-Plus Allocation $ 1,295.87 $ 2,112.09 $ 2,562.27 $ 5,347.63
AXA Moderate Allocation $ 1,284.11 $ 2,078.05 $ 2,507.72 $ 5,250.40
AXA Moderate-Plus Allocation $ 1,308.46 $ 2,148.46 $ 2,620.41 $ 5,450.52
AXA Premier VIP Aggressive Equity $ 1,253.87 $ 1,990.15 $ 2,366.20 $ 4,994.97
AXA Premier VIP Core Bond $ 1,253.87 $ 1,990.15 $ 2,366.20 $ 4,994.97
AXA Premier VIP Health Care $ 1,337.86 $ 2,232.97 $ 2,754.89 $ 5,685.49
AXA Premier VIP High Yield $ 1,249.67 $ 1,977.90 $ 2,346.40 $ 4,958.87
AXA Premier VIP International Equity $ 1,332.61 $ 2,217.91 $ 2,731.00 $ 5,644.05
AXA Premier VIP Large Cap Core Equity $ 1,297.96 $ 2,118.16 $ 2,571.98 $ 5,364.87
AXA Premier VIP Large Cap Growth $ 1,291.67 $ 2,099.94 $ 2,542.82 $ 5,313.04
AXA Premier VIP Large Cap Value $ 1,290.62 $ 2,096.90 $ 2,537.95 $ 5,304.37
AXA Premier VIP Small/Mid Cap Growth $ 1,311.61 $ 2,157.54 $ 2,634.90 $ 5,476.04
AXA Premier VIP Small/Mid Cap Value $ 1,311.61 $ 2,157.54 $ 2,634.90 $ 5,476.04
AXA Premier VIP Technology $ 1,337.86 $ 2,232.97 $ 2,754.89 $ 5,685.49
- ---------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ---------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 1,224.47 $ 1,904.18 $ 2,226.88 $ 4,739.01
EQ/Alliance Growth and Income $ 1,233.92 $ 1,931.87 $ 2,271.85 $ 4,822.11
EQ/Alliance Intermediate Government Securities $ 1,228.67 $ 1,916.49 $ 2,246.89 $ 4,776.04
EQ/Alliance International $ 1,259.12 $ 2,005.45 $ 2,390.90 $ 5,039.88
EQ/Alliance Large Cap Growth* $ 1,269.62 $ 2,036.00 $ 2,440.13 $ 5,128.99
EQ/Alliance Quality Bond $ 1,228.67 $ 1,916.49 $ 2,246.89 $ 4,776.04
EQ/Alliance Small Cap Growth $ 1,254.92 $ 1,993.22 $ 2,371.14 $ 5,003.97
EQ/Bear Stearns Small Company Growth* $ 1,293.77 $ 2,106.01 $ 2,552.55 $ 5,330.36
EQ/Bernstein Diversified Value $ 1,243.37 $ 1,959.51 $ 2,316.64 $ 4,904.43
EQ/Boston Advisors Equity Income* $ 1,270.67 $ 2,039.05 $ 2,445.04 $ 5,137.85
EQ/Calvert Socially Responsible $ 1,268.57 $ 2,032.95 $ 2,435.22 $ 5,120.12
EQ/Capital Guardian Growth $ 1,247.57 $ 1,971.77 $ 2,336.49 $ 4,940.76
EQ/Capital Guardian International $ 1,276.97 $ 2,057.35 $ 2,474.47 $ 5,190.80
EQ/Capital Guardian Research $ 1,243.37 $ 1,959.51 $ 2,316.64 $ 4,904.43
EQ/Capital Guardian U.S. Equity $ 1,243.37 $ 1,959.51 $ 2,316.64 $ 4,904.43
EQ/Caywood-Scholl High Yield Bond $ 1,245.47 $ 1,965.64 $ 2,326.57 $ 4,922.61
EQ/Equity 500 Index $ 1,201.38 $ 1,836.26 $ 2,116.20 $ 4,532.51
EQ/Evergreen Omega $ 1,249.67 $ 1,977.90 $ 2,346.40 $ 4,958.87
EQ/FI Mid Cap $ 1,249.67 $ 1,977.90 $ 2,346.40 $ 4,958.87
EQ/FI Small/Mid Cap Value $ 1,255.97 $ 1,996.28 $ 2,376.09 $ 5,012.96
EQ/International Growth $ 1,282.22 $ 2,072.57 $ 2,498.93 $ 5,234.67
EQ/J.P. Morgan Core Bond $ 1,222.37 $ 1,898.01 $ 2,216.86 $ 4,720.44
EQ/JP Morgan Value Opportunities $ 1,243.37 $ 1,959.51 $ 2,316.64 $ 4,904.43
EQ/Janus Large Cap Growth $ 1,272.77 $ 2,045.15 $ 2,454.86 $ 5,155.53
EQ/Lazard Small Cap Value $ 1,253.87 $ 1,990.15 $ 2,366.20 $ 4,994.97
- ---------------------------------------------------------------------------------------------------------
If you do
not surrender
your contract
at the end
of the
If you annuitize at the end applicable
of the applicable time period time period
-----------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 864.76 $ 1,916.61 $ 2,999.37 $ 5,851.47
AXA Conservative Allocation $ 852.16 $ 1,880.29 $ 2,941.38 $ 5,749.24
AXA Conservative-Plus Allocation $ 845.87 $ 1,862.09 $ 2,912.27 $ 5,697.63
AXA Moderate Allocation $ 834.11 $ 1,828.05 $ 2,857.72 $ 5,600.40
AXA Moderate-Plus Allocation $ 858.46 $ 1,898.46 $ 2,970.41 $ 5,800.52
AXA Premier VIP Aggressive Equity $ 803.87 $ 1,740.15 $ 2,716.20 $ 5,344.97
AXA Premier VIP Core Bond $ 803.87 $ 1,740.15 $ 2,716.20 $ 5,344.97
AXA Premier VIP Health Care $ 887.86 $ 1,982.97 $ 3,104.89 $ 6,035.49
AXA Premier VIP High Yield $ 799.67 $ 1,727.90 $ 2,696.40 $ 5,308.87
AXA Premier VIP International Equity $ 882.61 $ 1,967.91 $ 3,081.00 $ 5,994.05
AXA Premier VIP Large Cap Core Equity $ 847.96 $ 1,868.16 $ 2,921.98 $ 5,714.87
AXA Premier VIP Large Cap Growth $ 841.67 $ 1,849.94 $ 2,892.82 $ 5,663.04
AXA Premier VIP Large Cap Value $ 840.62 $ 1,846.90 $ 2,887.95 $ 5,654.37
AXA Premier VIP Small/Mid Cap Growth $ 861.61 $ 1,907.54 $ 2,984.90 $ 5,826.04
AXA Premier VIP Small/Mid Cap Value $ 861.61 $ 1,907.54 $ 2,984.90 $ 5,826.04
AXA Premier VIP Technology $ 887.86 $ 1,982.97 $ 3,104.89 $ 6,035.49
- ----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 774.47 $ 1,654.18 $ 2,576.88 $ 5,089.01
EQ/Alliance Growth and Income $ 783.92 $ 1,681.87 $ 2,621.85 $ 5,172.11
EQ/Alliance Intermediate Government Securities $ 778.67 $ 1,666.49 $ 2,596.89 $ 5,126.04
EQ/Alliance International $ 809.12 $ 1,755.45 $ 2,740.90 $ 5,389.88
EQ/Alliance Large Cap Growth* $ 819.62 $ 1,786.00 $ 2,790.13 $ 5,478.99
EQ/Alliance Quality Bond $ 778.67 $ 1,666.49 $ 2,596.89 $ 5,126.04
EQ/Alliance Small Cap Growth $ 804.92 $ 1,743.22 $ 2,721.14 $ 5,353.97
EQ/Bear Stearns Small Company Growth* $ 843.77 $ 1,856.01 $ 2,902.55 $ 5,680.36
EQ/Bernstein Diversified Value $ 793.37 $ 1,709.51 $ 2,666.64 $ 5,254.43
EQ/Boston Advisors Equity Income* $ 820.67 $ 1,789.05 $ 2,795.04 $ 5,487.85
EQ/Calvert Socially Responsible $ 818.57 $ 1,782.95 $ 2,785.22 $ 5,470.12
EQ/Capital Guardian Growth $ 797.57 $ 1,721.77 $ 2,686.49 $ 5,290.76
EQ/Capital Guardian International $ 826.97 $ 1,807.35 $ 2,824.47 $ 5,540.80
EQ/Capital Guardian Research $ 793.37 $ 1,709.51 $ 2,666.64 $ 5,254.43
EQ/Capital Guardian U.S. Equity $ 793.37 $ 1,709.51 $ 2,666.64 $ 5,254.43
EQ/Caywood-Scholl High Yield Bond $ 795.47 $ 1,715.64 $ 2,676.57 $ 5,272.61
EQ/Equity 500 Index $ 751.38 $ 1,586.26 $ 2,466.20 $ 4,882.51
EQ/Evergreen Omega $ 799.67 $ 1,727.90 $ 2,696.40 $ 5,308.87
EQ/FI Mid Cap $ 799.67 $ 1,727.90 $ 2,696.40 $ 5,308.87
EQ/FI Small/Mid Cap Value $ 805.97 $ 1,746.28 $ 2,726.09 $ 5,362.96
EQ/International Growth $ 832.22 $ 1,822.57 $ 2,848.93 $ 5,584.67
EQ/J.P. Morgan Core Bond $ 772.37 $ 1,648.01 $ 2,566.86 $ 5,070.44
EQ/JP Morgan Value Opportunities $ 793.37 $ 1,709.51 $ 2,666.64 $ 5,254.43
EQ/Janus Large Cap Growth $ 822.77 $ 1,795.15 $ 2,804.86 $ 5,505.53
EQ/Lazard Small Cap Value $ 803.87 $ 1,740.15 $ 2,716.20 $ 5,344.97
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end
of the applicable time period
Portfolio Name 1 year 3 years 5 years 10 years
- --------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- --------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 514.76 $ 1,566.61 $ 2,649.37 $ 5,501.47
AXA Conservative Allocation $ 502.16 $ 1,530.29 $ 2,591.38 $ 5,399.24
AXA Conservative-Plus Allocation $ 495.87 $ 1,512.09 $ 2,562.27 $ 5,347.63
AXA Moderate Allocation $ 484.11 $ 1,478.05 $ 2,507.72 $ 5,250.40
AXA Moderate-Plus Allocation $ 508.46 $ 1,548.46 $ 2,620.41 $ 5,450.52
AXA Premier VIP Aggressive Equity $ 453.87 $ 1,390.15 $ 2,366.20 $ 4,994.97
AXA Premier VIP Core Bond $ 453.87 $ 1,390.15 $ 2,366.20 $ 4,994.97
AXA Premier VIP Health Care $ 537.86 $ 1,632.97 $ 2,754.89 $ 5,685.49
AXA Premier VIP High Yield $ 449.67 $ 1,377.90 $ 2,346.40 $ 4,958.87
AXA Premier VIP International Equity $ 532.61 $ 1,617.91 $ 2,731.00 $ 5,644.05
AXA Premier VIP Large Cap Core Equity $ 497.96 $ 1,518.16 $ 2,571.98 $ 5,364.87
AXA Premier VIP Large Cap Growth $ 491.67 $ 1,499.94 $ 2,542.82 $ 5,313.04
AXA Premier VIP Large Cap Value $ 490.62 $ 1,496.90 $ 2,537.95 $ 5,304.37
AXA Premier VIP Small/Mid Cap Growth $ 511.61 $ 1,557.54 $ 2,634.90 $ 5,476.04
AXA Premier VIP Small/Mid Cap Value $ 511.61 $ 1,557.54 $ 2,634.90 $ 5,476.04
AXA Premier VIP Technology $ 537.86 $ 1,632.97 $ 2,754.89 $ 5,685.49
- --------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 424.47 $ 1,304.18 $ 2,226.88 $ 4,739.01
EQ/Alliance Growth and Income $ 433.92 $ 1,331.87 $ 2,271.85 $ 4,822.11
EQ/Alliance Intermediate Government Securities $ 428.67 $ 1,316.49 $ 2,246.89 $ 4,776.04
EQ/Alliance International $ 459.12 $ 1,405.45 $ 2,390.90 $ 5,039.88
EQ/Alliance Large Cap Growth* $ 469.62 $ 1,436.00 $ 2,440.13 $ 5,128.99
EQ/Alliance Quality Bond $ 428.67 $ 1,316.49 $ 2,246.89 $ 4,776.04
EQ/Alliance Small Cap Growth $ 454.92 $ 1,393.22 $ 2,371.14 $ 5,003.97
EQ/Bear Stearns Small Company Growth* $ 493.77 $ 1,506.01 $ 2,552.55 $ 5,330.36
EQ/Bernstein Diversified Value $ 443.37 $ 1,359.51 $ 2,316.64 $ 4,904.43
EQ/Boston Advisors Equity Income* $ 470.67 $ 1,439.05 $ 2,445.04 $ 5,137.85
EQ/Calvert Socially Responsible $ 468.57 $ 1,432.95 $ 2,435.22 $ 5,120.12
EQ/Capital Guardian Growth $ 447.57 $ 1,371.77 $ 2,336.49 $ 4,940.76
EQ/Capital Guardian International $ 476.97 $ 1,457.35 $ 2,474.47 $ 5,190.80
EQ/Capital Guardian Research $ 443.37 $ 1,359.51 $ 2,316.64 $ 4,904.43
EQ/Capital Guardian U.S. Equity $ 443.37 $ 1,359.51 $ 2,316.64 $ 4,904.43
EQ/Caywood-Scholl High Yield Bond $ 445.47 $ 1,365.64 $ 2,326.57 $ 4,922.61
EQ/Equity 500 Index $ 401.38 $ 1,236.26 $ 2,116.20 $ 4,532.51
EQ/Evergreen Omega $ 449.67 $ 1,377.90 $ 2,346.40 $ 4,958.87
EQ/FI Mid Cap $ 449.67 $ 1,377.90 $ 2,346.40 $ 4,958.87
EQ/FI Small/Mid Cap Value $ 455.97 $ 1,396.28 $ 2,376.09 $ 5,012.96
EQ/International Growth $ 482.22 $ 1,472.57 $ 2,498.93 $ 5,234.67
EQ/J.P. Morgan Core Bond $ 422.37 $ 1,298.01 $ 2,216.86 $ 4,720.44
EQ/JP Morgan Value Opportunities $ 443.37 $ 1,359.51 $ 2,316.64 $ 4,904.43
EQ/Janus Large Cap Growth $ 472.77 $ 1,445.15 $ 2,454.86 $ 5,155.53
EQ/Lazard Small Cap Value $ 453.87 $ 1,390.15 $ 2,366.20 $ 4,994.97
- --------------------------------------------------------------------------------------------------------
18 Fee table
If you surrender your contract at the end
of the applicable time period
- ------------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 1,248.62 $ 1,974.84 $ 2,341.45 $ 4,949.82
EQ/Lord Abbett Growth and Income $ 1,258.07 $ 2,002.40 $ 2,385.96 $ 5,030.92
EQ/Lord Abbett Large Cap Core $ 1,258.07 $ 2,002.40 $ 2,385.96 $ 5,030.92
EQ/Lord Abbett Mid Cap Value $ 1,263.32 $ 2,017.68 $ 2,410.62 $ 5,075.64
EQ/Marsico Focus $ 1,268.57 $ 2,032.95 $ 2,435.22 $ 5,120.12
EQ/Mercury Basic Value Equity $ 1,236.02 $ 1,938.01 $ 2,281.82 $ 4,840.47
EQ/Mercury International Value $ 1,274.87 $ 2,051.25 $ 2,464.67 $ 5,173.19
EQ/Mergers and Acquisitions $ 1,391.40 $ 2,385.58 $ 2,995.55 $ 6,095.60
EQ/MFS Emerging Growth Companies $ 1,244.42 $ 1,962.57 $ 2,321.61 $ 4,913.53
EQ/MFS Investors Trust $ 1,243.37 $ 1,959.51 $ 2,316.64 $ 4,904.43
EQ/Money Market $ 1,210.82 $ 1,864.08 $ 2,161.61 $ 4,617.57
EQ/Montag & Caldwell Growth* $ 1,261.22 $ 2,011.57 $ 2,400.76 $ 5,057.78
EQ/PIMCO Real Return $ 1,248.62 $ 1,974.84 $ 2,341.45 $ 4,949.82
EQ/Short Duration Bond $ 1,271.72 $ 2,042.10 $ 2,449.95 $ 5,146.69
EQ/Small Company Index $ 1,209.77 $ 1,860.99 $ 2,156.57 $ 4,608.15
EQ/Small Company Value* $ 1,266.47 $ 2,026.84 $ 2,425.38 $ 5,102.35
EQ/TCW Equity* $ 1,266.47 $ 2,026.84 $ 2,425.38 $ 5,102.35
EQ/UBS Growth and Income* $ 1,265.42 $ 2,023.79 $ 2,420.46 $ 5,093.46
EQ/Van Kampen Comstock $ 1,258.07 $ 2,002.40 $ 2,385.96 $ 5,030.92
EQ/Van Kampen Emerging Markets Equity* $ 1,332.61 $ 2,217.91 $ 2,731.00 $ 5,644.05
EQ/Van Kampen Mid Cap Growth $ 1,263.32 $ 2,017.68 $ 2,410.62 $ 5,075.64
EQ/Wells Fargo Montgomery Small Cap $ 1,942.59 $ 3,859.89 $ 5,172.51 $ 9,191.93
- ------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,574.08 $ 2,893.57 $ 3,776.24 $ 7,333.62
- ------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II $ 1,287.47 $ 2,087.78 $ 2,523.33 $ 5,278.30
- ------------------------------------------------------------------------------------------------------------
If you annuitize at the end
of the applicable time period
- --------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- --------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 798.62 $ 1,724.84 $ 2,691.45 $ 5,299.82
EQ/Lord Abbett Growth and Income $ 808.07 $ 1,752.40 $ 2,735.96 $ 5,380.92
EQ/Lord Abbett Large Cap Core $ 808.07 $ 1,752.40 $ 2,735.96 $ 5,380.92
EQ/Lord Abbett Mid Cap Value $ 813.32 $ 1,767.68 $ 2,760.62 $ 5,425.64
EQ/Marsico Focus $ 818.57 $ 1,782.95 $ 2,785.22 $ 5,470.12
EQ/Mercury Basic Value Equity $ 786.02 $ 1,688.01 $ 2,631.82 $ 5,190.47
EQ/Mercury International Value $ 824.87 $ 1,801.25 $ 2,814.67 $ 5,523.19
EQ/Mergers and Acquisitions $ 941.40 $ 2,135.58 $ 3,345.55 $ 6,445.60
EQ/MFS Emerging Growth Companies $ 794.42 $ 1,712.57 $ 2,671.61 $ 5,263.53
EQ/MFS Investors Trust $ 793.37 $ 1,709.51 $ 2,666.64 $ 5,254.43
EQ/Money Market $ 760.82 $ 1,614.08 $ 2,511.61 $ 4,967.57
EQ/Montag & Caldwell Growth* $ 811.22 $ 1,761.57 $ 2,750.76 $ 5,407.78
EQ/PIMCO Real Return $ 798.62 $ 1,724.84 $ 2,691.45 $ 5,299.82
EQ/Short Duration Bond $ 821.72 $ 1,792.10 $ 2,799.95 $ 5,496.69
EQ/Small Company Index $ 759.77 $ 1,610.99 $ 2,506.57 $ 4,958.15
EQ/Small Company Value* $ 816.47 $ 1,776.84 $ 2,775.38 $ 5,452.35
EQ/TCW Equity* $ 816.47 $ 1,776.84 $ 2,775.38 $ 5,452.35
EQ/UBS Growth and Income* $ 815.42 $ 1,773.79 $ 2,770.46 $ 5,443.46
EQ/Van Kampen Comstock $ 808.07 $ 1,752.40 $ 2,735.96 $ 5,380.92
EQ/Van Kampen Emerging Markets Equity* $ 882.61 $ 1,967.91 $ 3,081.00 $ 5,994.05
EQ/Van Kampen Mid Cap Growth $ 813.32 $ 1,767.68 $ 2,760.62 $ 5,425.64
EQ/Wells Fargo Montgomery Small Cap $ 1,492.59 $ 3,609.89 $ 5,522.51 $ 9,541.93
- --------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ---------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,124.08 $ 2,643.57 $ 4,126.24 $ 7,683.62
- --------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- --------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II $ 837.47 $ 1,837.78 $ 2,873.33 $ 5,628.30
- --------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end
of the applicable time period
Portfolio Name 1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 448.62 $ 1,374.84 $ 2,341.45 $ 4,949.82
EQ/Lord Abbett Growth and Income $ 458.07 $ 1,402.40 $ 2,385.96 $ 5,030.92
EQ/Lord Abbett Large Cap Core $ 458.07 $ 1,402.40 $ 2,385.96 $ 5,030.92
EQ/Lord Abbett Mid Cap Value $ 463.32 $ 1,417.68 $ 2,410.62 $ 5,075.64
EQ/Marsico Focus $ 468.57 $ 1,432.95 $ 2,435.22 $ 5,120.12
EQ/Mercury Basic Value Equity $ 436.02 $ 1,338.01 $ 2,281.82 $ 4,840.47
EQ/Mercury International Value $ 474.87 $ 1,451.25 $ 2,464.67 $ 5,173.19
EQ/Mergers and Acquisitions $ 591.40 $ 1,785.58 $ 2,995.55 $ 6,095.60
EQ/MFS Emerging Growth Companies $ 444.42 $ 1,362.57 $ 2,321.61 $ 4,913.53
EQ/MFS Investors Trust $ 443.37 $ 1,359.51 $ 2,316.64 $ 4,904.43
EQ/Money Market $ 410.82 $ 1,264.08 $ 2,161.61 $ 4,617.57
EQ/Montag & Caldwell Growth* $ 461.22 $ 1,411.57 $ 2,400.76 $ 5,057.78
EQ/PIMCO Real Return $ 448.62 $ 1,374.84 $ 2,341.45 $ 4,949.82
EQ/Short Duration Bond $ 471.72 $ 1,442.10 $ 2,449.95 $ 5,146.69
EQ/Small Company Index $ 409.77 $ 1,260.99 $ 2,156.57 $ 4,608.15
EQ/Small Company Value* $ 466.47 $ 1,426.84 $ 2,425.38 $ 5,102.35
EQ/TCW Equity* $ 466.47 $ 1,426.84 $ 2,425.38 $ 5,102.35
EQ/UBS Growth and Income* $ 465.42 $ 1,423.79 $ 2,420.46 $ 5,093.46
EQ/Van Kampen Comstock $ 458.07 $ 1,402.40 $ 2,385.96 $ 5,030.92
EQ/Van Kampen Emerging Markets Equity* $ 532.61 $ 1,617.91 $ 2,731.00 $ 5,644.05
EQ/Van Kampen Mid Cap Growth $ 463.32 $ 1,417.68 $ 2,410.62 $ 5,075.64
EQ/Wells Fargo Montgomery Small Cap $ 1,142.59 $ 3,259.89 $ 5,172.51 $ 9,191.93
- -----------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- -----------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 774.08 $ 2,293.57 $ 3,776.24 $ 7,333.62
- -----------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- -----------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II $ 487.47 $ 1,487.78 $ 2,523.33 $ 5,278.30
- -----------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject to
regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former name.
Fee table 19
CONDENSED FINANCIAL INFORMATION
Please see Appendix I at the end of this Prospectus for the unit values and the
number of units outstanding as of the end of the periods shown for each of the
variable investment options available as of December 31, 2004.
20 Fee table
1. Contract features and benefits
- --------------------------------------------------------------------------------
HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT
You may purchase a contract by making payments to us that we call
"contributions." We require a minimum initial contribution of $10,000 for you
to purchase a contract. You may make additional contributions of: (i) at least
$500 each for NQ, QP and Rollover TSA contracts; (ii) $50 each for Rollover IRA
and Roth conversion IRA contracts; and (iii) $1,000 for Inherited IRA
contracts, subject to limitations noted below. The following table summarizes
our rules regarding contributions to your contract. In some states, our rules
may vary. All ages in the table refer to the age of the annuitant named in the
contract.
We may refuse to accept any contribution if the sum of all contributions under
all Accumulator(R) series contracts with the same owner or annuitant would then
total more than $1,500,000 ($500,000 for owners or annuitants who are age 81
and older at contract issue). We reserve the right to limit aggregate
contributions made after the first contract year to 150% of first-year
contributions. We may also refuse to accept any contribution if the sum of all
contributions under all AXA Equitable annuity accumulation contracts with the
same owner or annuitant would then total more than $2,500,000. We may accept
less than the minimum initial contribution under a contract if an aggregate
amount of contracts purchased at the same time by an individual (including
spouse) meets the minimum.
- --------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining
contract benefits. The annuitant is not necessarily the contract owner.
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Available for
annuitant
Contract type issue ages Source of contributions Limitations on contributions(+)
- -----------------------------------------------------------------------------------------------------------------------------------
NQ 0 through 85 o After-tax money. o No additional contributions after attainment
of age 87.*
o Paid to us by check or
transfer of contract value
in a tax-deferred exchange
under Section 1035
of the Internal Revenue Code.
- -----------------------------------------------------------------------------------------------------------------------------------
Rollover IRA 20 through 85 o Eligible rollover distributions o No rollover or direct transfer contributions after
from TSA contracts or other attainment of age 87.*
403(b) arrangements, qualified
plans, and governmental o Contributions after age 70-1/2 must be net of
employer 457(b) plans. required minimum distributions.
o Rollovers from another o Although we accept regular IRA contributions
traditional individual (limited to $4,000 for 2005; same for 2006),
retirement arrangement. under the Rollover IRA contracts, we intend that
this contract be used primarily for rollover and
o Direct custodian-to-custodian direct transfer contributions.
transfers from another
traditional individual o Additional catch-up contributions of up to $500
retirement arrangement. can be made for the calendar year 2005 ($1,000
for 2006) where the owner is at least age 50 but
o Regular IRA contributions. under age 70-1/2 at any time during the calendar
year for which the contribution is made.
o Additional "catch-up"
contributions.
- -----------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 21
- ------------------------------------------------------------------------------------------------------------------------------------
Available for
annuitant
Contract type issue ages Source of contributions Limitations on contributions(+)
- -----------------------------------------------------------------------------------------------------------------------------------
Roth Conversion 20 through 85 o Rollovers from another Roth IRA. o No additional rollover or direct transfer contribu-
IRA tions after attainment of age 87.*
o Conversion rollovers from a
traditional IRA. o Conversion rollovers after age 70-1/2 must be net
of required minimum distributions for the tradi-
o Direct transfers from another tional IRA you are rolling over.
Roth IRA.
o You cannot roll over funds from a traditional IRA
o Regular Roth IRA contributions. if your adjusted gross income is $100,000 or more.
o Additional "catch-up"contribu- o Although we accept regular Roth IRA contributions
tions. (limited to $4,000 for 2005; same for 2006) under the
Roth IRA contracts, we intend that this contract be
used primarily for rollover and direct transfer
contributions.
o Additonal catch-up contributions of up to $5,000 can
be made for the calendar year 2005 ($1,000 for 2006)
where the owner is at least age 50 at any time during
the calendar year for which the contribution is made.
- -----------------------------------------------------------------------------------------------------------------------------------
Inherited IRA 0 through 70 o Direct custodian-to-custodian o Any additional contributions must be from same type of
Beneficiary Con- transfers of your interest as IRA of same deceased owner.
tinuation Contract a death beneficiary of the
(traditional IRA or deceased owner's traditional
Roth IRA) individual retirement
arrangement or Roth IRA to an
IRA of the same type.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover TSA 20 through 85 o Direct transfers of pre-tax o No additional rollover or direct transfer contribu-
funds from another contract or tions after attainment of age 87.*
arrangement under (Section
403(b) of the Internal Revenue o Rollover or direct transfer contributions after age
Code, complying with IRS 70-1/2 must be net of any required minimum
Revenue Ruling 90-24. distributions.
o Eligible rollover distributions o We do not accept employer-remitted contributions
of pre-tax funds from other
403(b) plans.
o Subsequent contributions may
also be rollovers from
qualified plans, governmental
employer 457(b) plans and
traditional IRAs.
- ------------------------------------------------------------------------------------------------------------------------------------
22 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------
Available for
annuitant
Contract type issue ages Source of contributions Limitations on contributions(+)
- -----------------------------------------------------------------------------------------------------------------------------------
QP 20 through 75 o Only transfer contributions from o We do not accept regular ongoing payroll
an existing defined contribution contributions.
qualified plan trust
o The plan must be qualified o Only one additional transfer contribution may be
under Section 401(a) of the made during a contract year.
Internal Revenue Code
o For 401(k) plans, transferred o No additional transfer contributions after attain-
contributions may only include ment of age 76 or, if later, the first contract
employee pre-tax contributions. anniversary.
o A Separate QP contract must be established for each
plan participant
o We do not accept employer-remitted contributions.
o We do not accept contributions from defined benefit
plans.
Please refer to Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts.
- -----------------------------------------------------------------------------------------------------------------------------------
+ If you purchase Guaranteed principal benefit option 2, no contributions are
permitted after the six month period beginning on the contract date.
Additional contributions may not be permitted under certain conditions in
your state. Please see Appendix VIII later in the Prospectus to see if
additional contributions are permitted in your state.
* For Pennsylvania contracts, please see Appendix VIII later in this Prospectus
for information on state variations.
See "Tax information" later in this Prospectus for a more detailed discussion
of sources of contributions and certain contribution limitations. For
information on when contributions are credited under your contract see "Dates
and prices at which contract events occur" in "More information" later in this
Prospectus.
Contract features and benefits 23
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from the owner. A joint
owner may also be named. Only natural persons can be joint owners. This means
that an entity such as a corporation cannot be a joint owner. In general, we
will not permit a contract to be owned by a minor unless it is pursuant to the
Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act in your
state. If the Spousal protection feature is elected, the spouses must be joint
owners, one of the spouses must be the annuitant and both must be named as the
only primary beneficiaries.
Under all IRA and Rollover TSA contracts, the owner and annuitant must be the
same person. In some cases, an IRA contract may be held in a custodial
individual retirement account for the benefit of the individual annuitant. This
option may not be available under your contract.
Under QP contracts, the owner must be the trustee of the qualified plan and the
annuitant must be the plan participant/employee. See Appendix II at the end of
this Prospectus for more information on QP contracts.
- --------------------------------------------------------------------------------
A "participant" is an individual who is currently, or was formerly,
participating in an eligible employer's qualified plan or TSA plan.
- --------------------------------------------------------------------------------
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be by check drawn on a U.S. bank, in
U.S. dollars, and made payable to AXA Equitable. We may also apply
contributions made pursuant to a Section 1035 tax-free exchange or a direct
transfer. We do not accept third-party checks endorsed to us except for
rollover contributions, tax-free exchanges or trustee checks that involve no
refund. All checks are subject to our ability to collect the funds. We reserve
the right to reject a payment if it is received in an unacceptable form.
For your convenience, we will accept initial and additional contributions by
wire transmittal from certain broker-dealers who have agreements with us for
this purpose, including circumstances under which such contributions are
considered received by us when your order is taken by such broker-dealer.
Additional contributions may also be made under our automatic investment
program. These methods of payment, are discussed in detail in "More
information" later in this Prospectus.
Your initial contribution must generally be accompanied by an application and
any other form we need to process the payments. If any information is missing
or unclear, we will try to obtain that information. If we are unable to obtain
all of the information we require within five business days after we receive an
incomplete application or form, we will inform the financial professional
submitting the application on your behalf. We will then return the contribution
to you unless you specifically direct us to keep your contribution until we
receive the required information.
- --------------------------------------------------------------------------------
Our "business day" is generally any day the New York Stock Exchange is open for
trading and generally ends at 4:00 p.m. Eastern Time. A business day does not
include a day we choose not to open due to emergency conditions. We may also
close early due to emergency conditions.
- --------------------------------------------------------------------------------
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
Your investment options are the variable investment options, the guaranteed
interest option, the fixed maturity options and the account for special dollar
cost averaging.
VARIABLE INVESTMENT OPTIONS
Your investment results in any one of the variable investment options will
depend on the investment performance of the underlying portfolios. You can lose
your principal when investing in the variable investment options. In periods of
poor market performance, the net return, after charges and expenses, may result
in negative yields, including for the EQ/Money Market variable investment
option. Listed below are the currently available portfolios, their investment
objectives and their advisers. See "Inherited IRA beneficiary continuation
contract" later in this section for Inherited IRA owner and annuitant
requirements.
- --------------------------------------------------------------------------------
You can choose from among the variable investment options, the guaranteed
interest option, the fixed maturity options and the account for special dollar
cost averaging.
- --------------------------------------------------------------------------------
24 Contract features and benefits
PORTFOLIOS OF THE TRUSTS
You should note that some portfolios have objectives and strategies that are
substantially similar to those of certain funds that are purchased directly
rather than under a variable insurance product such as the Accumulator(R)
Elite(SM) contract. These portfolios may even have the same manager(s) and/or a
similar name. However, there are numerous factors that can contribute to
differences in performance between two investments, particularly over short
periods of time. Such factors include the timing of stock purchases and sales;
differences in fund cash flows; and specific strategies employed by the
portfolio manager.
AXA Equitable serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. As such, AXA Equitable oversees
the activities of the investment advisers with respect to the Trusts and is
responsible for retaining or discontinuing the services of those advisers. The
advisers for these Portfolios, listed in the chart below, are those who make
the investment decisions for each Portfolio. The chart also indicates the
investment manager for each of the other Portfolios.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o AXA Equitable
ALLOCATION greater emphasis on current income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o AXA Equitable
ALLOCATION with a greater emphasis on capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
EQUITY o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of risk. o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o AIM Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of current o Alliance Capital Management L.P.
income and capital appreciation. o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P., through
INTERNATIONAL EQUITY its Bernstein Investment Research and
Management Unit
o J.P. Morgan Investment Management Inc.
o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P., through
CORE EQUITY its Bernstein Investment Research and
Management Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 25
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH o RCM Capital Management LLC
o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE o Institutional Capital Corporation
o MFS Investment Management
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management LLC
CAP VALUE o TCW Investment Management Company
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
GOVERNMENT SECURITIES relative stability of principal.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE LARGE CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH(1)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
moderate risk to capital.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BEAR STEARNS Seeks to achieve capital appreciation. o Bear Stearns Asset Management Inc.
SMALL COMPANY GROWTH(7)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment Research
and Management Unit
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BOSTON ADVISORS EQUITY Seeks a combination of growth and income to achieve an o Boston Advisors, Inc.
INCOME(4) above-average and consistent total return.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN GROWTH Seeks long-term growth of capital. o Capital Guardian Trust Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------------------------
26 Contract features and benefits
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Advisors Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. o Caywood-Scholl Capital Management
YIELD BOND
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates o Alliance Capital Management L.P.
the total return performance of the S&P 500 Index,
including reinvestment of dividends, at a risk level
consistent with that of the S&P 500 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA Seeks long-term capital growth. o Evergreen Investment Management
Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o SSgA Funds Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent with mod- o J.P. Morgan Investment Management Inc.
erate risk to capital and maintenance of liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JP MORGAN VALUE Long-term capital appreciation. o J.P. Morgan Investment Management Inc.
OPPORTUNITIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LONG TERM BOND Seeks to maximize income and capital appreciation o Boston Advisors, Inc.
through investment in long-maturity debt obligations.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT GROWTH AND Capital appreciation and growth of income without o Lord, Abbett & Co. LLC
INCOME excessive fluctuation in market value.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT LARGE CAP Capital appreciation and growth of income with reason- o Lord, Abbett & Co. LLC
CORE able risk.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT MID CAP VALUE Capital appreciation. o Lord, Abbett & Co, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers
VALUE International Limited
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERGERS AND ACQUISITIONS Seeks to achieve capital appreciation. o GAMCO Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary objec- o MFS Investment Management
tive to seek reasonable current income.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve o Alliance Capital Management L.P.
its assets and maintain liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. o Montag & Caldwell, Inc.
GROWTH(5)
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 27
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Advisors Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PIMCO REAL RETURN Seeks maximum real return consistent with preservation o Pacific Investment Management Company,
of real capital and prudent investment management. LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SHORT DURATION BOND Seeks current income with reduced volatility of principal. o Boston Advisors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o Alliance Capital Management L. P.
deduction of portfolio expenses) the total return of the
Russell 2000 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY VALUE(8) Seeks to maximize capital appreciation. o GAMCO Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/TCW EQUITY(3) Seeks to achieve long-term capital appreciation. o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/UBS GROWTH AND INCOME(6) Seeks to achieve total return through capital appreciation o UBS Global Asset Management
with income as a secondary consideration. (Americas) Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN COMSTOCK Capital growth and income. o Morgan Stanley Investment
Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN EMERGING Seeks long-term capital appreciation. o Morgan Stanley Investment
MARKETS EQUITY(2) Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN MID CAP Capital growth. o Morgan Stanley Investment
GROWTH Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/WELLS FARGO MONTGOMERY Seeks long-term capital appreciation. o Wells Capital Management Inc.
SMALL CAP
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE
INSURANCE TRUST
PORTFOLIO NAME Objective Investment Manager/Adviser
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG VIT VALUE Seeks to increase the value of your investment in bull o Charles Schwab Investment Management,
LONG/SHORT EQUITY markets and bear markets through strategies that are Inc.
designed to have limited exposure to general equity o AXA Rosenberg Investment
market risk. Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL
FUNDS, INC.
PORTFOLIO NAME Objective Investment Manager
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. REAL ESTATE -- CLASS II Seeks to provide above average current income and long- o Van Kampen (is the name under which
term capital appreciation by investing primarily in equity Morgan Stanley Investment Management
securities of companies in the U.S. real estate industry, Inc. does business in certain
including real estate investment trusts. situations)
- ------------------------------------------------------------------------------------------------------------------------------------
* This portfolio information reflects the portfolio's name change effective
on or about May 9, 2005, subject to regulatory approval. The table below
reflects the portfolio name in effect until on or about May 9, 2005. The
number in the "FN" column corresponds with the number contained in the chart
above.
- ------------------------------------------------------
FN Portfolio Name until May 9, 2005
- ------------------------------------------------------
(1) EQ/Alliance Premier Growth
(2) EQ/Emerging Markets Equity
(3) EQ/Enterprise Equity
(4) EQ/Enterprise Equity Income
(5) EQ/Enterprise Growth
(6) EQ/Enterprise Growth and Income
(7) EQ/Enterprise Small Company Growth
(8) EQ/Enterprise Small Company Value.
You should consider the investment objectives, risks and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may
call one of our customer service representatives at 1-800-789-7771.
28 Contract features and benefits
GUARANTEED INTEREST OPTION
The guaranteed interest option is part of our general account and pays interest
at guaranteed rates. We discuss our general account under "More information"
later in this Prospectus.
We assign an interest rate to each amount allocated to the guaranteed interest
option. This rate is guaranteed for a specified period. Therefore, different
interest rates may apply to different amounts in the guaranteed interest
option.
We credit interest daily to amounts in the guaranteed interest option. There
are three levels of interest in effect at the same time in the guaranteed
interest option:
(1) the minimum interest rate guaranteed over the life of the contract,
(2) the yearly guaranteed interest rate for the calendar year, and
(3) the current interest rate.
We set current interest rates periodically, according to our procedures that we
have in effect at the time. We reserve the right to change these procedures.
All interest rates are effective annual rates, but before deduction of annual
administrative charges, any withdrawal charges, and any optional benefit
charges. See Appendix VIII later in this Prospectus for state variations.
Depending on the state where your contract is issued, your lifetime minimum
rate ranges from 1.00% to 3.00%. The data page for your contract shows the
lifetime minimum rate. The minimum yearly rate will never be less than the
lifetime minimum rate. The minimum yearly rate for 2005 is equal to 2.25%
except that for contracts issued with a lifetime minimum guaranteed interest
rate of 3.00%, the minimum yearly rate for 2005 is also 3.00%. Check with your
financial professional as to which rate applies in your state. Current interest
rates will never be less than the yearly guaranteed interest rate.
Generally, contributions and transfers into and out of the guaranteed interest
option are limited. See "Transferring your money among the investment options"
later in this Prospectus for restrictions on transfer from the guaranteed
interest option.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied the rate to maturity is 3%. This
means that at points in time, there may be no fixed maturity options available.
You can allocate your contributions to one or more of these fixed maturity
options, however, you may not have more than 12 different maturities running
during any contract year. This limit includes any maturities that have had any
allocation or transfers even if the entire amount is withdrawn or transferred
during the contract year. These amounts become part of a non-unitized separate
account. They will accumulate interest at the "rate to maturity" for each fixed
maturity option. The total amount you allocate to and accumulate in each fixed
maturity option is called the "fixed maturity amount." The fixed maturity
options are not available in all states. Check with your financial professional
or see Appendix VIII later in this Prospectus to see if fixed maturity options
are available in your state.
- --------------------------------------------------------------------------------
Fixed maturity options range from one to ten years to maturity.
- --------------------------------------------------------------------------------
Under the Special 10 year fixed maturity option (which is available only under
GPB Option 2), additional contributions will have the same maturity date as
your initial contribution (see "The Guaranteed Principal Benefits," below). The
rate to maturity you will receive for each additional contribution is the rate
to maturity in effect for new contributions allocated to that fixed maturity
option on the date we apply your contribution.
On the maturity date of a fixed maturity option your fixed maturity amount,
assuming you have not made any withdrawals or transfers, will equal your
contribution to that fixed maturity option plus interest, at the rate to
maturity for that contribution, to the date of the calculation. This is the
fixed maturity option's "maturity value." Before maturity, the current value we
will report for your fixed maturity amounts will reflect a market value
adjustment. Your current value will reflect the market value adjustment that we
would make if you were to withdraw all of your fixed maturity amounts on the
date of the report. We call this your "market adjusted amount."
FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with
maturity dates ranging from one to ten years. Not all of these fixed maturity
options will be available for annuitant ages 76 and older. See "Allocating your
contributions" below.
Each new contribution is applied to a new fixed maturity option. When you apply
for an Accumulator(R) Elite(SM) contract, a 60-day rate lock-in will apply from
the date the application is signed. Any contributions received and designated
for a fixed maturity option during this period will receive the then current
fixed maturity option rate or the rate that was in effect on the date that the
application was signed, whichever is greater. There is no rate lock available
for subsequent contributions to the contract after 60 days, transfers from the
variable investment options or the guaranteed interest option into a fixed
maturity option or transfers from one fixed maturity option to another.
YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days
before each of your fixed maturity options is scheduled to mature. At that
time, you may choose to have one of the following take place on the maturity
date, as long as none of the restrictive conditions listed below in "Allocating
your contributions," would apply:
(a) transfer the maturity value into another available fixed maturity option,
any of the variable investment options or the guaranteed interest option;
or
(b) withdraw the maturity value (there may be a withdrawal charge).
If we do not receive your choice on or before the fixed maturity option's
maturity date, we will automatically transfer your maturity value into the
shortest available maturity option beginning on that date. As of February 15,
2005 the next available maturity date was
Contract features and benefits 29
February 15, 2013. If no fixed maturity options are available we will transfer
your maturity value to the EQ/Money Market Option.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender of your contract or when we make deductions for charges) from a fixed
maturity option before it matures we will make a market value adjustment, which
will increase or decrease any fixed maturity amount you have in that fixed
maturity option. The amount of the adjustment will depend on two factors:
(a) the difference between the rate to maturity that applies to the amount
being withdrawn and the rate we have in effect at that time for new fixed
maturity options (adjusted to reflect a similar maturity date), and
(b) the length of time remaining until the maturity date.
In general, if interest rates rise from the time that you originally allocate
an amount to a fixed maturity option to the time that you take a withdrawal,
the market value adjustment will be negative. Likewise, if interest rates drop
at the end of that time, the market value adjustment will be positive. Also,
the amount of the market value adjustment, either up or down, will be greater
the longer the time remaining until the fixed maturity option's maturity date.
Therefore, it is possible that the market value adjustment could greatly reduce
your value in the fixed maturity options, particularly in the fixed maturity
options with later maturity dates.
We provide an illustration of the market adjusted amount of specified maturity
values, an explanation of how we calculate the market value adjustment, and
information concerning our general account and investments purchased with
amounts allocated to the fixed maturity options, in "More information" later in
this Prospectus. Appendix III at the end of this Prospectus provides an example
of how the market value adjustment is calculated.
ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING
The account for special dollar cost averaging is part of our general account.
We pay interest at guaranteed rates in this account. We will credit interest to
the amounts that you have in the account for special dollar cost averaging
every day. We set the interest rates periodically, according to procedures that
we have. We reserve the right to change these procedures.
We guarantee to pay our current interest rate that is in effect on the date
that your contribution is allocated to this account. Your guaranteed interest
rate for the time period you select will be shown in your contract for an
initial contribution. The rate will never be less than the lifetime minimum
rate for the guaranteed interest option. See "Allocating your contributions"
below for rules and restrictions that apply to the special dollar cost
averaging program.
ALLOCATING YOUR CONTRIBUTIONS
You may choose from among three ways to allocate your contributions under your
contract: self-directed, the guaranteed principal benefits or dollar cost
averaging. Subsequent contributions are allocated according to instructions on
file unless you provide new instructions.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options, the guaranteed interest option and fixed maturity options.
Allocations must be in whole percentages and you may change your allocations at
any time. No more than 25% of any contribution may be allocated to the
guaranteed interest option. The total of your allocations into all available
investment options must equal 100%. If the annuitant is age 76-80, you may
allocate contributions to fixed maturity options with maturities of seven years
or less. If the annuitant is age 81 or older, you may allocate contributions to
fixed maturity options with maturities of five years or less. Also, you may not
allocate amounts to fixed maturity options with maturity dates that are later
than the date annuity payments are to begin.
THE GUARANTEED PRINCIPAL BENEFITS
Subject to state availability (see Appendix VIII later in this Prospectus for
more information on state availability of these benefits), we offer a
guaranteed principal benefit ("GPB") with two options. You may only elect one
of the GPBs. Neither GPB is available under Inherited IRA contracts. We will
not offer either GPB when the rate to maturity for the applicable fixed
maturity option is 3%. If you elect either GPB, you may not elect the
Guaranteed minimum income benefit, Principal Protector(SM), the systematic
withdrawals option or the substantially equal withdrawals option. Both GPB
options allow you to allocate a portion of your contribution or contributions
to the variable investment options, while ensuring that your account value will
at least equal your contributions adjusted for withdrawals and transfers on a
specified date. GPB Option 2 generally provides you with the ability to
allocate more of your contributions to the variable investment options than
could be allocated using GPB Option 1.
You may elect GPB Option 1 only if the annuitant age is 80 or younger when the
contract is issued (after age 75, only the 7-year fixed maturity option is
available). You may elect GPB Option 2 only if the annuitant is age 75 or
younger when the contract is issued. If you are purchasing an IRA, QP or
Rollover TSA contract, before you either purchase GPB Option 2 or elect GPB
Option 1 with a maturity year that would extend beyond the year in which you
will reach age 70-1/2, you should consider whether your value in the variable
investment options, guaranteed interest option and permissible funds outside
this contract are sufficient to meet your required minimum distributions. See
"Tax information" later in this Prospectus. If you elect GPB Option 2 and
change ownership of the contract, GPB Option 2 will automatically terminate,
except under certain circumstances. See "Transfers of ownership, collateral
assignments, loans and borrowing" in "More information," later in this
Prospectus for more information.
GUARANTEED PRINCIPAL BENEFIT OPTION 1. Under GPB Option 1, you select a fixed
maturity option at the time you sign your application. We specify the portion
of your initial contribution to be allocated to that fixed maturity option in
an amount that will cause the maturity value to equal the amount of your entire
initial contribution on the fixed maturity option's maturity date. The amount
of your contribution allocated to the fixed maturity option will be calculated
based upon the rate to maturity then in effect for the fixed maturity option
you choose. Your contract will contain information on the percentage of your
con-
30 Contract features and benefits
tribution allocated to the fixed maturity option. If you make any withdrawals
or transfers from the fixed maturity option before the option's maturity date,
the amount in the fixed maturity option will be adjusted and may no longer grow
to equal your initial contribution under GPB Option 1. The maturity date you
select generally may not be later than 10 years, or earlier than 7 years from
your contract date. You may allocate the rest of your initial contribution to
the investment options however you choose (unless you elect a dollar cost
averaging program, in which case the remainder of your initial contribution
must be allocated to the dollar cost averaging program). Upon the maturity date
of the fixed maturity option, you will be provided with the same notice and the
same choices with respect to the maturity value as described above under "Your
choices at the maturity date." There is no charge for GPB Option 1.
GUARANTEED PRINCIPAL BENEFIT OPTION 2. You may purchase GPB Option 2 at the
time you apply for your contract. IF YOU PURCHASE GPB OPTION 2, YOU MAY NOT
MAKE ADDITIONAL CONTRIBUTIONS TO YOUR CONTRACT AFTER SIX MONTHS FROM THE
CONTRACT ISSUE DATE OR AT ANY EARLIER TIME IF AT SUCH TIME THE THEN APPLICABLE
RATE TO MATURITY ON THE SPECIAL 10 YEAR FIXED MATURITY OPTION IS 3%. Therefore,
any discussion in this Prospectus that involves any additional contributions
after the first six months will be inapplicable.
We specify the portion of your initial contribution, and any additional
permitted contributions, to be allocated to a Special 10 year fixed maturity
option. Your contract will contain information on the percentage of applicable
contributions allocated to the Special 10 year fixed maturity option. You may
allocate the rest of your contributions among the investment options (other
than the Special 10 year fixed maturity option) however you choose, as
permitted under your contract and other than the Investment simplifier (unless
you elect a dollar cost averaging program, in which case all contributions,
other than amounts allocated to the Special 10 year fixed maturity option, must
be allocated to the dollar cost averaging program). The Special 10 year fixed
maturity option will earn interest at the specified rate to maturity then in
effect.
If on the 10th contract date anniversary, your annuity account value is less
than the amount that is guaranteed under GPB Option 2, we will increase your
annuity account value to be equal to the guaranteed amount under GPB Option 2.
Any such additional amounts added to your annuity account value will be
allocated to the EQ/Money Market investment option. After the maturity date of
the Special 10 year fixed maturity option, the guarantee under GPB Option 2
will terminate. Upon the maturity date of the Special 10 year fixed maturity
option, you will be provided with the same notice and the same choices with
respect to the maturity value as described above under "Your choices at the
maturity date." The guaranteed amount under GPB Option 2 is equal to your
initial contribution adjusted for any additional permitted contributions,
transfers out of the Special 10 year fixed maturity option and withdrawals from
the contract (see "How withdrawals (and transfers out of the Special 10 year
fixed maturity option) affect your Guaranteed income benefit, Guaranteed
minimum death benefit and Guaranteed principal benefit option 2" in "Accessing
your money" later in this Prospectus). Any transfers or withdrawals from the
Special 10 year fixed maturity option will also be subject to a market value
adjustment (see "Market value adjustment" under "Fixed maturity options" above
in this section).
Once you purchase the Guaranteed principal benefit option 2, you may not
voluntarily terminate this benefit. GPB Option 2 will terminate if the contract
terminates before the maturity date of the Special 10 year fixed maturity
option. If the owner and the annuitant are different people and the owner dies
before the maturity date of the Special 10 year fixed maturity option, we will
continue GPB Option 2 only if the contract can continue through the maturity
date of the Special 10 year fixed maturity option. If the contract cannot so
continue, we will terminate GPB Option 2. GPB Option 2 will continue where
there is a successor owner/annuitant. GPB Option 2 will terminate upon the
exercise of the beneficiary continuation option. See "Payment of death benefit"
later in this Prospectus for more information about the continuation of the
contract after the death of the owner and/or the annuitant.
There is a fee associated with GPB Option 2 (see "Charges and expenses" later
in this Prospectus). You should note that the purchase of GPB Option 2 is not
appropriate if you want to make additional contributions to your contract
beyond the first six months after your contract is issued. If you later decide
that you would like to make additional contributions to the Accumulator(R)
Elite(SM) contract, we may permit you to purchase another contract. If we do,
however, you should note that we do not reduce or waive any of the charges on
the new contract, nor do we guarantee that the features available under this
contract will be available under the new contract. This means that you might
end up paying more with respect to certain charges than if you had simply
purchased a single contract (for example, the administrative charge).
The purchase of GPB Option 2 is also not appropriate if you plan on terminating
your contract before the maturity date of the special 10 year fixed maturity
option. In addition, because we prohibit contributions to your contract after
the first six months, certain contract benefits that are dependent upon
contributions or account value will be limited (for example the Guaranteed
death benefits and Protection Plus(SM)). You should also note that if you intend
to allocate a large percentage of your contributions to the guaranteed interest
option or other fixed maturity options, the purchase of GPB Option 2 may not be
appropriate because of the guarantees already provided by these options. An
example of the effect of GPB Option 1 and GPB Option 2 on your annuity contract
is included in Appendix VI later in this Prospectus.
DOLLAR COST AVERAGING
We offer a variety of dollar cost averaging programs. You may only participate
in one program at a time. Each program allows you to gradually allocate amounts
to the variable investment options by periodically transferring approximately
the same dollar amount to the variable investment options you select. This will
cause you to purchase more units if the unit value is low and fewer units if
the unit value is high. Therefore, you may get a lower average cost per unit
over the long term. These plans of investing, however, do not guarantee that
Contract features and benefits 31
you will earn a profit or be protected against losses. You may not make
transfers to the fixed maturity options.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
SPECIAL DOLLAR COST AVERAGING PROGRAM. Under the special dollar cost averaging
program, you may choose to allocate all or a portion of any eligible
contribution to the account for special dollar cost averaging. Contributions
into the account for special dollar cost averaging may not be transfers from
other investment options. Your initial allocation to any special dollar cost
averaging program time period must be at least $2,000 and any subsequent
contribution to that same time period must be at least $250. You may only have
one time period in effect at any time and once you select a time period, you
may not change it. In Pennsylvania, we refer to this program as "enhanced rate
dollar cost averaging." If you elect Principal Protector(SM), you may not
participate in the special dollar cost averaging program.
You may have your account value transferred to any of the variable investment
options. We will transfer amounts from the account for special dollar cost
averaging into the variable investment options over an available time period
that you select. We offer time periods of 3, 6 or 12 months during which you
will receive an enhanced interest rate. We may also offer other time periods.
Your financial professional can provide information on the time periods and
interest rates currently available in your state, or you may contact our
processing office. If the special dollar cost averaging program is selected at
the time of application to purchase the Accumulator(R) Elite(SM) contract, a 60
day rate lock will apply from the date of application. Any contribution(s)
received during this 60 day period will be credited with the interest rate
offered on the date of application for the remainder of the time period
selected at application. Any contribution(s) received after the 60 day rate
lock period has ended will be credited with the then current interest rate for
the remainder of the time period selected at application. Contribution(s) made
to a special dollar cost averaging program selected after the Accumulator(R)
Elite(SM) contract has been issued will be credited with the then current
interest rate on the date the contribution is received by AXA Equitable for the
time period initially selected by you. Once the time period you selected has
run, you may then select another time period for future contributions. At that
time, you may also select a different allocation for transfers to the variable
investment options, or, if you wish, we will continue to use the selection that
you have previously made. Currently, your account value will be transferred
from the account for special dollar cost averaging into the variable investment
options on a monthly basis. We may offer this program in the future with
transfers on a different basis.
We will transfer all amounts out of the account for special dollar cost
averaging by the end of the chosen time period. The transfer date will be the
same day of the month as the contract date, but not later than the 28th day of
the month. For a special dollar cost averaging program selected after
application, the first transfer date and each subsequent transfer date for the
time period selected will be one month from the date the first contribution is
made into the special dollar cost averaging program, but not later than the
28th of the month.
If you choose to allocate only a portion of an eligible contribution to the
account for special dollar cost averaging, the remaining balance of that
contribution will be allocated to the variable investment options, guaranteed
interest option or fixed maturity options according to your instructions.
The only transfers that will be made from the account for special dollar cost
averaging are your regularly scheduled transfers to the variable investment
options. No amounts may be transferred from the account for special dollar cost
averaging to the guaranteed interest option or the fixed maturity options. If
you request to transfer or withdraw any other amounts from the account for
special dollar averaging, we will transfer all of the value that you have
remaining in the account for special dollar cost averaging to the investment
options according to the allocation percentages for special dollar cost
averaging we have on file for you. You may ask us to cancel your participation
at any time.
GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market
option is at least $5,000, you may choose, at any time, to have a specified
dollar amount or percentage of your value transferred from that option to the
other variable investment options. You can select to have transfers made on a
monthly, quarterly or annual basis. The transfer date will be the same calendar
day of the month as the contract date, but not later than the 28th day of the
month. You can also specify the number of transfers or instruct us to continue
making the transfers until all amounts in the EQ/Money Market option have been
transferred out. The minimum amount that we will transfer each time is $250.
If, on any transfer date, your value in the EQ/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The general dollar cost averaging program will then end.
You may change the transfer amount once each contract year or cancel this
program at any time.
INVESTMENT SIMPLIFIER
Fixed-dollar option. Under this option, you may elect to have a fixed-dollar
amount transferred out of the guaranteed interest option and into the variable
investment options of your choice. Transfers may be made on a monthly,
quarterly or annual basis. You can specify the number of transfers or instruct
us to continue to make transfers until all available amounts in the guaranteed
interest option have been transferred out.
In order to elect the fixed-dollar option, you must have a minimum of $5,000 in
the guaranteed interest option on the date we receive your election form at our
processing office. The transfer date will be the same calendar day of the month
as the contract date but not later than the 28th day of the month. The minimum
transfer amount is $50. Unlike the account for special dollar cost averaging,
this option does not offer enhanced rates. Also, this option is subject to the
guaranteed interest option transfer limitations described under "Transferring
your account value" in "Transferring your money among investment options" later
in this Prospectus. While the program is running, any transfer that exceeds
those limitations will cause the program to end for that contract year. You
will be notified. You must send in a request form to resume the program in the
next or subsequent contract years.
If, on any transfer date, your value in the guaranteed interest option is equal
to or less than the amount you have elected to have transferred,
32 Contract features and benefits
the entire amount will be transferred, and the program will end. You may change
the transfer amount once each contract year or cancel this program at any time.
Interest sweep option. Under this option, you may elect to have monthly
transfers from amounts in the guaranteed interest option into the variable
investment options of your choice. The transfer date will be the last business
day of the month. The amount we will transfer will be the interest credited to
amounts you have in the guaranteed interest option from the last business day
of the prior month to the last business day of the current month. You must have
at least $7,500 in the guaranteed interest option on the date we receive your
election. We will automatically cancel the interest sweep program if the amount
in the guaranteed interest option is less than $7,500 on the last day of the
month for two months in a row. For the interest sweep option, the first monthly
transfer will occur on the last business day of the month following the month
that we receive your election form at our processing office.
----------------------------------
You may not participate in any dollar cost averaging program if you are
participating in the rebalancing program. If you elect a GPB, you may also
elect the General dollar cost averaging program. If you elect either of these
programs, everything other than amounts allocated to the fixed maturity option
under the GPB must be allocated to that dollar cost averaging program. You may
still elect the Investment simplifier for amounts transferred from investment
options (other than the fixed maturity option under the GPB you have elected),
and, for GPB Option 1, you may also elect Investment simplifier for subsequent
contributions. See "Transferring your money among investment options" later in
this Prospectus.
Not all dollar cost averaging programs are available in all states (see
Appendix VIII later in this Prospectus for more information on state
availability).
YOUR GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED MINIMUM INCOME BENEFIT
BASE
The Guaranteed minimum death benefit and Guaranteed minimum income benefit base
(hereinafter, in this section called your "benefit base") is used to calculate
the Guaranteed minimum income benefit and the death benefits, as described in
this section. Your benefit base is not an account value or a cash value. See
also "Our Guaranteed minimum income benefit option" and "Guaranteed minimum
death benefit" below.
STANDARD DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death benefit and Guaranteed principal
benefit option 2" in "Accessing your money" later in this Prospectus).
6% ROLL UP TO AGE 85 (USED FOR THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE
ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM
INCOME BENEFIT). Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
o daily interest; less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death benefit and Guaranteed principal
benefit option 2" in "Accessing your money" and the section entitled
"Charges and expenses" later in this Prospectus).
The effective annual interest rate credited to this benefit base is:
o 6% with respect to the variable investment options (other than EQ/Alliance
Intermediate Government Securities, EQ/Money Market, EQ/PIMCO Real Return
and EQ/Short Duration Bond) and the account for special dollar cost
averaging; the effective annual rate may be 4% in some states. Please see
Appendix VIII later in this Prospectus to see what applies in your state;
and
o 3% with respect to the EQ/Alliance Intermediate Government Securities,
EQ/Money Market, EQ/PIMCO Real Return and EQ/Short Duration Bond, the
fixed maturity options, the Special 10 year fixed maturity option, the
guaranteed interest option and the loan reserve account under Rollover TSA
(if applicable).
No interest is credited to the benefit base after the contract anniversary
following the annuitant's 85th birthday.
ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH
BENEFIT AND THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO
AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME
BENEFIT). Your benefit base is equal to the greater of either:
o your initial contribution to the contract (plus any additional
contributions),
or
o your highest account value of any contract anniversary up to the contract
anniversary following the annuitant's 85th birthday plus any contributions
made since the most recent contract anniversary,
less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death benefit and Guaranteed principal
benefit option 2" in "Accessing your money" later in this Prospectus).
GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED
DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base
is equal to the greater of the benefit base computed for the 6% Roll up to age
85 or the benefit base computed for the Annual Ratchet to age 85, as described
immediately above, on each contract anniversary. For the Guaranteed minimum
Contract features and benefits 33
income benefit, the benefit base is reduced by any applicable withdrawal charge
remaining when the option is exercised.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the Guaranteed minimum income benefit and annuity payout
options. The Guaranteed minimum income benefit is discussed in "Our Guaranteed
minimum income benefit option" below and annuity payout options are discussed
in "Accessing your money" later in this Prospectus. The guaranteed annuity
purchase factors are those factors specified in your contract. The current
annuity purchase factors are those factors that are in effect at any given
time. Annuity purchase factors are based on interest rates, mortality tables,
frequency of payments, the form of annuity benefit, and the annuitant's (and
any joint annuitant's) age and sex in certain instances.
OUR GUARANTEED MINIMUM INCOME BENEFIT OPTION
The Guaranteed minimum income benefit is available if the annuitant is age 20
through 75 at the time the contract is issued. There is an additional charge
for the Guaranteed minimum income benefit which is described under "Guaranteed
minimum income benefit charge" in "Charges and expenses" later in this
Prospectus. Once you purchase the Guaranteed minimum income benefit, you may
not voluntarily terminate this benefit.
If you are purchasing this contract as an inherited IRA, or if you elect a GPB,
or Principal Protector(SM), the Guaranteed minimum income benefit is not
available. If you are purchasing this contract to fund a Charitable Remainder
Trust, the Guaranteed minimum income benefit is not available except for
certain split-funded Charitable Remainder Trusts. If the annuitant was older
than age 60 at the time an IRA, QP or Rollover TSA contract was issued, the
Guaranteed minimum income benefit may not be an appropriate feature because the
minimum distributions required by tax law generally must begin before the
Guaranteed minimum income benefit can be exercised.
If you elect the Guaranteed minimum income benefit option and change ownership
of the contract, this benefit will automatically terminate, except under
certain circumstances. See "Transfers of ownership, collateral assignments,
loans and borrowing" in "More information," later in this Prospectus for more
information.
The Guaranteed minimum income benefit guarantees you a minimum amount of fixed
income under your choice of a life annuity fixed payout option or a life with a
period certain payout option. You choose which of these payout options you want
and whether you want the option to be paid on a single or joint life basis at
the time you exercise your Guaranteed minimum income benefit. The maximum
period certain available under the life with a period certain payout option is
10 years. This period may be shorter, depending on the annuitant's age as
follows:
- ---------------------------------------------
Level payments
- ---------------------------------------------
Period certain years
------------------------
Annuitant's age at
exercise IRAs NQ
- ---------------------------------------------
75 and younger 10 10
76 9 10
77 8 10
78 7 10
79 7 10
80 7 10
81 7 9
82 7 8
83 7 7
84 6 6
85 5 5
We may also make other forms of payout options available. For a description of
payout options, see "Your annuity payout options" in "Accessing your money"
later in this Prospectus.
- --------------------------------------------------------------------------------
The Guaranteed minimum income benefit should be regarded as a safety net only.
It provides income protection if you elect an income payout while the annuitant
is alive.
- --------------------------------------------------------------------------------
When you exercise the Guaranteed minimum income benefit, the annual lifetime
income that you will receive will be the greater of (i) your Guaranteed minimum
income benefit which is calculated by applying your Guaranteed minimum income
benefit base, less any applicable withdrawal charge remaining, at guaranteed
annuity purchase factors, or (ii) the income provided by applying your account
value at our then current annuity purchase factors. For Rollover TSA only, we
will subtract from the Guaranteed minimum income benefit base or account value
any outstanding loan, including interest accrued but not paid. You may also
elect to receive monthly or quarterly payments as an alternative. The payments
will be less than 1/12 or 1/4 of the annual payments, respectively, due to the
effect of interest compounding. The benefit base is applied only to the
guaranteed annuity purchase factors under the Guaranteed minimum income benefit
in your contract and not to any other guaranteed or current annuity purchase
rates. The amount of income you actually receive will be determined when we
receive your request to exercise the benefit.
When you elect to receive annual lifetime income, your contract will terminate
and you will receive a new contract for the annuity payout option. For a
discussion of when your payments will begin and end, see "Exercise of
Guaranteed minimum income benefit" below.
Before you elect the Guaranteed minimum income benefit, you should consider the
fact that the it provides a form of insurance and is based on conservative
actuarial factors. The guaranteed annuity purchase factors we use to determine
your payout annuity benefit under the Guaranteed minimum income benefit are
more conservative than the guaranteed annuity purchase factors we use for our
standard payout annuity options. This means that, assuming the same amount is
applied to purchase the benefit and that we use guaranteed annuity purchase
factors to compute the benefit, each periodic payment under the Guaranteed
minimum income benefit payout annuity will be smaller than each periodic
payment under our standard payout annu-
34 Contract features and benefits
ity options. Therefore, even if your account value is less than your benefit
base, you may generate more income by applying your account value to current
annuity purchase factors. We will make this comparison for you when the need
arises.
ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll up to
age 85 benefit base, the table below illustrates the guaranteed minimum income
benefit amounts per $100,000 of initial contribution, for a male annuitant age
60 (at issue) on the contract date anniversaries indicated, who has elected the
life annuity fixed payout option, using the guaranteed annuity purchase factors
as of the date of this Prospectus, assuming no additional contributions,
withdrawals or loans under Rollover TSA contracts, and assuming there were no
allocations to EQ/Alliance Intermediate Government Securities, EQ/Money Market,
EQ/PIMCO Real Return, EQ/Short Duration Bond, the guaranteed interest option,
the fixed maturity options (including the Special 10 year fixed maturity
option) or the loan reserve account under rollover TSA contracts.
- -----------------------------------------------------------
Guaranteed minimum income
Contract date benefit -- annual income
anniversary at exercise payable for life
- -----------------------------------------------------------
10 $11,891
15 $18,597
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date
anniversary that you are eligible to exercise the Guaranteed minimum income
benefit, we will send you an eligibility notice illustrating how much income
could be provided as of the contract date anniversary. You must notify us
within 30 days following the contract date anniversary if you want to exercise
the Guaranteed minimum income benefit. You must return your contract to us,
along with all required information within 30 days following your contract date
anniversary, in order to exercise this benefit. You will begin receiving annual
payments one year after the annuity payout contract is issued. If you choose
monthly or quarterly payments, you will receive your payment one month or one
quarter after the annuity payment contract is issued. You may choose to take a
withdrawal prior to exercising the Guaranteed minimum income benefit, which
will reduce your payments. You may not partially exercise this benefit. See
"Accessing your money" under "Withdrawing your account value" later in this
Prospectus. Payments end with the last payment before the annuitant's (or joint
annuitant's, if applicable) death, or if later, the end of the period certain
(where the payout option chosen includes a period certain).
EXERCISE RULES. You will be eligible to exercise the Guaranteed minimum income
benefit during your life and the annuitant's life, as follows:
o If the annuitant was at least age 20 and no older than age 44 when the
contract was issued, you are eligible to exercise the Guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 15th contract date anniversary.
o If the annuitant was at least age 45 and no older than age 49 when the
contract was issued, you are eligible to exercise the Guaranteed minimum
income benefit within 30 days following each contract date anniversary
after the annuitant is age 60.
o If the annuitant was at least age 50 and no older than age 75 when the
contract was issued, you are eligible to exercise the Guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 10th contract date anniversary.
Please note:
(i) the latest date you may exercise the Guaranteed minimum income benefit is
within 30 days following the contract date anniversary following the
annuitant's 85th birthday;
(ii) if the annuitant was age 75 when the contract was issued, the only time
you may exercise the Guaranteed minimum income benefit is within 30 days
following the first contract date anniversary that it becomes available;
(iii) for Accumulator(R) Elite(SM) QP contracts, the Plan participant can
exercise the Guaranteed minimum income benefit only if he or she elects to
take a distribution from the Plan and, in connection with this
distribution, the Plan's trustee changes the ownership of the contract to
the participant. This effects a rollover of the Accumulator(R) Elite(SM)
QP contract into an Accumulator(R) Elite(SM) Rollover IRA. This process
must be completed within the 30-day timeframe following the contract date
anniversary in order for the Plan participant to be eligible to exercise;
(iv) for Accumulator(R) Elite(SM) Rollover TSA contracts, you may exercise the
Guaranteed minimum income benefit only if you effect a rollover of the TSA
contract to an Accumulator(R) Elite(SM) Rollover IRA. This may only occur
when you are eligible for a distribution from the TSA. This process must
be completed within the 30-day timeframe following the contract date
anniversary in order for you to be eligible to exercise;
(v) a successor owner/annuitant may only continue the Guaranteed minimum
income benefit if the contract is not past the last date on which the
original annuitant could have exercised the benefit. In addition, the
successor owner/annuitant must be eligible to continue the benefit and to
exercise the benefit under the applicable exercise rule (described in the
above bullets) using the following additional rules. The successor
owner/annuitant's age on the date of the annuitant's death replaces the
annuitant's age at issue for purposes of determining the availability of
the benefit and which of the exercise rules applies. The original contract
issue date will continue to apply for purposes of the exercise rules. If
you elect Spousal Protection and the spouse who is the annuitant dies, the
above rules apply if the contract is continued by the surviving spouse as
the successor owner/annuitant; and
(vi) if you are the owner but not the annuitant and you die prior to exercise,
then the following applies:
o A successor owner who is not the annuitant may not be able to
exercise the guaranteed minimum income benefit without causing a tax
problem. You should consider naming the annuitant as successor
owner, or if you do not name a successor owner, as the sole primary
beneficiary. You should carefully review your successor owner and/or
beneficiary
Contract features and benefits 35
designations at least one year prior to the first contract
anniversary on which you could exercise the benefit.
o If the successor owner is the annuitant, the guaranteed minimum
income benefit continues only if the benefit could be exercised
under the rules described above on a contract anniversary that is
within one year following the owner's death. This would be the only
opportunity for the successor owner to exercise. If the guaranteed
minimum income benefit cannot be exercised within this timeframe,
the benefit will terminate and the charge for it will no longer
apply as of the date we receive proof of your death and any required
information.
o If you designate your surviving spouse as successor owner, the
guaranteed minimum income benefit continues and your surviving
spouse may exercise the benefit according to the rules described
above even if your spouse is not the annuitant and even if the
benefit is exercised more than one year after your death. If your
surviving spouse dies prior to exercise, the rule described in the
previous bullet applies.
o A successor owner or beneficiary that is a trust or other non-
natural person may not exercise the benefit; in this case, the
benefit will terminate and the charge for it will no longer apply as
of the date we receive proof of your death and any required
information.
See "When an NQ contract owner dies before the annuitant" under "Payment of
death benefit" later in this Prospectus for more information.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals (and transfers out of the Special 10 year fixed
maturity option) affect your Guaranteed minimum income benefit, Guaranteed
minimum death benefit and Guaranteed principal benefit option 2" in "Accessing
your money" and the section entitled "Charges and expenses" later in this
Prospectus for more information on these guaranteed benefits.
GUARANTEED MINIMUM DEATH BENEFIT
Your contract provides a death benefit. If you do not elect one of the enhanced
death benefits described below, the death benefit is equal to your account
value (without adjustment for any otherwise applicable negative market value
adjustment) as of the date we receive satisfactory proof of death, any required
instructions for the method of payment, information and forms necessary to
effect payment, OR the standard death benefit, whichever provides the higher
amount. The standard death benefit is equal to your total contributions,
adjusted for any withdrawals (and any associated withdrawal charges) and any
taxes that apply. The standard death benefit is the only death benefit
available for annuitants ages 76 through 85 at issue. Once your contract is
issued, you may not change or voluntarily terminate your death benefit.
If you elect one of the enhanced death benefits, the death benefit is equal to
your account value (without adjustment for any otherwise applicable negative
market value adjustment) as of the date we receive satisfactory proof of the
annuitant's death, any required instructions for the method of payment,
information and forms necessary to effect payment, OR your elected enhanced
death benefit on the date of the annuitant's death (adjusted for any subsequent
withdrawals, withdrawal charges and taxes that apply), whichever provides the
higher amount. If you elect the Spousal protection option, the guaranteed
minimum death benefit is based on the age of the older spouse, who may or may
not be the annuitant, for the life of the contract. See "Spousal protection" in
"Payment of death benefit" later in this Prospectus for more information.
If you elect one of the enhanced death benefit options described below and
change ownership of the contract, generally the benefit will automatically
terminate, except under certain circumstances. If this occurs, any enhanced
death benefit elected will be replaced with the standard death benefit. See
"Transfers of ownership, collateral assignments, loans and borrowing" in "More
information," later in this Prospectus for more information.
OPTIONAL ENHANCED DEATH BENEFITS APPLICABLE FOR ANNUITANT AGES 0 THROUGH 75 AT
ISSUE OF NQ CONTRACTS; 20 THROUGH 75 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION
IRA AND ROLLOVER TSA CONTRACTS; 0 THROUGH 70 AT ISSUE OF INHERITED IRA
CONTRACTS; AND 20 THROUGH 75 AT ISSUE OF QP CONTRACTS.
Subject to state availability (see Appendix VIII later in this Prospectus for
state availability of these benefits), you may elect one of the following
enhanced death benefits:
o ANNUAL RATCHET TO AGE 85.
o THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85.
Each enhanced death benefit is equal to its corresponding benefit base
described earlier in "Your Guaranteed minimum death benefit and Guaranteed
minimum income benefit base." Once you have made your enhanced death benefit
election, you may not change it.
If you elect Principal Protector(SM), only the standard death benefit and the
Annual Ratchet to Age 85 enhanced death benefit are available.
----------------------------------
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals (and transfers out of the Special 10 year fixed
maturity option) affect your Guaranteed minimum income benefit, Guaranteed
minimum death benefit and Guaranteed principal benefit option 2" in "Accessing
your money" and the section entitled "Charges and expenses" later in this
Prospectus for more information on these guaranteed benefits.
See Appendix IV later in this Prospectus for an example of how we calculate an
enhanced death benefit.
Protection Plus(SM)
Subject to state and contract availability (see Appendix VIII later in this
Prospectus for state availability of these benefits), if you are purchasing a
contract, under which the Protection Plus(SM) feature is available, you may
elect the Protection Plus(SM) death benefit at the time you purchase your
contract. Protection Plus(SM) provides an additional death benefit as described
below. See the appropriate part of "Tax information" later in this Prospectus
for the potential tax consequences of
36 Contract features and benefits
electing to purchase the Protection Plus(SM) feature in an NQ, IRA or Rollover
TSA contract. Once you purchase the Protection Plus(SM) feature, you may not
voluntarily terminate this feature. If you elect Principal Protector(SM), the
Protection Plus(SM) feature is not available.
If you elect the Protection Plus(SM) option described below and change ownership
of the contract, generally this benefit will automatically terminate, except
under certain circumstances. See "Transfers of ownership, collateral
assignments, loans and borrowing" in "More information," later in this
Prospectus for more information.
If the annuitant is 70 or younger when we issue your contract (or if the
successor owner/annuitant is 70 or younger when he or she becomes the successor
owner/annuitant), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit less total net contributions, multiplied by 40%.
For purposes of calculating your Protection Plus(SM) benefit, the following
applies: (i) "Net contributions" are the total contributions made (or if
applicable, the total amount that would otherwise have been paid as a death
benefit had the successor owner/annuitant election not been made plus any
subsequent contributions) adjusted for each withdrawal that exceeds your
Protection Plus(SM) earnings. "Net contributions" are reduced by the amount of
that excess. Protection Plus(SM) earnings are equal to (a) minus (b) where (a)
is the greater of the account value and the death benefit immediately prior to
the withdrawal and (b) is the net contributions as adjusted by any prior
withdrawals; and (ii) "Death benefit" is equal to the greater of the account
value as of the date we receive satisfactory proof of death or any applicable
Guaranteed minimum death benefit as of the date of death.
If the annuitant is age 71 through 75 when we issue your contract (or if the
successor owner/annuitant is between the ages of 71 and 75 when he or she
becomes the successor owner/annuitant and Protection Plus(SM) had been elected
at issue), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit (as described above) less total net contributions,
multiplied by 25%.
The value of the Protection Plus(SM) death benefit is frozen on the first
contract date anniversary after the annuitant turns age 80, except that the
benefit will be reduced for withdrawals on a pro rata basis. Reduction on a pro
rata basis means that we calculate the percentage of the current account value
that is being withdrawn and we reduce the benefit by that percentage. For
example, if the account value is $30,000 and you withdraw $12,000, you have
withdrawn 40% of your account value. If the benefit is $40,000 before the
withdrawal, it would be reduced by $16,000 ($40,000 X .40) and the benefit
after the withdrawal would be $24,000 ($40,000 - $16,000).
For an example of how the Protection Plus(SM) death benefit is calculated,
please see Appendix VII.
If you elect Spousal protection, the Protection Plus(SM) benefit is based on the
age of the older spouse, who may or may not be the annuitant. Upon the death of
the non-annuitant spouse, the account value will be increased by the value of
the Protection Plus(SM) benefit as of the date we receive due proof of death.
Upon the death of the annuitant, the value of the Protection Plus(SM) benefit is
either added to the death benefit payment or to the account value if successor
owner/annuitant is elected. If the surviving spouse elects to continue the
contract, the benefit will be based on the age of the surviving spouse as of
the date of the non-surviving spouse's death for the remainder of the contract.
If the surviving spouse is age 76 or older, the benefit will terminate and the
charge will no longer be in effect. See "Spousal protection" in "Payment of
death benefit" later in this Prospectus for more information.
Protection Plus(SM) must be elected when the contract is first issued: neither
the owner nor the successor owner/annuitant can add it subsequently. Ask your
financial professional or see Appendix VIII later in this Prospectus to see if
this feature is available in your state.
PRINCIPAL PROTECTOR(SM)
As described below, Principal Protector(SM) provides for recovery of your total
contributions through withdrawals, even if your account value falls to zero,
provided that during each contract year, your total withdrawals do not exceed
your Guaranteed Annual withdrawal amount. Principal Protector(SM) is not an
automated withdrawal program. You may request a withdrawal through any of our
available withdrawal methods. See "Withdrawing your account value" in
"Accessing your money" later in this Prospectus. All withdrawals reduce your
account value and the guaranteed minimum death benefit.
Principal Protector(SM) may be elected at contract issue, for an additional
charge, if the annuitant is age 0 through 85 for NQ contracts or age 20 through
75 for all IRA contracts. Please see "Principal Protector(SM) charge" in
"Charges and expenses" later in this Prospectus for a description of the charge
and when it applies. If you elect this benefit, you cannot terminate it.
If you die, and your beneficiary elects the Beneficiary continuation option, if
available, your beneficiary may continue Principal Protector(SM) provided that
the beneficiary was 75 or younger on the original contract date. If the
beneficiary was older, Principal Protector(SM) will terminate without value even
if the GWB benefit base is greater than zero. In the case of multiple
beneficiaries, any beneficiary older than 75 may not continue Principal
Protector(SM) and that beneficiary's portion of the GWB benefit base will
terminate without value, even if it was greater than zero. The ability to
continue Principal Protector(SM) under the Beneficiary continuation option is
subject to state availability. When and if it is approved in your state, it
will be added to your contract if you had already elected GWB. See "Beneficiary
continuation option" under "Payment of death benefit" later in the Prospectus
for more information on continuing Principal Protector(SM) under the Beneficiary
continuation option.
Contract features and benefits 37
If you are purchasing this contract as a TSA, QP or Inherited IRA, Principal
Protector(SM) is not available. This benefit is also not available if you elect
the Guaranteed minimum income benefit, the Greater of 6% Roll Up to age 85 and
Annual Ratchet to Age 85 enhanced death benefit, Protection Plus(SM), GPB Option
1 or GPB Option 2 or the special dollar cost averaging program.
If you elect the Principal Protector(SM) option and change ownership of the
contract, generally this benefit will automatically terminate, except under
certain circumstances. See "Transfers of ownership, collateral assignments,
loans and borrowing" in "More information," later in this Prospectus for more
information.
You should not purchase Principal Protector(SM) if you plan to take withdrawals
in excess of your GWB Annual withdrawal amount because those withdrawals
significantly reduce or eliminate the value of the benefit. See "Effect of GWB
Excess withdrawals" below. For traditional IRAs, the Principal Protector(SM)
makes provision for you to take lifetime required minimum distributions
("RMDs") without losing the value of the Principal Protector(SM) guarantee,
provided you comply with the conditions under "Lifetime required minimum
distribution withdrawals" in "Accessing your money" later in this Prospectus
including utilizing our Automatic RMD service. If you do not expect to comply
with these conditions, including utilization of our Automatic RMD service, this
benefit may have limited usefulness for you and you should consider whether it
is appropriate. Please consult your tax adviser.
YOUR GWB BENEFIT BASE
At issue, your GWB benefit base is equal to your initial contribution and will
increase or decrease, as follows:
o Your GWB benefit base increases by the dollar amount of any additional
contributions.
o Your GWB benefit base decreases by the dollar amount of withdrawals.
o Your GWB benefit base may be further decreased if a withdrawal is taken in
excess of your GWB Annual withdrawal amount.
o Your GWB benefit base may also be increased under the Optional step up
provision.
o Your GWB benefit base may also be increased under the one time step up
applicable with the Beneficiary continuation option.
Each of these events is described in detail below. Once your GWB benefit base
is depleted, you may continue to make withdrawals from your account value, but
they are not guaranteed under Principal Protector(SM).
YOUR GWB ANNUAL WITHDRAWAL AMOUNT
Your GWB Annual withdrawal amount is equal to either 5% or 7% ("Applicable
percentage"), as applicable, of your initial GWB benefit base, and is the
maximum amount that you can withdraw each year without making a GWB Excess
withdrawal, as described below. When you purchase your contract, you choose
between two available GWB Annual withdrawal options:
o 7% GWB Annual withdrawal option
o 5% GWB Annual withdrawal option
The GWB Annual withdrawal amount may decrease as a result of a GWB Excess
withdrawal and may increase as a result of an Automatic reset, additional
contributions or a "step up" of the GWB benefit base; each of these
transactions are discussed below in detail. Once you elect a GWB Annual
withdrawal option, it cannot be changed.
Your GWB Annual withdrawal amounts are not cumulative. If you withdraw less
than the GWB Annual withdrawal amount in any contract year, you may not add the
remainder to your GWB Annual withdrawal amount in any subsequent year.
The withdrawal charge, if applicable, is waived for withdrawals up to the GWB
Annual withdrawal amount, but all withdrawals are counted toward your free
withdrawal amount. See "Withdrawal charge" in "Charges and expenses" later in
this Prospectus.
EFFECT OF GWB EXCESS WITHDRAWALS
A GWB Excess withdrawal is caused when you withdraw more than your GWB Annual
withdrawal amount in any contract year. Once a withdrawal causes cumulative
withdrawals in a contract year to exceed your GWB Annual withdrawal amount, the
entire amount of the withdrawal and each subsequent withdrawal in that contract
year are GWB Excess withdrawals.
A GWB Excess withdrawal can cause a significant reduction in both your GWB
benefit base and your GWB Annual withdrawal amount. If you make a GWB Excess
withdrawal, we will recalculate your GWB benefit base and the GWB Annual
withdrawal amount. As of the date of the GWB Excess withdrawal, the GWB benefit
base is first reduced by the dollar amount of the withdrawal (including any
applicable withdrawal charge), and the reduced GWB benefit base and the GWB
Annual withdrawal amount are then further adjusted, as follows:
o If the account value after the deduction of the withdrawal is less than the
GWB benefit base, then the GWB benefit base is reset equal to the account
value.
o If the account value after the deduction of the withdrawal is greater than or
equal to the GWB benefit base, then the GWB benefit base is not adjusted
further.
o The GWB Annual withdrawal amount equals the lesser of: (i) the Applicable
percentage of the adjusted GWB benefit base and (ii) the GWB Annual
withdrawal amount prior to the GWB Excess withdrawal.
You should not purchase this benefit if you plan to take withdrawals in excess
of your GWB Annual withdrawal amount, as such withdrawals significantly reduce
or eliminate the value of Principal Protector(SM). If your account value is less
than your GWB benefit base (due, for example, to negative market performance),
a GWB Excess withdrawal, even one that is only slightly more than your GWB
Annual withdrawal amount, can significantly reduce your GWB benefit base and
the GWB Annual withdrawal amount.
For example, if you contribute $100,000 at contract issue, your initial GWB
benefit base is $100,000. If you elect the 7% GWB Annual withdrawal option,
your GWB Annual withdrawal amount is equal to $7,000 (7% of $100,000). Assume
in contract year four that your account value is $80,000, you have not made any
prior withdrawals,
38 Contract features and benefits
and you request an $8,000 withdrawal. Your $100,000 benefit base is first
reduced by $8,000 to now equal $92,000. Your GWB benefit base is then further
reduced to equal the new account value: $72,000 ($80,000 minus $8,000). In
addition, your GWB Annual withdrawal amount is reduced to $5,040 (7% of
$72,000), instead of the original $7,000.
Withdrawal charges, if applicable, are applied to the amount of the withdrawal
exceeding the GWB Annual withdrawal amount. See "Withdrawal charge" in "Charges
and expenses" later in this Prospectus. You should further note that a GWB
Excess withdrawal that reduces your account value to zero eliminates any
remaining value in your GWB benefit base. See "Termination of your contract" in
"Determining your contract value" later in this Prospectus.
In general, if you purchase this contract as a traditional IRA and participate
in our Automatic RMD service, and you do not take any other withdrawals, an
automatic withdrawal under that program will not cause a GWB Excess withdrawal,
even if it exceeds your GWB Annual withdrawal amount. For more information, see
"Lifetime required minimum distribution withdrawals" in "Accessing your money"
later in this Prospectus.
If you die, and your beneficiary continues Principal Protector(SM) under the
Beneficiary continuation option and chooses scheduled payments, such payments
will not cause a GWB Excess withdrawal, provided no additional withdrawals are
taken. If your beneficiary chooses the "5-year rule" instead of scheduled
payments, this waiver does not apply and a GWB Excess withdrawal may occur if
withdrawals exceed the GWB Annual withdrawal amounts.
EFFECT OF AUTOMATIC RESET
If you take no withdrawals in the first five contract years, the Applicable
percentage to determine your GWB Annual withdrawal amount will be automatically
reset at no additional charge. The Applicable percentage under the 7% GWB
Annual withdrawal option will be increased to 10%, and the Applicable
percentage under the 5% GWB Annual withdrawal option will be increased to 7%.
The Applicable percentage is automatically reset on your fifth contract
anniversary, and your GWB Annual withdrawal amount will be recalculated.
If you die before the fifth contract anniversary, and your beneficiary
continues Principal Protector(SM) under the Beneficiary continuation option, if
available, the Automatic reset will apply on the fifth contract anniversary if
you have not taken any withdrawals and: (1) your beneficiary chooses scheduled
payments and payments have not yet started; or, (2) if your beneficiary chooses
the "5-year rule" option and has not taken withdrawals. See "Beneficiary
continuation option" in "Payment of death benefit" later in this Prospectus.
EFFECT OF ADDITIONAL CONTRIBUTIONS
Anytime you make an additional contribution, we will recalculate your GWB
benefit base and your GWB Annual withdrawal amount. Your GWB benefit base will
be increased by the amount of the contribution and your GWB Annual withdrawal
amount will be equal to the greater of (i) the Applicable percentage of the new
GWB benefit base, or (ii) the GWB Annual withdrawal amount in effect
immediately prior to the additional contribution.
If you die, and your beneficiary continues Principal Protector(SM) under the
Beneficiary continuation option, no additional contributions will be permitted.
OPTIONAL STEP UP PROVISION
Except as stated below, any time after the fifth contract anniversary, you may
request a step up in the GWB benefit base to equal your account value. If your
GWB benefit base is higher than the account value as of the date we receive
your step up request, no step up will be made. If a step up is made, we may
increase the charge for the benefit. For a description of the charge increase,
see "Principal Protector(SM) charge" in "Charges and expenses" later in this
Prospectus. Once you elect to step up the GWB benefit base, you may not do so
again for five complete contract years from the next contract date anniversary.
Under both the Spousal protection and the successor owner annuitant features,
upon the first death, the surviving spouse must wait five complete contract
years from the last step up or from contract issue, whichever is later, to be
eligible for a step up.
As of the date of your GWB benefit base step up, your GWB Annual withdrawal
amount will be equal to the greater of (i) your GWB Annual withdrawal amount
before the step up, and (ii) your GWB Applicable percentage applied to your
stepped up GWB benefit base.
It is important to note that a step up in your GWB benefit base may not
increase your GWB Annual withdrawal amount. In that situation, the effect of
the step up is only to increase your GWB benefit base and support future
withdrawals. We will process your step up request even if it does not increase
your GWB Annual withdrawal amount, and we will increase the Principal
Protector(SM) charge, if applicable. In addition, you will not be eligible to
request another step up for five complete contract years. After processing your
request, we will send you a confirmation showing the amount of your GWB benefit
base and your GWB Annual withdrawal amount.
For example, if you contribute $100,000 at contract issue, your initial GWB
benefit base is $100,000. If you elect the 7% GWB Annual withdrawal option,
your GWB Annual withdrawal amount is equal to $7,000 (7% of $100,000). Assume
you take withdrawals of $7,000 in each of the first five contract years,
reducing the GWB benefit base to $65,000. After five contract years, further
assume that your account value is $92,000, and you elect to step up the GWB
benefit base from $65,000 to $92,000. The GWB Annual withdrawal amount is
recalculated to equal the greater of 7% of the new GWB benefit base, which is
$6,440 (7% of $92,000), or the current GWB Annual withdrawal amount, $7,000.
Therefore, following the step up, even though your GWB benefit base has
increased, your GWB Annual withdrawal amount does not increase and remains
$7,000.
The Optional step up provision is not available once your beneficiary continues
Principal Protector(SM) under the Beneficiary continuation option. However, if
you die, and your beneficiary continues Principal Protector(SM) under the
Beneficiary continuation option, the GWB benefit base will be stepped up to
equal the account value, if higher, as of the transaction date that we receive
the Beneficiary continuation option election. As of the date of the GWB benefit
base step up, your beneficiary's GWB Annual withdrawal amount will be equal to
the greater of (i) your GWB Annual withdrawal amount before the step up,
Contract features and benefits 39
and (ii) your GWB Applicable percentage applied to the stepped up GWB benefit
base. This is a one-time step up at no additional charge.
OTHER IMPORTANT CONSIDERATIONS
o Principal Protector(SM) protects your principal only through withdrawals. Your
account value may be less than your total contributions.
o You can take withdrawals under your contract without purchasing Principal
Protector(SM). In other words, you do not need this benefit to make
withdrawals.
o Amounts withdrawn in excess of your GWB Annual withdrawal amount may be
subject to a withdrawal charge, if applicable, as described in "Charges
and expenses" later in the Prospectus. In addition, all withdrawals count
toward your free withdrawal amount for that contract year.
o Withdrawals made under Principal Protector(SM) will be treated, for tax
purposes, in the same way as other withdrawals under your contract.
o All withdrawals are subject to all of the terms and conditions of the
contract. Principal Protector(SM) does not change the effect of withdrawals
on your account value or guaranteed minimum death benefit; both are
reduced by withdrawals whether or not you elect Principal Protector(SM). See
"How withdrawals are taken from your account value" and "How withdrawals
(and transfers out of the Special 10 year fixed maturity option) affect
your Guaranteed minimum income benefit, Guaranteed minimum death benefit
and Guaranteed principal benefit option 2" in "Accessing your money" later
in this Prospectus.
o If you withdraw less than the GWB Annual withdrawal amount in any contract
year, you may not add the remainder to your GWB Annual withdrawal amount
in any subsequent year.
o GWB Excess withdrawals can significantly reduce or completely eliminate the
value of this benefit. See "Effect of GWB Excess withdrawals" above in
this section and "Withdrawing your account value" in "Accessing your
money" later in this Prospectus.
o If you surrender your contract to receive its cash value, all benefits under
the contract will terminate, including Principal Protector(SM) if your cash
value is greater than your GWB Annual withdrawal amount. Therefore, when
surrendering your contract, you should seriously consider the impact on
Principal Protector(SM) when you have a GWB benefit base that is greater
than zero.
o If you die and your beneficiary elects the Beneficiary continuation option,
then your beneficiary should consult with a tax adviser before choosing to
use the "5-year rule." The "5-year rule" is described in "Payment of death
benefit" under "Beneficiary continuation option" later in this Prospectus.
The GWB benefit base may be adversely affected if the beneficiary makes
any withdrawals that cause a GWB Excess withdrawal. Also, when the
contract terminates at the end of 5 years, any remaining GWB benefit base
would be lost.
INHERITED IRA BENEFICIARY CONTINUATION CONTRACT
This contract is available to an individual beneficiary of a traditional IRA or
a Roth IRA where the deceased owner held the individual retirement account or
annuity (or Roth individual retirement account or annuity) with an insurance
company or financial institution other than AXA Equitable. The purpose of the
inherited IRA beneficiary continuation contract is to permit the beneficiary to
change the funding vehicle that the deceased owner selected ("original IRA")
while taking the required minimum distribution payments that must be made to
the beneficiary after the deceased owner's death. This contract is intended
only for beneficiaries who want to take payments at least annually over their
life expectancy. These payments generally must begin (or must have begun) no
later than December 31 of the calendar year following the year the deceased
owner died. This contract is not suitable for beneficiaries electing the
"5-year rule." See "Beneficiary continuation option for IRA and Roth IRA
contracts" under "Beneficiary continuation option" in "Payment of death
benefit" later in this Prospectus. You should discuss with your tax adviser
your own personal situation. This contract may not be available in all states.
Please speak with your financial professional for further information.
The inherited IRA beneficiary continuation contract can only be purchased by a
direct transfer of the beneficiary's interest under the deceased owner's
original IRA. The owner of the inherited IRA beneficiary continuation contract
is the individual who is the beneficiary of the original IRA. (Certain trusts
with only individual beneficiaries will be treated as individuals for this
purpose). The contract must also contain the name of the deceased owner. In
this discussion, "you" refers to the owner of the inherited IRA beneficiary
continuation contract.
The inherited IRA beneficiary continuation contract can be purchased whether or
not the deceased owner had begun taking required minimum distribution payments
during his or her life from the original IRA or whether you had already begun
taking required minimum distribution payments of your interest as a beneficiary
from the deceased owner's original IRA. You should discuss with your own tax
adviser when payments must begin or must be made.
Under the inherited IRA beneficiary continuation contract:
o You must receive payments at least annually (but can elect to receive
payments monthly or quarterly). Payments are generally made over your life
expectancy determined in the calendar year after the deceased owner's
death and determined on a term certain basis.
o The beneficiary of the original IRA will be the annuitant under the inherited
IRA beneficiary continuation contract. In the case where the beneficiary
is a "See Through Trust," the oldest beneficiary of the trust will be the
annuitant.
o An inherited IRA beneficiary continuation contract is not available for
annuitants over age 70.
o The initial contribution must be a direct transfer from the deceased owner's
original IRA and is subject to minimum contribution amounts. See "How you
can purchase and contribute to your contract" earlier in this section.
o Subsequent contributions of at least $1,000 are permitted but must be direct
transfers of your interest as a beneficiary from another IRA with a
financial institution other than AXA Equitable, where the deceased owner
is the same as under the original IRA contract.
o You may make transfers among the investment options.
40 Contract features and benefits
o You may choose at any time to withdraw all or a portion of the account value.
Any partial withdrawal must be at least $300. Withdrawal charges, if
applicable under your contract, will apply as described in "Charges and
expenses" later in this Prospectus.
o The Guaranteed minimum income benefit, successor owner/
annuitant feature, special dollar cost averaging program (if applicable),
automatic investment program, GPB Options 1 and 2, Principal Protector(SM)
and systematic withdrawals are not available under the Inherited IRA
beneficiary continuation contract.
o If you die, we will pay to a beneficiary that you choose the greater of the
annuity account value or the applicable death benefit.
o Upon your death, your beneficiary has the option to continue taking required
minimum distributions based on your remaining life expectancy or to
receive any remaining interest in the contract in a lump sum. The option
elected will be processed when we receive satisfactory proof of death, any
required instructions for the method of payment and any required
information and forms necessary to effect payment. If your beneficiary
elects to continue to take distributions, we will increase the account
value to equal the applicable death benefit if such death benefit is
greater than such account value as of the date we receive satisfactory
proof of death and any required instructions, information and forms.
Thereafter, withdrawal charges (if applicable under your contract) will no
longer apply. If you had elected any enhanced death benefits, they will no
longer be in effect and charges for such benefits will stop. The
Guaranteed minimum death benefit will also no longer be in effect.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
If for any reason you are not satisfied with your contract, you may return it
to us for a refund. To exercise this cancellation right you must mail the
contract, with a signed letter of instruction electing this right, to our
processing office within 10 days after you receive it. If state law requires,
this "free look" period may be longer. Other state variations may apply. Please
contact your financial professional to find out what applies in your state.
Generally, your refund will equal your account value (less loan reserve
account) under the contract on the day we receive notification of your decision
to cancel the contract and will reflect (i) any investment gain or loss in the
variable investment options (less the daily charges we deduct), (ii) any
guaranteed interest in the guaranteed interest option, (iii) any positive or
negative market value adjustments in the fixed maturity options through the
date we receive your contract, and (iv) any interest in the account for special
dollar cost averaging through the date we receive your contract. Some states
require that we refund the full amount of your contribution (not reflecting
(i), (ii), (iii), or (iv) above). For any IRA contract returned to us within
seven days after you receive it, we are required to refund the full amount of
your contribution.
We may require that you wait six months before you may apply for a contract
with us again if:
o you cancel your contract during the free look period; or
o you change your mind before you receive your contract whether we have
received your contribution or not.
Please see "Tax information" later in this Prospectus for possible consequences
of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA contract, you may
cancel your Roth Conversion IRA contract and return to a Rollover IRA contract.
Our processing office, or your financial professional, can provide you with the
cancellation instructions.
Contract features and benefits 41
2. Determining your contract's value
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the values you have in: (i) the variable
investment options; (ii) the guaranteed interest option; (iii) market adjusted
amounts in the fixed maturity options; (iv) the account for special dollar cost
averaging and (v) the loan reserve account (applicable to Rollover TSA
contracts only).
Your contract also has a "cash value." At any time before annuity payments
begin, your contract's cash value is equal to the account value, less: (i) the
total amount or a pro rata portion of the annual administrative charge as well
as optional benefit charges; (ii) any applicable withdrawal charges and (iii)
the amount of any outstanding loan plus accrued interest (applicable to
Rollover TSA contracts only). Please see "Surrendering your contract to receive
its cash value" in "Accessing your money" later in this Prospectus.
YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS
Each variable investment option invests in shares of a corresponding portfolio.
Your value in each variable investment option is measured by "units." The value
of your units will increase or decrease as though you had invested it in the
corresponding portfolio's shares directly. Your value, however, will be reduced
by the amount of the fees and charges that we deduct under the contract.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
The unit value for each variable investment option depends on the investment
performance of that option, less daily charges for:
(i) mortality and expense;
(ii) administrative expenses; and
(iii) distribution charges.
On any day, your value in any variable investment option equals the number of
units credited to that option, adjusted for any units purchased for or deducted
from your contract under that option, multiplied by that day's value for one
unit. The number of your contract units in any variable investment option does
not change unless they are:
(i) increased to reflect additional contributions;
(ii) decreased to reflect a withdrawal (plus applicable withdrawal charges);
(iii) increased to reflect a transfer into, or decreased to reflect a
transfer out of, a variable investment option; or
(iv) increased or decreased to reflect a transfer of your loan amount from
or to the loan reserve account under a Rollover TSA contract.
In addition, when we deduct the enhanced death benefit, Guaranteed minimum
income benefit, GPB Option 2, Principal Protector(SM) and/or the Protection
Plus(SM) benefit charges, the number of units credited to your contract will be
reduced. Your units are also reduced when we deduct the annual administrative
charge. A description of how unit values are calculated is found in the SAI.
YOUR CONTRACT'S VALUE IN THE GUARANTEED
INTEREST OPTION
Your value in the guaranteed interest option at any time will equal: your
contributions and transfers to that option, plus interest, minus withdrawals
out of the option, and charges we deduct.
YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS
Your value in each fixed maturity option at any time before the maturity date
is the market adjusted amount in each option, which reflects withdrawals out of
the option and charges we deduct. This is equivalent to your fixed maturity
amount increased or decreased by the market value adjustment. Your value,
therefore, may be higher or lower than your contributions (less withdrawals)
accumulated at the rate to maturity. At the maturity date, your value in the
fixed maturity option will equal its maturity value, provided there have been
no withdrawals or transfers.
YOUR CONTRACT'S VALUE IN THE ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING
Your value in the account for special dollar cost averaging at any time will
equal your contribution allocated to that option, plus interest, less the sum
of all amounts that have been transferred to the variable investment options
you have selected.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose all your rights under your contract and any
applicable guaranteed benefits, except as discussed below.
See Appendix VIII later in this Prospectus for any state variations with regard
to terminating your contract.
PRINCIPAL PROTECTOR(SM)
If you elect Principal Protector(SM) and your account value falls to zero due to
a GWB Excess withdrawal, we will terminate your contract and you will receive
no payment or annuity benefit, as discussed below, even if your GWB benefit
base is greater than zero. If, however, your account value falls to zero,
either due to a withdrawal or surrender that is not a GWB Excess withdrawal or
due to a deduction of charges, please note the following:
42 Determining your contract's value
o If your GWB benefit base equals zero, we will terminate your contract and
make no payment.
o If your GWB benefit base is greater than zero but less than or equal to the
balance of your GWB Annual withdrawal amount, if any, for that contract
year, we will terminate your contract and pay you any remaining GWB
benefit base.
o If your GWB benefit base is greater than the balance of your remaining GWB
Annual withdrawal amount, if any, for that contract year, we will pay you
your GWB Annual withdrawal amount balance and terminate your contract, and
we will pay you your remaining GWB benefit base as an annuity benefit, as
described below.
o If the Beneficiary continuation option is elected, and the account value
falls to zero while there is a remaining GWB benefit base, we will make
payments to the beneficiary as follows:
o If the beneficiary had elected scheduled payments we will continue to
make scheduled payments over remaining life expectancy until the GWB
benefit base is zero, and the Principal Protector(SM) charge will no
longer apply.
o If the beneficiary had elected the "5-year rule" and the GWB benefit
base is greater than the remaining GWB Annual withdrawal amount, if
any, for that contract year, we will pay the beneficiary the GWB Annual
withdrawal amount balance. We will continue to pay the beneficiary the
remaining GWB Annual withdrawal amount each year until the GWB benefit
base equals zero, or the contract terminates at the end of the fifth
contract year, whichever comes first. Any remaining GWB benefit base at
the end of the fifth contract year will terminate without value.
ANNUITY BENEFIT. If the contract terminates and the remaining GWB benefit base
is to be paid in installments, we will issue you an annuity benefit contract
and make annual payments equal to your GWB Annual withdrawal amount on your
contract anniversary beginning on the next contract anniversary, until the
cumulative amount of such payments equals the remaining GWB benefit base (as of
the date the contract terminates). The last installment payment may be smaller
than the previous installment payments in order for the total of such payments
to equal the remaining GWB benefit base.
The annuity benefit supplemental contract will carry over the same owner,
annuitant and beneficiary as under your contract. If you die before receiving
all of your payments, we will make any remaining payments to your beneficiary.
The charge for Principal Protector(SM) will no longer apply
If at the time of your death the GWB Annual withdrawal amount was being paid to
you as an annuity benefit, your beneficiary may not elect the Beneficiary
continuation option.
Determining your contract's value 43
3. Transferring your money among investment options
- --------------------------------------------------------------------------------
TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer
some or all of your account value among the investment options, subject to the
following:
o You may not transfer any amount to the account for special dollar cost
averaging.
o You may not transfer to a fixed maturity option that has a rate to maturity
of 3% or less.
o If the annuitant is age 76-80, you must limit your transfers to fixed
maturity options with maturities of seven years or less. If the annuitant
is age 81 or older, you must limit your transfers to fixed maturity
options of five years or less. As of February 15, 2005, maturities of less
than eight years were not available. Also, the maturity dates may be no
later than the date annuity payments are to begin.
o If you make transfers out of a fixed maturity option other than at its
maturity date, the transfer may cause a market value adjustment and affect
your GPB.
o During the first contract year, transfers into the guaranteed interest option
are not permitted
o After the first contract year, a transfer into the guaranteed interest option
will not be permitted if such transfer would result in more than 25% of
the annuity account value being allocated to the guaranteed interest
option, based on the annuity account value as of the previous business
day.
o No transfers are permitted into the Special 10 year fixed maturity option.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency, or dollar amount of transfers.
The maximum amount that may be transferred from the guaranteed interest option
to any investment option (including amounts transferred pursuant to the
fixed-dollar option and interest sweep option dollar cost averaging programs
described under "Allocating your contributions" in "Contract features and
benefits" earlier in this Prospectus) in any contract year is the greatest of:
(a) 25% of the amount you have in the guaranteed interest option on the last
day of the prior contract year; or,
(b) the total of all amounts transferred at your request from the guaranteed
interest option to any of the investment options in the prior contract
year; or
(c) 25% of amounts transferred or allocated to the guaranteed interest option
during the current contract year.
From time to time, we may remove the restrictions regarding transferring
amounts out of the guaranteed interest option. If we do so, we will tell you.
We will also tell you at least 45 days in advance of the day that we intend to
reimpose the transfer restrictions. When we reimpose the transfer restrictions,
if any dollar cost averaging transfer out of the guaranteed interest option
causes a violation of the 25% outbound restriction, that dollar cost averaging
program will be terminated for the current contract year. A new dollar cost
averaging program can be started in the next or subsequent contract years.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value to be
transferred, and
(3) the investment options to and from which you are transferring.
We will confirm all transfers in writing.
DISRUPTIVE TRANSFER ACTIVITY
You should note that the contract is not designed for professional "market
timing" organizations, or other organizations or individuals engaging in a
market timing strategy. The contract is not designed for programmed transfers,
frequent transfers or transfers that are large in relation to the total assets
of the underlying portfolio.
Frequent transfers, including market timing and other program trading or
short-term trading strategies, may be disruptive to the underlying portfolios
in which the variable investment options invest. Disruptive transfer activity
may adversely affect performance and the interests of long-term investors by
requiring a portfolio to maintain larger amounts of cash or to liquidate
portfolio holdings at a disadvantageous time or price. For example, when market
timing occurs, a portfolio may have to sell its holdings to have the cash
necessary to redeem the market timer's investment. This can happen when it is
not advantageous to sell any securities, so the portfolio's performance may be
hurt. When large dollar amounts are involved, market timing can also make it
difficult to use long-term investment strategies because a portfolio cannot
predict how much cash it will have to invest. In addition, disruptive transfers
or purchases and redemptions of portfolio investments may impede efficient
portfolio management and impose increased transaction costs, such as brokerage
costs, by requiring the portfolio manager to effect more frequent purchases and
sales of portfolio securities. Similarly, a portfolio may bear increased
administrative costs as a result of the asset level and investment volatility
that accompanies patterns of excessive or short-term trading. Portfolios that
invest a significant portion of their assets in foreign securities or the
securities of small- and mid-capitalization companies tend to be subject to the
risks associated with market timing and short-term trading strategies to a
greater extent than portfolios that do not. Securities trading in overseas
markets present time zone arbitrage opportunities when events affecting
portfolio securities values occur after the close of the overseas market but
prior to the close of the U.S. markets. Securities of small- and
mid-capitalization companies present arbitrage opportunities because the market
for such securities may be less liquid than the market for securities of larger
companies,
44 Transferring your money among investment options
which could result in pricing inefficiencies. Please see the prospectuses for
the underlying portfolios for more information on how portfolio shares are
priced.
We currently use the procedures described below to discourage disruptive
transfer activity. You should understand, however, that these procedures are
subject to the following limitations: (1) they primarily rely on the policies
and procedures implemented by the underlying portfolios; (2) they do not
eliminate the possibility that disruptive transfer activity, including market
timing, will occur or that portfolio performance will be affected by such
activity; and (3) the design of market timing procedures involves inherently
subjective judgments, which we seek to make in a fair and reasonable manner
consistent with the interests of all policy and contract owners.
The AXA Premier VIP Trust and EQ Advisors Trust (the "affiliated trusts") have
adopted policies and procedures designed to discourage disruptive transfers by
contract owners investing in the portfolios of the affiliated trusts. The
affiliated trusts discourage frequent purchases and redemptions of portfolio
shares and will not make special arrangements to accommodate such transactions.
As a general matter, the affiliated trusts reserve the right to refuse or limit
any purchase or exchange order by a particular investor (or group of related
investors) if the transaction is deemed harmful to the portfolio's other
investors or would disrupt the management of the portfolio. The affiliated
trusts monitor aggregate inflows and outflows for each portfolio on a daily
basis. On any day when a portfolio's net inflows or outflows exceed an
established monitoring threshold, the affiliated trust obtains from us contract
owner trading activity. The affiliated trusts currently consider transfers into
and out of (or vice versa) the same variable investment option within a five
business day period as potentially disruptive transfer activity. When a
contract owner is identified as having engaged in a potentially disruptive
transfer for the first time, a letter is sent to the contract owner explaining
that there is a policy against disruptive transfer activity and that if such
activity continues certain transfer privileges may be eliminated. If and when
the contract owner is identified a second time as engaged in potentially
disruptive transfer activity, we currently prohibit the use of voice, fax and
automated transaction services. We currently apply such action for the
remaining life of each affected contract. We or the affiliated trusts may
change the definition of potentially disruptive transfer activity, the
monitoring procedures and thresholds, any notification procedures, and the
procedures to restrict this activity. Any new or revised policies and
procedures will apply to all contract owners uniformly. We do not permit
exceptions to our policies restricting disruptive transfer activity.
We may also offer investment options with underlying portfolios that are not
part of the AXA Premier VIP Trust or EQ Advisors Trust (the "unaffiliated
trusts"). Each unaffiliated trust may have its own policies and procedures
regarding disruptive transfer activity, which may be different than those
applied by the affiliated trusts. In most cases, the unaffiliated trust
reserves the right to reject a transfer that it believes, in its sole
discretion, is disruptive (or potentially disruptive) to the management of one
of its portfolios. Please see the prospectus for the underlying trust for
information regarding the policies and procedures, if any, employed by that
trust and any associated risks of investing in that trust. If an unaffiliated
trust advises us that there may be disruptive transfer activity from our
contract owners, we will work with the unaffiliated trust to review contract
owner trading activity. If the underlying trust determines that the trading
activity of a particular contract owner is disruptive, we will take action to
limit the disruptive trading activity of that contract owner as discussed
above.
Contract owners should note that it is not always possible for us and the
underlying trusts to identify and prevent disruptive transfer activity. Our
ability to monitor potentially disruptive transfer activity is limited in
particular with respect to certain group contracts. Group annuity contracts may
be owned by retirement plans on whose behalf we provide transfer instructions
on an omnibus (aggregate) basis, which may mask the disruptive transfer
activity of individual plan participants, and/or interfere with our ability to
restrict communication services. In addition, because we do not monitor for all
frequent trading at the separate account level, contract owners may engage in
frequent trading which may not be detected, for example, due to low net inflows
or outflows on the particular day(s). Therefore, no assurance can be given that
we or the trusts will successfully impose restrictions on all disruptive
transfers. Because there is no guarantee that disruptive trading will be
stopped, some contract owners/ participants may be treated differently than
others, resulting in the risk that some contract owners/participants may be
able to engage in frequent transfer activity while others will bear the effect
of that frequent transfer activity. The potential affects of frequent transfer
activity are discussed above.
REBALANCING YOUR ACCOUNT VALUE
We currently offer a rebalancing program that you can use to automatically
reallocate your account value among the variable investment options. You must
tell us:
(a) the percentage you want invested in each variable investment option (whole
percentages only), and
(b) how often you want the rebalancing to occur (quarterly, semiannually, or
annually on a contract year basis).
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options so that the percentage of your account value that
you specify is invested in each option at the end of each rebalancing date.
Your entire account value in the variable investment options must be included
in the rebalancing program.
- --------------------------------------------------------------------------------
Rebalancing does not assure a profit or protect against loss. You should
periodically review your allocation percentages as your needs change. You may
want to discuss the rebalancing program with your financial professional before
electing the program.
- --------------------------------------------------------------------------------
You may elect the rebalancing program at any time. You may also change your
allocation instructions or cancel the program at any time. If you request a
transfer while the rebalancing program is in effect, we will process the
transfer as requested; your rebalancing allocations will
Transferring your money among investment options 45
not be changed, and the rebalancing program will remain in effect unless you
request that it be canceled in writing. There is no charge for the rebalancing
feature.
You may not elect the rebalancing program if you are participating in any
dollar cost averaging program. Rebalancing is not available for amounts you
have allocated in the guaranteed interest option or the fixed maturity options.
46 Transferring your money among investment options
4. Accessing your money
- --------------------------------------------------------------------------------
WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your account value before annuity payments
begin. The table below shows the methods available under each type of contract.
More information follows the table.
Please see "Termination of your contract" in "Determining your contract's
value" earlier in this Prospectus and "How withdrawals (and transfers out of
the Special 10 year fixed maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death benefit and Guaranteed principal
benefit option 2," below for more information on how withdrawals affect your
guaranteed benefits and could potentially cause your contract to terminate.
- --------------------------------------------------------------------------------
Method of withdrawal
-------------------------------------------------------------
Lifetime
required
Substantially minimum
Contract Lump sum Systematic equal distribution
- --------------------------------------------------------------------------------
NQ Yes Yes No No
- --------------------------------------------------------------------------------
Rollover IRA Yes Yes Yes Yes
- --------------------------------------------------------------------------------
Roth
Conversion
IRA Yes Yes Yes No
- --------------------------------------------------------------------------------
Inherited IRA Yes No No **
- --------------------------------------------------------------------------------
QP Yes No No Yes
- --------------------------------------------------------------------------------
Rollover
TSA* Yes Yes No Yes
- --------------------------------------------------------------------------------
* For some Rollover TSA contracts, your ability to take withdrawals, loans or
surrender your contract may be limited. You must provide withdrawal
restriction information when you apply for a contract. See "Tax Sheltered
Annuity contracts (TSAs)" in "Tax information" later in this Prospectus.
** This contract pays out post-death required minimum distributions. See
"Inherited IRA beneficiary continuation contract" in "Contract features
and benefits" earlier in this Prospectus.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time.
(Rollover TSA contracts may have restrictions.) The minimum amount you may
withdraw is $300.
Lump sum withdrawals will be subject to a withdrawal charge if they exceed the
10% free withdrawal amount (see "10% free withdrawal amount" in "Charges and
expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is
outstanding, you may only take lump sum withdrawals as long as the cash value
remaining after any withdrawal equals at least 10% of the outstanding loan plus
accrued interest.
SYSTEMATIC WITHDRAWALS
(All contracts except Inherited IRA and QP)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value. (Rollover TSA contracts may have
restrictions).
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 0.8% monthly, 2.4% quarterly and 10.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would
be less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
We will make the withdrawals on any day of the month that you select as long as
it is not later than the 28th day of the month. If you do not select a date, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59-1/2 and 70-1/2.
You may change the payment frequency, or the amount or percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
lump sum withdrawal. You can cancel the systematic withdrawal option at any
time.
Systematic withdrawals are not subject to a withdrawal charge, except to the
extent that, when added to a lump sum withdrawal previously taken in the same
contract year, the systematic withdrawal exceeds the 10% free withdrawal
amount. This option is not available if you have elected a guaranteed principal
benefit.
SUBSTANTIALLY EQUAL WITHDRAWALS
(Rollover IRA and Roth Conversion IRA contracts)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus. We use one of the
IRS-approved methods for doing this; this is not the exclusive method of
meeting this exception. After consultation with your tax adviser, you may
decide to use another method which would require you to compute amounts
yourself and request lump sum withdrawals. In such a case, a withdrawal charge
may apply. Once you begin to take substantially equal withdrawals, you should
not stop them or change the pattern of your withdrawals until after the later
of age 59-1/2 or five full years after the first withdrawal. If you stop or
change the withdrawals or take a lump sum withdrawal, you may be liable for the
10% federal tax penalty that would have otherwise been due on prior withdrawals
made under this option and for any interest on the delayed payment of the
penalty.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may change, without penalty, from one of the
IRS-approved methods of calculating fixed payments to another IRS-approved
method (similar to the required minimum distribution rules) of calculating
payments which vary each year.
Accessing your money 47
You may elect to take substantially equal withdrawals at any time before age
59-1/2. We will make the withdrawal on any day of the month that you select as
long as it is not later than the 28th day of the month. You may not elect to
receive the first payment in the same contract year in which you took a lump
sum withdrawal. We will calculate the amount of your substantially equal
withdrawals using the IRS-approved method we offer. The payments will be made
monthly, quarterly or annually as you select. These payments will continue
until we receive written notice from you to cancel this option or you take a
lump sum withdrawal. You may elect to start receiving substantially equal
withdrawals again, but the payments may not restart in the same contract year
in which you took a lump sum withdrawal. We will calculate the new withdrawal
amount.
Substantially equal withdrawals that we calculate for you are not subject to a
withdrawal charge. This option is not available if you have elected a
guaranteed principal benefit.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA, QP and Rollover TSA contracts only -- See "Tax information"
later in this Prospectus)
We offer our "automatic required minimum distribution (RMD) service" to help
you meet lifetime required minimum distributions under federal income tax
rules. This is not the exclusive way for you to meet these rules. After
consultation with your tax adviser, you may decide to compute required minimum
distributions yourself and request lump sum withdrawals. In such a case, a
withdrawal charge may apply. Before electing this account based withdrawal
option, you should consider whether annuitization might be better in your
situation. If you have elected certain additional benefits, such as the
Guaranteed minimum death benefit, amounts withdrawn from the contract to meet
RMDs will reduce the benefit base and may limit the utility of the benefit.
Also, please refer to "Tax information" later in this Prospectus for
considerations on annuity contracts funding qualified plans, TSAs, and IRAs.
You may elect this service in the year in which you reach age 70-1/2 or in any
later year. The minimum amount we will pay out is $250. Currently, minimum
distribution withdrawal payments will be made annually. See "Required minimum
distributions" in "Tax information" later in this Prospectus for your specific
type of retirement arrangement.
We do not impose a withdrawal charge on minimum distribution withdrawals if you
are enrolled in our automatic RMD service except if, when added to a lump sum
withdrawal previously taken in the same contract year, the minimum distribution
withdrawal exceeds the 10% free withdrawal amount.
Under Rollover TSA contracts, you may not elect our automatic RMD service if a
loan is outstanding.
If you elect Principal Protector(SM), provided no other withdrawals are taken
during a contract year in which you participate in our Automatic RMD service,
an automatic withdrawal using our service will not cause a GWB Excess
withdrawal, even if it exceeds your GWB Annual withdrawal amount. If you take
any other withdrawal while you participate in the service, however, this GWB
Excess withdrawal exception terminates permanently. In order to take advantage
of this exception, you must elect and maintain participation in our Automatic
RMD service at your required beginning date, or the contract date, if your
required beginning date has occurred before the contract was purchased. See
"Principal Protector(SM)" in "Contract features and benefits" earlier in this
Prospectus for further information.
- --------------------------------------------------------------------------------
For Rollover IRA and Rollover TSA contracts, we will send a form outlining the
distribution options available in the year you reach age 70-1/2 (if you have not
begun your annuity payments before that time).
- --------------------------------------------------------------------------------
HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your value in the variable investment options and the guaranteed
interest option. If there is insufficient value or no value in the variable
investment options and the guaranteed interest option, any additional amount of
the withdrawal required or the total amount of the withdrawal will be withdrawn
from the fixed maturity options (other than the Special 10 year fixed maturity
option) in the order of the earliest maturity date(s) first. If the FMO amounts
are insufficient, we will deduct all or a portion of the withdrawal from the
account for special dollar cost averaging. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. A market value adjustment will apply to withdrawals from
the fixed maturity options (including the Special 10 year fixed maturity
option).
HOW WITHDRAWALS (AND TRANSFERS OUT OF THE SPECIAL 10 YEAR FIXED MATURITY
OPTION) AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT, GUARANTEED MINIMUM DEATH
BENEFIT AND GUARANTEED PRINCIPAL BENEFIT OPTION 2
In general, withdrawals will reduce your guaranteed benefits on a pro rata
basis. Reduction on a pro rata basis means that we calculate the percentage of
your current account value that is being withdrawn and we reduce your current
benefit by the same percentage. For example, if your account value is $30,000
and you withdraw $12,000, you have withdrawn 40% of your account value. If your
benefit was $40,000 before the withdrawal, it would be reduced by $16,000
($40,000 X .40) and your new benefit after the withdrawal would be $24,000
($40,000 - $16,000).
Transfers out of the Special 10 year fixed maturity option will reduce the GPB
Option 2 amount on a pro rata basis. In addition, if you make a contract
withdrawal from the Special 10 year fixed maturity option, we will reduce your
GPB Option 2 in a similar manner; however, the reduction will reflect both a
transfer out of the Special 10 year fixed maturity option and a withdrawal from
the contract. Therefore, the reduction in GPB Option 2 is greater when you take
a contract withdrawal from the Special 10 year fixed maturity option than it
would be if you took the withdrawal from another investment option.
Similar to the example above, if your account value is $30,000 and you withdraw
$12,000 from the Special 10 year fixed maturity option, you have withdrawn 40%
of your account value. If your GPB Option 2 benefit was $40,000 before the
withdrawal, the reduction to reflect
48 Accessing your money
the transfer out of the Special 10 year fixed maturity option would equal
$16,000 ($40,000 x .40). The amount used to calculate the reduction to reflect
the withdrawal from the contract is $24,000 ($40,000 - $16,000). The reduction
to reflect the withdrawal would equal $9,600 ($24,000 x .40), and your new
benefit after the withdrawal would be $14,400 ($24,000 - $9,600).
With respect to the Guaranteed minimum income benefit and the greater of 6%
Roll up to age 85 or the Annual Ratchet to age 85 enhanced death benefit,
withdrawals will reduce each of the benefits' 6% Roll up to age 85 benefit base
on a dollar-for-dollar basis, as long as the sum of withdrawals in a contract
year is 6% or less of the 6% Roll up benefit base on the most recent contract
date anniversary. Additional contributions made during the contract year do not
affect the amount of withdrawals that can be taken on a dollar-for dollar basis
in that contract year. Once a withdrawal is taken that causes the sum of
withdrawals in a contract year to exceed 6% of the benefit base on the most
recent anniversary, that entire withdrawal and any subsequent withdrawals in
that same contract year will reduce the benefit base pro rata. Reduction on a
dollar-for-dollar basis means that your 6% Roll up to age 85 benefit base will
be reduced by the dollar amount of the withdrawal for each Guaranteed benefit.
The Annual Ratchet to age 85 benefit base will always be reduced on a pro rata
basis.
HOW WITHDRAWALS AFFECT PRINCIPAL PROTECTOR(SM)
If you elect Principal Protector(SM), any withdrawal reduces your GWB benefit
base by the amount of the withdrawal. In addition, a GWB Excess withdrawal can
significantly reduce your GWB Annual withdrawal amount and further reduce your
GWB benefit base. For more information, see "Effect of GWB Excess withdrawals"
and "Other important considerations" under "Principal Protector(SM)" in
"Contract features and benefits" earlier in this Prospectus.
WITHDRAWALS TREATED AS SURRENDERS
If you withdraw more than 90% of a contract's current cash value, we will treat
it as a request to surrender the contract for its cash value. In addition, we
have the right to pay the cash value and terminate this contract if no
contributions are made during the last three completed contract years, and the
account value is less than $500, or if you make a withdrawal that would result
in a cash value of less than $500. See "Surrendering your contract to receive
its cash value" below. For the tax consequences of withdrawals, see "Tax
information" later in this Prospectus
SPECIAL RULES FOR PRINCIPAL PROTECTOR(SM). If you elect Principal Protector(SM),
all withdrawal methods described above can be used. We will not treat a
withdrawal request that results in a withdrawal in excess of 90% of the
contract's cash value as a request to surrender the contract unless it is a GWB
Excess withdrawal. In addition, we will not terminate your contract if either
your account value or cash value falls below $500, unless it is due to a GWB
Excess withdrawal. In other words, if you take a GWB Excess withdrawal that
equals more than 90% of your cash value or reduces your cash value to less than
$500, we will treat your request as a surrender of your contract even if your
GWB benefit base is greater than zero. Please also see "Termination of your
contract" in "Determining your contract value" earlier in this Prospectus.
Please also see Principal Protector(SM) in "Contract features and benefits,"
earlier in this Prospectus, for more information on how withdrawals affect your
guaranteed benefits and could potentially cause your contract to terminate.
LOANS UNDER ROLLOVER TSA CONTRACTS
You may take loans from a Rollover TSA unless restricted by the employer who
provided the Rollover TSA funds. If you cannot take a loan, or cannot take a
loan without approval from the employer who provided the funds, we will have
this information in our records based on what you and the employer who provided
the funds told us when you purchased your contract. The employer must also tell
us whether special employer plan rules of the Employee Retirement Income
Security Act of 1974 ("ERISA") apply. We will not permit you to take a loan
while you are enrolled in our "automatic required minimum distribution (RMD)
service."
You should read the terms and conditions on our loan request form carefully
before taking out a loan. Under Rollover TSA contracts subject to ERISA, you
may only take a loan with the written consent of your spouse. Your contract
contains further details of the loan provision. Please see Appendix VIII later
in this Prospectus for any state restrictions you may be subject to if you take
a loan from a Rollover TSA contract. Also, see "Tax information" later in this
Prospectus for general rules applicable to loans.
We will permit you to have only one loan outstanding at a time. The minimum
loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your
account value, subject to any limits under the federal income tax rules. The
term of a loan is five years. However, if you use the loan to acquire your
primary residence, the term is 10 years. The term may not extend beyond the
earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
(3) the date a death benefit is paid (the outstanding loan will be deducted
from the death benefit amount).
A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the properly completed
loan request form is received. Interest will accrue daily on your outstanding
loan at a rate we set. The loan interest rate will be equal to the Moody's
Corporate Bond Yield Averages for Baa bonds for the calendar month ending two
months before the first day of the calendar quarter in which the rate is
determined.
LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the
amount of your loan to the loan reserve account. Unless you specify otherwise,
we will subtract your loan on a pro rata basis from your value in the variable
investment options and the guaranteed interest option. If those amounts are
insufficient, any additional amount of the loan will be subtracted from the
fixed maturity options (other than the Special 10 year fixed maturity option),
in the order of the earliest maturity date(s) first. A market value adjustment
may apply. If the FMO amounts are insufficient, we will deduct all or a portion
of the loan from the account for special dollar cost averaging. If
Accessing your money 49
such amounts are still insufficient, we will deduct any remaining portion from
the Special 10 year fixed maturity option. A market value adjustment will apply
to withdrawals from the fixed maturity options (including the Special 10 year
fixed maturity option). If the amounts are withdrawn from the Special 10 year
fixed maturity option, the guaranteed benefit will be adversely affected. See
"Guaranteed principal benefit option 2" in "Contract features and benefits"
earlier in this Prospectus.
We will credit interest to the amount in the loan reserve account at a rate of
2% lower than the loan interest rate that applies for the time your loan is
outstanding. On each contract date anniversary after the date the loan is
processed, we will transfer the amount of interest earned in the loan reserve
account to the variable investment options on a pro rata basis. When you make a
loan repayment, unless you specify otherwise, we will transfer the dollar
amount of the loan repaid from the loan reserve account to the investment
options according to the allocation percentages we have on our records.
SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time while the
annuitant is living and before you begin to receive annuity payments. (Rollover
TSA contracts may have restrictions.) For a surrender to be effective, we must
receive your written request and your contract at our processing office. We
will determine your cash value on the date we receive the required information.
All benefits under the contract will terminate as of the date we receive the
required information, including Principal Protector(SM) (if applicable), if your
cash value is greater than your GWB Annual withdrawal amount. If you have a GWB
benefit base greater than zero, you should consider the impact of a contract
surrender on the Principal Protector(SM) benefit. If your surrender request does
not constitute a GWB Excess withdrawal, you may be eligible for additional
benefits. If, however, your surrender request constitutes a GWB Excess
withdrawal, you will lose those benefits. For more information, please see
"Annuity benefit" under "Termination of your contract" in "Determining your
contract value" and "Principal Protector(SM)" in "Contract features and
benefits" earlier in this Prospectus.
You may receive your cash value in a single sum payment or apply it to one or
more of the annuity payout options. See "Your annuity payout options" below.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments out of the variable investment
options within seven calendar days after the date of the transaction to which
the request relates. These transactions may include applying proceeds to a
variable annuity, payment of a death benefit, payment of any amount you
withdraw (less any withdrawal charges) and, upon surrender, payment of the cash
value. We may postpone such payments or applying proceeds for any period during
which:
(1) the New York Stock Exchange is closed or restricts trading,
(2) sales of securities or determination of the fair value of a variable
investment option's assets is not reasonably practicable because of an
emergency, or
(3) the SEC, by order, permits us to defer payment to protect people remaining
in the variable investment options.
We can defer payment of any portion of your value in the guaranteed interest
option, fixed maturity options and the account for special dollar cost
averaging (other than for death benefits) for up to six months while you are
living. We also may defer payments for a reasonable amount of time (not to
exceed 10 days) while we are waiting for a contribution check to clear.
All payments are made by check and are mailed to you (or the payee named in a
tax-free exchange) by U.S. mail, unless you request that we use an express
delivery service at your expense.
YOUR ANNUITY PAYOUT OPTIONS
Accumulator(R) Elite(SM) offers you several choices of annuity payout options.
Some enable you to receive fixed annuity payments, which can be either level or
increasing, and others enable you to receive variable annuity payments. Please
see Appendix VIII later in this Prospectus for variations that may apply to
your state.
You can choose from among the annuity payout options listed below. Restrictions
may apply, depending on the type of contract you own or the annuitant's age at
contract issue. In addition, if you are exercising your Guaranteed minimum
income benefit, your choice of payout options are those that are available under
the Guaranteed minimum income benefit (see "Our Guaranteed minimum income
benefit option" in "Contract features and benefits" earlier in this Prospectus).
If you elect Principal Protector(SM) and choose to annuitize your contract,
Principal Protector(SM) will terminate without value even if your GWB benefit
base is greater than zero. Payments you receive under the annuity payout option
you select may be less than your GWB benefit base. See "Principal Protector(SM)"
in "Contract features and benefits" earlier in this Prospectus for further
information.
- ------------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period
certain
Life annuity with refund
certain
Period certain annuity
- -------------------------------------------------------------------------
Variable Immediate Annuity Life annuity
payout options Life annuity with period
certain
- -------------------------------------------------------------------------
Income Manager(R) payout options Life annuity with period
(available for annuitants age 83 certain
or less at contract issue) Period certain annuity
- -------------------------------------------------------------------------
o Life annuity: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment before the
annuitant's death. Because there is no continuation of benefits following
the annuitant's death with this payout option, it provides the highest
monthly payment of any of the life annuity options, so long as the
annuitant is living.
50 Accessing your money
o Life annuity with period certain: An annuity that guarantees payments for the
rest of the annuitant's life. If the annuitant dies before the end of a
selected period of time ("period certain"), payments continue to the
beneficiary for the balance of the period certain. The period certain
cannot extend beyond the annuitant's life expectancy. A life annuity with
a period certain is the form of annuity under the contracts that you will
receive if you do not elect a different payout option. In this case, the
period certain will be based on the annuitant's age and will not exceed 10
years.
o Life annuity with refund certain: An annuity that guarantees payments for the
rest of the annuitant's life. If the annuitant dies before the amount
applied to purchase the annuity option has been recovered, payments to the
beneficiary will continue until that amount has been recovered. This
payout option is available only as a fixed annuity.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15, or 20 years. This guaranteed period may
not exceed the annuitant's life expectancy. This option does not guarantee
payments for the rest of the annuitant's life. It does not permit any
repayment of the unpaid principal, so you cannot elect to receive part of
the payments as a single sum payment with the rest paid in monthly annuity
payments. This payout option is available only as a fixed annuity.
The life annuity, life annuity with period certain, and life annuity with
refund certain payout options are available on a single life or joint and
survivor life basis. The joint and survivor life annuity guarantees payments
for the rest of the annuitant's life and, after the annuitant's death, payments
continue to the survivor. We may offer other payout options not outlined here.
Your financial professional can provide details.
FIXED ANNUITY PAYOUT OPTIONS
With fixed annuities, we guarantee fixed annuity payments will be based either
on the tables of guaranteed annuity purchase factors in your contract or on our
then current annuity purchase factors, whichever is more favorable for you.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS
Variable Immediate Annuities are described in a separate prospectus that is
available from your financial professional. Before you select a Variable
Immediate Annuity payout option, you should read the prospectus which contains
important information that you should know.
Variable Immediate Annuities may be funded through your choice of available
variable investment options investing in portfolios of EQ Advisors Trust and
AXA Premier VIP Trust. The contract also offers a fixed income annuity payout
option that can be elected in combination with the variable annuity payout
option. The amount of each variable income annuity payment will fluctuate,
depending upon the performance of the variable investment options, and whether
the actual rate of investment return is higher or lower than an assumed base
rate.
INCOME MANAGER(R) PAYOUT OPTIONS
The Income Manager(R) payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts may provide higher or
lower income levels, but do not have all the features of the Income Manager(R)
payout annuity contract. You may request an illustration of the Income
Manager(R) payout annuity contract from your financial professional. Income
Manager(R) payout options are described in a separate prospectus that is
available from your financial professional. Before you select an Income
Manager(R) payout option, you should read the prospectus which contains
important information that you should know.
Both NQ and IRA Income Manager(R) payout options provide guaranteed level
payments. The Income Manager(R) (life annuity with period certain) also
provides guaranteed increasing payments (NQ contracts only). You may not elect
an Income Manager(R) payout option without life contingencies unless withdrawal
charges are no longer in effect under your contract.
For QP and Rollover TSA contracts, if you want to elect an Income Manager(R)
payout option, we will first roll over amounts in such contract to a Rollover
IRA contract with the plan participant as owner. You must be eligible for a
distribution under the QP or Rollover TSA contract.
You may choose to apply your account value of your Accumulator(R) Elite(SM)
contract to an Income Manager(R) payout annuity. In this case, we will consider
any amounts applied as a withdrawal from your Accumulator(R) Elite(SM), and we
will deduct any applicable withdrawal charge. For the tax consequences of
withdrawals, see "Tax information" later in this Prospectus.
Depending upon your circumstances, an Income Manager(R) contract may be
purchased on a tax-free basis. Please consult your tax adviser. The Income
Manager(R) payout options are not available in all states.
THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION
The amount applied to purchase an annuity payout option varies, depending on
the payout option that you choose, and the timing of your purchase as it
relates to any withdrawal charges or market value adjustments.
If amounts in a fixed maturity option are used to purchase any annuity payout
option, prior to the maturity date, a market value adjustment will apply.
For the fixed annuity payout options and Variable Immediate Annuity payout
options, no withdrawal charge is imposed if you select a life annuity, life
annuity with period certain or life annuity with refund certain.
For the fixed annuity payout option, the withdrawal charge applicable under our
contract is imposed if you select a period certain. If the period certain is
more than 5 years, then the withdrawal charge deducted will not exceed 5% of
the account value.
For the Income Manager(R) life contingent payout options no withdrawal charge
is imposed under your contract. If the withdrawal charge that otherwise would
have been applied to your account value under your contract is greater than 2%
of the contributions that remain in your contract at the time you purchase your
payout option,
Accessing your money 51
the withdrawal charges under the Income Manager(R) will apply. The year in
which your account value is applied to the payout option will be "contract year
1."
SELECTING AN ANNUITY PAYOUT OPTION
When you select a payout option, we will issue you a separate written agreement
confirming your right to receive annuity payments. We require you to return
your contract before annuity payments begin. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
thirteen months from the Accumulator(R) Elite(SM) contract date. Except with
respect to the Income Manager(R) annuity payout options, where payments are
made on the 15th day of each month, you can change the date your annuity
payments are to begin anytime before that date as long as you do not choose a
date later than the 28th day of any month. Also, that date may not be later
than the annuity maturity date described below.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier.
In no event will you ever receive payments under a fixed option or an initial
payment under a variable option of less than the minimum amounts guaranteed by
the contract.
If, at the time you elect a payout option, the amount to be applied is less
than $2,000 or the initial payment under the form elected is less than $20
monthly, we reserve the right to pay the account value in a single sum rather
than as payments under the payout option chosen.
ANNUITY MATURITY DATE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 95th birthday.
Please see Appendix VIII later in this Prospectus for variations that may apply
in your state.
Before the last day by which your annuity payments must begin, we will notify
you by letter. Once you have selected an annuity payout option and payments
have begun, no change can be made other than: (i) transfers (if permitted in
the future) among the variable investment options if a Variable Immediate
Annuity payout option is selected; and (ii) withdrawals or contract surrender
(subject to a market value adjustment) if an Income Manager(R) payout option is
chosen.
52 Accessing your money
5. Charges and expenses
- --------------------------------------------------------------------------------
CHARGES THAT AXA EQUITABLE DEDUCTS
We deduct the following charges each day from the net assets of each variable
investment option. These charges are reflected in the unit values of each
variable investment option:
o A mortality and expense risks charge
o An administrative charge
o A distribution charge
We deduct the following charges from your account value. When we deduct these
charges from your variable investment options, we reduce the number of units
credited to your contract:
o On each contract date anniversary -- an annual administrative charge, if
applicable.
o At the time you make certain withdrawals or surrender your contract -- a
withdrawal charge.
o On each contract date anniversary -- a charge if you elect a death benefit
(other than the Standard death benefit).
o On each contract date anniversary -- a charge for the Guaranteed minimum
income benefit, if you elect this optional benefit.
o On each contract date anniversary -- a charge for Principal Protector(SM), if
you elect this optional benefit.
o On each contract date anniversary -- a charge for Protection Plus(SM), if you
elect this optional benefit.
o On the first 10 contract date anniversaries -- a charge for GPB Option 2, if
you elect this optional benefit.
o At the time annuity payments are to begin -- charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your
state. An annuity administrative fee may also apply.
More information about these charges appears below. We will not increase these
charges for the life of your contract, except as noted. We may reduce certain
charges under group or sponsored arrangements. See "Group or sponsored
arrangements" later in this section.
The charges under the contracts are designed to cover, in the aggregate, our
direct and indirect costs of selling, administering and providing benefits
under the contracts. They are also designed, in the aggregate, to compensate us
for the risks of loss we assume pursuant to the contracts. If, as we expect,
the charges that we collect from the contracts exceed our total costs in
connection with the contracts, we will earn a profit. Otherwise, we will incur
a loss.
The rates of certain of our charges have been set with reference to estimates
of the amount of specific types of expenses or risks that we will incur. In
most cases, this Prospectus identifies such expenses or risks in the name of
the charge; however, the fact that any charge bears the name of, or is designed
primarily to defray, a particular expense or risk does not mean that the amount
we collect from that charge will never be more than the amount of such expense
or risk. Nor does it mean that we may not also be compensated for such expense
or risk out of any other charges we are permitted to deduct by the terms of the
policies.
To help with your retirement planning, we may offer other annuities with
different charges, benefits and features. Please contact your financial
professional for more information.
MORTALITY AND EXPENSE RISKS CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for mortality and expense risks, including the Standard death
benefit. The daily charge is equivalent to an annual rate of 1.10% of the net
assets in each variable investment option.
The mortality risk we assume is the risk that annuitants as a group will live
for a longer time than our actuarial tables predict. If that happens, we would
be paying more in annuity income than we planned. We also assume a risk that
the mortality assumptions reflected in our guaranteed annuity payment tables,
shown in each contract, will differ from actual mortality experience. Lastly,
we assume a mortality risk to the extent that at the time of death, the
Guaranteed minimum death benefit exceeds the cash value of the contract. The
expense risk we assume is the risk that it will cost us more to issue and
administer the contracts than we expect.
ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for administrative expenses under the contracts. The daily
charge is equivalent to an annual rate of 0.30% of the net assets in each
variable investment option.
DISTRIBUTION CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for a portion of our sales expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on each contract
date anniversary. We deduct the charge if your account value on the last
business day of the contract year is less than $50,000. If your account value
on such date is $50,000 or more, we do not deduct the charge. During the first
two contract years, the charge is equal to $30 or, if less, 2% of your account
value. The charge is $30 for contract years three and later.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VIII later in
Charges and expenses 53
this Prospectus to see if deducting this charge from the guaranteed interest
option is permitted in your state) on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options (other than the Special 10 year fixed maturity option) in
order of the earliest maturity date(s) first. If such fixed maturity option
amounts are insufficient, we will deduct all or a portion of the charge from
the account for special dollar cost averaging. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. If the contract is surrendered or annuitized or a death
benefit is paid, we will deduct a pro rata portion of the charge for that year.
A market value adjustment will apply to deductions from the fixed maturity
options (including the Special 10 year fixed maturity option).
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract's
value" earlier in this Prospectus.
WITHDRAWAL CHARGE
A withdrawal charge applies in two circumstances: (1) if you make one or more
withdrawals during a contract year that, in total, exceeds the 10% free
withdrawal amount, described below, or (2) if you surrender your contract to
receive its cash value or to apply your cash value to a non-life contingent
annuity payout option.
The withdrawal charge equals a percentage of the contributions withdrawn in any
of the first four years after we receive a contribution. We determine the
withdrawal charge separately for each contribution according to the following
table:
- --------------------------------------------------------------------------------
Contract year
- --------------------------------------------------------------------------------
1 2 3 4 5
- --------------------------------------------------------------------------------
Percentage of contribution 8 % 7 % 6 % 5 % 0 %
- --------------------------------------------------------------------------------
For purposes of calculating the withdrawal charge, we treat the contract year
in which we receive a contribution as "contract year 1." Amounts withdrawn up
to the free withdrawal amount are not considered withdrawals of any
contribution. We also treat contributions that have been invested the longest
as being withdrawn first. We treat contributions as withdrawn before earnings
for purposes of calculating the withdrawal charge. However, federal income tax
rules treat earnings under your contract as withdrawn first. See "Tax
information" later in this Prospectus.
For contracts issued in New York, please see Appendix VIII later in this
Prospectus for the New York withdrawal charge schedule applicable to monies
withdrawn from and transferred among the fixed maturity options.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and withdrawal charge from your account
value. The amount deducted to pay withdrawal charges is also subject to that
same withdrawal charge percentage. We deduct the charge in proportion to the
amount of the withdrawal subtracted from each investment option. The withdrawal
charge helps cover sales expenses.
The withdrawal charge does not apply in the circumstances described below.
10% free withdrawal amount. Each contract year you can withdraw up to 10% of
your account value without paying a withdrawal charge. The 10% free withdrawal
amount is determined using your account value at the beginning of each contract
year, or in the case of the first contract year, your initial contribution,
minus any other withdrawals made during the contract year. Additional
contributions during the contract year do not increase the 10% free withdrawal
amount. The 10% free withdrawal amount does not apply if you surrender your
contract except where required by law.
For NQ contracts issued to a charitable remainder trust, the free withdrawal
amount will equal the greater of: (1) the current account value less
contributions that have not been withdrawn (earnings in the contract), and (2)
the 10% free withdrawal amount defined above.
If you elect Principal Protector(SM), we will waive any withdrawal charge for
any withdrawal during the contract year up to the GWB Annual withdrawal amount,
even if such withdrawals exceed the free withdrawal amount. However, each
withdrawal reduces the free withdrawal amount for that contract year by the
amount of the withdrawal. Withdrawal charges, if applicable, are applied to the
amount of the withdrawal that exceeds the GWB Annual withdrawal amount.
Certain withdrawals. If you elected the Guaranteed minimum income benefit
and/or the Greater of 6% roll up to age 85 or the annual ratchet to age 85
enhanced death benefit, the withdrawal charge will be waived for any withdrawal
that, together with any prior withdrawals made during the contract year, does
not exceed 6% of the beginning of contract year rollup portion of the related
benefit bases. If your withdrawal exceeds the amount described above, this
waiver is not applicable to that withdrawal, nor to any subsequent withdrawal
for the life of the contract.
Disability, terminal illness or confinement to nursing home. The withdrawal
charge also does not apply if:
(i) The annuitant has qualified to receive Social Security disability
benefits as certified by the Social Security Administration; or
(ii) We receive proof satisfactory to us (including certification by a
licensed physician) that the annuitant's life expectancy is six months or
less; or
(iii) The annuitant has been confined to a nursing home for more than 90
days (or such other period, as required in your state) as verified by a
licensed physician. A nursing home for this purpose means one that is (a)
approved by Medicare as a provider of skilled nursing care service, or (b)
licensed as a skilled nursing home by the state or territory in which it
is located (it must be within the United States, Puerto Rico, or U.S.
Virgin Islands) and meets all of the
following:
-- its main function is to provide skilled, intermediate, or custodial
nursing care;
-- it provides continuous room and board to three or more persons;
-- it is supervised by a registered nurse or licensed practical nurse;
-- it keeps daily medical records of each patient;
-- it controls and records all medications dispensed; and
54 Charges and expenses
-- its primary service is other than to provide housing for residents.
We reserve the right to impose a withdrawal charge, in accordance with your
contract and applicable state law, if the conditions as described in (i), (ii)
or (iii) above existed at the time a contribution was remitted or if the
condition began within 12 months of the period following remittance. Some
states may not permit us to waive the withdrawal charge in the above
circumstances, or may limit the circumstances for which the withdrawal charge
may be waived. Your financial professional can provide more information or you
may contact our processing office.
GUARANTEED MINIMUM DEATH BENEFIT CHARGE
ANNUAL RATCHET TO AGE 85. If you elect the Annual Ratchet to age 85 enhanced
death benefit, we deduct a charge annually from your account value on each
contract date anniversary for which it is in effect. The charge is equal to
0.25% of the Annual Ratchet to age 85 benefit base.
GREATER OF 6% ROLL UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this
enhanced death benefit, we deduct a charge annually from your account value on
each contract date anniversary for which it is in effect. The charge is equal
to 0.60% of the greater of the 6% Roll up to age 85 or the Annual Ratchet to
age 85 benefit base.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VIII later in this Prospectus
to see if deducting this charge from the guaranteed interest option is
permitted in your state) on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options (other than the Special 10 year fixed maturity option) in the
order of the earliest maturity date(s) first. If such fixed maturity option
amounts are insufficient, we will deduct all or a portion of the charge from
the account for special dollar cost averaging. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. If the contract is surrendered or annuitized or a death
benefit is paid, we will deduct a pro rata portion of the charge for that year.
A market value adjustment will apply to deductions from the fixed maturity
options (including the Special 10 year fixed maturity option).
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract's
value" earlier in this Prospectus.
STANDARD DEATH BENEFIT. There is no additional charge for the standard death
benefit.
GUARANTEED PRINCIPAL BENEFIT OPTION 2
If you purchase GPB Option 2, we deduct a charge annually from your account
value on the first 10 contract date anniversaries. The charge is equal to 0.50%
of the account value. We will deduct this charge from your value in the
variable investment options and the guaranteed interest option (see Appendix
VIII later in this Prospectus to see if deducting this charge from the
guaranteed interest option is permitted in your state) on a pro rata basis. If
these amounts are insufficient, we will deduct any remaining portion of the
charge from amounts in any fixed maturity options (other than the Special 10
year fixed maturity option) in the order of the earliest maturity date(s)
first. If such amounts are insufficient, we will deduct all or a portion from
the account for special dollar cost averaging. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. If the contract is surrendered or annuitized or a death
benefit is paid, we will deduct a pro rata portion of the charge for that year.
A market value adjustment will apply to deductions from the fixed maturity
options (including the Special 10 year fixed maturity option).
GUARANTEED MINIMUM INCOME BENEFIT CHARGE
If you elect the Guaranteed minimum income benefit, we deduct a charge annually
from your account value on each contract date anniversary until such time as
you exercise the Guaranteed minimum income benefit, elect another annuity
payout option, or the contract date anniversary after the annuitant reaches 85,
whichever occurs first. The charge is equal to 0.65% of the applicable benefit
base in effect on the contract date anniversary.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VIII later in this Prospectus
to see if deducting this charge from the guaranteed interest option is
permitted in your state) on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in the order of the earliest maturity date(s) first. If such
fixed maturity option amounts are still insufficient, we will deduct all or a
portion of the charge from the account for special dollar cost averaging. If
the contract is surrendered or annuitized or a death benefit is paid, we will
deduct a pro rata portion of the charge for that year. A market value
adjustment will apply to deductions from the fixed maturity options.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract's
value" earlier in this Prospectus.
PROTECTION PLUS(SM) CHARGE
If you elect Protection Plus(SM), we deduct a charge annually from your account
value on each contract date anniversary for which it is in effect. The charge
is equal to 0.35% of the account value on each contract date anniversary. We
will deduct this charge from your value in the variable investment options and
the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options (other than the Special 10 year fixed maturity option) in the
order of the earliest maturity date(s) first. If such fixed maturity option
amounts are insufficient, we will deduct all or a portion of the charge from
the account for special dollar cost averaging. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. If the contract is surrendered or annuitized or a death
benefit is paid, we will deduct a pro rata portion of the charge for that year.
A market value adjustment will apply to deductions from the fixed maturity
options (including the Special 10 year fixed maturity option).
Charges and expenses 55
PRINCIPAL PROTECTOR(SM) CHARGE
If you elect Principal Protector(SM), we deduct a charge annually as a
percentage of your account value on each contract anniversary. If you elect the
5% GWB Annual withdrawal option, the charge is equal to 0.35%. If you elect the
7% GWB Annual withdrawal option, the charge is equal to 0.50%. We will deduct
this charge from your value in the variable investment options and the
guaranteed interest option (See Appendix VIII later in this Prospectus to see if
deducting this charge from the guaranteed interest option is permitted in your
state) on a pro rata basis. If those amounts are insufficient, we will deduct
all or a portion of the charge from the fixed maturity options in the order of
the earliest maturity date(s) first. If the contract is surrendered or
annuitized or a death benefit is paid, we will deduct a pro rata portion of the
charge for that year. If you die, and your beneficiary continues Principal
Protector(SM) under the Beneficiary continuation option, we will not deduct a
pro rata portion of the charge upon your death. However, the Principal
Protector(SM) charge will continue. A market value adjustment will apply to
deductions from the fixed maturity options.
If your GWB benefit base falls to zero but your contract is still in force, the
charge will be suspended as of the next contract date anniversary. The charge
will be reinstated, as follows: (i) if you make a subsequent contribution, we
will reinstate the charge that was in effect at the time your GWB benefit base
became depleted, (ii) if you elect to exercise the Optional step up provision,
we will reinstate a charge, as discussed immediately below, and (iii) if your
beneficiary elects the Beneficiary continuation option and reinstates the
Principal Protector(SM) benefit with a one time step up, we will reinstate the
charge that was in effect when the GWB benefit base fell to zero.
If your beneficiary elects the Beneficiary continuation option, and is eligible
to continue Principal Protector(SM), the benefit and the charge will continue
unless your beneficiary tells us to terminate the benefit at the time of
election.
OPTIONAL STEP UP CHARGE. Every time you elect the Optional step up, we reserve
the right to raise the benefit charge at the time of the step up. The maximum
charge for Principal Protector(SM) with a 5% GWB Annual withdrawal option is
0.60%. The maximum charge for Principal Protector(SM) with a 7% GWB Annual
withdrawal amount option is 0.80%. The increased charge, if any, will apply as
of the next contract anniversary following the step up and on all contract
anniversaries thereafter.
If you die and your beneficiary elects the Beneficiary continuation option, if
available, a one time step up only (at no additional charge) is applicable. For
more information on the Optional step up, one time step up and Automatic reset
provisions, see "Principal Protector(SM)" in "Contract features and benefits."
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state. Generally, we deduct the charge from
the amount applied to provide an annuity payout option. The current tax charge
that might be imposed varies by jurisdiction and ranges from 0% to 3.5%.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $350 from the amount to be applied to the Variable Immediate
Annuity payout option.
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
o Management fees ranging from 0.10% to 1.50%.
o 12b-1 fees of either 0.25% or 0.35%.
o Operating expenses, such as trustees' fees, independent public accounting
firms' fees, legal counsel fees, administrative service fees, custodian
fees and liability insurance.
o Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of each Trust are purchased at their net asset value, these fees and
expenses are, in effect, passed on to the variable investment options and are
reflected in their unit values. For more information about these charges,
please refer to the prospectuses for the Trusts.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the withdrawal
charge or the mortality and expense risks charge or change the minimum initial
contribution requirements. We also may change the Guaranteed minimum income
benefit or the Guaranteed minimum death benefit, or offer variable investment
options that invest in shares of the Trusts that are not subject to the 12b-1
fee. Group arrangements include those in which a trustee or an employer, for
example, purchases contracts covering a group of individuals on a group basis.
Group arrangements are not available for Rollover IRA and Roth Conversion IRA
contracts. Sponsored arrangements include those in which an employer allows us
to sell contracts to its employees or retirees on an individual basis.
Our costs for sales, administration and mortality generally vary with the size
and stability of the group or sponsoring organization, among other factors. We
take all these factors into account when reducing charges. To qualify for
reduced charges, a group or sponsored arrangement must meet certain
requirements, such as requirements for size and number of years in existence.
Group or sponsored arrangements that have been set up solely to buy contracts
or that have been in existence less than six months will not qualify for
reduced charges.
We also may establish different rates to maturity for the fixed maturity
options under different classes of contracts for group or sponsored
arrangements.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these rules from time to
time. Any variation will reflect differences in costs or services and will not
be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules,
ERISA or both. We make no representations with regard to the impact of these
and other applicable laws on such programs. We recommend that employers,
trustees, and others purchasing or making
56 Charges and expenses
contracts available for purchase under such programs seek the advice of their
own legal and benefits advisers.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that results
in savings of sales and administrative expenses, such as sales through persons
who are compensated by clients for recommending investments and who receive no
commission or reduced commissions in connection with the sale of the contracts.
We will not permit a reduction or elimination of charges where it would be
unfairly discriminatory.
Charges and expenses 57
6. Payment of death benefit
- --------------------------------------------------------------------------------
YOUR BENEFICIARY AND PAYMENT OF BENEFIT
You designate your beneficiary when you apply for your contract. You may change
your beneficiary at any time. The change will be effective on the date the
written request for the change is received in our processing office. We are not
responsible for any beneficiary change request that we do not receive. We will
send you written confirmation when we receive your request.
Under jointly owned contracts, the surviving owner is considered the
beneficiary, and will take the place of any other beneficiary. You may be
limited as to the beneficiary you can designate in a Rollover TSA contract. In
a QP contract, the beneficiary must be the trustee. Where an NQ contract is
owned by a minor pursuant to the Uniform Gift to Minors Act or the Uniform
Transfers to Minors Act, the beneficiary must be the estate of the annuitant.
Where an IRA contract is owned in a custodial individual retirement account,
the custodian must be the beneficiary so that the custodian can reinvest or
distribute the death benefit as the beneficiary of the account desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
applicable Guaranteed minimum death benefit. We determine the amount of the
death benefit (other than the applicable Guaranteed minimum death benefit) and
any amount applicable under the Protection Plus(SM) feature, as of the date we
receive satisfactory proof of the annuitant's death, any required instructions
for the method of payment, information and forms necessary to effect payment.
The amount of the applicable Guaranteed minimum death benefit will be such
Guaranteed minimum death benefit as of the date of the annuitant's death,
adjusted for any subsequent withdrawals. The death benefit will be less a
deduction for any outstanding loan plus accrued interest on the date that the
death benefit payment is made (applies to Rollover TSA only).
EFFECT OF THE ANNUITANT'S DEATH
If the annuitant dies before the annuity payments begin, we will pay the death
benefit to your beneficiary.
Generally, the death of the annuitant terminates the contract. However, a
surviving spouse who is the sole primary beneficiary, of the deceased
owner/annuitant can choose to be treated as the successor owner/annuitant and
continue the contract. The Successor owner/ annuitant feature is only
available under NQ and individually owned IRA (other than Inherited IRAs)
contracts. See "Inherited IRA beneficiary continuation contract" in "Contract
features and benefits" earlier in this Prospectus.
For NQ and all types of IRA contracts, a beneficiary may be able to have
limited ownership as discussed under "Beneficiary continuation option" below.
WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT
Under certain conditions the owner changes after the original owner's death for
the purposes of receiving required distributions from the contract. When the
owner is not the annuitant under an NQ contract and the owner dies before
annuity payments begin, unless you specify otherwise, the beneficiary named to
receive this death benefit upon the annuitant's death will become the successor
owner. If you do not want this beneficiary to be the successor owner, you
should name a specific successor owner. You may name a successor owner at any
time during your life by sending satisfactory notice to our processing office.
If the contract is jointly owned and the first owner to die is not the
annuitant, the surviving owner becomes the sole contract owner. This person
will be considered the successor owner for purposes of the distribution rules
described in this section. The surviving owner automatically takes the place of
any other beneficiary designation.
You should carefully consider the following if you have elected the Guaranteed
minimum income benefit and you are the owner, but not the annuitant. Because
the payments under the Guaranteed minimum income benefit are based on the life
of the annuitant, and the federal tax law required distributions described
below are based on the life of the successor owner, a successor owner who is
not also the annuitant may not be able to exercise the Guaranteed minimum
income benefit, if you die before annuity payments begin. Therefore, one year
before you become eligible to exercise the Guaranteed minimum income benefit,
you should consider the effect of your beneficiary designations on potential
payments after your death. For more information, see "Exercise rules" under
"Our Guaranteed minimum income benefit option" in "Contract features and
benefits" earlier in this Prospectus.
Unless the surviving spouse of the owner who has died (or in the case of a
joint ownership situation, the surviving spouse of the first owner to die) is
the successor owner for this purpose, the entire interest in the contract must
be distributed under the following rules:
o The cash value of the contract must be fully paid to the successor owner (new
owner) within five years after your death (the "5-year rule"), or in a
joint ownership situation, the death of the first owner to die.
o If Principal Protector(SM) was elected and if the "5-year rule" is elected and
the successor owner dies prior to the end of the fifth year, we will pay
any remaining account value in a lump sum and the contract and any
remaining GWB benefit base will terminate without value. Your successor
owner should consult with a tax adviser before choosing to use the "5-year
rule." The GWB benefit base may be adversely affected if the successor
owner makes any withdrawals that cause a GWB Excess withdrawal. Also, when
the contract terminates at the end of 5 years, any remaining GWB benefit
base would be lost. If you elect Principal Protector(SM), the successor
owner has the option to terminate the benefit and charge upon receipt by
us of due proof of death and notice to discontinue the benefit; otherwise,
the benefit and charge will automatically continue.
o The successor owner may instead elect to receive the cash value as a life
annuity (or payments for a period certain of not longer than
58 Payment of death benefit
the new owner's life expectancy). Payments must begin within one year after
the non-annuitant owner's death. Unless this alternative is elected, we
will pay any cash value five years after your death (or the death of the
first owner to die).
o A successor owner should name a new beneficiary.
If the surviving spouse is the successor owner or joint owner, the spouse may
elect to continue the contract. No distributions are required as long as the
surviving spouse and annuitant are living. An eligible successor owner,
including a surviving joint owner after the first owner dies, may elect the
beneficiary continuation option for NQ contracts discussed in "Beneficiary
continuation option" below.
HOW DEATH BENEFIT PAYMENT IS MADE
We will pay the death benefit to the beneficiary in the form of the annuity
payout option you have chosen. If you have not chosen an annuity payout option
as of the time of the annuitant's death, the beneficiary will receive the death
benefit in a single sum. Payment of the death benefit in a lump sum terminates
all rights and any applicable guarantees under the contract, including
Guaranteed minimum income benefit, GPB Options 1 and 2, and Principal
Protector(SM). Subject to any exceptions in the contract, our rules and any
applicable requirements under federal income tax rules, the beneficiary may
elect to apply the death benefit to one or more annuity payout options we offer
at the time.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may elect to
receive the death benefit or continue the contract as successor
owner/annuitant. The successor owner/annuitant must be 85 or younger as of the
date of the non-surviving spouse's death.
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required instructions,
information and forms necessary to effect the Successor owner/annuitant
feature, we will increase the account value to equal your elected guaranteed
minimum death benefit as of the date of your death if such death benefit is
greater than such account value, plus any amount applicable under the
Protection Plus(SM) feature and adjusted for any subsequent withdrawals. The
increase in the account value will be allocated to the investment options
according to the allocation percentages we have on file for your contract.
Thereafter, withdrawal charges will no longer apply to contributions made
before your death. Withdrawal charges will apply if additional contributions
are made. These additional contributions will be considered to be withdrawn
only after all other amounts have been withdrawn.
We will determine whether your applicable Guaranteed minimum death benefit
option will continue as follows:
o If the successor owner/annuitant is age 75 or younger on the date of the
original owner/annuitant's death, and the original owner/ annuitant was
age 84 or younger at death, the Guaranteed minimum death benefit continues
based upon the option that was elected by the original owner/annuitant and
will continue to grow according to its terms until the contract date
anniversary following the date the successor owner/annuitant reaches age
85.
o If the successor owner/annuitant is age 75 or younger on the date of the
original owner/annuitant's death, and the original owner/ annuitant was
age 85 or older at death, we will reinstate the Guaranteed minimum death
benefit that was elected by the original owner/annuitant. The benefit will
continue to grow according to its terms until the contract date anniversary
following the date the successor owner/annuitant reaches age 85.
o If the successor owner/annuitant is age 76 or over on the date of the
original owner/annuitant's death, the Guaranteed minimum death benefit
will no longer grow, and we will no longer charge for the benefit.
If you elect Principal Protector(SM), the benefit and charge will remain in
effect. If the GWB benefit base is zero at the time of your death, and the
charge had been suspended, the charge will be reinstated if any of the events,
described in "Principal Protector(SM) charge" in "Charges and expenses" earlier
in this Prospectus, occur. The GWB benefit base will not automatically be
stepped up to equal the account value, if higher, upon your death. Your spouse
must wait five complete years from the prior step up or from contract issue,
whichever is later, in order to be eligible for the Optional step up. For more
information, see "Principal Protector(SM)" in "Contract features and benefits"
earlier in this Prospectus.
Where an NQ contract is owned by a Living Trust, as defined in the contract,
and at the time of the annuitant's death the annuitant's spouse is the sole
beneficiary of the Living Trust, the Trustee, as owner of the contract, may
request that the spouse be substituted as annuitant as of the date of the
annuitant's death. No further change of annuitant will be permitted.
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole beneficiary of the account, the custodian may
request that the spouse be substituted as annuitant after your death.
For information on the operation of successor owner/annuitant feature with the
Guaranteed minimum income benefit, see "Exercise of Guaranteed minimum income
benefit" under "Our Guaranteed minimum income benefit option" in "Contract
features and benefits" earlier in this Prospectus. For information on the
operation of this feature with Protection Plus(SM), see "Protection Plus(SM)" in
"Guaranteed minimum death benefit" under "Contract features and benefits,"
earlier in this Prospectus.
SPOUSAL PROTECTION
SPOUSAL PROTECTION OPTION FOR NQ CONTRACTS ONLY. This feature permits spouses
who are joint contract owners to increase the account value to equal the
guaranteed minimum death benefit, if higher, and by the value of any Protection
Plus(SM) benefit, if elected, upon the death of either spouse. This account
value "step up" occurs even if the surviving spouse was the named annuitant. If
you and your spouse jointly own the contract and one of you is the named
annuitant, you may elect the Spousal protection option at the time you purchase
your contract at no additional charge. Both spouses must be between the ages of
20 and 70 at the time the contract is issued and must each be named the primary
beneficiary in the event of the other's death.
Payment of death benefit 59
The annuitant's age is generally used for the purpose of determining contract
benefits. However, for the Annual Ratchet to age 85 and the Greater of 6% Roll
up to age 85 or Annual Ratchet to age 85 guaranteed minimum death benefits and
the Protection Plus(SM) benefit, the benefit is based on the older spouse's age.
The older spouse may or may not be the annuitant.
If the annuitant dies prior to annuitization, the surviving spouse may elect to
receive the death benefit, including the value of the Protection Plus(SM)
benefit, or if eligible, continue the contract as the sole owner/annuitant by
electing the successor owner/annuitant option. If the non-annuitant spouse dies
prior to annuitization, the surviving spouse continues the contract
automatically as the sole owner/annuitant. In either case, the contract would
continue, as follows:
o As of the date we receive due proof of the spouse's death, the account value
will be re-set to equal the Guaranteed minimum death benefit as of the
date of the non-surviving spouse's death, if higher, increased by the
value of the Protection Plus(SM) benefit.
o The Guaranteed minimum death benefit continues to be based on the older
spouse's age for the life of the contract, even if the younger spouse is
originally or becomes the sole owner/annuitant.
o The Protection Plus(SM) benefit will now be based on the surviving spouse's
age at the date of the non-surviving spouse's death for the remainder of the
life of the contract. If the benefit had been previously frozen because
the older spouse had attained age 80, it will be reinstated if the
surviving spouse is age 75 or younger. The benefit is then frozen on the
contract date anniversary after the surviving spouse reaches age 80. If
the surviving spouse is age 76 or older, the benefit will be discontinued
even if the surviving spouse is the older spouse (upon whose age the
benefit was originally based).
o The Guaranteed minimum income benefit may continue if the benefit had not
already terminated and the benefit will be based on the successor
owner/annuitant, if applicable. See "Guaranteed minimum income benefit" in
"Contract features and benefits" earlier in this Prospectus.
o If the annuitant dies first, withdrawal charges will no longer apply to any
contributions made prior to the annuitant's death. If the non-annuitant
spouse dies first, the withdrawal charge schedule remains in effect with
regard to all contributions.
o If you elect Principal Protector(SM), the benefit and charge will remain in
effect. If the GWB benefit base is zero at the time of your death, and the
charge had been suspended, the charge will be reinstated if any of the
events, described in "Principal Protector(SM) charge" in "Charges and
expenses" earlier in this Prospectus, occur. The GWB benefit base will not
automatically be stepped up to equal the account value, if higher, upon
your death. Your spouse must wait five complete years from the prior step
up or from contract issue, whichever is later, in order to be eligible for
the Optional step up. For more information, see "Principal Protector(SM)" in
"Contract features and benefits" earlier in this Prospectus.
We will not allow Spousal protection to be added after contract issue. If there
is a change in owner or primary beneficiary, the Spousal protection benefit
will be terminated. If you divorce, but do not change the owner or primary
beneficiary, Spousal protection continues.
BENEFICIARY CONTINUATION OPTION
This feature permits a designated individual, on the contract owner's death, to
maintain a contract in the deceased contract owner's name and receive
distributions under the contract, instead of receiving the death benefit in a
single sum. We make this option available to beneficiaries under traditional
IRA, Roth IRA and NQ contracts, subject to state availability. Please speak
with your financial professional or see Appendix VIII later in this Prospectus
for further information.
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. The beneficiary continuation option must be elected by September 30th of
the year following calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this option. If the election is made, then, as of the
date we receive satisfactory proof of death, any required instructions,
information and forms necessary to effect the beneficiary continuation option
feature, we will increase the account value to equal the applicable death
benefit if such death benefit is greater than such account value, plus any
amount applicable under the Protection Plus(SM) feature, adjusted for any
subsequent withdrawals. Where an IRA contract is owned in a custodial
individual retirement account, the custodian may reinvest the death benefit in
an individual retirement annuity contract, using the account beneficiary as the
annuitant. Please speak with your financial professional for further
information.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy (determined in the calendar year after your death
and determined on a term certain basis). These payments must begin no later
than December 31st of the calendar year after the year of your death. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70-1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed later in this Prospectus in
"Tax information" under "Individual retirement arrangements (IRAs)," the
beneficiary may choose the "5-year rule" option instead of annual payments over
life expectancy. The 5-year rule is always available to beneficiaries under
Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may
take withdrawals as desired, but the entire account value must be fully
withdrawn by December 31st of the calendar year which contains the fifth
anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA contracts:
o The contract continues in your name for the benefit of your beneficiary.
o This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals
for this purpose.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's
own life expectancy, if payments over life expectancy are chosen.
60 Payment of death benefit
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the Guaranteed minimum income benefit, an optional
enhanced death benefit, GPB Option 2 or Principal Protector(SM) (in certain
circumstances) under the contract, they will no longer be in effect and
charges for such benefits will stop. Also, any Guaranteed minimum death
benefit feature will no longer be in effect. See below for certain
circumstances where Principal Protector(SM) may continue to apply.
o The beneficiary may choose at any time to withdraw all or a portion of the
account value and no withdrawal charges, if any, will apply.
o Any partial withdrawal must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking required minimum distributions based
on the remaining life expectancy of the deceased beneficiary or to receive
any remaining interest in the contract in a lump sum. The option elected
will be processed when we receive satisfactory proof of death, any
required instructions for the method of payment and any required
information and forms necessary to effect payment.
o If you had elected Principal Protector(SM), your spousal beneficiary may not
continue Principal Protector(SM), and the benefit will terminate without
value, even if the GWB benefit base is greater than zero. In general,
spousal beneficiaries who wish to continue Principal Protector(SM) should
consider continuing the contract under the Successor owner and annuitant
feature, if eligible. In general, eligibility requires that your spouse
must be the sole primary beneficiary. Please see "Successor owner and
annuitant" in "How death benefit payment is made" under "Payment of death
benefit" earlier in this Prospectus for further details. If there are
multiple beneficiaries who elect the Beneficiary continuation option, the
spousal beneficiary may continue the contract without Principal
Protector(SM) and non-spousal beneficiaries may continue with Principal
Protector(SM). In this case, the spouse's portion of the GWB benefit base
will terminate without value.
o If you had elected Principal Protector(SM), your non-spousal beneficiary may
continue the benefit, as follows:
o The beneficiary was 75 or younger on the original contract date.
o The benefit and charge will remain in effect unless your benefi
ciary tells us to terminate the benefit at the time of the Beneficiary
continuation option election.
o One time step up: Upon your death, if your account value is
greater than the GWB benefit base, the GWB benefit base will be
automatically stepped up to equal the account value, at no additional
charge. If Principal Protector(SM) is not in effect at the time of your
death because the GWB benefit base is zero, the beneficiary may reinstate
the benefit (at the charge that was last in effect) with the one time
step up. If the beneficiary chooses not to reinstate the Principal
Protector(SM) at the time the Beneficiary continuation option is elected,
Principal Protector(SM) will terminate.
o If there are multiple beneficiaries each beneficiary's interest in
the GWB benefit base will be separately accounted for.
o As long as the GWB benefit base is $5,000 or greater, the ben
eficiary may elect the Beneficiary continuation option and continue
Principal Protector(SM) even if the account value is less than $5,000.
o If scheduled payments are elected, the beneficiary's scheduled
payments will be calculated, using the greater of the account value or
the GWB benefit base, as of each December 31. If the beneficiary dies
prior to receiving all payments, we will make the remaining payments to
the person designated by the deceased non-spousal beneficiary, unless
that person elects to take any remaining account value in a lump sum, in
which case any remaining GWB benefit base will terminate without value.
o If the "5-year rule" is elected and the beneficiary dies prior to
the end of the fifth year, we will pay any remaining account value in a
lump sum and the contract and any remaining GWB benefit base will
terminate without value.
o Provided no other withdrawals are taken during a contract year
while the beneficiary receives scheduled payments, the scheduled payments
will not cause a GWB Excess withdrawal, even if they exceed the GWB
Annual withdrawal amount. If the beneficiary takes any other withdrawals
while the Beneficiary continuation option scheduled payments are in
effect, the GWB Excess withdrawal exception terminates permanently. In
order to take advantage of this exception, the beneficiary must elect the
scheduled payments rather than the "5-year rule." If the beneficiary
elects the "5-year rule," there is no exception.
BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known
as Inherited annuity, may only be elected when the NQ contract owner dies
before the annuity commencement date, whether or not the owner and the
annuitant are the same person. If the owner and annuitant are different and the
owner dies before the annuitant, for purposes of this discussion, "beneficiary"
refers to the successor owner. For a discussion of successor owner, see "When
an NQ contract owner dies before the annuitant" earlier in this section. This
feature must be elected within 9 months following the date of your death and
before any inconsistent election is made. Beneficiaries who do not make a
timely election will not be eligible for this option.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy, determined on a term certain basis and in the
year payments start. These payments must begin no later than one year after the
date of your death and are referred to as "scheduled payments." The beneficiary
may choose the "5-year rule" instead of scheduled payments over life
expectancy. If the beneficiary chooses the 5-year rule, there will be no
scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals
as desired, but the entire account value must be fully withdrawn by the fifth
anniversary of your death.
Payment of death benefit 61
Under the beneficiary continuation option for NQ contracts (regardless of
whether the owner and the annuitant are the same person):
o This feature is only available if the beneficiary is an individual. It is not
available for any entity such as a trust, even if all of the beneficiaries
of the trust are individuals.
o The contract continues in your name for the benefit of your beneficiary.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the respective
beneficiary's own life expectancy, if scheduled payments are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the Guaranteed minimum income benefit, an optional
enhanced death benefit, GPB Option 2 or Principal Protector(SM) (in certain
circumstances) under the contract, they will no longer be in effect and
charges for such benefits will stop. Also, any Guaranteed minimum death
benefit feature will no longer be in effect. See below for certain
circumstances where Principal Protector(SM) may continue to apply.
o If the beneficiary chooses the "5-year rule," withdrawals may be made at any
time. If the beneficiary instead chooses scheduled payments, the
beneficiary must also choose between two potential withdrawal options at
the time of election. If the beneficiary chooses "Withdrawal Option 1",
the beneficiary cannot later withdraw funds in addition to the scheduled
payments the beneficiary is receiving; "Withdrawal Option 1" permits total
surrender only. "Withdrawal Option 2" permits the beneficiary to take
withdrawals, in addition to scheduled payments, at any time. However, the
scheduled payments under "Withdrawal Option 1" are afforded favorable tax
treatment as "annuity payments." See "Taxation of nonqualified annuities"
in "Tax information" later in this Prospectus.
o Any partial withdrawals must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract on the beneficiary's death.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking scheduled payments based on the
remaining life expectancy of the deceased beneficiary (if scheduled
payments were chosen) or to receive any remaining interest in the contract
in a lump sum. We will pay any remaining interest in the contract in a
lump sum if your beneficiary elects the 5-year rule. The option elected
will be processed when we receive satisfactory proof of death, any
required instructions for the method of payment and any required
information and forms necessary to effect payment.
o If you had elected Principal Protector(SM), your spousal beneficiary may not
continue Principal Protector(SM), and the benefit will terminate without
value, even if the GWB benefit base is greater than zero. In general,
spousal beneficiaries who wish to continue Principal Protector(SM) should
consider continuing the contract under the Successor owner and annuitant
feature, if eligible. In general, eligibility requires that you must be
the owner and annuitant and your spouse must be the sole primary
beneficiary. Please see "Successor owner and annuitant" in "How death
benefit payment is made" under "Payment of death benefit" earlier in this
Prospectus for further details. If there are multiple beneficiaries who
elect the Beneficiary continuation option, the spousal beneficiary may
continue the contract without Principal Protector(SM) and non-spousal
beneficiaries may continue with Principal Protector(SM). In this case, the
spouse's portion of the GWB benefit base will terminate without value.
o If the non-spousal beneficiary chooses scheduled payments under "Withdrawal
Option 1," as discussed above in this section, Principal Protector(SM) may
not be continued and will automatically terminate without value even if
the GWB benefit base is greater than zero.
o If you had elected Principal Protector(SM), your non-spousal beneficiary may
continue the benefit, as follows:
o The beneficiary was 75 or younger on the original contract date.
o The benefit and charge will remain in effect unless your benefi
ciary tells us to terminate the benefit at the time of the Beneficiary
continuation option election.
o One time step up: Upon your death, if your account value is
greater than the GWB benefit base, the GWB benefit base will be
automatically stepped up to equal the account value, at no additional
charge. If Principal Protector(SM) is not in effect at the time of your
death because the GWB benefit base is zero, the beneficiary may reinstate
the benefit (at the charge that was last in effect) with the one time
step up. If the beneficiary chooses not to reinstate the Principal
Protector(SM) at the time the Beneficiary continuation option is elected,
Principal Protector(SM) will terminate.
o If there are multiple beneficiaries, each beneficiary's interest in
the GWB benefit base will be separately accounted for.
o As long as the GWB benefit base is $5,000 or greater, the ben
eficiary may elect the Beneficiary continuation option and continue
Principal Protector(SM) even if the account value is less than $5,000.
o If scheduled payments under "Withdrawal Option 2" is elected,
the beneficiary's scheduled payments will be calculated, using the
greater of the account value or the GWB benefit base, as of each December
31. If the beneficiary dies prior to receiving all payments, we will make
the remaining payments to the person designated by the deceased
non-spousal beneficiary, unless that person elects to take any remaining
account value in a lump sum, in which case any remaining GWB benefit base
will terminate without value.
o If the "5-year rule" is elected and the beneficiary dies prior to
the end of the fifth year, we will pay any remaining account value in a lump
sum and the contract and any remaining GWB benefit base will terminate
without value.
o Provided no other withdrawals are taken during a contract year
62 Payment of death benefit
while the beneficiary receives scheduled payments, the scheduled payments
will not cause a GWB Excess withdrawal, even if they exceed the GWB
Annual withdrawal amount. If the beneficiary takes any other withdrawals
while the Beneficiary continuation option scheduled payments are in
effect, the GWB Excess withdrawal exception terminates permanently. In
order to take advantage of this exception, the beneficiary must elect the
scheduled payments under "Withdrawal Option 2" rather than the "5-year
rule." If the beneficiary elects the "5-year rule," there is no
exception.
If you are both the owner and annuitant:
o As of the date we receive satisfactory proof of death, any required
instructions, information and forms necessary to effect the beneficiary
continuation option feature, we will increase the annuity account value to
equal the applicable death benefit if such death benefit is greater than
such account value, plus any amount applicable under the Protection Plus(SM)
feature, adjusted for any subsequent withdrawals.
o No withdrawal charges, if any, will apply to any withdrawals by the
beneficiary.
If the owner and annuitant are not the same person:
o If the beneficiary continuation option is elected, the beneficiary
automatically becomes the new annuitant of the contract, replacing the
existing annuitant.
o The annuity account value will not be reset to the death benefit amount.
o The contract's withdrawal charge schedule will continue to be applied to any
withdrawal or surrender other than scheduled payments; the contract's free
corridor amount will continue to apply to withdrawals but does not apply
to surrenders.
o We do not impose a withdrawal charge on scheduled payments except if, when
added to any withdrawals previously taken in the same contract year,
including for this purpose a contract surrender, the total amount of
withdrawals and scheduled payments exceed the free corridor amount. See
the "Withdrawal charges" in "Charges and expenses" earlier in this
Prospectus.
If a contract is jointly owned:
o The surviving owner supersedes any other named beneficiary and may elect the
beneficiary continuation option.
o If the deceased joint owner was also the annuitant, see "If you are both the
owner and annuitant" earlier in this section.
o If the deceased joint owner was not the annuitant, see "If the owner and
annuitant are not the same person" earlier in this
section.
Payment of death benefit 63
7. Tax information
- --------------------------------------------------------------------------------
OVERVIEW
In this part of the prospectus, we discuss the current federal income tax rules
that generally apply to Accumulator(R) Elite(SM) contracts owned by United
States individual taxpayers. The tax rules can differ, depending on the type of
contract, whether NQ, traditional IRA, Roth Conversion IRA, QP or TSA.
Therefore, we discuss the tax aspects of each type of contract separately.
Federal income tax rules include the United States laws in the Internal Revenue
Code, and Treasury Department Regulations and Internal Revenue Service ("IRS")
interpretations of the Internal Revenue Code. These tax rules may change
without notice. We cannot predict whether, when, or how these rules could
change. Any change could affect contracts purchased before the change. Congress
may also consider proposals in the future to comprehensively reform or overhaul
the United States tax and retirement systems, which if enacted, could affect
the tax benefits of a contract.
We cannot provide detailed information on all tax aspects of the contracts.
Moreover, the tax aspects that apply to a particular person's contract may vary
depending on the facts applicable to that person. We do not discuss state
income and other state taxes, federal income tax and withholding rules for
non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the
contract, rights or values under the contract, or payments under the contract,
for example, amounts due to beneficiaries, may be subject to federal or state
gift, estate, or inheritance taxes. You should not rely only on this document,
but should consult your tax adviser before your purchase.
President Bush signed the Economic Growth and Tax Relief Reconciliation Act of
2001 ("EGTRRA") on June 7, 2001. Many of the provisions of EGTRRA became
effective on January 1, 2002, and are phased in during the first decade of the
twenty-first century. In the absence of future legislation, all of the
amendments made by EGTRRA will no longer apply after December 31, 2010, and the
law in effect in 2001 will apply again. In general, EGTRRA liberalizes
contributions that can be made to all types of tax-favored retirement plans. In
addition to increasing amounts that can be contributed and permitting
individuals over age 50 to make additional contributions, EGTRRA also permits
rollover contributions to be made between different types of tax-favored
retirement plans. Please discuss with your tax adviser how EGTRRA affects your
personal financial situation.
BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT
Generally, there are two types of funding vehicles that are available for
Individual Retirement Arrangements ("IRAs") and Code Section 403(b)
Arrangements ("TSAs"), respectively: an IRA or 403(b) annuity contract such as
this one, or an IRA or 403(b)(7) custodial or other qualified account. Annuity
contracts can also be purchased in connection with retirement plans qualified
under Code Section 401 ("QP contracts"). How these arrangements work, including
special rules applicable to each, are described in the specific sections for
each type of arrangement, below. You should be aware that the funding vehicle
for a qualified arrangement does not provide any tax deferral benefit beyond
that already provided by the Code for all permissible funding vehicles. Before
choosing an annuity contract, therefore, you should consider the annuity's
features and benefits, such as Accumulator(R) Elite(SM)" Guaranteed minimum
income benefit, dollar cost averaging, choice of death benefits, selection of
investment funds, guaranteed interest option, fixed maturity options and its
choices of pay-out options, as well as the features and benefits of other
permissible funding vehicles and the relative costs of annuities and other
arrangements. You should be aware that cost may vary depending on the features
and benefits made available and the charges and expenses of the investment
options or funds that you elect.
Beginning in 2006, certain provisions of the Treasury Regulations on required
minimum distributions concerning the actuarial present value of additional
contract benefits could increase the amount required to be distributed from
annuity contracts funding qualified plans, TSAs and IRAs. You should consider
the potential implication of these Regulations before you purchase this annuity
contract or purchase additional features under this annuity contract. See also
Appendix III at the end of this Prospectus for a discussion of QP contracts.
TRANSFERS AMONG INVESTMENT OPTIONS
You can make transfers among investment options inside the contract without
triggering taxable income.
TAXATION OF NONQUALIFIED ANNUITIES
CONTRIBUTIONS
You may not deduct the amount of your contributions to a nonqualified annuity
contract.
CONTRACT EARNINGS
Generally, you are not taxed on contract earnings until you receive a
distribution from your contract, whether as a withdrawal or as an annuity
payment. However, earnings are taxable, even without a distribution:
o if a contract fails investment diversification requirements as specified in
federal income tax rules (these rules are based on or are similar to those
specified for mutual funds under the securities laws);
o if you transfer a contract, for example, as a gift to someone other than your
spouse (or former spouse);
o if you use a contract as security for a loan (in this case, the amount
pledged will be treated as a distribution); and
o if the owner is other than an individual (such as a corporation, partnership,
trust, or other non-natural person).
64 Tax information
All nonqualified deferred annuity contracts that AXA Equitable and its
affiliates issue to you during the same calendar year are linked together and
treated as one contract for calculating the taxable amount of any distribution
from any of those contracts.
ANNUITY PAYMENTS
Once annuity payments begin, a portion of each payment is taxable as ordinary
income. You get back the remaining portion without paying taxes on it. This is
your "investment in the contract." Generally, your investment in the contract
equals the contributions you made, less any amounts you previously withdrew
that were not taxable.
For fixed annuity payments, the tax-free portion of each payment is determined
by (1) dividing your investment in the contract by the total amount you are
expected to receive out of the contract, and (2) multiplying the result by the
amount of the payment. For variable annuity payments, your tax-free portion of
each payment is your investment in the contract divided by the number of
expected payments.
Once you have received the amount of your investment in the contract, all
payments after that are fully taxable. If payments under a life annuity stop
because the annuitant dies, there is an income tax deduction for any
unrecovered investment in the contract.
PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN
If you make withdrawals before annuity payments begin under your contract, they
are taxable to you as ordinary income if there are earnings in the contract.
Generally, earnings are your account value less your investment in the
contract. If you withdraw an amount which is more than the earnings in the
contract as of the date of the withdrawal, the balance of the distribution is
treated as a return of your investment in the contract and is not taxable.
PROTECTION PLUS(SM) FEATURE
In order to enhance the amount of the death benefit to be paid at the
Annuitant's death, you may purchase a Protection Plus(SM) rider for your NQ
contract. Although we regard this benefit as an investment protection feature
which should have no adverse tax effect, it is possible that the IRS could take
a contrary position or assert that the Protection Plus(SM) rider is not part of
the contract. In such a case, the charges for the Protection Plus(SM) rider
could be treated for federal income tax purposes as a partial withdrawal from
the contract. If this were so, such a deemed withdrawal could be taxable, and
for contract owners under age 59-1/2, also subject to a tax penalty. Were the
IRS to take this position, AXA Equitable would take all reasonable steps to
attempt to avoid this result, which could include amending the contract (with
appropriate notice to you).
CONTRACTS PURCHASED THROUGH EXCHANGES
You may purchase your NQ contract through an exchange of another contract.
Normally, exchanges of contracts are taxable events. The exchange will not be
taxable under Section 1035 of the Internal Revenue Code if:
o the contract that is the source of the funds you are using to purchase the NQ
contract is another nonqualified deferred annuity contract (or life
insurance or endowment contract).
o The owner and the annuitant are the same under the source contract and the
Accumulator(R) Elite(SM) NQ contract. If you are using a life insurance or
endowment contract the owner and the insured must be the same on both
sides of the exchange transaction.
The tax basis, also referred to as your investment in the contract, of the
source contract carries over to the Accumulator(R) Elite(SM) NQ contract.
An owner may direct the proceeds of a partial withdrawal from one nonqualified
deferred annuity contract to a different insurer to purchase a new nonqualified
deferred annuity contract on a tax-deferred basis. Special forms, agreement
between carriers, and provision of cost basis information may be required to
process this type of an exchange.
SURRENDERS
If you surrender or cancel the contract, the distribution is taxable as
ordinary income (not capital gain) to the extent it exceeds your investment in
the contract.
DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER
YOUR DEATH
For the rules applicable to death benefits, see "Payment of death benefit"
earlier in this Prospectus. The tax treatment of a death benefit taken as a
single sum is generally the same as the tax treatment of a withdrawal from or
surrender of your contract. The tax treatment of a death benefit taken as
annuity payments is generally the same as the tax treatment of annuity payments
under your contract. The IRS has not specifically addressed the tax treatment
of the Spousal protection benefit. Please consult with your tax adviser before
electing this feature.
Beneficiary continuation option
We have received a private letter ruling from the IRS regarding certain tax
consequences of scheduled payments under the beneficiary continuation option
for NQ contracts. See the discussion "Beneficiary continuation option for NQ
Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among
other things, the IRS rules that:
o scheduled payments under the beneficiary continuation option for NQ contracts
satisfy the death of owner rules of Section 72(s)(2) of the Code,
regardless of whether the beneficiary elects "Withdrawal Option 1" or
"Withdrawal Option 2;"
o scheduled payments, any additional withdrawals under "Withdrawal Option 2,"
or contract surrenders under "Withdrawal Option 1" will only be taxable to
the beneficiary when amounts are actually paid, regardless of the
Withdrawal Option selected by the beneficiary;
o a beneficiary who irrevocably elects scheduled payments with "Withdrawal
Option 1" will receive "excludable amount" tax treatment on scheduled
payments. See "Annuity payments" earlier in this section. If the
beneficiary elects to surrender the contract before all scheduled payments
are paid, the amount received upon surrender is a non-annuity payment
taxable to the extent it exceeds any remaining investment in the contract.
The ruling does not specifically address the taxation of any payments received
by a beneficiary electing "Withdrawal Option 2" (whether
Tax information 65
scheduled payments or any withdrawal that might be taken). The ruling also does
not address the effect of the retention of the Principal Protector(SM) feature
discussed earlier in this Prospectus under "Contract features and benefits,"
which a non-spousal beneficiary may elect under certain conditions. Before
electing the beneficiary continuation option feature, the individuals you
designate as beneficiary or successor owner should discuss with their tax
advisers the consequences of such elections.
The tax treatment of a withdrawal after the death of the owner taken as a
single sum or taken as withdrawals under the 5-year rule is generally the same
as the tax treatment of a withdrawal from or surrender of your contract.
EARLY DISTRIBUTION PENALTY TAX
If you take distributions before you are age 59-1/2 a penalty tax of 10% of the
taxable portion of your distribution applies in addition to the income tax.
Some of the available exceptions to the pre-age 59-1/2 penalty tax include
distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o in the form of substantially equal periodic annuity payments for your life
(or life expectancy), or the joint lives (or joint life expectancy) of you
and a beneficiary, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If
you were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. The IRS has said that the owners of variable annuities will
not be treated as owning the separate account assets provided the underlying
portfolios are restricted to variable life and annuity assets. The variable
annuity owners must have the right only to choose among the portfolios, and
must have no right to direct the particular investment decisions within the
portfolios.
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some
issues that remain unclear. For example, the IRS has not issued any guidance as
to whether having a larger number of portfolios available, or an unlimited
right to transfer among them, could cause you to be treated as the owner. We do
not know whether the IRS will ever provide such guidance or whether such
guidance, if unfavorable, would apply retroactively to your contract.
Furthermore, the IRS could reverse its current guidance at any time. We reserve
the right to modify your contract as necessary to prevent you from being
treated as the owner of the assets of Separate Accounts 45 and 49.
SPECIAL RULES FOR NQ CONTRACTS ISSUED IN PUERTO RICO
Income from NQ contracts we issue is U.S. source. A Puerto Rico resident is
subject to U.S. taxation on such U.S. source income. Only Puerto Rico source
income of Puerto Rico residents is excludable from U.S. taxation. Income from
NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable
portion of amounts distributed from a contract may differ in the two
jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax
returns, showing different amounts of income from the contract for each tax
return. Puerto Rico generally provides a credit against Puerto Rico tax for
U.S. tax paid. Depending on your personal situation and the timing of the
different tax liabilities, you may not be able to take full advantage of this
credit.
INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS)
GENERAL
"IRA" stands for individual retirement arrangement. There are two basic types
of such arrangements, individual retirement accounts and individual retirement
annuities. In an individual retirement account, a trustee or custodian holds
the assets for the benefit of the IRA owner. The assets funding the account
typically include mutual funds and/or individual stocks and/or securities in a
custodial account and bank certificates of deposit in a trusteed account. In an
individual retirement annuity, an insurance company issues an annuity contract
that serves as the IRA.
There are two basic types of IRAs, as follows:
o Traditional IRAs, typically funded on a pre-tax basis, including SEP-IRAs and
SIMPLE IRAs issued and funded in connection with employer-sponsored
retirement plans; and
o Roth IRAs, funded on an after-tax basis.
Regardless of the type of IRA, your ownership interest in the IRA cannot be
forfeited. You or your beneficiaries who survive you are the only ones who can
receive the IRA's benefits or payments. All types of IRAs qualify for tax
deferral regardless of the funding vehicle selected.
You can hold your IRA assets in as many different accounts and annuities as you
would like, as long as you meet the rules for setting up and making
contributions to IRAs. However, if you own multiple IRAs, you may be required
to combine IRA values or contributions for tax purposes. For further
information about individual retirement arrangements, you can read Internal
Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)").
This publication is usually updated annually, and can be obtained from any IRS
district office or the IRS website (www.irs.gov).
AXA Equitable designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may purchase
the contract as a traditional IRA ("Rollover IRA") or Roth IRA ("Roth
Conversion IRA"). We also offer the Inherited IRA for payment of post-death
required minimum distributions in traditional IRA and Roth IRA. This Prospectus
contains the information that the IRS requires you to have before you purchase
an IRA. The first section covers some of the special tax rules that apply to
traditional IRAs. The next section covers Roth IRAs. The disclosure generally
assumes direct ownership of the individual retirement annuity contract. For
contracts owned in a custodial individual retirement account, the disclosure
will apply only if you terminate your account or transfer ownership of the
contract to yourself.
66 Tax information
We have not applied for an opinion letter from the IRS to approve the
respective forms of the Accumulator(R) Elite(SM) traditional and Roth IRA
contracts for use as a traditional and Roth IRA, respectively. We have received
IRS opinion letters approving the respective forms of a similar traditional IRA
and Roth IRA endorsement for use as a traditional and Roth IRA, respectively.
This IRS approval is a determination only as to the form of the annuity. It
does not represent a determination of the merits of the annuity as an
investment. The contracts submitted for IRS approval do not include every
feature possibly available under the Accumulator(R) Elite(SM) traditional and
Roth IRA contracts.
The inherited IRA beneficiary continuation contract has not been submitted to
the IRS for approval as to form for use as a traditional IRA or Roth IRA.
PROTECTION PLUS(SM) FEATURE
The Protection Plus(SM) feature is offered for IRA contracts, subject to state
and contract availability. We have received IRS opinion letters that the
contract with a similar Protection Plus(SM) feature qualifies as to form for use
as a traditional IRA and Roth IRA, respectively. This IRS approval is a
determination only as to the form of the annuity. It does not represent a
determination of the merits of the annuity as an investment. The contracts
submitted for IRS approval do not include every feature possibly available
under the Accumulator(R) traditional and Roth IRA contracts. You should discuss
with your tax adviser whether you should consider purchasing an Accumulator(R)
Elite(SM) IRA or Accumulator(R) Elite(SM) Roth IRA with the optional Protection
Plus(SM) feature.
Your right to cancel within a certain number of days
You can cancel any version of the Accumulator(R) Elite(SM) IRA contract
(traditional IRA or ROTH IRA) by following the directions in "Your right to
cancel with in a certain number of days" under "Contract features and benefits"
earlier in this Prospectus. If you cancel a traditional IRA or ROTH IRA
contract, we may have to withhold tax, and we must report the transaction to
the IRS. A contract cancellation could have an unfavorable tax impact.
Traditional individual retirement annuities (traditional IRAs)
Contributions to traditional IRAs. Individuals may make three different types
of contributions to a traditional IRA:
o regular contributions out of earned income or compensation; or
o tax-free "rollover" contributions; or
o direct custodian-to-custodian transfers from other traditional
IRAs ("direct transfers")
Regular contributions to traditional IRAs
Limits on contributions. The "maximum regular contribution amount" for any
taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $4,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for each of the taxable years 2005
and 2006. When your earnings are below $4,000, your earned income or
compensation for the year is the most you can contribute. This limit does not
apply to rollover contributions or direct custodian-to-custodian transfers into
a traditional IRA. You cannot make regular traditional IRA contributions for
the tax year in which you reach age 70-1/2 or any tax year after that.
If you reach age 50 before the close of the taxable year for which you are
making a regular contribution to your IRA, you may be eligible to make an
additional "catch up contribution" of up to $500 to your traditional IRA for
2005. This amount increases to $1,000 for the taxable year 2006.
Special rules for spouses. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to traditional IRAs
(and Roth IRAs discussed below). Even if one spouse has no compensation or
compensation under $4,000, married individuals filing jointly can contribute up
to $8,000 for each of the taxable years 2005 and 2006 to any combination of
traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the
ability to contribute to traditional IRAs and vice versa. The maximum amount
may be less if earned income is less and the other spouse has made IRA
contributions. No more than a combined total of $4,000 can be contributed
annually to either spouse's traditional and Roth IRAs. Each spouse owns his or
her traditional IRAs and Roth IRAs even if the other spouse funded the
contributions. A working spouse age 70-1/2 or over can contribute up to the
lesser of $4,000 or 100% of "earned income" to a traditional IRA for a
nonworking spouse until the year in which the nonworking spouse reaches age
70-1/2. Catch-up contributions may be made as described above for spouses who
are at least age 50 but under age 70-1/2 at any time during the taxable year for
which the contribution is made.
Deductibility of contributions. The amount of traditional IRA contributions
that you can deduct for a taxable year depends on whether you are covered by an
employer-sponsored-tax-favored retirement plan, as defined under special
federal income tax rules. Your Form W-2 will indicate whether or not you are
covered by such a retirement plan.
If you are not covered by a retirement plan during any part of the year, you
can make fully deductible contributions to your traditional IRAs for the
taxable year up to the maximum amount discussed earlier in this section under
"Limits on contributions." That is, for each of the taxable years 2005 and 2006
your fully deductible contribution can be up to $4,000, or if less, your earned
income. The dollar limit is $4,500 for people eligible to make age 50 - 70--1/2
catch-up contributions. For 2005, and $5,000 for 2006, respectively.
If you are covered by a retirement plan during any part of the year, and your
adjusted gross income (AGI) is below the lower dollar figure in a phase-out
range, you can make fully deductible contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls within a phase-out range, you can make partially deductible
contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls above the higher figure in the phase-out range, you may not deduct
any of your regular contributions to your traditional IRAs.
Tax information 67
If you are single and covered by a retirement plan during any part of the
taxable year, the deduction for traditional IRA contributions phases out with
AGI between $50,000 and $60,000 in 2005 and later years.
If you are married and file a joint return, and you are covered by a retirement
plan during any part of the taxable year, the deduction for traditional IRA
contributions phases out with AGI between $70,000 and $80,000 in 2005 and AGI
between $75,000 and $85,000 in 2006. In 2007, the deduction will phase out for
AGI between $80,000 and $100,000.
Married individuals filing separately and living apart at all times are not
considered married for purposes of this deductible contribution calculation.
Generally, the active participation in an employer-sponsored retirement plan of
an individual is determined independently for each spouse. Where spouses have
"married filing jointly" status, however, the maximum deductible traditional
IRA contribution for an individual who is not an active participant (but whose
spouse is an active participant) is phased out for taxpayers with an AGI
between $150,000 and $160,000. .
To determine the deductible amount of the contribution for 2005, for example,
you determine AGI and subtract $50,000 if you are single, or $70,000 if you are
married and file a joint return with your spouse. The resulting amount is your
excess AGI. You then determine the limit on the deduction for traditional IRA
contributions using the following formula:
($10,000-excess AGI) times the maximum Equals the adjusted
-------------------- x regular = deductible
divided by $10,000 contribution contribution
for the year limit
Additional "Saver's Credit" for contributions to a traditional
IRA or Roth IRA
You may be eligible for a nonrefundable income tax credit for contributions you
make to a traditional IRA or Roth IRA. The final year this credit is available
is 2006. If you qualify, you may take this credit even though your traditional
IRA contribution is already fully or partially deductible. To take advantage of
this "saver's credit" you must be age 18 or over before the end of the taxable
year for which the contribution is made. You cannot be a full-time student or
claimed as a dependent on another's tax return, and your adjusted gross income
cannot exceed $50,000. The amount of the tax credit you can get varies from 10%
of your contribution to 50% of your contribution, and depends on your income
tax filing status and your adjusted gross income. The maximum annual
contribution eligible for the saver's credit is $2,000. If you and your spouse
file a joint return, and each of you qualifies, each is eligible for a maximum
annual contribution of $2,000. Your saver's credit may also be reduced if you
take or have taken a taxable distribution from any plan eligible for a saver's
credit contribution -- even if you make a contribution to one plan and take the
distribution from another plan -- during the "testing period." The "testing
period" begins two years before the year for which you make the contribution
and ends when your tax return is due for the year for which you make the
contribution. Saver's-credit-eligible contributions may be made to a 401(k)
plan, 403(b) TSA, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA,
as well as a traditional IRA or Roth IRA.
Nondeductible regular contributions. If you are not eligible to deduct part or
all of the traditional IRA contribution, you may still make nondeductible
contributions on which earnings will accumulate on a tax-deferred basis. The
combined deductible and nondeductible contributions to your traditional IRA (or
the nonworking spouse's traditional IRA) may not, however, exceed the maximum
dollar per person limit for the applicable taxable year ($4,000 for 2005 and
2006). The dollar limit is $4,500 in 2005 and $5,000 in 2006 for people
eligible to make age 50-70-1/2 catch-up contributions. See "Excess
contributions" later in this section. You must keep your own records of
deductible and nondeductible contributions in order to prevent double taxation
on the distribution of previously taxed amounts. See "Withdrawals, payments and
transfers of funds out of traditional IRAs" later in this section.
If you are making nondeductible contributions in any taxable year, or you have
made nondeductible contributions to a traditional IRA in prior years and are
receiving distributions from any traditional IRA, you must file the required
information with the IRS. Moreover, if you are making nondeductible traditional
IRA contributions, you must retain all income tax returns and records
pertaining to such contributions until interests in all traditional IRAs are
fully distributed.
When you can make regular contributions. If you file your tax returns on a
calendar year basis like most taxpayers, you have until the April 15 return
filing deadline (without extensions) of the following calendar year to make
your regular traditional IRA contributions for a taxable year.
Rollover and transfer contributions to traditional IRAs
Rollover contributions may be made to a traditional IRA from these "eligible
retirement plans":
o qualified plans;
o governmental employer 457(b) plans;
o TSAs (including Internal Revenue Code Section 403(b)(7) custo
dial accounts); and
o other traditional IRAs.
Direct transfer contributions may only be made directly from one traditional
IRA to another. Any amount contributed to a traditional IRA after you reach age
70-1/2 must be net of your required minimum distribution for the year in which
the rollover or direct transfer contribution is made.
Rollovers from "eligible retirement plans" other than
traditional IRAs
Your plan administrator will tell you whether or not your distribution is
eligible to be rolled over. Spousal beneficiaries and spousal alternate payees
under qualified domestic relations orders may roll over funds on the same basis
as the plan participant.
There are two ways to do rollovers:
o Do it yourself:
You actually receive a distribution that can be rolled over and you roll
it over to a traditional IRA within 60 days after the date you receive the
funds. The distribution from your eligible retirement
68 Tax information
plan will be net of 20% mandatory federal income tax withholding. If you
want, you can replace the withheld funds yourself and roll over the full
amount.
o Direct rollover:
You tell the trustee or custodian of the eligible retirement plan to send
the distribution directly to your traditional IRA issuer. Direct rollovers
are not subject to mandatory federal income tax withholding.
All distributions from a TSA, qualified plan or governmental employer 457(b)
plan are eligible rollover distributions, unless the distributions are:
o "required minimum distributions" after age 70-1/2 or retirement
from service with the employer; or
o substantially equal periodic payments made at least annually for
your life (or life expectancy) or the joint lives (or joint life
expectancies) of you and your designated beneficiary; or
o substantially equal periodic payments made for a specified period
of 10 years or more; or
o hardship withdrawals; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o death benefit payments to a beneficiary who is not your surviving
spouse; or
o qualified domestic relations order distributions to a beneficiary
who is not your current spouse or former spouse.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental employer 457(b) plan are not subject to the
additional 10% federal income tax penalty for premature distributions, but they
may become subject to this penalty if you roll the funds to a different type of
eligible retirement plan such as a traditional IRA, and subsequently take a
premature distribution.
Rollovers of after-tax contributions from eligible retirement
plans other than traditional IRAs
Any after-tax contributions you have made to a qualified plan or TSA (but not a
governmental employer 457(b) plan) may be rolled over to a traditional IRA
(either in a direct rollover or a rollover you do yourself). When the recipient
plan is a traditional IRA, you are responsible for recordkeeping and
calculating the taxable amount of any distributions you take from that
traditional IRA. See "Taxation of Payments" later in this section under
"Withdrawals, payments and transfers of funds out of traditional IRAs."
After-tax contributions in a traditional IRA cannot be rolled over from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan.
Rollovers from traditional IRAs to traditional IRAs
You may roll over amounts from one traditional IRA to one or more of your other
traditional IRAs if you complete the transaction within 60 days after you
receive the funds. You may make such a rollover only once in every 12-month
period for the same funds. Trustee-to-trustee or custodian-to-custodian direct
transfers are not rollover transactions. You can make these more frequently
than once in every 12-month period.
SPOUSAL ROLLOVER AND DIVORCE-RELATED DIRECT TRANSFERS
The surviving spouse beneficiary of a deceased individual can roll over funds
from, or directly transfer funds from, an inherited traditional IRA to one or
more other traditional IRAs. Also, in some cases, traditional IRAs can be
transferred on a tax-free basis between spouses or former spouses as a result
of a court ordered divorce or separation decree.
Excess contributions
Excess contributions to IRAs are subject to a 6% excise tax for the year in
which made and for each year after until withdrawn. The following are excess
contributions to IRAs:
o regular contributions of more than the maximum regular contri
bution amount for the applicable taxable year); or
o regular contributions to a traditional IRA made after you reach
age 70-1/2; or
o rollover contributions of amounts which are not eligible to be
rolled over, for example, minimum distributions required to be made after
age 70-1/2.
You can avoid the excise tax by withdrawing an excess contribution (rollover or
regular) before the due date (including extensions) for filing your federal
income tax return for the year. If it is an excess regular traditional IRA
contribution, you cannot take a tax deduction for the amount withdrawn. You do
not have to include the excess contribution withdrawn as part of your income.
It is also not subject to the 10% additional penalty tax on early
distributions, discussed later in this section under "Early distribution
penalty tax." You do have to withdraw any earnings that are attributed to the
excess contribution. The withdrawn earnings would be included in your gross
income and could be subject to the 10% penalty tax.
Even after the due date for filing your return, you may withdraw an excess
rollover contribution, without income inclusion or 10% penalty, if:
(1) the rollover was from an eligible retirement plan to a traditional
IRA;
(2) the excess contribution was due to incorrect information that the
plan provided; and
(3) you took no tax deduction for the excess contribution.
Recharacterizations
Amounts that have been contributed as traditional IRA funds may subsequently be
treated as Roth IRA funds. Special federal income tax rules allow you to change
your mind again and have amounts that are subsequently treated as Roth IRA
funds, once again treated as traditional IRA funds. You do this by using the
forms we prescribe. This is referred to as having "recharacterized" your
contribution.
Tax information 69
Withdrawals, payments and transfers of funds out of
traditional IRAs
No federal income tax law restrictions on withdrawals. You can withdraw any or
all of your funds from a traditional IRA at any time. You do not need to wait
for a special event like retirement.
Taxation of payments. Earnings in traditional IRAs are not subject to federal
income tax until you or your beneficiary receive them. Taxable payments or
distributions include withdrawals from your contract, surrender of your
contract and annuity payments from your contract. Death benefits are also
taxable.
Except as discussed below, the total amount of any distribution from a
traditional IRA must be included in your gross income as ordinary income. We
report all payments from traditional IRA contracts on IRS Form 1099R as fully
taxable.
If you have ever made nondeductible IRA contributions to any traditional IRA
(it does not have to be to this particular traditional IRA contract), those
contributions are recovered tax free when you get distributions from any
traditional IRA. It is your responsibility to keep permanent tax records of all
of your nondeductible contributions to traditional IRAs so that you can
correctly report the taxable amount of any distribution on your own tax return.
At the end of any year in which you have received a distribution from any
traditional IRA, you calculate the ratio of your total nondeductible
traditional IRA contributions (less any amounts previously withdrawn tax free)
to the total account balances of all traditional IRAs you own at the end of the
year plus all traditional IRA distributions made during the year. Multiply this
by all distributions from the traditional IRA during the year to determine the
nontaxable portion of each distribution.
A distribution from a traditional IRA is not taxable if:
o the amount received is a withdrawal of excess contributions, as
described under "Excess contributions" earlier in this section; or
o the entire amount received is rolled over to another traditional
IRA or other eligible retirement plan which agrees to accept the funds.
(See "Rollovers from eligible retirement plans other than traditional
IRAs" under "Rollover and transfer contributions to traditional IRAs"
earlier in this section.)
The following are eligible to receive rollovers of distributions from a
traditional IRA: a qualified plan, a TSA or a governmental employer 457(b)
plan. After-tax contributions in a traditional IRA cannot be rolled from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan. Before you decide to roll over a distribution from a
traditional IRA to another eligible retirement plan, you should check with the
administrator of that plan about whether the plan accepts rollovers and, if so,
the types it accepts. You should also check with the administrator of the
receiving plan about any documents required to be completed before it will
accept a rollover.
Distributions from a traditional IRA are not eligible for favorable ten-year
averaging and long-term capital gain treatment available under limited
circumstances for certain distributions from qualified plans. If you might be
eligible for such tax treatment from your qualified plan, you may be able to
preserve such tax treatment even though an eligible rollover from a qualified
plan is temporarily rolled into a "conduit IRA" before being rolled back into a
qualified plan. See your tax adviser.
Required minimum distributions
BACKGROUND ON REGULATIONS -- REQUIRED MINIMUM DISTRIBUTIONS
Distributions must be made from traditional IRAs according to rules contained
in the Code and Treasury Regulations. Certain provisions of the Treasury
Regulations will require, beginning in 2006, that the actuarial present value
of additional annuity contract benefits be added to the dollar amount credited
for purposes of calculating certain types of required minimum distributions
from individual retirement annuity contracts. This could increase the amount
required to be distributed from these contracts if you take annual withdrawals
instead of annuitizing, Please consult your tax adviser concerning
applicability of these complex rules to your situation.
Lifetime required minimum distributions. You must start taking annual
distributions from your traditional IRAs for the year in which you turn age
70-1/2.
When you have to take the first lifetime required minimum distribution. The
first required minimum distribution is for the calendar year in which you turn
age 70-1/2. You have the choice to take this first required minimum distribution
during the calendar year you actually reach age 70-1/2, or to delay taking it
until the first three-month period in the next calendar year (January 1 - April
1). Distributions must start no later than your "Required Beginning Date,"
which is April 1st of the calendar year after the calendar year in which you
turn age 70-1/2. If you choose to delay taking the first annual minimum
distribution, then you will have to take two minimum distributions in that
year--the delayed one for the first year and the one actually for that year.
Once minimum distributions begin, they must be made at some time each year.
How you can calculate required minimum distributions.
There are two approaches to taking required minimum distributions --
"account-based" or "annuity-based."
ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the
value of your traditional IRA as of December 31st of the past calendar year by
a number corresponding to your age from an IRS table. This gives you the
required minimum distribution amount for that particular IRA for that year. If
your spouse is your sole beneficiary and more than 10 years younger than you,
the dividing number you use may be from another IRS table and may produce a
smaller lifetime required minimum distribution amount. Regardless of the table
used, the required minimum distribution amount will vary each year as the
account value and the divisor change. If you initially choose an account-based
method, you may later apply your traditional IRA funds to a life annuity-based
payout with any certain period not exceeding remaining life expectancy,
determined in accordance with IRS tables.
ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to
do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a
70 Tax information
designated beneficiary or for a period certain not extending beyond applicable
life expectancies, determined in accordance with IRS tables.
Do you have to pick the same method to calculate your required minimum
distributions for all of your traditional IRAs and other retirement plans? No.
If you want, you can choose a different method for each of your traditional
IRAs and other retirement plans. For example, you can choose an annuity payout
from one IRA, a different annuity payout from a qualified plan and an
account-based annual withdrawal from another IRA.
Will we pay you the annual amount every year from your traditional IRA based on
the method you choose? We will only pay you automatically if you affirmatively
select an annuity payout option or an account-based withdrawal option such as
our "automatic required minimum distribution (RMD) service." Even if you do not
enroll in our service, we will calculate the amount of the required minimum
distribution withdrawal for you, if you so request in writing. However, in that
case you will be responsible for asking us to pay the required minimum
distribution withdrawal to you.
Also, the IRS will let you calculate the required minimum distribution for each
traditional IRA that you maintain, using the method that you picked for that
particular IRA. You can add these required minimum distribution amount
calculations together. As long as the total amount you take out every year
satisfies your overall traditional IRA required minimum distribution amount,
you may choose to take your annual required minimum distribution from any one
or more traditional IRAs that you own.
What if you take more than you need to for any year? The required minimum
distribution amount for your traditional IRAs is calculated on a year-by-year
basis. There are no carry-back or carry-forward provisions. Also, you cannot
apply required minimum distribution amounts you take from your qualified plans
to the amounts you have to take from your traditional IRAs and vice versa.
What if you take less than you need to for any year? Your IRA could be
disqualified, and you could have to pay tax on the entire value. Even if your
IRA is not disqualified, you could have to pay a 50% penalty tax on the
shortfall (required amount for traditional IRAs less amount actually taken). It
is your responsibility to meet the required minimum distribution rules. We will
remind you when our records show that you are within the age group which must
take lifetime required minimum distributions. If you do not select a method
with us, we will assume you are taking your required minimum distribution from
another traditional IRA that you own.
What are the required minimum distribution payments after you die? These could
vary depending on whether you die before or after your Required Beginning Date
for lifetime required minimum distribution payments, and the status of your
beneficiary. The following assumes that you have not yet elected an
annuity-based payout at the time of your death. If you elect an annuity-based
payout, payments (if any) after your death must be made at least as rapidly as
when you were alive.
Individual beneficiary. Regardless of whether your death occurs before or
after your Required Beginning Date, an individual death beneficiary calculates
annual post-death required minimum distribution payments based on the
beneficiary's life expectancy using the "term certain method." That is, he or
she determines his or her life expectancy using the IRS-provided life
expectancy tables as of the calendar year after the owner's death and reduces
that number by one each subsequent year.
If you die before your Required Beginning Date, the rules permit any individual
beneficiary, including a spousal beneficiary, to elect instead to apply the
"5-year rule." Under this rule, instead of annual payments having to be made
beginning with the first in the year following the owner's death, the entire
account must be distributed by the end of the calendar year which contains the
fifth anniversary of the owner's death. No distribution is required before that
fifth year.
Spousal beneficiary. If you die after your Required Beginning Date, and your
death beneficiary is your surviving spouse, your spouse has a number of
choices. Post-death distributions may be made over your spouse's single life
expectancy. Any amounts distributed after that surviving spouse's death are
made over the spouse's life expectancy calculated in the year of his/her death,
reduced by one for each subsequent year. In some circumstances, your surviving
spouse may elect to become the owner of the traditional IRA and halt
distributions until he or she reaches age 70-1/2, or roll over amounts from your
traditional IRA into his/her own traditional IRA or other eligible retirement
plan.
If you die before your Required Beginning Date, and the death beneficiary is
your surviving spouse, the rules permit the spouse to delay starting payments
over his/her life expectancy until the year in which you would have attained
age 70-1/2.
Non-individual beneficiary. If you die after your Required Beginning Date, and
your death beneficiary is a non-individual, such as the estate, the rules
permit the beneficiary to calculate post-death required minimum distribution
amounts based on the owner's life expectancy in the year of death. However,
note that we need an individual annuitant to keep an annuity contract in force.
If the beneficiary is not an individual, we must distribute amounts remaining
in the annuity contract after the death of the annuitant.
If you die before your Required Beginning Date for lifetime required minimum
distribution payments, and the death beneficiary is a non-individual, such as
the estate, the rules continue to apply the 5-year rule discussed earlier under
"Individual beneficiary." Please note that we need an individual annuitant to
keep an annuity contract in force. If the beneficiary is not an individual, we
must distribute amounts remaining in the annuity contract after the death of
the annuitant.
Successor owner and annuitant
If your spouse is the sole primary beneficiary and elects to become the
successor owner and annuitant, no death benefit is payable until your surviving
spouse's death.
Payments to a beneficiary after your death
IRA death benefits are taxed the same as IRA distributions.
Tax information 71
Borrowing and loans are prohibited transactions
You cannot get loans from a traditional IRA. You cannot use a traditional IRA
as collateral for a loan or other obligation. If you borrow against your IRA or
use it as collateral, its tax-favored status will be lost as of the first day
of the tax year in which this prohibited event occurs. If this happens, you
must include the value of the traditional IRA in your federal gross income.
Also, the early distribution penalty tax of 10% may apply if you have not
reached age 59-1/2 before the first day of that tax year.
Early distribution penalty tax
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a traditional IRA made before you reach age 59-1/2. Some of
the available exceptions to the pre-age 59-1/2 penalty tax include distributions
made:
o on or after your death; or
o because you are disabled (special federal income tax definition);
or
o used to pay certain extraordinary medical expenses (special fed
eral income tax definition); or
o used to pay medical insurance premiums for unemployed indi
viduals (special federal income tax definition); or
o used to pay certain first-time home buyer expenses (special fed
eral income tax definition; $10,000 lifetime total limit for these
distributions from all your traditional and Roth IRAs); or
o used to pay certain higher education expenses (special federal
income tax definition); or
o in the form of substantially equal periodic payments made at
least annually over your life (or your life expectancy) or over the joint
lives of you and your beneficiary (or your joint life expectancies using
an IRS-approved distribution method.
To meet this last exception, you could elect to apply your contract value to an
Income Manager(R) (life annuity with a period certain) payout annuity contract
(level payments version). You could also elect the substantially equal
withdrawals option. We will calculate the substantially equal annual payments
using your choice of IRS-approved methods we offer. Although substantially
equal withdrawals and Income Manager(R) payments are not subject to the 10%
penalty tax, they are taxable as discussed in "Withdrawals, payments and
transfers of funds out of traditional IRAs" above. Once substantially equal
withdrawals or Income Manager(R) annuity payments begin, the distributions
should not be stopped or changed until after the later of your reaching age
59-1/2 or five years after the date of the first distribution, or the penalty
tax, including an interest charge for the prior penalty avoidance, may apply to
all prior distributions under this option. Also, it is possible that the IRS
could view any additional withdrawal or payment you take from your contract as
changing your pattern of substantially equal withdrawals or Income Manager
payments for purposes of determining whether the penalty applies.
Roth individual retirement annuities (Roth IRAs)
This section of the Prospectus covers some of the special tax rules that apply
to Roth IRAs. If the rules are the same as those that apply to the traditional
IRA, we will refer you to the same topic under "traditional IRAs."
The Accumulator(R) Elite(SM) Roth Conversion IRA contract is designed to qualify
as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of
the Internal Revenue Code.
Contributions to Roth IRAs
Individuals may make four different types of contributions to a Roth IRA:
o regular after-tax contributions out of earnings; or
o taxable rollover contributions from traditional IRAs ("conversion"
contributions); or
o tax-free rollover contributions from other Roth IRAs; or
o tax-free direct custodian-to-custodian transfers from other Roth
IRAs ("direct transfers").
Regular after-tax, direct transfer and rollover contributions may be made to a
Roth Conversion IRA contract. See "Rollovers and direct transfers" later in
this section. If you use the forms we require, we will also accept traditional
IRA funds which are subsequently recharacterized as Roth IRA funds following
special federal income tax rules.
Regular contributions to Roth IRAs
Limits on regular contributions. The "maximum regular contribution amount" for
any taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $4,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for each of the taxable years 2005
and 2006. This limit does not apply to rollover contributions or direct
custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth
IRAs reduce your ability to contribute to traditional IRAs and vice versa. When
your earnings are below $4,000, your earned income or compensation for the
years is the most you can contribute. If you are married and file a joint
income tax return, you and your spouse may combine your compensation to
determine the amount of regular contributions you are permitted to make to Roth
IRAs and traditional IRAs. See the discussion earlier in this section under
traditional IRAs. If you or your spouse are at least age 50 at any time during
the taxable year for which you are making a regular contribution, additional
catch-up contributions totaling up to $500 can be made for the taxable year
2005. This amount increases to $1,000 for the taxable year 2006.
With a Roth IRA, you can make regular contributions when you reach 70-1/2, as
long as you have sufficient earnings. But, you cannot make contributions,
regardless of your age, for any year that:
72 Tax information
o your federal income tax filing status is "married filing jointly" and
o your modified adjusted gross income is over $160,000; or
o your federal income tax filing status is "single" and your modified
adjusted gross income is over $110,000.
However, you can make regular Roth IRA contributions in reduced amounts when:
o your federal income tax filing status is "married filing jointly" and
your modified adjusted gross income is between $150,000 and $160,000; or
o your federal income tax filing status is "single" and your modified
adjusted gross income is between $95,000 and $110,000.
If you are married and filing separately and your modified adjusted gross
income is between $0 and $10,000 the amount of regular contributions you are
permitted to make is phased out. If your modified adjusted gross income is more
than $10,000 you cannot make regular Roth IRA contributions.
When you can make contributions. Same as traditional IRAs.
Deductibility of contributions. Roth IRA contributions are not tax deductible.
Rollovers and direct transfers
What is the difference between rollover and direct transfer transactions? You
may make rollover contributions to a Roth IRA from only two sources:
o another Roth IRA ("tax-free rollover contribution"); or
o another traditional IRA, including a SEP-IRA or SIMPLE IRA (after
a two-year rollover limitation period for SIMPLE IRA funds), in a taxable
conversion rollover ("conversion contribution").
You may not make contributions to a Roth IRA from a qualified plan under
Section 401(a) of the Internal Revenue Code, a TSA under Section 403(b) of the
Internal Revenue Code or any other eligible retirement plan. You may make
direct transfer contributions to a Roth IRA only from another Roth IRA.
The difference between a rollover transaction and a direct transfer transaction
is the following: in a rollover transaction you actually take possession of the
funds rolled over or are considered to have received them under tax law in the
case of a change from one type of plan to another. In a direct transfer
transaction, you never take possession of the funds, but direct the first Roth
IRA custodian trustee or issuer to transfer the first Roth IRA funds directly
to the recipient Roth IRA custodian, trustee or issuer. You can make direct
transfer transactions only between identical plan types (for example, Roth IRA
to Roth IRA). You can also make rollover transactions between identical plan
types. However, you can only use rollover transactions between different plan
types (for example, traditional IRA to Roth IRA).
You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to
Roth IRA direct transfer transactions. This can be accomplished on a completely
tax-free basis. However, you may make Roth IRA to Roth IRA rollover
transactions only once in any 12-month period for the same funds.
Trustee-to-trustee or custodian-to-custodian direct transfers can be made more
frequently than once a year. Also, if you send us the rollover contribution to
apply it to a Roth IRA, you must do so within 60 days after you receive the
proceeds from the original IRA to get rollover treatment.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some
cases, Roth IRAs can be transferred on a tax-free basis between spouses or
former spouses as a result of a court-ordered divorce or separation decree.
Conversion contributions to Roth IRAs
In a conversion rollover transaction, you withdraw (or are considered to have
withdrawn) all or a portion of funds from a traditional IRA you maintain and
convert it to a Roth IRA within 60 days after you receive (or are considered to
have received) the traditional IRA proceeds. Unlike a rollover from a
traditional IRA to another traditional IRA, the conversion rollover transaction
is not tax-free. Instead, the distribution from the traditional IRA is
generally fully taxable. For this reason, we are required to withhold 10%
federal income tax from the amount converted unless you elect out of such
withholding. If you have ever made nondeductible regular contributions to any
traditional IRA -- whether or not it is the traditional IRA you are converting
- -- a pro rata portion of the distribution is tax free.
There is, however, no early distribution penalty tax on the traditional IRA
withdrawal that you are converting to a Roth IRA, even if you are under age
59-1/2.
You cannot make conversion contributions to a Roth IRA for any taxable year in
which your modified adjusted gross income exceeds $100,000. (For this purpose,
your modified adjusted gross income is calculated without the gross income
stemming from the traditional IRA conversion. Beginning in 2005, modified
adjusted gross income for this purpose will also exclude any lifetime required
minimum distribution from a traditional IRA.) You also cannot make conversion
contributions to a Roth IRA for any taxable year in which your federal income
tax filing status is "married filing separately."
You cannot make conversion contributions to a Roth IRA to the extent that the
funds in your traditional IRA are subject to the annual required minimum
distribution rule applicable to traditional IRAs beginning at age 70-1/2.
You cannot convert and reconvert an amount during the same taxable year, or if
later, during the 30-day period following a recharacterization. If you
reconvert during either of these periods, it will be a failed Roth IRA
conversion.
Recharacterizations
You may be able to treat a contribution made to one type of IRA as having been
made to a different type of IRA. This is called recharacterizing the
contribution.
How to recharacterize. To recharacterize a contribution, you generally must
have the contribution transferred from the first IRA (the one to which it was
made) to the second IRA in a deemed trustee-to-trustee transfer. If the
transfer is made by the due date (including extensions) for your tax return for
the year during which the contribution was made, you can elect to treat the
contribution as having been
Tax information 73
originally made to the second IRA instead of to the first IRA. It will be
treated as having been made to the second IRA on the same date that it was
actually made to the first IRA. You must report the recharacterization and must
treat the contribution as having been made to the second IRA, instead of the
first IRA, on your tax return for the year during which the contribution was
made.
The contribution will not be treated as having been made to the second IRA
unless the transfer includes any net income allocable to the contribution. You
can take into account any loss on the contribution while it was in the IRA when
calculating the amount that must be transferred. If there was a loss, the net
income you must transfer may be a negative amount.
No deduction is allowed for the contribution to the first IRA and any net
income transferred with the recharacterized contribution is treated as earned
in the second IRA. The contribution will not be treated as having been made to
the second IRA to the extent any deduction was allowed with respect to the
contribution to the first IRA.
For recharacterization purposes, a distribution from a traditional IRA that is
received in one tax year and rolled over into a Roth IRA in the next year, but
still within 60 days of the distribution from the traditional IRA, is treated
as a contribution to the Roth IRA in the year of the distribution from the
traditional IRA.
Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be
recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or
SIMPLE IRA).
To recharacterize a contribution, you must use our forms.
The recharacterization of a contribution is not treated as a rollover for
purposes of the 12-month limitation period described above. This rule applies
even if the contribution would have been treated as a rollover contribution by
the second IRA if it had been made directly to the second IRA rather than as a
result of a recharacterization of a contribution to the first IRA.
Withdrawals, payments and transfers of funds out of Roth
IRAs
No federal income tax law restrictions on withdrawals. You can withdraw any or
all of your funds from a Roth IRA at any time; you do not need to wait for a
special event like retirement.
Distributions from Roth IRAs
Distributions include withdrawals from your contract, surrender of your
contract and annuity payments from your contract. Death benefits are also
distributions.
You must keep your own records of regular and conversion contributions to all
Roth IRAs to assure appropriate taxation. You may have to file information on
your contributions to and distributions from any Roth IRA on your tax return.
You may have to retain all income tax returns and records pertaining to such
contributions and distributions until your interests in all Roth IRAs are
distributed.
Like traditional IRAs, taxable distributions from a Roth IRA are not entitled
to special favorable ten-year averaging and long-term capital gain treatment
available in limited cases to certain distributions from qualified plans.
The following distributions from Roth IRAs are free of income tax:
o rollovers from a Roth IRA to another Roth IRA;
o direct transfers from a Roth IRA to another Roth IRA;
o qualified distributions from a Roth IRA; and
o return of excess contributions or amounts recharacterized to a
traditional IRA.
Qualified distributions from Roth IRAs. Qualified distributions from Roth IRAs
made because of one of the following four qualifying events or reasons are not
includable in income:
o you are age 59-1/2 or older; or
o you die; or
o you become disabled (special federal income tax definition); or
o your distribution is a "qualified first-time homebuyer distribution"
(special federal income tax definition; $10,000 lifetime total limit for
these distributions from all of your traditional and Roth IRAs).
You also have to meet a five-year aging period. A qualified distribution is any
distribution made after the five-taxable-year period beginning with the first
taxable year for which you made any contribution to any Roth IRA (whether or
not the one from which the distribution is being made).
Nonqualified distributions from Roth IRAs. Nonqualified distributions from
Roth IRAs are distributions that do not meet both the qualifying event and
five-year aging period tests described above. If you receive such a
distribution, part of it may be taxable. For purposes of determining the
correct tax treatment of distributions (other than the withdrawal of excess
contributions and the earnings on them), there is a set order in which
contributions (including conversion contributions) and earnings are considered
to be distributed from your Roth IRA. The order of distributions is as follows:
(1) Regular contributions.
(2) Conversion contributions, on a first-in-first-out basis (generally, total
conversions from the earliest year first). These conversion contributions
are taken into account as follows:
(a) Taxable portion (the amount required to be included in gross income
because of conversion) first, and then the
(b) Nontaxable portion.
(3) Earnings on contributions.
Rollover contributions from other Roth IRAs are disregarded for this purpose.
To determine the taxable amount distributed, distributions and contributions
are aggregated or grouped together as follows:
(1) All distributions made during the year from all Roth IRAs you maintain --
with any custodian or issuer -- are added together.
(2) All regular contributions made during and for the year (contribu tions made
after the close of the year, but before the due date of your return) are
added together. This total is added to the total undistributed regular
contributions made in prior years.
74 Tax information
(3) All conversion contributions made during the year are added together. For
purposes of the ordering rules, in the case of any conversion in which the
conversion distribution is made in 2005 and the conversion contribution is
made in 2006, the conversion contribution is treated as contributed prior
to other conversion contributions made in 2006.
Any recharacterized contributions that end up in a Roth IRA are added to the
appropriate contribution group for the year that the original contribution
would have been taken into account if it had been made directly to the Roth
IRA.
Any recharacterized contribution that ends up in an IRA other than a Roth IRA
is disregarded for the purpose of grouping both contributions and
distributions. Any amount withdrawn to correct an excess contribution
(including the earnings withdrawn) is also disregarded for this purpose.
Required minimum distributions during life
Lifetime required minimum distributions do not apply.
Required minimum distributions at death
Same as traditional IRA under "What are the required minimum distribution
payments after you die?"
Payments to a beneficiary after your death
Distributions to a beneficiary generally receive the same tax treatment as if
the distribution had been made to you.
Borrowing and loans are prohibited transactions.
Same as traditional IRA.
Excess contributions
Generally the same as traditional IRA, except that regular contributions made
after age 70-1/2 are not excess contributions.
Excess rollover contributions to Roth IRAs are contributions not eligible to be
rolled over (for example, conversion contributions from a traditional IRA if
your modified adjusted gross income is in excess of $100,000 in the conversion
year).
You can withdraw or recharacterize any contribution to a Roth IRA before the
due date (including extensions) for filing your federal income tax return for
the tax year. If you do this, you must also withdraw or recharacterize any
earnings attributable to the contribution.
Early distribution penalty tax
Same as traditional IRA.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
General
This section of the Prospectus covers some of the special tax rules that apply
to TSA contracts under Section 403(b) of the Internal Revenue Code (TSAs). If
the rules are the same as those that apply to another kind of contract, for
example, traditional IRAs, we will refer you to the same topic under
"traditional IRAs."
PLEASE NOTE: The following discussion reflects our understanding of some of the
current federal income tax rules applicable to Section 403(b) of the Code. The
IRS and Treasury have recently issued Proposed Regulations on Section 403(b) of
the Code. If finalized in their current form, these Proposed Regulations would
affect the establishment and operation of plans and arrangements under Section
403(b) of the Code, and the contracts issued to fund such plans. Please contact
your tax adviser concerning how these Proposed Regulations could affect you.
Generally there are two types of funding vehicles available for 403(b)
arrangements -- an annuity contract under Section 403(b)(1) of the Code or a
custodial account which invests only in mutual funds and which is treated as an
annuity contract under Section 403(b)(7) of the Code. Both types of 403(b)
arrangements qualify for tax deferral.
Protection Plus(SM) feature
The Protection Plus(SM) feature is offered for Rollover TSA contracts, subject
to state and contract availability. There is a limit to the amount of life
insurance benefits that TSAs may offer. Although we view the optional Protection
Plus(SM) benefit as an investment protection feature which should have no
adverse tax effect and not as a life insurance benefit, the IRS has not
specifically addressed this question. It is possible that the IRS could take a
contrary position regarding tax qualification or assert that the Protection Plus
rider is not a permissible part of a TSA contract. If the IRS were to take the
position that the optional Protection Plus(SM) benefit is not part of the
contract, in such a case, the charges for the Protection Plus(SM) rider could be
treated for federal income tax purposes as a partial withdrawal from the
contract. If this were so, such a deemed withdrawal could affect the tax
qualification of the TSA and could be taxable. Were the IRS to take any adverse
position, Equitable would take all reasonable steps to attempt to avoid any
adverse result, which would include amending the contract (with appropriate
notice to you). You should discuss with your tax adviser whether you should
consider purchasing an Accumulator(R) Elite(SM) Rollover TSA contract with the
optional Protection Plus(SM) feature.
Contributions to TSAs
There are two ways you can make contributions to establish this Accumulator(R)
Elite(SM) Rollover TSA contract:
o a full or partial direct transfer of assets ("direct transfer") from
another contract or arrangement that meets the requirements of Section
403(b) of the Internal Revenue Code by means of IRS Revenue Ruling 90-24;
or
o a rollover from another 403(b) arrangement.
If you make a direct transfer, you must fill out our transfer form.
We do not accept after-tax contribution rollovers to the Accumulator(R)
Elite(SM) TSA.
Employer-remitted contributions. The Accumulator(R) Elite(SM) Rollover TSA
contract does not accept employer-remitted contributions. However, we provide
the following discussion as part of our description of restrictions on the
distribution of funds directly transferred, which include employer-remitted
contributions to other TSAs.
Employer-remitted contributions to TSAs made through the employer's payroll are
subject to annual limits. (Tax-free direct transfer contribu-
Tax information 75
tions from another 403(b) arrangement and rollover contributions from another
eligible retirement plan are not subject to these annual contribution limits.)
Commonly, some or all of the contributions made to a TSA are made under a
salary reduction agreement between the employee and the employer. These
contributions are called "salary reduction" or "elective deferral"
contributions. However, a TSA can also be wholly or partially funded through
nonelective employer contributions or after-tax employee contributions. Amounts
attributable to salary reduction contributions to TSAs are generally subject to
withdrawal restrictions. Also, all amounts attributable to investments in a
403(b)(7) custodial account are subject to withdrawal restrictions discussed
below.
Rollover or direct transfer contributions. Once you establish your Rollover
TSA with 403(b)-source funds, you may make subsequent rollover contributions to
your Rollover TSA contract from these sources: qualified plans, governmental
employer 457(b) plans and traditional IRAs, as well as other TSAs and 403(b)
arrangements. All rollover contributions must be pre-tax funds only with
appropriate documentation satisfactory to us.
Generally, you may make a rollover contribution to your TSA when you have a
distributable event from an existing TSA or other eligible retirement plan as a
result of your:
o termination of employment with the employer who provided the
funds for the plan; or
o reaching age 59-1/2 even if you are still employed; or
o disability (special federal income tax definition).
You can roll over pre-tax funds from a traditional IRA to a TSA at any time.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental 457(b) plan are not subject to the additional
10% federal income tax penalty for premature distributions, but they may become
subject to this penalty if you roll the funds to a different type of eligible
retirement plan and subsequently take a premature distribution.
If the recipient plan separately accounts for funds rolled over from another
eligible retirement plan, the IRS has ruled that an exception is available in
certain situations to withdrawal restrictions that would otherwise apply to the
rollover contribution funds in the recipient plan. We do not currently
separately account for rollover contributions from other eligible retirement
plans.
A transfer occurs when changing the funding vehicle, even if there is no
distributable event. Under a direct transfer, you do not receive a
distribution. We accept direct transfers of TSA funds under Revenue Ruling
90-24 only if:
o you give us acceptable written documentation as to the source of
the funds; and
o the Accumulator(R) Elite(SM) contract receiving the funds has provi
sions at least as restrictive as the source contract.
Before you transfer funds to an Accumulator(R) Elite(SM) Rollover TSA contract,
you may have to obtain your employer's authorization or demonstrate that you do
not need employer authorization. For example, the transferring TSA may be
subject to Title I of ERISA, if the employer makes matching contributions to
salary reduction contributions made by employees. In that case, the employer
must continue to approve distributions from the plan or contract.
Your contribution to the Accumulator(R) Elite(SM) TSA must be net of the
required minimum distribution for the tax year in which we issue the contract
if:
o you are or will be at least age 70-1/2 in the current calendar year,
and
o you have retired from service with the employer who provided the
funds to purchase the TSA you are transferring or rolling over to the
Accumulator(R) Elite(SM) Rollover TSA.
This rule applies regardless of whether the source of funds is a:
o rollover by check of the proceeds from another TSA or eligible
retirement plan; or
o direct rollover from another TSA or eligible retirement plan; or
o direct transfer under Revenue Ruling 90-24 from another TSA.
Distributions from TSAs
General. Depending on the terms of the employer plan and your employment
status, you may have to get your employer's consent to take a loan or
withdrawal. Your employer will tell us this when you establish the TSA through
a direct transfer.
Withdrawal restrictions. If this is a Revenue Ruling 90-24 direct transfer, we
will treat all amounts transferred to this contract and any future earnings on
the amount transferred as not eligible for withdrawal until one of the
following events happens:
o you are severed from employment with the employer who pro
vided the funds to purchase the TSA you are transferring to the
Accumulator(R) Elite(SM) Rollover TSA; or
o you reach age 59-1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o you take a hardship withdrawal (special federal income tax defi
nition).
If any portion of the funds directly transferred to your TSA contract is
attributable to amounts that you invested in a 403(b)(7) custodial account,
such amounts, including earnings, are subject to withdrawal restrictions. With
respect to the portion of the funds that were never invested in a 403(b)(7)
custodial account, these restrictions apply to the salary reduction (elective
deferral) contributions to a TSA annuity contract you made and any earnings on
them. These restrictions do not apply to the amount directly transferred to
your TSA contract that represents your December 31, 1988, account balance
attributable to salary reduction contributions to a TSA annuity contract and
earnings. To take advantage of this grandfathering you must properly notify us
76 Tax information
in writing at our processing office of your December 31, 1988, account balance
if you have qualifying amounts transferred to your TSA contract.
This paragraph applies only to participants in a Texas Optional Retirement
Program. Texas Law permits withdrawals only after one of the following
distributable events occur:
(1) the requirements for minimum distribution (discussed under
"Required minimum distributions" later in this section) are met; or
(2) death; or
(3) retirement; or
(4) termination of employment in all Texas public institutions of
higher education.
For you to make a withdrawal, we must receive a properly completed written
acknowledgment from the employer. If a distributable event occurs before you
are vested, we will refund to the employer any amounts provided by an
employer's first-year matching contribution. We reserve the right to change
these provisions without your consent, but only to the extent necessary to
maintain compliance with applicable law. Loans are not permitted under Texas
Optional Retirement Programs.
Tax treatment of distributions. Amounts held under TSAs are generally not
subject to federal income tax until benefits are distributed. Distributions
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSAs are includable in
gross income as ordinary income. Distributions from TSAs may be subject to 20%
federal income tax withholding. See "Federal and state income tax withholding
and information reporting" later in this section. In addition, TSA
distributions may be subject to additional tax penalties.
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since we currently do not accept
after-tax funds, we do not track your investment in the contract, if any. We
will report all distributions from this Rollover TSA as fully taxable. It is
your responsibility to determine how much of the distribution is taxable.
Distributions before annuity payments begin. On a total surrender, the amount
received in excess of the investment in the contract is taxable. The amount of
any partial distribution from a TSA prior to the annuity starting date is
generally taxable, except to the extent that the distribution is treated as a
withdrawal of after-tax contributions. Distributions are normally treated as
pro rata withdrawals of any after-tax contributions and earnings on those
contributions.
Annuity payments. If you elect an annuity payout option, you will recover any
investment in the contract as each payment is received by dividing the
investment in the contract by an expected return determined under an IRS table
prescribed for qualified annuities. The amount of each payment not excluded
from income under this exclusion ratio is fully taxable. The full amount of the
payments received after your investment in the contract is recovered is fully
taxable. If you (and your beneficiary under a joint and survivor annuity) die
before recovering the full investment in the contract, a deduction is allowed
on your (or your beneficiary's) final tax return.
Payments to a beneficiary after your death. Death benefit distributions from a
TSA generally receive the same tax treatment as distributions during your
lifetime. In some instances, distributions from a TSA made to your surviving
spouse may be rolled over to a traditional IRA or other eligible retirement
plan.
Loans from TSAs. You may take loans from a TSA unless restricted by the
employer (for example, under an employer plan subject to ERISA). If you cannot
take a loan, or cannot take a loan without approval from the employer who
provided the funds, we will have this information in our records based on what
you and the employer who provided the TSA funds told us when you purchased your
contract.
Loans are generally not treated as a taxable distribution. If the amount of the
loan exceeds permissible limits under federal income tax rules when made, the
amount of the excess is treated (solely for tax purposes) as a taxable
distribution. Additionally, if the loan is not repaid at least quarterly,
amortizing (paying down) interest and principal, the amount not repaid when due
will be treated as a taxable distribution. The entire unpaid balance of the
loan is includable in income in the year of the default.
TSA loans are subject to federal income tax limits and may also be subject to
the limits of the plan from which the funds came. Federal income tax rule
requirements apply even if the plan is not subject to ERISA. For example, loans
offered by TSAs are subject to the following conditions:
o The amount of a loan to a participant, when combined with all
other loans to the participant from all qualified plans of the employer,
cannot exceed the lesser of:
(1) the greater of $10,000 or 50% of the participant's nonforfeitable
accrued benefits; and
(2) $50,000 reduced by the excess (if any) of the highest outstand
ing loan balance over the previous twelve months over the outstanding loan
balance of plan loans on the date the loan was made.
o In general, the term of the loan cannot exceed five years unless
the loan is used to acquire the participant's primary residence.
Accumulator(R) Elite(SM) Rollover TSA contracts have a term limit of 10
years for loans used to acquire the participant's primary residence.
o All principal and interest must be amortized in substantially level
payments over the term of the loan, with payments being made at least
quarterly. In very limited circumstances, the repayment obligation may be
temporarily suspended during a leave of absence.
The amount borrowed and not repaid may be treated as a distribution if:
Tax information 77
o the loan does not qualify under the conditions above;
o the participant fails to repay the interest or principal when due; or
o in some instances, the participant separates from service with the
employer who provided the funds or the plan is terminated.
In this case, the participant may have to include the unpaid amount due as
ordinary income. In addition, the 10% early distribution penalty tax may apply.
The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as
a distribution.
See Appendix VIII later in this Prospectus for any state rules that affect
loans from a Rollover TSA contract.
Tax-deferred rollovers and direct transfers. You may roll over any "eligible
rollover distribution" from a TSA into another eligible retirement plan which
agrees to accept the rollover. The rollover may be a direct rollover or one you
do yourself within 60 days after you receive the distribution. To the extent
rolled over, a distribution remains tax-deferred.
You may roll over a distribution from a TSA to any of the following: a
qualified plan, a governmental employer 457(b) plan (separate accounting
required) or a traditional IRA. A spousal beneficiary may also roll over death
benefits as above.
The taxable portion of most distributions will be eligible for rollover, except
as specifically excluded under federal income tax rules. Distributions that you
cannot roll over generally include periodic payments for life or for a period
of 10 years or more, hardship withdrawals and required minimum distributions
under federal income tax rules.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling
90-24 are not distributions.
Required minimum distributions
Generally the same as traditional IRA with these differences:
When you have to take the first required minimum distribution. The minimum
distribution rules force TSA participants to start calculating and taking
annual distributions from their TSAs by a required date. Generally, you must
take the first required minimum distribution for the calendar year in which you
turn age 70-1/2. You may be able to delay the start of required minimum
distributions for all or part of your account balance until after age 70-1/2, as
follows:
o For TSA participants who have not retired from service with the
employer who provided the funds for the TSA by the calendar year the
participant turns age 70-1/2, the required beginning date for minimum
distributions is extended to April 1 following the calendar year of
retirement.
o TSA plan participants may also delay the start of required mini
mum distributions to age 75 of the portion of their account value
attributable to their December 31, 1986, TSA account balance, even if
retired at age 70-1/2. We will know whether or not you qualify for this
exception because it will only apply to people who establish their
Accumulator(R) Elite(SM) Rollover TSA by direct Revenue Ruling 90-24
transfers. If you do not give us the amount of your December 31, 1986,
account balance that is being transferred to the Accumulator(R) Elite(SM)
Rollover TSA on the form used to establish the TSA, you do not qualify.
Spousal consent rules
This will only apply to you if you establish your Accumulator(R) Elite(SM)
Rollover TSA by direct Revenue Ruling 90-24 transfer. Your employer will tell
us on the form used to establish the TSA whether or not you need to get spousal
consent for loans, withdrawals or other distributions. If you do, you will need
such consent if you are married when you request a withdrawal under the TSA
contract. In addition, unless you elect otherwise with the written consent of
your spouse, the retirement benefits payable under the plan must be paid in the
form of a qualified joint and survivor annuity. A qualified joint and survivor
annuity is payable for the life of the annuitant with a survivor annuity for
the life of the spouse in an amount not less than one-half of the amount
payable to the annuitant during his or her lifetime. In addition, if you are
married, the beneficiary must be your spouse, unless your spouse consents in
writing to the designation of another beneficiary.
If you are married and you die before annuity payments have begun, payments
will be made to your surviving spouse in the form of a life annuity unless at
the time of your death a contrary election was in effect. However, your
surviving spouse may elect, before payments begin, to receive payments in any
form permitted under the terms of the TSA contract and the plan of the employer
who provided the funds for the TSA.
Early distribution penalty tax
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a TSA before you reach age 59-1/2. This is in addition to any
income tax. There are exceptions to the extra penalty tax. Some of the
available exceptions to the pre-age 59-1/2 penalty tax include distributions
made:
o on or after your death; or
o because you are disabled (special federal income tax definition);
or
o to pay for certain extraordinary medical expenses (special federal
income tax definition); or
o in any form of payout after you have separated from service (only
if the separation occurs during or after the calendar year you reach age
55); or
o in a payout in the form of substantially equal periodic payments
made at least annually over your life (or your life expectancy), or over
the joint lives of you and your beneficiary (or your joint life
expectancies) using an IRS-approved distribution method (only after you
have separated from service at any age).
FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING
We must withhold federal income tax from distributions from annuity contracts.
You may be able to elect out of this income tax withholding in some cases.
Generally, we do not have to withhold if your distribu-
78 Tax information
tions are not taxable. The rate of withholding will depend on the type of
distribution and, in certain cases, the amount of your distribution. Any income
tax withheld is a credit against your income tax liability. If you do not have
sufficient income tax withheld or do not make sufficient estimated income tax
payments, you may incur penalties under the estimated income tax rules.
You must file your request not to withhold in writing before the payment or
distribution is made. Our processing office will provide forms for this
purpose. You cannot elect out of withholding unless you provide us with your
correct Taxpayer Identification Number and a United States residence address.
You cannot elect out of withholding if we are sending the payment out of the
United States.
You should note the following special situations:
o We might have to withhold and/or report on amounts we pay
under a free look or cancellation.
o We are generally required to withhold on conversion rollovers of
traditional IRAs to Roth IRAs, as it is considered a withdrawal from the
traditional IRA and is taxable.
o We are required to withhold on the gross amount of a distribu
tion from a Roth IRA to the extent it is reasonable for us to believe that
a distribution is includable in your gross income. This may result in tax
being withheld even though the Roth IRA distribution is ultimately not
taxable. You can elect out of withholding as described below.
Special withholding rules apply to foreign recipients and United States
citizens residing outside the United States. We do not discuss these rules here
in detail. However we may require additional documentation in the case of
payments made to non United States persons and United States persons living
abroad prior to processing any requested transaction.
Certain states have indicated that state income tax withholding will also apply
to payments from the contracts made to residents. In some states, you may elect
out of state withholding, even if federal withholding applies. Generally, an
election out of federal withholding will also be considered an election out of
state withholding. If you need more information concerning a particular state
or any required forms, call our processing office at the toll-free number.
Federal income tax withholding on periodic annuity
payments
We withhold differently on "periodic" and "non-periodic" payments. For a
periodic annuity payment, for example, unless you specify a different number of
withholding exemptions, we withhold assuming that you are married and claiming
three withholding exemptions. If you do not give us your correct Taxpayer
Identification Number, we withhold as if you are single with no exemptions.
Based on the assumption that you are married and claiming three withholding
exemptions, if you receive less than $17,760 in periodic annuity payments in
2005, your payments will generally be exempt from federal income tax
withholding. You could specify a different choice of withholding exemption or
request that tax be withheld. Your withholding election remains effective
unless and until you revoke it. You may revoke or change your withholding
election at anytime.
Federal income tax withholding on non-periodic annuity
payments (withdrawals)
For a non-periodic distribution (total surrender or partial withdrawal), we
generally withhold at a flat 10% rate. We apply that rate to the taxable amount
in the case of nonqualified contracts, and to the payment amount in the case of
traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is
includable in gross income.
You cannot elect out of withholding if the payment is an eligible rollover
distribution from a qualified plan or TSA. If a non-periodic distribution from
a qualified plan or TSA is not an eligible rollover distribution then the 10%
withholding rate applies.
Mandatory withholding from TSA and qualified plan
distributions
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans and TSAs are subject to mandatory 20%
withholding. The plan administrator is responsible for withholding from
qualified plan distributions. An eligible rollover distribution from a TSA or a
qualified plan can be rolled over to another eligible retirement plan. All
distributions from a TSA or qualified plan are eligible rollover distributions
unless they are on the following list of exceptions:
o any distributions which are required minimum distributions after
age 70-1/2 or retirement from service with the employer; or
o substantially equal periodic payments made at least annually for
your life (or life expectancy) or the joint lives (or joint life
expectancies) of you and your designated beneficiary; or
o substantially equal periodic payments made for a specified period
of 10 years or more; or
o hardship withdrawals; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviv
ing spouse; or
o a qualified domestic relations order distribution to a beneficiary
who is not your current spouse or former spouse.
A death benefit payment to your surviving spouse, or a qualified domestic
relations order distribution to your current or former spouse, may be a
distribution subject to mandatory 20% withholding.
SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS
For QP contracts, your plan administrator or trustee notifies you as to tax
consequences. See Appendix II at the end of this Prospectus.
IMPACT ON TAXES TO AXA EQUITABLE
The contracts provide that we may charge Separate Account No. 49 for taxes. We
do not now, but may in the future set up reserves for such taxes.
Tax information 79
8. More information
- --------------------------------------------------------------------------------
ABOUT OUR SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 49. We
established Separate Account No. 49 in 1996 under special provisions of the New
York Insurance Law. These provisions prevent creditors from any other business
we conduct from reaching the assets we hold in our variable investment options
for owners of our variable annuity contracts. We are the legal owner of all of
the assets in Separate Account No. 49 and may withdraw any amounts that exceed
our reserves and other liabilities with respect to variable investment options
under our contracts. The results of the Separate Account's operations are
accounted for without regard to AXA Equitable's other operations.
The Separate Account is registered under the Investment Company Act of 1940 and
is classified by that act as a "unit investment trust." The SEC, however, does
not manage or supervise AXA Equitable or the Separate Account.
Each subaccount (variable investment option) within the Separate Account
invests solely in class IB/B shares issued by the corresponding portfolio of
its Trust.
We reserve the right subject to compliance with laws that apply:
(1) to add variable investment options to, or to remove variable investment
options from the Separate Account or to add other separate accounts;
(2) to combine any two or more variable investment options;
(3) to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment option
to another variable investment option;
(4) to operate the Separate Account or any variable investment option as a
management investment company under the Investment Company Act of 1940 (in
which case, charges and expenses that otherwise would be assessed against
an underlying mutual fund would be assessed against the Separate Account or
a variable investment option directly);
(5) to deregister the Separate Account under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to the Separate Account; and
(7) to cause one or more variable investment options to invest some or all of
their assets in one or more other trusts or investment companies.
ABOUT THE TRUSTS
The Trusts are registered under the Investment Company Act of 1940. They are
classified as "open-end management investment companies," more commonly called
mutual funds. Each Trust issues different shares relating to each portfolio.
The Trusts do not impose sales charges or "loads" for buying and selling their
shares. All dividends and other distributions on the Trusts' shares are
reinvested in full. The Board of Trustees of each Trust may establish
additional portfolios or eliminate existing portfolios at any time. More
detailed information about each Trust, its portfolio investment objectives,
policies, restrictions, risks, expenses, its Rule 12b-1 Plan, and other aspects
of its operations, appears in the prospectuses for each Trust, which generally
accompany this Prospectus, or in the respective SAIs which are available upon
request.
ABOUT OUR FIXED MATURITY OPTIONS
RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE
We can determine the amount required to be allocated to one or more fixed
maturity options in order to produce specified maturity values. For example, we
can tell you how much you need to allocate per $100 of maturity value.
FMO rates are determined daily. The rates in the table below are illustrative
only and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
For example, the rates to maturity for new allocations as of February 15, 2005
and the related price per $100 of maturity value were as shown below:
- ----------------------------------------------------------------------
Fixed maturity options
with February 15th Rate to maturity
maturity date of as of Price per $100
maturity year February 15, 2005 of maturity value
- ----------------------------------------------------------------------
2006 3.00%* $ 97.09
2007 3.00%* $ 94.26
2008 3.00%* $ 91.51
2009 3.00%* $ 88.84
2010 3.00%* $ 86.25
2011 3.00%* $ 83.74
2012 3.00%* $ 81.30
2013 3.08% $ 78.44
2014 3.22% $ 75.17
2015 3.32% $ 72.12
- ----------------------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated to
these options.
HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT
We use the following procedure to calculate the market value adjustment (up or
down) we make if you withdraw any of your value from a fixed maturity option
before its maturity date.
(1) We determine the market adjusted amount on the date of the withdrawal as
follows:
(a) We determine the fixed maturity amount that would be payable on the
maturity date, using the rate to maturity for the fixed maturity
option.
80 More information
(b) We determine the period remaining in your fixed maturity option (based
on the withdrawal date) and convert it to fractional years based on a
365-day year. For example, three years and 12 days becomes 3.0329.
(c) We determine the current rate to maturity for your FMO based on the
rate for a new FMO issued on the same date and having the same
maturity date as your FMO; if the same maturity date is not available
for new FMOs, we determine a rate that is between the rates for new
FMO maturities that immediately precede and immediately follow your
FMOs maturity date.
(d) We determine the present value of the fixed maturity amount payable at
the maturity date, using the period determined in (b) and the rate
determined in (c).
(2) We determine the fixed maturity amount as of the current date.
(3) We subtract (2) from the result in (1)(d). The result is the market value
adjustment applicable to such fixed maturity option, which may be positive
or negative.
If you withdraw only a portion of the amount in a fixed maturity option, the
market value adjustment will be a percentage of the market value adjustment
that would have applied if you had withdrawn the entire value in that fixed
maturity option. This percentage is equal to the percentage of the value in the
fixed maturity option that you are withdrawing. Any withdrawal charges that are
deducted from a fixed maturity option will result in a market value adjustment
calculated in the same way. See Appendix III at the end of this Prospectus for
an example.
For purposes of calculating the rate to maturity for new allocations to a fixed
maturity option (see (1)(c) above), we use the rate we have in effect for new
allocations to that fixed maturity option. We use this rate even if new
allocations to that option would not be accepted at that time. This rate will
not be less than 3%. If we do not have a rate to maturity in effect for a fixed
maturity option to which the "current rate to maturity" in (1)(c) above would
apply, we will use the rate at the next closest maturity date. If we are no
longer offering new fixed maturity options, the "current rate to maturity" will
be determined by using a widely published index. We reserve the right to add up
to 0.25% to the current rate in (1)(c) above for purposes of calculating the
market value adjustment only.
INVESTMENTS UNDER THE FIXED MATURITY OPTIONS
Amounts allocated to the fixed maturity options are held in a "nonunitized"
separate account we have established under the New York Insurance Law. This
separate account provides an additional measure of assurance that we will make
full payment of amounts due under the fixed maturity options. Under New York
Insurance Law, the portion of the separate account's assets equal to the
reserves and other contract liabilities relating to the contracts are not
chargeable with liabilities from any other business we may conduct. We own the
assets of the separate account, as well as any favorable investment performance
on those assets. You do not participate in the performance of the assets held
in this separate account. We may, subject to state law that applies, transfer
all assets allocated to the separate account to our general account. We
guarantee all benefits relating to your value in the fixed maturity options,
regardless of whether assets supporting fixed maturity options are held in a
separate account or our general account.
We expect the rates to maturity for the fixed maturity options to be influenced
by, but not necessarily correspond to, among other things, the yields that we
can expect to realize on the separate account's investments from time to time.
Our current plans are to invest in fixed-income obligations, including
corporate bonds, mortgage-backed and asset-backed securities, and government
and agency issues having durations in the aggregate consistent with those of
the fixed maturity options.
Although the above generally describes our plans for investing the assets
supporting our obligations under the fixed maturity options under the
contracts, we are not obligated to invest those assets according to any
particular plan except as we may be required to by state insurance laws. We
will not determine the rates to maturity we establish by the performance of the
nonunitized separate account.
ABOUT THE GENERAL ACCOUNT
Our general account supports all of our policy and contract guarantees,
including those that apply to the guaranteed interest option and the fixed
maturity options, as well as our general obligations.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations
of all jurisdictions where we are authorized to do business. Because of
exemptions and exclusionary provisions that apply, interests in the general
account have not been registered under the Securities Act of 1933, nor is the
general account an investment company under the Investment Company Act of 1940.
However, the market value adjustment interests under the contracts are
registered under the Securities Act of 1933.
We have been advised that the staff of the SEC has not reviewed the portions of
this Prospectus that relate to the general account (other than market value
adjustment interests). The disclosure with regard to the general account,
however, may be subject to certain provisions of the federal securities laws
relating to the accuracy and completeness of statements made in prospectuses.
ABOUT OTHER METHODS OF PAYMENT
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept initial and subsequent contributions sent by wire to our processing
office by agreement with certain broker-dealers. Such transmittals must be
accompanied by information we require to allocate your contribution. Wire
orders not accompanied by complete information may be retained as described
under "How you can make your contributions" under "Contract features and
benefits" earlier in this Prospectus.
Even if we accept the wire order and essential information, a contract
generally will not be issued until we receive and accept a properly completed
application. In certain cases we may issue a contract based on information
provided through certain broker-dealers with which we
More information 81
have established electronic facilities. In any such cases, you must sign our
Acknowledgement of Receipt form.
Where we require a signed application, the above procedures do not apply and no
financial transactions will be permitted until we receive the signed
application and have issued the contract. Where we issue a contract based on
information provided through electronic facilities, we require an
Acknowledgement of Receipt form, and financial transactions are only permitted
if you request them in writing, sign the request and have it signature
guaranteed, until we receive the signed Acknowledgement of Receipt form. After
your contract has been issued, additional contributions may be transmitted by
wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
After your contract has been issued, additional contributions may be
transmitted by wire.
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY
You may use our automatic investment program, or "AIP," to have a specified
amount automatically deducted from a checking account, money market account, or
credit union checking account and contributed as an additional contribution
into an NQ contract on a monthly or quarterly basis. AIP is not available for
Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contracts, nor is it
available with GPB Option 2. Please see Appendix VIII later in this Prospectus
to see if the automatic investment program is available in your state.
The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP
additional contributions may be allocated to any of the variable investment
options and available fixed maturity options. You choose the day of the month
you wish to have your account debited. However, you may not choose a date later
than the 28th day of the month.
You may cancel AIP at any time by notifying our processing office. We are not
responsible for any debits made to your account before the time written notice
of cancellation is received at our processing office.
DATES AND PRICES AT WHICH CONTRACT
EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this Prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our business day, generally, is any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions. Our business day generally ends at 4:00 p.m. Eastern Time for
purposes of determining the date when contributions are applied and any other
transaction requests are processed. Contributions will be applied and any other
transaction requests will be processed when they are received along with all
the required information unless another date applies as indicated below.
o If your contribution, transfer, or any other transaction request, containing
all the required information, reaches us on a non-business day or after
4:00 p.m. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then
the transaction will occur on the 1st day of the next month.
o When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
o If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your
contribution will be considered received at the time your broker-dealer
receives your contribution and all information needed to process your
application, along with any required documents, and transmits your order
to us in accordance with our processing procedures. Such arrangements may
apply to initial contributions, subsequent contributions, or both, and may
be commenced or terminated at any time without prior notice. If required
by law, the "closing time" for such orders will be earlier than 4 p.m.,
Eastern Time.
CONTRIBUTIONS AND TRANSFERS
o Contributions allocated to the variable investment options are invested at
the value next determined after the close of the business day.
o Contributions allocated to the guaranteed interest option will receive the
crediting rate in effect on that business day for the specified time
period.
o Contributions allocated to a fixed maturity option will receive the rate to
maturity in effect for that fixed maturity option on that business day
(unless a rate lock-in is applicable).
o Initial contributions allocated to the account for special dollar cost
averaging receive the interest rate in effect on that business day. At
certain times, we may offer the opportunity to lock in the interest rate
for an initial contribution to be received under Section 1035 exchanges
and trustee to trustee transfers. Your financial professional can provide
information, or you can call our processing office.
o Transfers to or from variable investment options will be made at the value
next determined after the close of the business day.
82 More information
o Transfers to a fixed maturity option will be based on the rate to maturity in
effect for that fixed maturity option on the business day of the transfer.
o Transfers to the guaranteed interest option will receive the crediting rate
in effect on that business day for the specified time period.
o For the interest sweep option, the first monthly transfer will occur on the
last business day of the month following the month that we receive your
election form at our processing office.
ABOUT YOUR VOTING RIGHTS
As the owner of the shares of the Trusts we have the right to vote on certain
matters involving the portfolios, such as:
o the election of trustees; or
o the formal approval of independent public accounting firms selected for each
Trust; or
o any other matters described in the prospectuses for the Trusts or requiring a
shareholders' vote under the Investment Company Act of 1940.
We will give contract owners the opportunity to instruct us how to vote the
number of shares attributable to their contracts if a shareholder vote is
taken. If we do not receive instructions in time from all contract owners, we
will vote the shares of a portfolio for which no instructions have been
received in the same proportion as we vote shares of that portfolio for which
we have received instructions. We will also vote any shares that we are
entitled to vote directly because of amounts we have in a portfolio in the same
proportions that contract owners vote.
The Trusts sell their shares to AXA Equitable separate accounts in connection
with AXA Equitable's variable annuity and/or life insurance products, and to
separate accounts of insurance companies, both affiliated and unaffiliated with
AXA Equitable. EQ Advisors Trust and AXA Premier VIP Trust also sell their
shares to the trustee of a qualified plan for AXA Equitable. We currently do
not foresee any disadvantages to our policyowners arising out of these
arrangements. However, the Board of Trustee or Directors of each Trust intends
to monitor events to identify any material irreconcilable conflicts that may
arise and to determine what action, if any, should be taken in response. If we
believe that a Board's response insufficiently protects our policyowners, we
will see to it that appropriate action is taken to do so.
SEPARATE ACCOUNT NO. 49 VOTING RIGHTS
If actions relating to the Separate Account require contract owner approval,
contract owners will be entitled to one vote for each unit they have in the
variable investment options. Each contract owner who has elected a variable
annuity payout option may cast the number of votes equal to the dollar amount
of reserves we are holding for that annuity in a variable investment option
divided by the annuity unit value for that option. We will cast votes
attributable to any amounts we have in the variable investment options in the
same proportion as votes cast by contract owners.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this Prospectus are created under applicable
federal securities laws. To the extent that those laws or the regulations
published under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
ABOUT LEGAL PROCEEDINGS
AXA Equitable and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings would be considered material with respect
to a contract owner's interest in Separate Account No. 49, nor would any of
these proceedings be likely to have a material adverse effect upon the Separate
Account, our ability to meet our obligations under the contracts, or
distribution of the contracts.
ABOUT OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The consolidated financial statements of AXA Equitable at December 31, 2004 and
2003, and for the three years ended December 31, 2004 incorporated in this
Prospectus by reference to the 2004 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent registered
public accounting firm, given on the authority of said firm as experts in
auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 49, as well as the
consolidated financial statements of AXA Equitable, are in the SAI. The SAI is
available free of charge. You may request one by writing to our processing
office or calling 1-800-789-7771.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING
You can transfer ownership of an NQ contract at any time before annuity
payments begin. We will continue to treat you as the owner until we receive
written notification of any change at our processing office. You cannot assign
your NQ contract as collateral or security for a loan. Loans are also not
available under your NQ contract. In some cases, an assignment or change of
ownership may have adverse tax consequences. See "Tax information" earlier in
this Prospectus.
For NQ contracts only, subject to regulatory approval, if you elected the
Guaranteed minimum death benefit, Guaranteed minimum income benefit, Protection
Plus(SM) death benefit, Guaranteed principal benefit option 2 and/or the
Principal Protector(SM) ("Benefit"), generally the Benefit will automatically
terminate if you change ownership of the contract or if you assign the owner's
right to change the beneficiary or person to whom annuity payments will be
made. However, the Benefit will not terminate if the ownership of the contract
is transferred to: (i) a family member (as defined in the contract); (ii) a
trust created for the benefit of a family member or members; (iii) a trust
qualified under section 501(c) of the Internal Revenue Code; or (iv) a
successor by operation of law, such as an executor or guardian. Please speak
with your financial professional for further information.
See Appendix VIII later in this Prospectus for any state variations with regard
to terminating any benefits under your contract.
More information 83
You cannot assign or transfer ownership of Rollover IRA, Roth Conversion IRA,
QP or Rollover TSA contract except by surrender to us. If your individual
retirement annuity contract is held in your custodial individual retirement
account, you may only assign or transfer ownership of such an IRA contract to
yourself. Loans are not available and you cannot assign Rollover IRA, Roth
Conversion IRA, QP or Rollover TSA contracts as security for a loan or other
obligation. If the employer that provided the funds does not restrict them,
loans are available under a Rollover TSA contract.
For limited transfers of ownership after the owner's death see "Beneficiary
continuation option" in "Payment of death benefit" earlier in this Prospectus.
You may direct the transfer of the values under your Rollover IRA, Roth
Conversion IRA, QP or Rollover TSA contract to another similar arrangement
under federal income tax rules. In the case of such a transfer, which involves
a surrender of your contract, we will impose a withdrawal charge, if one
applies.
DISTRIBUTION OF THE CONTRACTS
The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and
AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The
Distributors serve as principal underwriters of Separate Account No. 49. The
offering of the contracts is intended to be continuous.
AXA Advisors (the successor to EQ Financial Consultants, Inc.), an affiliate of
AXA Equitable, and AXA Distributors, an indirect wholly owned subsidiary of AXA
Equitable, are registered with the SEC as broker-dealers and are members of the
National Association of Securities Dealers, Inc. ("NASD"). Their principal
business address is 1290 Avenue of the Americas, New York, NY 10104. Both
broker-dealers also act as distributors for other AXA Equitable annuity
products. AXA Distributors is a successor by merger to all of the functions,
rights and obligations of Equitable Distributors, Inc. ("EDI"). Like AXA
Distributors, EDI was owned by Equitable Holdings, LLC.
The contracts are sold by financial professionals of AXA Advisors and its
affiliates and by financial professionals of both affiliated and unaffiliated
broker-dealers that have entered into selling agreements with the Distributors
("Selling broker-dealers"). Affiliated broker-dealers include MONY Securities
Corporation ("MSC")* and Advest, Inc. The Distributors, MSC and Advest are all
under the common control of AXA Financial, Inc.
AXA Equitable pays sales compensation to both Distributors. In general,
broker-dealers receiving sales compensation will pay all or a portion of it to
its individual financial representatives (or to its Selling broker-dealers) as
commissions related to the sale of contracts.
Sales compensation paid to AXA Advisors will generally not exceed 8.5% of the
total contributions made under the contracts. AXA Advisors, in turn, may pay
its financial professionals (or Selling broker-dealers) either a portion of the
contribution-based compensation or a reduced portion of the contribution-based
compensation in combination with ongoing annual compensation ("asset-based
compensation") up to 1.20% of the account value of the contract sold,
based on the financial professional's choice. Contribution-based compensation,
when combined with asset-based compensation, could exceed 8.5% of the total
contributions made under the contracts.
Sales compensation paid to AXA Distributors will generally not exceed 6.50% of
the total contributions made under the contracts. AXA Distributors passes all
sales compensation it receives through to the Selling broker-dealer. The
Selling broker-dealer may elect to receive reduced contribution-based
compensation in combination with asset-based compensation of up to 1.25% of the
account value of all or a portion of the contracts sold through the
broker-dealer. Contribution-based compensation, when combined with asset-based
compensation, could exceed 6.50% of the total contributions made under the
contracts. The sales compensation we pay varies among broker-dealers. AXA
Distributors may also receive compensation and reimbursement for its marketing
services under the terms of its distribution agreement with AXA Equitable.
The Distributors may also pay certain affiliated and/or unaffiliated
broker-dealers and other financial intermediaries additional compensation for
certain services and/or in recognition of certain expenses that may be incurred
by them or on their behalf (commonly referred to as "marketing allowances").
Services for which such payments are made may include, but are not limited to,
the preferred placement of AXA Equitable and/or Accumulator(R) Elite(SM) on a
company and/or product list; sales personnel training; due diligence and
related costs; marketing and related services; conferences; and/or other
support services, including some that may benefit the contract owner. Payments
may be based on the amount of assets or purchase payments attributable to
contracts sold through a broker-dealer. We may also make fixed payments to
broker-dealers in connection with the initiation of a new relationship or the
introduction of a new product. These payments may serve as an incentive for
Selling broker-dealers to promote the sale of our products. Additionally, as an
incentive for financial professionals of Selling broker-dealers to promote the
sale of our products, we may increase the sales compensation paid to the
Selling broker-dealer for a period of time (commonly referred to as
"compensation enhancements"). These types of payments are made out of the
Distributors' assets. Not all Selling broker-dealers receive additional
compensation. For more information about any such arrangements, ask your
financial professional.
The Distributors will receive 12b-1 fees from certain portfolios for providing
certain distribution and/or shareholder support services. In connection with
portfolios offered through unaffiliated insurance trusts, the Distributors may
also receive other payments from the portfolio advisers and/or their affiliates
for administrative costs, as well as payments for sales meetings and/or seminar
sponsorships.
In an effort to promote the sale of our products, AXA Advisors may provide its
financial professionals and managerial personnel with a higher percentage of
sales commissions and/or compensation for the sale of an affiliated variable
product than it would the sale of an unaffiliated product. Such practice is
known as providing "differential compensation." Other forms of compensation
financial professionals
- ----------------------
* On or about June 6, 2005, MSC financial professionals are expected to
become financial professionals of AXA Advisors. From that date forward,
former MSC financial professionals will be compensated by AXA Advisors, and
the Distributors will replace MSC as the principal underwriters of its
affiliated products.
84 More information
may receive include health and retirement benefits. In addition, managerial
personnel may receive expense reimbursements, marketing allowances and
commission-based payments known as "overrides." For tax reasons, AXA Advisors
financial professionals qualify for health and retirement benefits based solely
on their sales of our affiliated products.
These payments and differential compensation (together, the "payments") can
vary in amount based on the applicable product and/or entity or individual
involved. As with any incentive, such payments may cause the financial
professional to show preference in recommending the purchase or sale of our
products. However, under applicable rules of the NASD, AXA Advisors may only
recommend to you products that they reasonably believe are suitable for you
based on facts that you have disclosed as to your other security holdings,
financial situation and needs. In making any recommendation, financial
professionals may nonetheless face conflicts of interest because of the
differences in compensation from one product category to another, and because
of differences in compensation between products in the same category.
In addition, AXA Advisors financial professionals who meet specified production
levels for the sale of both affiliated and unaffiliated products may qualify,
under sales incentive programs, to receive non-cash compensation such as stock
options awards and/or stock appreciation rights, expense-paid trips,
expense-paid educational seminars and merchandise.
Although AXA Equitable takes all of its costs into account in establishing the
level of fees and expenses in our products, any compensation paid will not
result in any separate charge to you under your contract. All payments made
will be in compliance with all applicable NASD rules and other laws and
regulations.
More information 85
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
AXA Equitable annual report on Form 10-K for the year ended December 31, 2004
is considered to be a part of this Prospectus because they are incorporated by
reference.
After the date of this Prospectus and before we terminate the offering of the
securities under this Prospectus, all documents or reports we file with the SEC
under the Securities Exchange Act of 1934 ("Exchange Act"), will be considered
to become part of this Prospectus because they are incorporated by reference.
Any statement contained in a document that is or becomes part of this
Prospectus, will be considered changed or replaced for purposes of this
Prospectus if a statement contained in this Prospectus changes or is replaced.
Any statement that is considered to be a part of this Prospectus because of its
incorporation will be considered changed or replaced for the purpose of this
Prospectus if a statement contained in any other subsequently filed document
that is considered to be part of this Prospectus changes or replaces that
statement. After that, only the statement that is changed or replaced will be
considered to be part of this Prospectus.
We file our Exchange Act documents and reports, including our Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR
under CIK No. 0000727920. The SEC maintains a web site that contains reports,
proxy and information statements, and other information regarding registrants
that file electronically with the SEC. The address of the website is
www.sec.gov.
Upon written or oral request, we will provide, free of charge, to each person
to whom this Prospectus is delivered, a copy of any or all of the documents
considered to be part of this Prospectus because they are incorporated herein.
This does not include exhibits not specifically incorporated by reference into
the text of such documents. Requests for documents should be directed to The
AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York,
New York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234).
86 Incorporation of certain documents by reference
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account 49 with the same daily asset charges of 1.65%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004
- --------------------------------------------------------------------------------
For the years
ending December 31,
------------------------------------
2004 2003
- --------------------------------------------------------------------------------
AXA Aggressive Allocation
- --------------------------------------------------------------------------------
Unit value $ 11.72 $ 10.66
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 4,674 195
- --------------------------------------------------------------------------------
AXA Conservative Allocation
- --------------------------------------------------------------------------------
Unit value $ 10.75 $ 10.31
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,736 116
- --------------------------------------------------------------------------------
AXA Conservative-Plus Allocation
- --------------------------------------------------------------------------------
Unit value $ 11.03 $ 10.41
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 3,928 215
- --------------------------------------------------------------------------------
AXA Moderate Allocation
- --------------------------------------------------------------------------------
Unit value $ 11.24 $ 10.51
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 21,440 970
--------------------------------------------------------------------------------
AXA Moderate-Plus Allocation
- --------------------------------------------------------------------------------
Unit value $ 11.72 $ 10.67
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 21,528 560
- --------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- --------------------------------------------------------------------------------
Unit value $ 11.75 $ 10.66
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 210 15
- --------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- --------------------------------------------------------------------------------
Unit value $ 10.38 $ 10.16
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,210 301
- --------------------------------------------------------------------------------
AXA Premier VIP Health Care
- --------------------------------------------------------------------------------
Unit value $ 11.67 $ 10.59
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 716 86
- --------------------------------------------------------------------------------
AXA Premier VIP High Yield
- --------------------------------------------------------------------------------
Unit value $ 11.32 $ 10.59
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 3,135 282
- --------------------------------------------------------------------------------
AXA Premier VIP International Equity
- --------------------------------------------------------------------------------
Unit value $ 13.02 $ 11.23
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,127 65
- --------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- --------------------------------------------------------------------------------
Unit value $ 11.41 $ 10.58
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 456 20
- --------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 10.97 $ 10.45
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,141 59
- --------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- --------------------------------------------------------------------------------
Unit value $ 12.46 $ 11.07
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,455 59
- --------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 11.57 $ 10.53
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,381 97
- --------------------------------------------------------------------------------
Appendix I: Condensed financial
information A-1
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- --------------------------------------------------------------------------------
For the years
ending December 31,
2004 2003
- --------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- --------------------------------------------------------------------------------
Unit value $ 12.45 $ 10.99
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,506 103
- --------------------------------------------------------------------------------
AXA Premier VIP Technology
- --------------------------------------------------------------------------------
Unit value $ 10.64 $ 10.31
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 675 35
- --------------------------------------------------------------------------------
EQ/Alliance Common Stock
- --------------------------------------------------------------------------------
Unit value $ 12.26 $ 10.92
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,957 158
- --------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- --------------------------------------------------------------------------------
Unit value $ 12.07 $ 10.92
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,227 127\
- --------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- --------------------------------------------------------------------------------
Unit value $ 10.12 $ 10.09
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 905 69
- --------------------------------------------------------------------------------
EQ/Alliance International
- --------------------------------------------------------------------------------
Unit value $ 13.00 $ 11.19
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,270 66
- --------------------------------------------------------------------------------
EQ/Alliance Large Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 11.02 $ 10.34
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 595 44
- --------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- --------------------------------------------------------------------------------
Unit value $ 10.40 $ 10.20
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,119 95
- --------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 12.06 $ 10.75
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 913 81
- --------------------------------------------------------------------------------
EQ/Bear Stearns Small Company Growth
- --------------------------------------------------------------------------------
Unit value $ 7.49 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 31 --
- --------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- --------------------------------------------------------------------------------
Unit value $ 12.20 $ 10.93
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 5,080 310
- --------------------------------------------------------------------------------
EQ/Boston Advisors Equity Income
- --------------------------------------------------------------------------------
Unit value $ 5.55 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 208 --
- --------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- --------------------------------------------------------------------------------
Unit value $ 10.68 $ 10.49
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 194 5
- --------------------------------------------------------------------------------
EQ/Capital Guardian Growth
- --------------------------------------------------------------------------------
Unit value $ 10.80 $ 10.41
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 273 15
- --------------------------------------------------------------------------------
EQ/Capital Guardian International
- --------------------------------------------------------------------------------
Unit value $ 12.48 $ 11.17
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 3,564 178
- --------------------------------------------------------------------------------
EQ/Capital Guardian Research
- --------------------------------------------------------------------------------
Unit value $ 11.69 $ 10.72
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,900 86
- --------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- --------------------------------------------------------------------------------
Unit value $ 11.60 $ 10.79
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 4,402 275
- --------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE I
NVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- --------------------------------------------------------------------------------
For the years
ending December 31,
--------------------------------
2004 2003
- --------------------------------------------------------------------------------
EQ/Equity 500 Index
- --------------------------------------------------------------------------------
Unit value $ 11.67 $ 10.76
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 4,181 204
- --------------------------------------------------------------------------------
EQ/Evergreen Omega
- --------------------------------------------------------------------------------
Unit value $ 11.25 $ 10.69
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,146 126
- --------------------------------------------------------------------------------
EQ/FI Mid Cap
- --------------------------------------------------------------------------------
Unit value $ 12.93 $ 11.33
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 3,260 291
- --------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- --------------------------------------------------------------------------------
Unit value $ 12.80 $ 11.04
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,213 149
- --------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- --------------------------------------------------------------------------------
Unit value $ 10.44 $ 10.20
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 3,501 284
- --------------------------------------------------------------------------------
EQ/JP Morgan Value Opportunities
- --------------------------------------------------------------------------------
Unit value $ 11.96 $ 10.97
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 473 42
- --------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 11.54 $ 10.46
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 449 46
- --------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- --------------------------------------------------------------------------------
Unit value $ 12.59 $ 10.93
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,979 191
- --------------------------------------------------------------------------------
EQ/Marsico Focus
- --------------------------------------------------------------------------------
Unit value $ 11.49 $ 10.57
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 5,249 435
- --------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- --------------------------------------------------------------------------------
Unit value $ 11.87 $ 10.92
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 3,020 210
- --------------------------------------------------------------------------------
EQ/Mercury International Value
- --------------------------------------------------------------------------------
Unit value $ 13.27 $ 11.09
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,161 30
- --------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- --------------------------------------------------------------------------------
Unit value $ 11.34 $ 10.24
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 369 29
- --------------------------------------------------------------------------------
EQ/MFS Investors Trust
- --------------------------------------------------------------------------------
Unit value $ 11.58 $ 10.57
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 643 69
- --------------------------------------------------------------------------------
EQ/Money Market
- --------------------------------------------------------------------------------
Unit value $ 9.87 $ 9.96
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,005 42
- --------------------------------------------------------------------------------
EQ/Montag & Caldwell Growth
- --------------------------------------------------------------------------------
Unit value $ 4.35 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 38 --
- --------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST
TIME AFTER DECEMBER 31, 2004 (CONTINUED)
- --------------------------------------------------------------------------------
For the years
ending December 31,
2004 2003
- --------------------------------------------------------------------------------
EQ/Small Company Index
- --------------------------------------------------------------------------------
Unit value $ 12.40 $ 10.71
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,215 79
- --------------------------------------------------------------------------------
EQ/Small Company Value
- --------------------------------------------------------------------------------
Unit value $ 21.68 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 76 --
- --------------------------------------------------------------------------------
EQ/TCW Equity
- --------------------------------------------------------------------------------
Unit value $ 16.17 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 22 --
- --------------------------------------------------------------------------------
EQ/UBS Growth and Income
- --------------------------------------------------------------------------------
Unit value $ 5.07 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 71 --
- --------------------------------------------------------------------------------
EQ/Van Kampen Emerging Markets Equity
- --------------------------------------------------------------------------------
Unit value $ 13.97 $ 11.48
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,047 46
- --------------------------------------------------------------------------------
EQ/Wells Fargo Montgomery Small Cap
- --------------------------------------------------------------------------------
Unit value $ 11.36 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 6 --
- --------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity
- --------------------------------------------------------------------------------
Unit value $ 10.35 $ 10.16
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 878 43
- --------------------------------------------------------------------------------
U.S. Real Estate -- Class II
- --------------------------------------------------------------------------------
Unit value $ 14.71 $ 10.99
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,107 41
- --------------------------------------------------------------------------------
A-4 Appendix I: Condensed financial information
Appendix II: Purchase considerations for QP contracts
- --------------------------------------------------------------------------------
Trustees who are considering the purchase of an Accumulator(R) Elite(SM) QP
contract should discuss with their tax advisers whether this is an appropriate
investment vehicle for the employer's plan. Trustees should consider whether
the plan provisions permit the investment of plan assets in the QP contract,
the distribution of such an annuity, the purchase of the guaranteed minimum
income benefit, and the payment of death benefits in accordance with the
requirements of the federal income tax rules. The QP contract and this
Prospectus should be reviewed in full, and the following factors, among others,
should be noted. Assuming continued plan qualification and operation, earnings
on qualified plan assets will accumulate value on a tax-deferred basis even if
the plan is not funded by the Accumulator(R) Elite(SM) QP contract or another
annuity. Therefore, you should purchase an Accumulator(R) Elite(SM) QP contract
to fund a plan for the contract's features and benefits other than tax
deferral, after considering the relative costs and benefits of annuity
contracts and other types of arrangements and funding vehicles. This QP
contract accepts transfer contributions only and not regular, ongoing payroll
contributions. For 401(k) plans under defined contribution plans, no employee
after-tax contributions are accepted.
We will not accept defined benefit plans. For defined contribution plans, we
will only accept transfers from another defined contribution plan or a change
of investment vehicles in the plan. Only one additional transfer contribution
may be made per contract year. If overfunding of a plan occurs or amounts
attributable to an excess contribution must be withdrawn, withdrawals from the
QP contract may be required. A withdrawal charge and/or market value adjustment
may apply.
AXA Equitable will not perform or provide any plan recordkeeping services with
respect to the QP contracts. The plan's administrator will be solely
responsible for performing or providing for all such services. There is no loan
feature offered under the QP contracts, so if the plan provides for loans and a
participant/employee takes a loan from the plan, other plan assets must be used
as the source of the loan and any loan repayments must be credited to other
investment vehicles and/or accounts available under the plan.
Given that required minimum distributions must generally commence from the plan
for annuitants after age 70-1/2, trustees should consider that:
o the QP contract may not be an appropriate purchase for annuitants approaching
or over age 70-1/2;
o provisions in the Treasury Regulations on required minimum distributions will
require, beginning in 2006, that the actuarial present value of additional
annuity contract benefits be added to the dollar amount credited for
purposes of calculating required minimum distributions. This could increase
the amounts required to be distributed from the contract; and
o the Guaranteed minimum income benefit may not be an appropriate feature for
annuitants who are older than age 60-1/2 when the contract is issued.
Finally, because the method of purchasing the QP contract, including the large
initial contribution and the features of the QP contract may appeal more to
plan participants/employees who are older and tend to be highly paid, and
because certain features of the QP contract are available only to plan
participants/employees who meet certain minimum and/or maximum age
requirements, plan trustees should discuss with their advisers whether the
purchase of the QP contract would cause the plan to engage in prohibited
discrimination in contributions, benefits or otherwise.
Appendix II: Purchase considerations for QP contracts B-1
Appendix III: Market value adjustment example
- --------------------------------------------------------------------------------
The example below shows how the market value adjustment would be determined and
how it would be applied to a withdrawal, assuming that $100,000 was allocated
on February 15, 2005 to a fixed maturity option with a maturity date of
February 15, 2014 (nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value of $183,914 on the maturity date. We
further assume that a withdrawal of $50,000 is made four years later on
February 15, 2009.
- ----------------------------------------------------------------------------------------------------------------------------
Hypothetical assumed rate to maturity on February 15, 2009
----------------------------------------------------------------
5.00% 9.00%
- ----------------------------------------------------------------------------------------------------------------------------
As of February 15, 2009 (before withdrawal)
- ----------------------------------------------------------------------------------------------------------------------------
(1) Market adjusted amount $144,082 $ 119,503
- ----------------------------------------------------------------------------------------------------------------------------
(2) Fixed maturity amount $131,104 $ 131,104
- ----------------------------------------------------------------------------------------------------------------------------
(3) Market value adjustment:
(1) - (2) $ 12,978 $ (11,601)
- ----------------------------------------------------------------------------------------------------------------------------
On February 15, 2009 (after withdrawal)
- ----------------------------------------------------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with withdrawal:
(3) x [$50,000/(1)] $ 4,504 $ (4,854)
- ----------------------------------------------------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount: [$50,000 - (4)] $ 45,496 $ 54,854
- ----------------------------------------------------------------------------------------------------------------------------
(6) Fixed maturity amount: (2) - (5) $ 85,608 $ 76,250
- ----------------------------------------------------------------------------------------------------------------------------
(7) Maturity value $120,091 $ 106,965
- ----------------------------------------------------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,082 $ 69,503
- ----------------------------------------------------------------------------------------------------------------------------
You should note that under this example if a withdrawal is made when rates have
increased from 7.00% to 9.00% (right column), a portion of a negative market
value adjustment is realized. On the other hand, if a withdrawal is made when
rates have decreased from 7.00% to 5.00% (left column), a portion of a positive
market value adjustment is realized. The market value is computed differently
if you withdraw amounts on a date other than the anniversary of the
establishment of the fixed maturity option.
C-1 Appendix III: Market value adjustment example
Appendix IV: Enhanced death benefit example
- --------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the enhanced death benefit, if elected.
The following illustrates the enhanced death benefit calculation. Assuming
$100,000 is allocated to the variable investment options (with no allocation to
the EQ/Alliance Intermediate Government Securities, EQ/Money Market, EQ/PIMCO
Real Return, EQ/Short Duration Bond, the guaranteed interest option, the fixed
maturity options or the Special 10 year fixed maturity option), no additional
contributions, no transfers, no withdrawals and no loans under a Rollover TSA
contract, the enhanced death benefit for an annuitant age 45 would be
calculated as follows:
- --------------------------------------------------------------------------------------
End of
contract 6% Roll up to age 85 Annual Ratchet to age 85
year Account value enhanced death benefit enhanced death benefit
- --------------------------------------------------------------------------------------
1 $105,000 $106,000 $105,000
- --------------------------------------------------------------------------------------
2 $115,500 $112,360 $115,500
- --------------------------------------------------------------------------------------
3 $129,360 $119,102 $129,360
- --------------------------------------------------------------------------------------
4 $103,488 $126,248 $129,360
- --------------------------------------------------------------------------------------
5 $113,837 $133,823 $129,360
- --------------------------------------------------------------------------------------
6 $127,497 $141,852 $129,360
- --------------------------------------------------------------------------------------
7 $127,497 $150,363 $129,360
- --------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%.
We are using these rates solely to illustrate how the benefit is determined.
The return rates bear no relationship to past or future investment results.
ANNUAL RATCHET TO AGE 85
(1) At the end of contract years 1 through 3, the enhanced death benefit is the
current account value.
(2) At the end of contract years 4 through 7, the enhanced death benefit is the
enhanced death benefit at the end of the prior year since it is equal to or
higher than the current account value.
GREATER OF 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85
The enhanced death benefit under this option for each year shown would be the
greater of the amounts shown under the 6% Roll up to age 85 or the Annual
Ratchet to age 85.*
* At the end of contract years 4 through 7, the death benefit will be the
enhanced death benefit. At the end of contract years 1, 2 and 3, the death
benefit will be the current account value.
Appendix IV: Enhanced death benefit example D-1
Appendix V: Hypothetical illustrations
- --------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM
BENEFITS
The following tables illustrate the changes in account value, cash value and
the values of the "greater of 6% Roll up to age 85 or the Annual Ratchet to age
85" guaranteed minimum death benefit, the Protection Plus(SM) benefit and the
Guaranteed minimum income benefit under certain hypothetical circumstances for
an Accumulator(R) Elite(SM) contract. The table illustrates the operation of a
contract based on a male, issue age 60, who makes a single $100,000
contribution and takes no withdrawals. The amounts shown are for the beginning
of each contract year and assume that all of the account value is invested in
portfolios that achieve investment returns at constant gross annual rates of 0%
and 6% (i.e., before any investment management fees, 12b-1 fees or other
expenses are deducted from the underlying portfolio assets). After the
deduction of the arithmetic average of the investment management fees, 12b-1
fees and other expenses of all of the underlying portfolios (as described
below), the corresponding net annual rates of return would be (2.98)% and 3.02%
for the Accumulator(R) Elite(SM) contract, at the 0% and 6% gross annual rates,
respectively. These net annual rates of return reflect the trust and separate
account level charges, but they do not reflect the charges we deduct from your
account value annually for the optional Guaranteed minimum death benefit,
Protection Plus(SM) benefit and the Guaranteed minimum income benefit features,
as well as the annual administrative charge. If the net annual rates of return
did reflect these charges, the net annual rates of return would be lower;
however, the values shown in the following tables reflect all contract charges.
The values shown under "Lifetime annual guaranteed minimum income benefit"
reflect the lifetime income that would be guaranteed if the Guaranteed minimum
income benefit is selected at that contract anniversary. An "N/A" in these
columns indicates that the benefit is not exercisable in that year. A "0" under
any of the death benefit and/or "Lifetime annual guaranteed minimum income
benefit" columns indicates that the contract has terminated due to insufficient
account value and, consequently, the guaranteed benefit has no value.
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in all tables reflect (1) investment management
fees equivalent to an effective annual rate of 0.69%, and (2) an assumed
average asset charge for all other expenses of the underlying portfolios
equivalent to an effective annual rate of 0.39% and (3) 12b-1 fees equivalent
to an effective annual rate of 0.25%. These rates are the arithmetic average
for all portfolios that are available as investment options. In other words,
they are based on the hypothetical assumption that account values are allocated
equally among the variable investment options. The actual rates associated with
any contract will vary depending upon the actual allocation of policy values
among the investment options. These rates do not reflect expense limitation
arrangements in effect with respect to certain of the underlying portfolios, as
described in the footnotes to the fee table for the underlying portfolios in
"Fee Table" earlier in this Prospectus. With these arrangements, the charges
shown above would be lower. This would result in higher values than those shown
in the following tables.
Because your circumstances will no doubt differ from those in the illustrations
that follow, values under your contract will differ, in most cases
substantially. Upon request, we will furnish you with a personalized
illustration.
E-1 Appendix V: Hypothetical illustrations
Variable deferred annuity
Accumulator Elite
$100,000 Single contribution and no withdrawals
Male, issue age 60
Benefits:
Greater of 6% Roll up or the Annual Ratchet to age 85 Guaranteed minimum
death benefit
Protection Plus
Guaranteed minimum income benefit
Greater of 6% Roll
up to age 85
or the Annual
Ratchet Lifetime Annual
to age 85 Guaranteed Minimum Income Benefit
Guaranteed Total Death Benefit ----------------------------------
Minimum Death with Protection Guaranteed Hypothetical
Account Value Cash Value Benefit Plus Income Income
------------------ ----------------- ------------------- ------------------- ----------------- ----------------
Age Contract Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% 0% 6%
- ----- -------------- --------- -------- -------- -------- --------- --------- --------- --------- -------- -------- --------- ------
60 1 100,000 100,000 92,000 92,000 100,000 100,000 100,000 100,000 N/A N/A N/A N/A
61 2 95,355 101,334 88,355 94,334 106,000 106,000 108,400 108,400 N/A N/A N/A N/A
62 3 90,786 102,625 84,786 96,625 112,360 112,360 117,304 117,304 N/A N/A N/A N/A
63 4 86,283 103,865 81,283 98,865 119,102 119,102 126,742 126,742 N/A N/A N/A N/A
64 5 81,841 105,049 81,841 105,049 126,248 126,248 136,747 136,747 N/A N/A N/A N/A
65 6 77,451 106,170 77,451 106,170 133,823 133,823 147,352 147,352 N/A N/A N/A N/A
66 7 73,107 107,221 73,107 107,221 141,852 141,852 158,593 158,593 N/A N/A N/A N/A
67 8 68,801 108,193 68,801 108,193 150,363 150,363 170,508 170,508 N/A N/A N/A N/A
68 9 64,524 109,078 64,524 109,078 159,385 159,385 183,139 183,139 N/A N/A N/A N/A
69 10 60,271 109,867 60,271 109,867 168,948 168,948 196,527 196,527 N/A N/A N/A N/A
74 15 38,996 112,006 38,996 112,006 226,090 226,090 276,527 276,527 14,266 14,266 14,266 14,266
79 20 16,934 109,958 16,934 109,958 302,560 302,560 383,584 383,584 20,393 20,393 20,393 20,393
84 25 0 101,618 0 101,618 0 404,893 0 493,179 0 34,821 0 34,821
89 30 0 99,191 0 99,191 0 429,187 0 517,472 N/A N/A N/A N/A
94 35 0 99,522 0 99,522 0 429,187 0 517,472 N/A N/A N/A N/A
95 36 0 99,593 0 99,593 0 429,187 0 517,472 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for
individual contract years. We can make no representation that these
hypothetical investment results can be achieved for any one year or continued
over any period of time. In fact, for any given period of time, the investment
results could be negative.
Appendix V: Hypothetical illustrations E-2
Appendix VI: Guaranteed principal benefit example
- --------------------------------------------------------------------------------
For purposes of these examples, we assume that there is an initial contribution
of $100,000, made to the contract on February 15, 2005. We also assume that no
additional contributions, no transfers among options and no withdrawals from
the contract are made. For GPB Option 1, the example also assumes that a 10
year fixed maturity option is chosen. The hypothetical gross rates of return
with respect to amounts allocated to the variable investment options are 0%, 6%
and 10%. The numbers below reflect the deduction of all applicable separate
account and contract charges and also reflect the charge for GPB Option 2.
Also, for any given performance of your variable investment options, GPB Option
1 produces higher account values than GPB Option 2 unless investment
performance has been significantly positive. The examples should not be
considered a representation of past or future expenses. Similarly, the annual
rates of return assumed in the example are not an estimate or guarantee of
future investment performance.
- -----------------------------------------------------------------------------------------------------------
Assuming 100%
in variable
Assuming 100% Under GPB Under GPB investment
in FMO Option 1 Option 2 options
- -----------------------------------------------------------------------------------------------------------
Amount allocated to FMO on February 15, 2005 100,000 72,120 40,000 --
based upon a 3.32% rate to maturity
- -----------------------------------------------------------------------------------------------------------
Initial account value allocated to the variable 0 27,880 60,000 100,000
investment options on February 15, 2005
- -----------------------------------------------------------------------------------------------------------
Account value in the fixed maturity option on 138,651 100,000 55,460 0
February 15, 2015
- -----------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding 138,651 120,602 100,000* 73,895
together the value at the maturity date of the
applicable fixed maturity option plus the value of
amounts in the variable investment options on
February 15, 2015, assuming a 0% gross rate of
return)
- -----------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding 138,651 137,541 129,626** 134,653
together the value at the maturity date of the
applicable fixed maturity option plus the value of
amounts in the variable investment options on
February 15, 2015, assuming a 6% gross rate of
return)
- -----------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding 138,651 154,947 164,741** 197,083
together the value at the maturity date of the
applicable fixed maturity option plus the value of
amounts in the variable investment options on
February 15, 2015, assuming a 10% gross rate of
return)
- -----------------------------------------------------------------------------------------------------------
* Since the annuity account value is less than the alternate benefit under GPB
Option 2, the annuity account value is adjusted upward to the guaranteed
amount or an increase of $4,452 in this example.
** Since the annuity account value is greater than the alternate benefit under
GPB Option 2, GPB Option 2 will not affect the annuity account value.
F-1 Appendix VI: Guaranteed principal benefit example
Appendix VII: Protection Plus(SM) example
- --------------------------------------------------------------------------------
The following illustrates the calculation of a death benefit that includes
Protection Plus for an annuitant age 45. The example assumes a contribution of
$100,000 and no additional contributions. Where noted, a single withdrawal in
the amount shown is also assumed. The calculation is as follows:
- ---------------------------------------------------------------------------------------------------------------
No Withdrawal $3000 withdrawal $6000 withdrawal
- ---------------------------------------------------------------------------------------------------------------
A Initial Contribution 100,000 100,000 100,000
- ---------------------------------------------------------------------------------------------------------------
B Death Benefit: prior to withdrawal.* 104,000 104,000 104,000
- ---------------------------------------------------------------------------------------------------------------
Protection Plus Earnings: Death Benefit less net
C contributions (prior to the withdrawal in D). 4,000 4,000 4,000
B minus A.
- ---------------------------------------------------------------------------------------------------------------
D Withdrawal 0 3,000 6,000
- ---------------------------------------------------------------------------------------------------------------
Excess of the withdrawal over the Protection Plus
E earnings 0 0 2,000
greater of D minus C or zero
- ---------------------------------------------------------------------------------------------------------------
Net Contributions (adjusted for the withdrawal in D)
F 100,000 100,000 98,000
A minus E
- ---------------------------------------------------------------------------------------------------------------
Death Benefit (adjusted for the withdrawal in D)
G 104,000 101,000 98,000
B minus D
- ---------------------------------------------------------------------------------------------------------------
Death Benefit less Net Contributions
H 4,000 1,000 0
G minus F
- ---------------------------------------------------------------------------------------------------------------
I Protection Plus Factor 40% 40% 40%
- ---------------------------------------------------------------------------------------------------------------
Protection Plus Benefit
J 1,600 400 0
H times I
- ---------------------------------------------------------------------------------------------------------------
Death Benefit: Including Protection Plus
K 105,600 101,400 98,000
G plus J
- ---------------------------------------------------------------------------------------------------------------
* The Death Benefit is the greater of the Account Value or any applicable
death benefit.
Appendix VII: Protection Plus(SM) example G-1
Appendix VIII: State contract availability and/or variations of certain
features and benefits
- --------------------------------------------------------------------------------
The following information is a summary of the states where the Accumulator(R)
Elite(SM) contract or certain features and/or benefits are either not available
as of the date of this Prospectus or vary from the contract's features and
benefits as previously described in this Prospectus.
STATES WHERE CERTAIN ACCUMULATOR(R) ELITE(SM) FEATURES AND/OR BENEFITS ARE NOT
AVAILABLE OR HAS CERTAIN VARIATIONS TO FEATURES AND/OR BENEFITS:
- ------------------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA See "Contract features and benefits"--"Your right to If you reside in the state of California and you are age 60
cancel within a certain number of days" and older at the time the contract is issued, you may
return your vari- able annuity contract within 30 days
from the date that you receive it and receive a refund
as described below.
If you allocate your entire initial contribution to the
money mar- ket account (and/or guaranteed interest
option, if available), the amount of your refund will be
equal to your contribution less interest, unless you
make a transfer, in which case the amount of your refund
will be equal to your account value on the date we
receive your request to cancel at our processing office.
This amount could be less than your initial
contribution. If you allo- cate any portion of your
initial contribution to the variable investment options
(other than the money market account) and/or fixed
maturity options, your refund will be equal to your
account value on the date we receive your request to
cancel at our processing office.
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA See "Transfers of ownership, collateral assignments, The second paragraph in this section is deleted.
loans and borrowing" in "More information
- ------------------------------------------------------------------------------------------------------------------------------------
MARYLAND Fixed maturity options Not Available
Guaranteed principal benefit option1 and Guaranteed Not Available
principal benefit option 2
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS Automatic investment program Not Available
Annual administrative charge The annual administrative charge will not be deducted from
amounts allocated to the Guaranteed interest option.
See "How you can purchase and contribute to your Additional contributions are limited to the first two years
contract" in "Contract features and benefits" after the contract issue date only.
See "Disability, terminal illness or confinement to Item (i) is deleted in its entirety.
nursing home" under "Withdrawal charge" in
"Charges and expenses"
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK Greater of the 6% roll up or Annual Ratchet Guaran- Not Available (you have a choice of the standard death
teed minimum death benefit benefit or the Annual Ratchet to age 85 guaranteed minimum
death benefit), as described earlier in this Prospectus.
Principal Protector(SM) Not Available
Protection Plus(SM) Not Available
Variable Immediate Annuity payout options -- Life Not Available
annuity contracts
- ------------------------------------------------------------------------------------------------------------------------------------
H-1 Appendix VIII: State contract availability and/or variations of certain
features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK, See "Termination of your contract" in "Determining If your account value in the variable investment options and the
CONTINUED your contract's value" fixed maturity options is insufficient to pay the annual
adminis- trative charge, or either enhanced death benefit
charge, and you have no account value in the guaranteed
interest option, your contract will terminate without value,
and you will lose any appli- cable benefits. See "Charges and
expenses" earlier in this Prospectus.
See "The amount applied to purchase an annuity For fixed annuity period certain payout options only, the amount
payout option" in "Accessing your money" applied to the annuity benefit is the greater of the cash
value or 95% of what the account value would be if no
withdrawal charge applied. The income provided, however, will
never be less than what would be provided by applying the
account value to the guaranteed annuity purchase factors.
See "Annuity maturity date" in "accessing your The maturity date by which you must take a lump sum with-
money" drawal or select an annuity payout option is as follows:
Maximum
Issue age Annuitization age
--------- -----------------
0-80 90
81 91
82 92
83 93
84 94
85 95
Please see this section earlier in this Prospectus for more
information.
See "Charges and expenses" With regard to the Annual administrative, either enhanced
death benefit, Guaranteed principal benefit option 2 and
Guaranteed minimum income benefit charges, respectively, we
will deduct the related charge, as follows for each: we will
deduct the charge from your value in the variable investment
options on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge
from the fixed maturity options (other than the Special 10
year fixed maturity option) in the order of the earliest
maturity date(s) first. If such fixed maturity option amounts
are insufficient, we will deduct all or a portion of the
charge from the account for special dollar cost averaging (not
available if the Guaranteed principal benefit option is
elected). If such amounts are still insufficient, we will
deduct any remaining portion from the Special 10 year fixed
maturity option. If the contract is surrendered or annuitized
or a death benefit is paid, we will deduct a pro rata portion
of the charge for that year. A market value adjustment will
apply to deductions from the fixed maturity options (including
the Special 10 year fixed maturity option).
Deductions from the fixed maturity options (including the
Special 10 year fixed maturity option) cannot cause the
credited net interest for the contract year to fall below
1.5%.
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix VIII: State contract availability and/or
variations of certain features and benefits H-2
- ------------------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK, With regard to the Annual administrative, and either enhanced
CONTINUED death benefit and the Guaranteed minimum income benefit charges
only, if your account value in the variable investment options and
the fixed maturity options is insufficient to pay the applicable
charge, and you have no account value in the guaran- teed interest
option, your contract will terminate without value and you will lose
any applicable guaranteed benefits. Please see "Termination of your
contract" in "Determining your contract's value" earlier in this
Prospectus.
Fixed maturity options -- withdrawal charges The withdrawal charge that applies to withdrawals taken from amounts
in the fixed maturity options will never exceed 7% and will be
determined by applying the New York Alternate Scale I shown below.
If you withdraw amounts that have been trans- ferred from one fixed
maturity option to another, we use the New York Alternate Scale II
(also shown below) if it produces a higher charge than Alternate
Scale I. The withdrawal charge may not exceed the withdrawal charge
that would normally apply to the contract. If a contribution has
been in the contract for more than 4 years and therefore would have
no withdrawal charge, no withdrawal charge will apply. Use of a New
York Alternate Scale can only result in a lower charge. We will
compare the result of applying Alternate Scale I or II, as the case
may be, to the result of applying the normal withdrawal charge, and
will charge the lower withdrawal charge.
--------------------------------------------------------------
Fixed maturity options -- withdrawal charges NY Alternate Scale I NY Alternate Scale II
(continued) Year of investment in fixed Year of transfer within fixed
maturity option* maturity option*
--------------------------------------------------------------
Within year 1 7% Within year 1 5%
--------------------------------------------------------------
2 6% 2 4%
--------------------------------------------------------------
3 5% 3 3%
--------------------------------------------------------------
4 4% 4 2%
--------------------------------------------------------------
After year 5 0% After year 5 0%
--------------------------------------------------------------
Not to exceed 1% times the number of years remaining in
the fixed maturity option, rounded to the higher number of
years. In other words, if 4.3 years remain, it would be a 5% charge.
* Measured from the contract date anniversary prior to
the date of the contribution or transfer.
If you take a withdrawal from an investment option other than the
fixed maturity options, the amount available for withdrawal without
a withdrawal charge is reduced. It will be reduced by the amount of
the contribution in the fixed maturity options to which no
withdrawal charge applies.
You should consider that on the maturity date of a fixed maturity
option if we have not received your instructions for allocation of
your maturity value, we will transfer your maturity value to the
fixed maturity option with the shortest available maturity. If we
are not offering other fixed maturity options, we will transfer your
maturity value to the EQ/Money Market option.
- ------------------------------------------------------------------------------------------------------------------------------------
H-3 Appendix VIII: State contract availability and/or variations of certain
features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK, The potential for lower withdrawal charges for withdrawals
CONTINUED from the fixed maturity options and the potential for a
lower "free withdrawal amount" than what would normally
apply, should be taken into account when deciding whether
to allocate amounts to, or transfer amounts to or from,
the fixed maturity options.
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA Contribution age limitations The following contribution limits apply:
Maximum
Issue age contribution age
--------- ----------------
0-75 82
76 83
77 84
78-80 85
81-85 87
Special dollar cost averaging program In Pennsylvania, we refer to this program as "enhanced
rate dollar cost averaging."
See "Annuity maturity date" in "Accessing your The maturity date by which you must take a lump sum with-
money" drawal or select an annuity payout option is as follows:
Maximum
Issue age annuitization age
--------- -----------------
0-75 85
76 86
77 87
78-80 88
81-85 90
Loans under Rollover TSA contracts Taking a loan in excess of the Internal Revenue Code
limits may result in adverse tax consequences. Please
consult your tax adviser before taking a loan that
exceeds the Internal Revenue Code limits.
- ------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO IRA, Roth IRA, Inherited IRA and Rollover TSA Not Available
contracts
- ------------------------------------------------------------------------------------------------------------------------------------
Beneficiary continuation option (IRA) Not Available
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS See "Annual administrative charge" in "Charges and The annual administrative charge will not be deducted from
expenses" amounts allocated to the Guaranteed interest option.
- ------------------------------------------------------------------------------------------------------------------------------------
UTAH See " Transfer of ownership, collateral assignments, The second paragraph in this section is deleted.
loans and borrowing" in "More information"
- ------------------------------------------------------------------------------------------------------------------------------------
VERMONT Loans under Rollover TSA contracts Taking a loan in excess of the Internal Revenue Code
limits may result in adverse tax consequences. Please
consult your tax adviser before taking a loan that
exceeds the Internal Revenue Code limits.
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON Guaranteed interest option Not Available
Investment simplifier -- Fixed-dollar option Not Available
and Interest sweep option
Fixed maturity options Not Available
Guaranteed Principal Benefit Options 1 and 2 Not Available
Income Manager(R) payout option Not Available
Protection Plus(SM) Not Available
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix VIII: State contract availability and/or
variations of certain features and benefits H-4
- ------------------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- ------------------------------------------------------------------------------------------------------------------------------------
Washington, Special dollar cost averaging program o Available only at issue.
Continued o Subsequent contributions cannot be used to elect new pro-
grams. You may make subsequent contributions to the initial
programs while they are still running.
See "Guaranteed minimum death benefit"(SM) in You have a choice of the standard death benefit, the Annual
"Contract features and benefits" Ratchet to age 85 enhanced death benefit, or the Greater of 4%
Roll up to age 85 or the Annual Ratchet to age 85 enhanced
death benefit.
See "Annual administrative charge" in "Charges and The annual administrative charge will be deducted from the
expenses" value in the variable investment options on a pro rata basis.
See "Withdrawal charge" in "Charges and expenses" The 10% free withdrawal amount applies to full surrenders.
See "Withdrawal charge" in "Charges and expenses" The annuitant has qualified to receive Social Security
under "Disability, terminal illness, or confinement disability benefits as certified by the Social Security
to nursing home" Administration or a statement from an independent U.S. licensed
physician stating that the annuitant meets the definition of
total disability for at least 6 continuous months prior to the
notice of claim. Such disability must be re-certified every
12 months.
- ------------------------------------------------------------------------------------------------------------------------------------
H-5 Appendix VIII: State contract availability and/or variations of certain
features and benefits
Appendix IX: Contract variations
- --------------------------------------------------------------------------------
Although this Prospectus is primarily designed for potential purchasers of the
contract, you may be receiving it as a current contract owner. If you are a
current contract owner, you should note that your contract's options, features
and charges may vary from what is described in this Prospectus depending on the
date on which you purchased your contract. You may not change your contract or
its features after issue. This Appendix reflects contract variations that
differ from what is described in this Prospectus but may have been in effect at
the time your contract was issued.
In addition, options and/or features may vary among states in light of
applicable regulations or state approvals. Any such state variations are
generally not included here but instead included in Appendix VIII earlier in
this section. For more information about state variations applicable to you, as
well as particular features, charges and options available under your contract
based upon when you purchased it, please contact your financial
professional and/or refer to your contract.
- -----------------------------------------------------------------------------------------------------------------------------------
Approximate Time Period Feature/Benefit Variation
- -----------------------------------------------------------------------------------------------------------------------------------
September 2003 - January 2005 Guaranteed interest option Your lifetime minimum interest rate is either
1.5% or 3.0% (depending on the state where
your contract was issued).
- -----------------------------------------------------------------------------------------------------------------------------------
September 2003 - July 2004 Principal Protector(SM) benefit Unavailable.
- -----------------------------------------------------------------------------------------------------------------------------------
September 2003 - December 2004 Termination of guaranteed benefits Your guaranteed benefits will not automatically
terminate if you change ownership of your NQ
contract.
- -----------------------------------------------------------------------------------------------------------------------------------
September 2003 - January 2004 Guaranteed minimum income benefit:
o Benefit base crediting rate The effective annual interest credited to the
applicable benefit base is 5%.*
Guaranteed minimum income benefit charge:
o Fee table
0.55%.*
- -----------------------------------------------------------------------------------------------------------------------------------
September 2003 - January 2004 Greater of the 6% Roll up to age 85 or the
Annual Ratchet to age 85 enhanced death
benefit:
o Benefit base crediting rate The effective annual interest credited to the
applicable benefit base is 5%.*
Greater of the 5% Roll up to age 85 or the
o Fee table
Annual Ratchet to age 85 enhanced death
benefit charge: 0.50%.*
- -----------------------------------------------------------------------------------------------------------------------------------
September 2003 - January 2004 Effect of withdrawals on your Greater of the Withdrawals will reduce each of the benefit
6% Roll up to age 85 or the Annual Ratchet bases on a pro rata basis only.*
to age 85 enhanced death benefit
- -----------------------------------------------------------------------------------------------------------------------------------
* Contract owners who elected the Guaranteed minimum income benefit and/or the
Greater of the 5% Roll up to age 85 or the Annual Ratchet to age 85 enhanced
death benefit had a limited opportunity to change to the new versions of
these benefits, as they are described in "Contract features and benefits" and
"Accessing your money," earlier in this Prospectus.
Appendix IX: Contract variations I-1
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Unit Values 2
Custodian and Independent Registered Public Accounting Firm 2
Distribution of the Contracts 2
Financial Statements 2
How to obtain an Accumulator(R) Elite(SM) Statement of Additional Information
for Separate Account No. 49
Send this request form to:
Accumulator(R) Elite(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me an Accumulator(R) Elite(SM) SAI for Separate Account No. 49 dated
May 1, 2005.
- --------------------------------------------------------------------------------
Name:
- --------------------------------------------------------------------------------
Address:
- --------------------------------------------------------------------------------
City State Zip
X00996/Elite '02 and '04 Series
Accumulator(R) Select(SM)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2005
Please read and keep this Prospectus for future reference. It contains
important information that you should know before taking any action under your
contract. You should read the prospectuses for each Trust, which contain
important information about the portfolios.
- --------------------------------------------------------------------------------
WHAT IS THE ACCUMULATOR(R) SELECT(SM)?
Accumulator(R) Select(SM) is a deferred annuity contract issued by AXA Equitable
Life Insurance Company. It provides for the accumulation of retirement savings
and for income. The contract offers income and death benefit protection. It
also offers a number of payout options. You invest to accumulate value on a
tax-deferred basis in one or more of our variable investment options or fixed
maturity options ("investment options"). There is no withdrawal charge under
the contract.
This contract is no longer available for new purchasers. This Prospectus is
designed for current contract owners.
- --------------------------------------------------------------------------------
Variable investment options
- --------------------------------------------------------------------------------
o AXA Aggressive Allocation(1) o EQ/Caywood-Scholl High Yield Bond(3)
o AXA Conservative Allocation(1) o EQ/Equity 500 Index
o AXA Conservative-Plus Allocation(1) o EQ/Evergreen Omega
o AXA Moderate Allocation(1) o EQ/FI Mid Cap
o AXA Moderate-Plus Allocation(1) o EQ/FI Small/Mid Cap Value
o AXA Premier VIP Aggressive Equity o EQ/International Growth(3)
o AXA Premier VIP Core Bond o EQ/J.P. Morgan Core Bond
o AXA Premier VIP Health Care o EQ/JP Morgan Value Opportunities
o AXA Premier VIP High Yield o EQ/Janus Large Cap Growth
o AXA Premier VIP International Equity o EQ/Lazard Small Cap Value
o AXA Premier VIP Large Cap Core o EQ/Long Term Bond(3)
Equity o EQ/Lord Abbett Growth and Income(3)
o AXA Premier VIP Large Cap Growth o EQ/Lord Abbett Large Cap Core(3)
o AXA Premier VIP Large Cap Value o EQ/Lord Abbett Mid Cap Value(3)
o AXA Premier VIP Small/Mid Cap o EQ/Marsico Focus
Growth o EQ/Mercury Basic Value Equity
o AXA Premier VIP Small/Mid Cap Value o EQ/Mercury International Value
o AXA Premier VIP Technology o EQ/Mergers and Acquisitions(3)
o EQ/Alliance Common Stock o EQ/MFS Emerging Growth Companies
o EQ/Alliance Growth and Income o EQ/MFS Investors Trust
o EQ/Alliance Intermediate Government o EQ/Money Market
Securities o EQ/Montag & Caldwell Growth(2)
o EQ/Alliance International o EQ/PIMCO Real Return(3)
o EQ/Alliance Large Cap Growth(2) o EQ/Short Duration Bond(3)
o EQ/Alliance Quality Bond o EQ/Small Company Index
o EQ/Alliance Small Cap Growth o EQ/Small Company Value(2)
o EQ/Bear Stearns Small Company o EQ/TCW Equity(2)
Growth(2) o EQ/UBS Growth and Income(2)
o EQ/Bernstein Diversified Value o EQ/Van Kampen Comstock(3)
o EQ/Boston Advisors Equity Income(2) o EQ/Van Kampen Emerging Markets
o EQ/Calvert Socially Responsible Equity(2)
o EQ/Capital Guardian Growth o EQ/Van Kampen Mid Cap Growth(3)
o EQ/Capital Guardian International o EQ/Wells Fargo Montgomery Small
o EQ/Capital Guardian Research Cap(3)
o EQ/Capital Guardian U.S. Equity
- --------------------------------------------------------------------------------
(1) The "AXA Allocation" portfolios.
(2) This is the option's new name, effective on or about May 9, 2005, subject
to regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former
name.
(3) Available on or about May 9, 2005, subject to regulatory approval. Please
see "Portfolios of the Trusts" in "Contract features and benefits" later in
this Prospectus for more information on the new investment option.
You may allocate to any of the variable investment options. Each variable
investment option is a subaccount of Separate Account No. 45 and Separate
Account No. 49. Each variable investment option, in turn, invests in a
corresponding securities portfolio of EQ Advisors Trust or AXA Premier VIP
Trust (the "Trusts"). Your investment results in a variable investment option
will depend on the investment performance of the related portfolio.
You may also allocate amounts to the fixed maturity options, which is discussed
later in this Prospectus.
TYPES OF CONTRACTS. Contracts were offered for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only.
o An annuity that is an investment vehicle for a qualified defined contribution
plan ("QP").
o An individual retirement annuity ("IRA"), either traditional IRA ("Rollover
IRA") or Roth IRA ("Roth Conversion IRA").
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") --
("Rollover TSA").
A contribution of at least $25,000 was required to purchase a contract.
Registration statements relating to this offering have been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2005, is a part of one of the registration
statements. The SAI is available free of charge. You may request one by writing
to our processing office or calling 1-800-789-7771. The SAI has been
incorporated by reference into this Prospectus. This Prospectus and the SAI can
also be obtained from the SEC's website at www.sec.gov. The table of contents
for the SAI appears at the back of this Prospectus.
The SEC has not approved or disapproved these securities or determined if this
Prospectus is accurate or complete. Any representation to the contrary is a
criminal offense. The contracts are not insured by the FDIC or any other
agency. They are not deposits or other obligations of any bank and are not bank
guaranteed. They are subject to investment risks and possible loss of
principal.
X00999
OREGON ONLY
Contents of this Prospectus
- -------------------------------------------------------------------------------
ACCUMULATOR(R) SELECT(SM)
- --------------------------------------------------------------------------------
Index of key words and phrases 4
Who is AXA Equitable? 5
How to reach us 6
Accumulator(R) Select(SM) at a glance -- key features 8
- --------------------------------------------------------------------------------
FEE TABLE 10
- --------------------------------------------------------------------------------
Example 13
Condensed financial information 16
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 17
- --------------------------------------------------------------------------------
How you can contribute to your contract 17
Owner and annuitant requirements 19
How you can make your contributions 19
What are your investment options under the contract? 19
Allocating your contributions 24
Your benefit base 25
Annuity purchase factors 26
Our baseBUILDER option 26
Guaranteed minimum death benefit 28
Your right to cancel within a certain number of days 29
- --------------------------------------------------------------------------------
2. DETERMINING YOUR CONTRACT'S VALUE 30
- --------------------------------------------------------------------------------
Your account value and cash value 30
Your contract's value in the variable investment options 30
Your contract's value in the fixed maturity options 30
Termination of your contract 30
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG
INVESTMENT OPTIONS 31
- --------------------------------------------------------------------------------
Transferring your account value 31
Disruptive transfer activity 31
Rebalancing your account value 32
- ----------------------
"We," "our," and "us" refer to AXA Equitable.
When we address the reader of this Prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the contract owner.
When we use the word "contract" it also includes certificates that are issued
under group contracts in some states.
2 Contents of this Prospectus
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 33
- --------------------------------------------------------------------------------
Withdrawing your account value 33
How withdrawals are taken from your account value 34
How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death
benefit 34
Loans under Rollover TSA contracts 34
Surrendering your contract to receive its cash value 35
When to expect payments 35
Your annuity payout options 35
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 38
- --------------------------------------------------------------------------------
Charges that AXA Equitable deducts 38
Charges that the Trusts deduct 39
Group or sponsored arrangements 39
Other distribution arrangements 39
- --------------------------------------------------------------------------------
6. PAYMENT OF DEATH BENEFIT 40
- --------------------------------------------------------------------------------
Your beneficiary and payment of benefit 40
How death benefit payment is made 40
Beneficiary continuation option 41
- --------------------------------------------------------------------------------
7. TAX INFORMATION 42
- --------------------------------------------------------------------------------
Overview 42
Contracts that fund a retirement arrangement 42
Transfers among investment options 42
Taxation of nonqualified annuities 42
Individual retirement arrangements (IRAs) 44
Tax-Sheltered Annuity contracts (TSAs) 53
Federal and state income tax withholding
and information reporting 56
Special rules for contracts funding qualified plans 57
Impact of taxes to AXA Equitable 57
- --------------------------------------------------------------------------------
8. MORE INFORMATION 58
- --------------------------------------------------------------------------------
About Separate Account No. 45 and Separate Account No. 49 58
About the Trusts 58
About our fixed maturity options 58
About the general account 59
About other methods of payment 59
Dates and prices at which contract events occur 60
About your voting rights 60
About legal proceedings 61
About our independent registered public accounting firm 61
Financial statements 61
Transfers of ownership, collateral assignments, loans
and borrowing 61
Distribution of the contracts 61
- --------------------------------------------------------------------------------
9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 64
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed financial information A-1
II -- Purchase considerations for QP contracts B-1
III -- Market value adjustment example C-1
IV -- Guaranteed minimum death benefit example D-1
V -- Hypothetical illustrations E-1
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Contents of this Prospectus 3
Index of key words and phrases
- --------------------------------------------------------------------------------
This index should help you locate more information on the terms used in this
Prospectus.
Page in
Term Prospectus
5% Roll up to age 80 28
12 month dollar cost averaging 25
account value 30
administrative charge 38
Annual ratchet to age 80 28
annuitant 17
annuity maturity date 37
annuity payout options 35
annuity purchase factors 26
automatic investment program 60
baseBUILDER 26
baseBUILDER benefit charge 38
beneficiary 40
Beneficiary Continuation Option ("BCO") 41
benefit base 25
business day 60
cash value 30
charges for state premium and other applicable taxes 38
contract date 9
contract date anniversary 9
contract year 9
contributions to Roth IRAs 50
regular contributions 50
rollovers and direct transfers 50
conversion contributions 51
contributions to traditional IRAs 44
regular contributions 44
rollovers and direct transfers 46
disruptive transfer activity 31
distribution charge 38
EQAccess 6
ERISA 34
fixed maturity options 24
free look 29
general account 59
General dollar cost averaging 25
guaranteed minimum death benefit 28
guaranteed minimum income benefit 26
IRA cover
IRS cover
Page in
Term Prospectus
investment options cover
lifetime required minimum distribution withdrawals 34
loan reserve account 35
loans under Rollover TSA contracts 34
lump sum withdrawals 33
market adjusted amount 24
market timing 31
market value adjustment 24
maturity dates 24
maturity value 24
Mortality and expense risks charge 38
NQ cover
participant 19
Principal assurance allocation 24
portfolio cover
processing office 6
Protection Plus 28
Protection Plus charge 38
QP cover
rate to maturity 24
Rebalancing 32
Rollover IRA cover
Rollover TSA cover
Roth Conversion IRA cover
Roth IRA cover
SAI cover
SEC cover
self-directed allocation 24
Separate Account No. 45 and Separate Account No. 49 58
substantially equal withdrawals 33
Successor owner and annuitant 41
systematic withdrawals 33
TOPS 6
Trusts 58
TSA cover
traditional IRA cover
unit 30
variable investment options 19
wire transmittals and electronic applications 59
To make this Prospectus easier to read, we sometimes use different words than
in the contract or supplemental materials. This is illustrated below. Although
we use different words, they have the same meaning in this Prospectus as in the
contract. Your financial professional can provide further explanation about
your contract or supplemental materials.
- -------------------------------------------------------------------------------------
Prospectus Contract or Supplemental Materials
- -------------------------------------------------------------------------------------
fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts
in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
baseBUILDER Guaranteed Minimum Income Benefit
- -------------------------------------------------------------------------------------
4 Index of key words and phrases
Who is AXA Equitable?
- --------------------------------------------------------------------------------
We are AXA Equitable Life Insurance Company ("AXA Equitable") (previously, The
Equitable Life Assurance Society of the United States), a New York stock life
insurance corporation. We have been doing business since 1859. AXA Equitable is
a subsidiary of AXA Financial, Inc. AXA, a French holding company for an
international group of insurance and related financial services companies, is
the sole shareholder of AXA Financial, Inc. As the sole shareholder, and under
its other arrangements with AXA Equitable and AXA Equitable's parent, AXA
exercises significant influence over the operations and capital structure of
AXA Equitable and its parent. No company other than AXA Equitable, however, has
any legal responsibility to pay amounts that AXA Equitable owes under the
contracts.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$598 billion in assets as of December 31, 2004. For over 100 years AXA
Equitable has been among the largest insurance companies in the United States.
We are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office
is located at 1290 Avenue of the Americas, New York, N.Y. 10104.
Who is AXA Equitable? 5
HOW TO REACH US
You may communicate with our processing office as listed below for the purposes
described. Certain methods of contacting us, such as by telephone or
electronically, may be unavailable or delayed (for example our facsimile
service may not be available at all times and/or we may be unavailable due to
emergency closing). In addition, the level and type of service available may be
restricted based on criteria established by us.
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY REGULAR MAIL
- --------------------------------------------------------------------------------
Accumulator(R) Select(SM)
P.O. Box 13014
Newark, NJ 07188-0014
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY
- --------------------------------------------------------------------------------
Accumulator(R) Select(SM)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY
REGULAR MAIL
- --------------------------------------------------------------------------------
Accumulator(R) Select(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY
EXPRESS DELIVERY
- --------------------------------------------------------------------------------
Accumulator(R) Select(SM)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year and any
calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract year
including notification of eligibility to exercise the guaranteed minimum
income benefit, if applicable.
- --------------------------------------------------------------------------------
TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND
EQACCESS SYSTEMS:
- --------------------------------------------------------------------------------
TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQAccess is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for the fixed maturity options (not available through
EQAccess);
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
available through TOPS).
You can also:
o change your allocation percentages and/or transfer among the investment
options;
o elect to receive certain contract statements electronically;
o change your address (not available through TOPS);
o change your TOPS personal identification number ("PIN") (through TOPS only)
and your EQAccess password (through EQAccess only); and
o access Frequently Asked Questions and Service Forms (not available through
TOPS).
TOPS and EQAccess are normally available seven days a week, 24 hours a day. You
may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our website at www.axaonline.com and
logging in to access your account. All other clients may access EQAccess by
visiting our website at www.axa-equitable.com. Of course, for reasons beyond
our control, these services may sometimes be unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or the Internet are genuine. For example, we will
require certain personal identification information before we will act on
telephone or Internet instructions and we will provide written confirmation of
your transfers. If we do not employ reasonable procedures to confirm the
genuineness of telephone or Internet instructions, we may be liable for any
losses arising out of any act or omission that constitutes negligence, lack of
good faith, or willful misconduct. In light of our procedures, we will not be
liable for following telephone or Internet instructions we reasonably believe
to be genuine.
We reserve the right to limit access to these services if we determine that you
engaged in a disruptive transfer activity, such as "market timing" (see
"Disruptive transfer activity" in "Transferring your money among investment
options" later in this Prospectus).
- --------------------------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVE:
- --------------------------------------------------------------------------------
You may also use our toll-free number (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
6 Who is AXA Equitable?
(2) conversion of a traditional IRA to a Roth Conversion IRA contract;
(3) election of the automatic investment program;
(4) election of the rebalancing program;
(5) requests for loans under Rollover TSA contracts;
(6) spousal consent for loans under Rollover TSA contracts;
(7) requests for withdrawals or surrenders from Rollover TSA contracts;
(8) tax withholding elections;
(9) election of the beneficiary continuation option;
(10) IRA contribution recharacterizations;
(11) certain Section 1035 exchanges;
(12) direct transfers;
(13) exercise of the Guaranteed minimum income benefit; and
(14) death claims.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between investment options;
(4) contract surrender and withdrawal requests;
(5) general dollar cost averaging; and
(6) 12 month dollar cost averaging.
TO CANCEL OR CHANGE ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) automatic investment program;
(2) general dollar cost averaging;
(3) rebalancing;
(4) 12 month dollar cost averaging;
(5) substantially equal withdrawals;
(6) systematic withdrawals; and
(7) the date annuity payments are to begin.
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us to
take.
SIGNATURES:
The proper person to sign forms, notices and requests would normally be the
owner. If there are joint owners all must sign.
Who is AXA Equitable? 7
Accumulator(R) Select(SM) at a glance -- key features
- ------------------------------------------------------------------------------------------------------------------------------------
Professional investment Accumulator(R) Select(SM)'s variable investment options invest in different portfolios managed by
management professional investment advisers.
- ------------------------------------------------------------------------------------------------------------------------------------
Fixed maturity options o 10 fixed maturity options with maturities ranging from approximately 1 to 10 years (subject to
availability).
o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to
maturity.
--------------------------------------------------------------------------------------------------------
If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a
market value adjustment due to differences in interest rates. If you withdraw or transfer only a
portion of a fixed maturity amount, this may increase or decrease any value that you have left in
that fixed maturity option. If you surrender your contract, a market value adjustment also applies.
- ------------------------------------------------------------------------------------------------------------------------------------
Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or
receive annuity payments.
o No tax on transfers among investment options inside the contract.
--------------------------------------------------------------------------------------------------------
Annuity contracts that were purchased as an Individual Retirement Annuity (IRA), do not provide tax
deferral benefits beyond those already provided by the Internal Revenue Code. Before you purchased
your contract, you should have considered its features and benefits beyond tax deferral -- as well
as its features, benefits and costs relative to any other investment that you may have chosen in
connection with your retirement plan or arrangement -- to determine whether it would meet your needs
and goals. Depending on your personal situation, the contract's guaranteed benefits may have limited
usefulness because of required minimum distributions ("RMDs").
- ------------------------------------------------------------------------------------------------------------------------------------
baseBUILDER(R) protection baseBUILDER combines a guaranteed minimum income benefit with the guaranteed minimum death benefit
provided under the contract. The guaranteed minimum income benefit provides income protection for
you during the annuitant's life once you elect to annuitize the contract. The guaranteed minimum
death benefit provides a death benefit for the beneficiary should the annuitant die.
- ------------------------------------------------------------------------------------------------------------------------------------
Contribution amounts o Initial minimum: $25,000
o Additional minimum: $1,000 (NQ, QP and Rollover TSA contracts)
$100 monthly and $300 quarterly under our automatic investment program
(NQ contracts)
$50 IRA contracts
Maximum contribution limitations may apply. In general, contributions are limited to $1.5
million.
- ------------------------------------------------------------------------------------------------------------------------------------
Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Loans under Rollover TSA contracts
o Contract surrender
You may incur income tax and a tax penalty.
- ------------------------------------------------------------------------------------------------------------------------------------
Payout options o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout options
- ------------------------------------------------------------------------------------------------------------------------------------
8 Accumulator(R) Select(SM) at a glance -- key features
- ------------------------------------------------------------------------------------------------------------------------------------
Additional features o Guaranteed minimum death benefit even if you do not elect baseBUILDER
o Dollar cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually and annually)
o Free transfers
o Protection Plus(SM), an optional death benefit available under certain contracts (subject to state
availability)
Fees and charges o Daily charges on amounts invested in the variable investment options for mortality and expense
risks, administrative charges and distribution charges at a current annual rate of 1.60%.
o Annual 0.30% benefit base charge for the optional baseBUILDER benefit until you exercise your
guaranteed minimum income benefit, elect another annuity payout option or the contract date
anniversary after the annuitant reaches age 83, whichever occurs first. The benefit base is
described under "Your benefit base" in "Contract features and benefits" later in this Prospectus.
If you don't elect baseBUILDER, you still receive a guaranteed minimum death benefit under your
contract at no additional charge.
o An annual charge of 0.20% of the account value for the Protection Plus(SM) optional death
benefit.
o No sales charge deducted at the time you make contributions, no withdrawal charge and no annual
contract fee.
----------------------------------------------------------------------------------------------------------
The "contract date" is the effective date of a contract. This usually is the business day we
received the properly completed and signed application, along with any other required documents, and
your initial contribution. Your contract date appears in your contract. The 12-month period
beginning on your contract date and each 12-month period after that date is a "contract year." The
end of each 12-month period is your "contract date anniversary." For example, if your contract date
is May 1, your contract date anniversary is April 30.
----------------------------------------------------------------------------------------------------------
o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as
premium taxes in your state. This charge is generally deducted from the amount applied to an
annuity payout option.
o We deduct a $350 annuity administrative fee from amounts applied to the Variable Immediate
Annuity payout options.
o Annual expenses of the Trust's portfolios are calculated as a percentage of the average daily net
assets invested in each portfolio. These expenses include management fees ranging from 0.10% to
1.20% annually, 12b-1 fees of 0.25% annually and other expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant issue ages NQ: 0-85
Rollover IRA, Roth Conversion
IRA and Rollover TSA: 20-85
QP: 20-75
- ------------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the
contract. In some cases, restrictions or exceptions apply. Also, all features
of the contract are not necessarily available in your state or at certain ages.
For more detailed information, we urge you to read the contents of this
Prospectus, as well as your contract. Please feel free to speak with your
financial professional, or call us, if you have any questions.
Other contracts
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, credits, fees and/or charges that are
different from those in the contracts offered by this Prospectus. Not every
contract is offered through the same distributor. Upon request, your financial
professional can show you information regarding other AXA Equitable annuity
contracts that he or she distributes. You can also contact us to find out more
about any of the AXA Equitable annuity contracts.
Accumulator(R) Select(SM) at a glance -- key features 9
Fee table
- --------------------------------------------------------------------------------
The following tables describe the fees and expenses that you pay when owning
the contract. Each of the charges and expenses is more fully described in
"Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay if you purchase a
Variable Immediate Annuity payout option. Charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your state,
may also apply. Charges for certain features shown in the fee table are
mutually exclusive.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value at the time you request certain transactions
- ------------------------------------------------------------------------------------------------------------------------------------
Charge if you elect a Variable Immediate Annuity payout option $350
- ------------------------------------------------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically during the time that you
own the contract, not including the underlying trust portfolio fees and expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Mortality and expense risks 1.10%
Administrative 0.25%
Distribution 0.25%
----
Total annual expenses 1.60%
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value each year if you elect the optional benefit
- ------------------------------------------------------------------------------------------------------------------------------------
baseBuilder benefit charge (calculated as a percentage of the applicable benefit base.
Deducted annually on each contract date anniversary for which the benefit is in effect.) 0.30%
- ------------------------------------------------------------------------------------------------------------------------------------
Protection Plus(SM) benefit charge (calculated as a percentage of the account value.
Deducted annually on each contract date anniversary for which the benefit is in effect.) 0.20%
- ------------------------------------------------------------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net
asset value each day. Therefore, they reduce the investment return of the
Portfolio and the related variable investment option. Actual fees and expenses
are likely to fluctuate from year to year. More detail concerning each
Portfolio's fees and expenses is contained in the Trust prospectus for the
Portfolio.
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2004 (expenses that are deducted Lowest Highest
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ------ -------
other expenses)(1) 0.55% 7.61%
10 Fee table
This table shows the fees and expenses for 2004 as an annual percentage of each
Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Fee Net Total
Annual Waivers Annual
Underlying Expenses and/or Expenses
Manage- Portfolio (Before Expense After
ment Fees 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name (2) Fees(3) Expenses(4) Expenses(5) Limitation) ments(6) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 0.29% 0.99% 1.63% (0.29)% 1.34%
AXA Conservative Allocation 0.10% 0.25% 0.41% 0.75% 1.51% (0.41)% 1.10%
AXA Conservative-Plus Allocation 0.10% 0.25% 0.30% 0.80% 1.45% (0.30)% 1.15%
AXA Moderate Allocation 0.10% 0.25% 0.16% 0.83% 1.34% (0.16)% 1.18%
AXA Moderate-Plus Allocation 0.10% 0.25% 0.20% 1.02% 1.57% (0.20)% 1.37%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.18% -- 1.05% -- 1.05%
AXA Premier VIP Core Bond 0.60% 0.25% 0.20% -- 1.05% (0.10)% 0.95%
AXA Premier VIP Health Care 1.20% 0.25% 0.40% -- 1.85% 0.00% 1.85%
AXA Premier VIP High Yield 0.58% 0.25% 0.18% -- 1.01% -- 1.01%
AXA Premier VIP International Equity 1.05% 0.25% 0.50% -- 1.80% 0.00% 1.80%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.32% -- 1.47% (0.12)% 1.35%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.26% -- 1.41% (0.06)% 1.35%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.25% -- 1.40% (0.05)% 1.35%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.25% -- 1.60% 0.00% 1.60%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.25% -- 1.60% 0.00% 1.60%
AXA Premier VIP Technology 1.20% 0.25% 0.40% -- 1.85% 0.00% 1.85%
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.47% 0.25% 0.05% -- 0.77% -- 0.77%
EQ/Alliance Growth and Income 0.56% 0.25% 0.05% -- 0.86% -- 0.86%
EQ/Alliance Intermediate Government Securities 0.50% 0.25% 0.06% -- 0.81% -- 0.81%
EQ/Alliance International 0.73% 0.25% 0.12% -- 1.10% 0.00% 1.10%
EQ/Alliance Large Cap Growth* 0.90% 0.25% 0.05% -- 1.20% (0.10)% 1.10%
EQ/Alliance Quality Bond 0.50% 0.25% 0.06% -- 0.81% -- 0.81%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.06% -- 1.06% -- 1.06%
EQ/Bear Stearns Small Company Growth* 1.00% 0.25% 0.18% -- 1.43% (0.13)% 1.30%
EQ/Bernstein Diversified Value 0.63% 0.25% 0.07% -- 0.95% 0.00% 0.95%
EQ/Boston Advisors Equity Income* 0.75% 0.25% 0.21% -- 1.21% (0.16)% 1.05%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.29% -- 1.19% (0.14)% 1.05%
EQ/Capital Guardian Growth 0.65% 0.25% 0.09% -- 0.99% (0.04)% 0.95%
EQ/Capital Guardian International 0.85% 0.25% 0.17% -- 1.27% (0.07)% 1.20%
EQ/Capital Guardian Research 0.65% 0.25% 0.05% -- 0.95% 0.00% 0.95%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.05% -- 0.95% 0.00% 0.95%
EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.12% -- 0.97% (0.12)% 0.85%
EQ/Equity 500 Index 0.25% 0.25% 0.05% -- 0.55% -- 0.55%
EQ/Evergreen Omega 0.65% 0.25% 0.11% -- 1.01% (0.06)% 0.95%
EQ/FI Mid Cap 0.70% 0.25% 0.06% -- 1.01% (0.01)% 1.00%
EQ/FI Small/Mid Cap Value 0.74% 0.25% 0.08% -- 1.07% 0.00% 1.07%
EQ/International Growth 0.85% 0.25% 0.22% -- 1.32% 0.00% 1.32%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.06% -- 0.75% 0.00% 0.75%
EQ/JP Morgan Value Opportunities 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.08% -- 1.23% (0.08)% 1.15%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.05% -- 1.05% 0.00% 1.05%
EQ/Long Term Bond 0.50% 0.25% 0.25% -- 1.00% 0.00% 1.00%
EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.19% -- 1.14% (0.09)% 1.05%
EQ/Marsico Focus 0.88% 0.25% 0.06% -- 1.19% (0.04)% 1.15%
EQ/Mercury Basic Value Equity 0.58% 0.25% 0.05% -- 0.88% 0.00% 0.88%
EQ/Mercury International Value 0.85% 0.25% 0.15% -- 1.25% 0.00% 1.25%
EQ/Mergers and Acquisitions 0.90% 0.25% 1.21% -- 2.36% (0.91)% 1.45%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.06% -- 0.96% -- 0.96%
EQ/MFS Investors Trust 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Money Market 0.34% 0.25% 0.05% -- 0.64% -- 0.64%
EQ/Montag & Caldwell Growth* 0.75% 0.25% 0.12% -- 1.12% 0.00% 1.12%
EQ/PIMCO Real Return 0.55% 0.25% 0.20% -- 1.00% (0.35)% 0.65%
- ------------------------------------------------------------------------------------------------------------------------------------
Fee table 11
- ---------------------------------------------------------------------------------------------------------------------------------
Total Fee Net Total
Annual Waivers Annual
Underlying Expenses and/or Expenses
Manage- Portfolio (Before Expense After
ment Fees 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name (2) Fees(3) Expenses(4) Expenses(5) Limitation) ments(6) Limitations
- ---------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Short Duration Bond 0.45% 0.25% 0.52% -- 1.22% (0.57)% 0.65%
EQ/Small Company Index 0.25% 0.25% 0.13% -- 0.63% 0.00% 0.63%
EQ/Small Company Value* 0.80% 0.25% 0.12% -- 1.17% 0.00% 1.17%
EQ/TCW Equity* 0.80% 0.25% 0.12% -- 1.17% (0.02)% 1.15%
EQ/UBS Growth and Income* 0.75% 0.25% 0.16% -- 1.16% (0.11)% 1.05%
EQ/Van Kampen Comstock 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Van Kampen Emerging Markets Equity* 1.15% 0.25% 0.40% -- 1.80% 0.00% 1.80%
EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.19% -- 1.14% (0.09)% 1.05%
EQ/Wells Fargo Montgomery Small Cap 0.85% 0.25% 6.51% -- 7.61% (6.33)% 1.28%
- ---------------------------------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject to
regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former name.
Notes:
(1) "Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2004 and for the
underlying portfolios.
(2) The management fees for each Portfolio cannot be increased without a vote
of that Portfolio's shareholders. See footnote (6) for any expense
limitation agreement information.
(3) Portfolio shares are all subject to fees imposed under the distribution
plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1
under the Investment Company Act of 1940. The 12b-1 fee will not be
increased for the life of the contracts.
(4) Other expenses shown are those incurred in 2004. The amounts shown as
"Other Expenses" will fluctuate from year to year depending on actual
expenses. See footnote (6) for any expense limitation agreement
information.
(5) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests shares of other port folio of the EQ Advisors Trust and AXA
Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolio's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocations
as of 12/31/04. A "--" indicates that the listed portfolio does not invest
in underlying portfolios, i.e., it is not an allocation portfolio.
(6) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A "--" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver or reimbursement. AXA Equitable,
the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has
entered into Expense Limitation Agreements with respect to certain
Portfolios, which are effective through April 30, 2006. Under these
agreements AXA Equitable has agreed to waive or limit its fees and assume
other expenses of certain Portfolios, if necessary, in an amount that
limits each affected Portfolio's total Annual Expenses (exclusive of
interest, taxes, brokerage commissions, capitalized expenditures and
extraordinary expenses) to not more than specified amounts. Each Portfolio
may at a later date make a reimbursement to AXA Equitable for any of the
management fees waived or limited and other expenses assumed and paid by
AXA Equitable pursuant to the expense limitation agreement provided that
the Portfolio's current annual operating expenses do not exceed the
operating expense limit determined for such Portfolio. See the Prospectus
for each applicable underlying Trust for more information about the
arrangements. In addition, a portion of the brokerage commissions of
certain portfolios of EQ Advisors Trust Portfolio and AXA Premier VIP Trust
Portfolio is used to reduce the applicable Portfolio's expenses. If the
above table reflected both the expense limitation arrangements plus the
portion of the brokerage commissions used to reduce portfolio expenses, the
net expenses would be as shown in the table below:
- --------------------------------------------------------
Portfolio Name
- --------------------------------------------------------
AXA Moderate Allocation 1.17%
AXA Premier VIP Aggressive Equity 0.93%
AXA Premier VIP Health Care 1.81%
AXA Premier VIP International Equity 1.75%
AXA Premier VIP Large Cap Core Equity 1.32%
AXA Premier VIP Large Cap Growth 1.30%
AXA Premier VIP Large Cap Value 1.21%
AXA Premier VIP Small/Mid Cap Growth 1.50%
AXA Premier VIP Small/Mid Cap Value 1.54%
AXA Premier VIP Technology 1.75%
EQ/Alliance Common Stock 0.68%
EQ/Alliance Growth and Income 0.80%
EQ/Alliance International 1.08%
EQ/Alliance Large Cap Growth 1.04%
EQ/Alliance Small Cap Growth 0.98%
EQ/Calvert Socially Responsible 1.00%
EQ/Capital Guardian Growth 0.67%
EQ/Capital Guardian International 1.17%
EQ/Capital Guardian Research 0.90%
EQ/Capital Guardian U.S. Equity 0.93%
EQ/Evergreen Omega 0.57%
EQ/FI Mid Cap 0.96%
EQ/FI Small/Mid Cap Value 1.05%
EQ/JP Morgan Value Opportunities 0.76%
EQ/Lazard Small Cap Value 0.86%
EQ/Marsico Focus 1.12%
- --------------------------------------------------------
12 Fee table
- --------------------------------------------------------
Portfolio Name
- --------------------------------------------------------
EQ/Mercury Basic Value Equity 0.86%
EQ/Mercury International Value 1.18%
EQ/MFS Emerging Growth Companies 0.91%
EQ/MFS Investors Trust 0.91%
EQ/Small Company Value 1.16%
EQ/TCW Equity 1.14%
EQ/Van Kampen Emerging Markets Equity 1.75%
EQ/Wells Fargo Montgomery Small Cap 1.26%
- --------------------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses).
The example below shows the expenses that a hypothetical contract owner (who
has elected baseBUILDER and Protection Plus(SM)) would pay in the situations
illustrated. Since the Protection Plus(SM) feature only applies under certain
contracts, expenses would be lower for contracts that do not have Protection
Plus(SM).
The fixed maturity options and the 12 month dollar cost averaging program are
not covered by the example. However, the withdrawal charge, the charge for any
optional benefits and the charge if you elect a Variable Immediate Annuity
payout option do apply to amounts in the fixed maturity options. A market value
adjustment (up or down) may apply as a result of a withdrawal, transfer, or
surrender of amounts from a fixed maturity option.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes that your investment has a 5%
return each year. This example should not be considered a representation of
past or future expenses for each option. Actual expenses may be greater or less
than those shown. Similarly, the annual rate of return assumed in the example
is not an estimate or guarantee of future investment performance. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
Fee table 13
- -----------------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of the applicable time period
Portfolio Name 1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 391.65 $ 1,191.46 $ 2,013.79 $ 4,172.40
AXA Conservative Allocation $ 379.05 $ 1,154.57 $ 1,953.92 $ 4,061.40
AXA Conservative-Plus Allocation $ 372.75 $ 1,136.10 $ 1,923.87 $ 4,005.38
AXA Moderate Allocation $ 360.99 $ 1,101.54 $ 1,867.56 $ 3,899.86
AXA Moderate-Plus Allocation $ 385.35 $ 1,173.03 $ 1,983.90 $ 4,117.07
AXA Premier VIP Aggressive Equity $ 330.75 $ 1,012.30 $ 1,721.49 $ 3,622.86
AXA Premier VIP Core Bond $ 330.75 $ 1,012.30 $ 1,721.49 $ 3,622.86
AXA Premier VIP Health Care $ 414.75 $ 1,258.83 $ 2,122.74 $ 4,372.32
AXA Premier VIP High Yield $ 326.55 $ 999.87 $ 1,701.06 $ 3,583.73
AXA Premier VIP International Equity $ 409.50 $ 1,243.55 $ 2,098.07 $ 4,327.29
AXA Premier VIP Large Cap Core Equity $ 374.85 $ 1,142.26 $ 1,933.90 $ 4,024.09
AXA Premier VIP Large Cap Growth $ 368.55 $ 1,123.76 $ 1,903.79 $ 3,967.83
AXA Premier VIP Large Cap Value $ 367.50 $ 1,120.68 $ 1,898.77 $ 3,958.42
AXA Premier VIP Small/Mid Cap Growth $ 388.50 $ 1,182.25 $ 1,998.86 $ 4,144.78
AXA Premier VIP Small/Mid Cap Value $ 388.50 $ 1,182.25 $ 1,998.86 $ 4,144.78
AXA Premier VIP Technology $ 414.75 $ 1,258.83 $ 2,122.74 $ 4,372.32
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 301.35 $ 925.02 $ 1,577.72 $ 3,345.55
EQ/Alliance Growth and Income $ 310.80 $ 953.13 $ 1,624.12 $ 3,435.56
EQ/Alliance Intermediate Government Securities $ 305.55 $ 937.52 $ 1,598.37 $ 3,385.66
EQ/Alliance International $ 336.00 $ 1,027.83 $ 1,746.98 $ 3,671.55
EQ/Alliance Large Cap Growth* $ 346.50 $ 1,058.85 $ 1,797.80 $ 3,768.16
EQ/Alliance Quality Bond $ 305.55 $ 937.52 $ 1,598.37 $ 3,385.66
EQ/Alliance Small Cap Growth $ 331.80 $ 1,015.41 $ 1,726.60 $ 3,632.62
EQ/Bear Stearns Small Company Growth* $ 370.65 $ 1,129.93 $ 1,913.84 $ 3,986.62
EQ/Bernstein Diversified Value $ 320.25 $ 981.19 $ 1,670.35 $ 3,524.74
EQ/Boston Advisors Equity Income* $ 347.55 $ 1,061.95 $ 1,802.87 $ 3,777.77
EQ/Calvert Socially Responsible $ 345.45 $ 1,055.75 $ 1,792.73 $ 3,758.55
EQ/Capital Guardian Growth $ 324.45 $ 993.64 $ 1,690.83 $ 3,564.11
EQ/Capital Guardian International $ 353.85 $ 1,080.52 $ 1,833.24 $ 3,835.20
EQ/Capital Guardian Research $ 320.25 $ 981.19 $ 1,670.35 $ 3,524.74
EQ/Capital Guardian U.S. Equity $ 320.25 $ 981.19 $ 1,670.35 $ 3,524.74
EQ/Caywood-Scholl High Yield Bond $ 322.35 $ 987.42 $ 1,680.59 $ 3,544.44
EQ/Equity 500 Index $ 278.25 $ 856.07 $ 1,463.52 $ 3,121.99
EQ/Evergreen Omega $ 326.55 $ 999.87 $ 1,701.06 $ 3,583.73
EQ/FI Mid Cap $ 326.55 $ 999.87 $ 1,701.06 $ 3,583.73
EQ/FI Small/Mid Cap Value $ 332.85 $ 1,018.52 $ 1,731.70 $ 3,642.37
EQ/International Growth $ 359.10 $ 1,095.98 $ 1,858.49 $ 3,882.79
EQ/J.P. Morgan Core Bond $ 299.25 $ 918.76 $ 1,567.38 $ 3,325.43
EQ/JP Morgan Value Opportunities $ 320.25 $ 981.19 $ 1,670.35 $ 3,524.74
EQ/Janus Large Cap Growth $ 349.65 $ 1,068.14 $ 1,813.00 $ 3,796.95
EQ/Lazard Small Cap Value $ 330.75 $ 1,012.30 $ 1,721.49 $ 3,622.86
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
If you annuitize at the end
of the applicable time period
- -----------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 741.65 $ 1,541.46 $ 2,363.79 $ 4,522.40
AXA Conservative Allocation $ 729.05 $ 1,504.57 $ 2,303.92 $ 4,411.40
AXA Conservative-Plus Allocation $ 722.75 $ 1,486.10 $ 2,273.87 $ 4,355.38
AXA Moderate Allocation $ 710.99 $ 1,451.54 $ 2,217.56 $ 4,249.86
AXA Moderate-Plus Allocation $ 735.35 $ 1,523.03 $ 2,333.90 $ 4,467.07
AXA Premier VIP Aggressive Equity $ 680.75 $ 1,362.30 $ 2,071.49 $ 3,972.86
AXA Premier VIP Core Bond $ 680.75 $ 1,362.30 $ 2,071.49 $ 3,972.86
AXA Premier VIP Health Care $ 764.75 $ 1,608.83 $ 2,472.74 $ 4,722.32
AXA Premier VIP High Yield $ 676.55 $ 1,349.87 $ 2,051.06 $ 3,933.73
AXA Premier VIP International Equity $ 759.50 $ 1,593.55 $ 2,448.07 $ 4,677.29
AXA Premier VIP Large Cap Core Equity $ 724.85 $ 1,492.26 $ 2,283.90 $ 4,374.09
AXA Premier VIP Large Cap Growth $ 718.55 $ 1,473.76 $ 2,253.79 $ 4,317.83
AXA Premier VIP Large Cap Value $ 717.50 $ 1,470.68 $ 2,248.77 $ 4,308.42
AXA Premier VIP Small/Mid Cap Growth $ 738.50 $ 1,532.25 $ 2,348.86 $ 4,494.78
AXA Premier VIP Small/Mid Cap Value $ 738.50 $ 1,532.25 $ 2,348.86 $ 4,494.78
AXA Premier VIP Technology $ 764.75 $ 1,608.83 $ 2,472.74 $ 4,722.32
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 651.35 $ 1,275.02 $ 1,927.72 $ 3,695.55
EQ/Alliance Growth and Income $ 660.80 $ 1,303.13 $ 1,974.12 $ 3,785.56
EQ/Alliance Intermediate Government Securities $ 655.55 $ 1,287.52 $ 1,948.37 $ 3,735.66
EQ/Alliance International $ 686.00 $ 1,377.83 $ 2,096.98 $ 4,021.55
EQ/Alliance Large Cap Growth* $ 696.50 $ 1,408.85 $ 2,147.80 $ 4,118.16
EQ/Alliance Quality Bond $ 655.55 $ 1,287.52 $ 1,948.37 $ 3,735.66
EQ/Alliance Small Cap Growth $ 681.80 $ 1,365.41 $ 2,076.60 $ 3,982.62
EQ/Bear Stearns Small Company Growth* $ 720.65 $ 1,479.93 $ 2,263.84 $ 4,336.62
EQ/Bernstein Diversified Value $ 670.25 $ 1,331.19 $ 2,020.35 $ 3,874.74
EQ/Boston Advisors Equity Income* $ 697.55 $ 1,411.95 $ 2,152.87 $ 4,127.77
EQ/Calvert Socially Responsible $ 695.45 $ 1,405.75 $ 2,142.73 $ 4,108.55
EQ/Capital Guardian Growth $ 674.45 $ 1,343.64 $ 2,040.83 $ 3,914.11
EQ/Capital Guardian International $ 703.85 $ 1,430.52 $ 2,183.24 $ 4,185.20
EQ/Capital Guardian Research $ 670.25 $ 1,331.19 $ 2,020.35 $ 3,874.74
EQ/Capital Guardian U.S. Equity $ 670.25 $ 1,331.19 $ 2,020.35 $ 3,874.74
EQ/Caywood-Scholl High Yield Bond $ 672.35 $ 1,337.42 $ 2,030.59 $ 3,894.44
EQ/Equity 500 Index $ 628.25 $ 1,206.07 $ 1,813.52 $ 3,471.99
EQ/Evergreen Omega $ 676.55 $ 1,349.87 $ 2,051.06 $ 3,933.73
EQ/FI Mid Cap $ 676.55 $ 1,349.87 $ 2,051.06 $ 3,933.73
EQ/FI Small/Mid Cap Value $ 682.85 $ 1,368.52 $ 2,081.70 $ 3,992.37
EQ/International Growth $ 709.10 $ 1,445.98 $ 2,208.49 $ 4,232.79
EQ/J.P. Morgan Core Bond $ 649.25 $ 1,268.76 $ 1,917.38 $ 3,675.43
EQ/JP Morgan Value Opportunities $ 670.25 $ 1,331.19 $ 2,020.35 $ 3,874.74
EQ/Janus Large Cap Growth $ 699.65 $ 1,418.14 $ 2,163.00 $ 4,146.95
EQ/Lazard Small Cap Value $ 680.75 $ 1,362.30 $ 2,071.49 $ 3,972.86
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end
of the applicable time period
Portfolio Name 1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 391.65 $ 1,191.46 $ 2,013.79 $ 4,172.40
AXA Conservative Allocation $ 379.05 $ 1,154.57 $ 1,953.92 $ 4,061.40
AXA Conservative-Plus Allocation $ 372.75 $ 1,136.10 $ 1,923.87 $ 4,005.38
AXA Moderate Allocation $ 360.99 $ 1,101.54 $ 1,867.56 $ 3,899.86
AXA Moderate-Plus Allocation $ 385.35 $ 1,173.03 $ 1,983.90 $ 4,117.07
AXA Premier VIP Aggressive Equity $ 330.75 $ 1,012.30 $ 1,721.49 $ 3,622.86
AXA Premier VIP Core Bond $ 330.75 $ 1,012.30 $ 1,721.49 $ 3,622.86
AXA Premier VIP Health Care $ 414.75 $ 1,258.83 $ 2,122.74 $ 4,372.32
AXA Premier VIP High Yield $ 326.55 $ 999.87 $ 1,701.06 $ 3,583.73
AXA Premier VIP International Equity $ 409.50 $ 1,243.55 $ 2,098.07 $ 4,327.29
AXA Premier VIP Large Cap Core Equity $ 374.85 $ 1,142.26 $ 1,933.90 $ 4,024.09
AXA Premier VIP Large Cap Growth $ 368.55 $ 1,123.76 $ 1,903.79 $ 3,967.83
AXA Premier VIP Large Cap Value $ 367.50 $ 1,120.68 $ 1,898.77 $ 3,958.42
AXA Premier VIP Small/Mid Cap Growth $ 388.50 $ 1,182.25 $ 1,998.86 $ 4,144.78
AXA Premier VIP Small/Mid Cap Value $ 388.50 $ 1,182.25 $ 1,998.86 $ 4,144.78
AXA Premier VIP Technology $ 414.75 $ 1,258.83 $ 2,122.74 $ 4,372.32
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 301.35 $ 925.02 $ 1,577.72 $ 3,345.55
EQ/Alliance Growth and Income $ 310.80 $ 953.13 $ 1,624.12 $ 3,435.56
EQ/Alliance Intermediate Government Securities $ 305.55 $ 937.52 $ 1,598.37 $ 3,385.66
EQ/Alliance International $ 336.00 $ 1,027.83 $ 1,746.98 $ 3,671.55
EQ/Alliance Large Cap Growth* $ 346.50 $ 1,058.85 $ 1,797.80 $ 3,768.16
EQ/Alliance Quality Bond $ 305.55 $ 937.52 $ 1,598.37 $ 3,385.66
EQ/Alliance Small Cap Growth $ 331.80 $ 1,015.41 $ 1,726.60 $ 3,632.62
EQ/Bear Stearns Small Company Growth* $ 370.65 $ 1,129.93 $ 1,913.84 $ 3,986.62
EQ/Bernstein Diversified Value $ 320.25 $ 981.19 $ 1,670.35 $ 3,524.74
EQ/Boston Advisors Equity Income* $ 347.55 $ 1,061.95 $ 1,802.87 $ 3,777.77
EQ/Calvert Socially Responsible $ 345.45 $ 1,055.75 $ 1,792.73 $ 3,758.55
EQ/Capital Guardian Growth $ 324.45 $ 993.64 $ 1,690.83 $ 3,564.11
EQ/Capital Guardian International $ 353.85 $ 1,080.52 $ 1,833.24 $ 3,835.20
EQ/Capital Guardian Research $ 320.25 $ 981.19 $ 1,670.35 $ 3,524.74
EQ/Capital Guardian U.S. Equity $ 320.25 $ 981.19 $ 1,670.35 $ 3,524.74
EQ/Caywood-Scholl High Yield Bond $ 322.35 $ 987.42 $ 1,680.59 $ 3,544.44
EQ/Equity 500 Index $ 278.25 $ 856.07 $ 1,463.52 $ 3,121.99
EQ/Evergreen Omega $ 326.55 $ 999.87 $ 1,701.06 $ 3,583.73
EQ/FI Mid Cap $ 326.55 $ 999.87 $ 1,701.06 $ 3,583.73
EQ/FI Small/Mid Cap Value $ 332.85 $ 1,018.52 $ 1,731.70 $ 3,642.37
EQ/International Growth $ 359.10 $ 1,095.98 $ 1,858.49 $ 3,882.79
EQ/J.P. Morgan Core Bond $ 299.25 $ 918.76 $ 1,567.38 $ 3,325.43
EQ/JP Morgan Value Opportunities $ 320.25 $ 981.19 $ 1,670.35 $ 3,524.74
EQ/Janus Large Cap Growth $ 349.65 $ 1,068.14 $ 1,813.00 $ 3,796.95
EQ/Lazard Small Cap Value $ 330.75 $ 1,012.30 $ 1,721.49 $ 3,622.86
- -----------------------------------------------------------------------------------------------------------
14 Fee table
- -----------------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of the applicable time period
Portfolio Name 1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 325.50 $ 996.75 $ 1,695.95 $ 3,573.93
EQ/Lord Abbett Growth and Income $ 334.95 $ 1,024.73 $ 1,741.89 $ 3,661.83
EQ/Lord Abbett Large Cap Core $ 334.95 $ 1,024.73 $ 1,741.89 $ 3,661.83
EQ/Lord Abbett Mid Cap Value $ 340.20 $ 1,040.25 $ 1,767.34 $ 3,710.31
EQ/Marsico Focus $ 345.45 $ 1,055.75 $ 1,792.73 $ 3,758.55
EQ/Mercury Basic Value Equity $ 312.90 $ 959.37 $ 1,634.41 $ 3,455.45
EQ/Mercury International Value $ 351.75 $ 1,074.33 $ 1,823.12 $ 3,816.10
EQ/Mergers and Acquisitions $ 468.30 $ 1,413.80 $ 2,371.28 $ 4,818.45
EQ/MFS Emerging Growth Companies $ 321.30 $ 984.30 $ 1,675.47 $ 3,534.60
EQ/MFS Investors Trust $ 320.25 $ 981.19 $ 1,670.35 $ 3,524.74
EQ/Money Market $ 287.70 $ 884.31 $ 1,510.37 $ 3,214.06
EQ/Montag & Caldwell Growth* $ 338.10 $ 1,034.04 $ 1,757.17 $ 3,690.95
EQ/PIMCO Real Return $ 325.50 $ 996.75 $ 1,695.95 $ 3,573.93
EQ/Short Duration Bond $ 348.60 $ 1,065.04 $ 1,807.94 $ 3,787.37
EQ/Small Company Index $ 286.65 $ 881.18 $ 1,505.18 $ 3,203.87
EQ/Small Company Value* $ 343.35 $ 1,049.55 $ 1,782.58 $ 3,739.28
EQ/TCW Equity* $ 343.35 $ 1,049.55 $ 1,782.58 $ 3,739.28
EQ/UBS Growth and Income* $ 342.30 $ 1,046.45 $ 1,777.50 $ 3,729.64
EQ/Van Kampen Comstock $ 334.95 $ 1,024.73 $ 1,741.89 $ 3,661.83
EQ/Van Kampen Emerging Markets Equity* $ 409.50 $ 1,243.55 $ 2,098.07 $ 4,327.29
EQ/Van Kampen Mid Cap Growth $ 340.20 $ 1,040.25 $ 1,767.34 $ 3,710.31
EQ/Wells Fargo Montgomery Small Cap $ 1,019.55 $ 2,911.80 $ 4,623.86 $ 8,224.27
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
If you annuitize at the end
of the applicable time period
- -----------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 675.50 $ 1,346.75 $ 2,045.95 $ 3,923.93
EQ/Lord Abbett Growth and Income $ 684.95 $ 1,374.73 $ 2,091.89 $ 4,011.83
EQ/Lord Abbett Large Cap Core $ 684.95 $ 1,374.73 $ 2,091.89 $ 4,011.83
EQ/Lord Abbett Mid Cap Value $ 690.20 $ 1,390.25 $ 2,117.34 $ 4,060.31
EQ/Marsico Focus $ 695.45 $ 1,405.75 $ 2,142.73 $ 4,108.55
EQ/Mercury Basic Value Equity $ 662.90 $ 1,309.37 $ 1,984.41 $ 3,805.45
EQ/Mercury International Value $ 701.75 $ 1,424.33 $ 2,173.12 $ 4,166.10
EQ/Mergers and Acquisitions $ 818.30 $ 1,763.80 $ 2,721.28 $ 5,168.45
EQ/MFS Emerging Growth Companies $ 671.30 $ 1,334.30 $ 2,025.47 $ 3,884.60
EQ/MFS Investors Trust $ 670.25 $ 1,331.19 $ 2,020.35 $ 3,874.74
EQ/Money Market $ 637.70 $ 1,234.31 $ 1,860.37 $ 3,564.06
EQ/Montag & Caldwell Growth* $ 688.10 $ 1,384.04 $ 2,107.17 $ 4,040.95
EQ/PIMCO Real Return $ 675.50 $ 1,346.75 $ 2,045.95 $ 3,923.93
EQ/Short Duration Bond $ 698.60 $ 1,415.04 $ 2,157.94 $ 4,137.37
EQ/Small Company Index $ 636.65 $ 1,231.18 $ 1,855.18 $ 3,553.87
EQ/Small Company Value* $ 693.35 $ 1,399.55 $ 2,132.58 $ 4,089.28
EQ/TCW Equity* $ 693.35 $ 1,399.55 $ 2,132.58 $ 4,089.28
EQ/UBS Growth and Income* $ 692.30 $ 1,396.45 $ 2,127.50 $ 4,079.64
EQ/Van Kampen Comstock $ 684.95 $ 1,374.73 $ 2,091.89 $ 4,011.83
EQ/Van Kampen Emerging Markets Equity* $ 759.50 $ 1,593.55 $ 2,448.07 $ 4,677.29
EQ/Van Kampen Mid Cap Growth $ 690.20 $ 1,390.25 $ 2,117.34 $ 4,060.31
EQ/Wells Fargo Montgomery Small Cap $ 1,369.55 $ 3,261.80 $ 4,973.86 $ 8,574.27
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end of the
applicable time period
Portfolio Name 1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 325.50 $ 996.75 $ 1,695.95 $ 3,573.93
EQ/Lord Abbett Growth and Income $ 334.95 $ 1,024.73 $ 1,741.89 $ 3,661.83
EQ/Lord Abbett Large Cap Core $ 334.95 $ 1,024.73 $ 1,741.89 $ 3,661.83
EQ/Lord Abbett Mid Cap Value $ 340.20 $ 1,040.25 $ 1,767.34 $ 3,710.31
EQ/Marsico Focus $ 345.45 $ 1,055.75 $ 1,792.73 $ 3,758.55
EQ/Mercury Basic Value Equity $ 312.90 $ 959.37 $ 1,634.41 $ 3,455.45
EQ/Mercury International Value $ 351.75 $ 1,074.33 $ 1,823.12 $ 3,816.10
EQ/Mergers and Acquisitions $ 468.30 $ 1,413.80 $ 2,371.28 $ 4,818.45
EQ/MFS Emerging Growth Companies $ 321.30 $ 984.30 $ 1,675.47 $ 3,534.60
EQ/MFS Investors Trust $ 320.25 $ 981.19 $ 1,670.35 $ 3,524.74
EQ/Money Market $ 287.70 $ 884.31 $ 1,510.37 $ 3,214.06
EQ/Montag & Caldwell Growth* $ 338.10 $ 1,034.04 $ 1,757.17 $ 3,690.95
EQ/PIMCO Real Return $ 325.50 $ 996.75 $ 1,695.95 $ 3,573.93
EQ/Short Duration Bond $ 348.60 $ 1,065.04 $ 1,807.94 $ 3,787.37
EQ/Small Company Index $ 286.65 $ 881.18 $ 1,505.18 $ 3,203.87
EQ/Small Company Value* $ 343.35 $ 1,049.55 $ 1,782.58 $ 3,739.28
EQ/TCW Equity* $ 343.35 $ 1,049.55 $ 1,782.58 $ 3,739.28
EQ/UBS Growth and Income* $ 342.30 $ 1,046.45 $ 1,777.50 $ 3,729.64
EQ/Van Kampen Comstock $ 334.95 $ 1,024.73 $ 1,741.89 $ 3,661.83
EQ/Van Kampen Emerging Markets Equity* $ 409.50 $ 1,243.55 $ 2,098.07 $ 4,327.29
EQ/Van Kampen Mid Cap Growth $ 340.20 $ 1,040.25 $ 1,767.34 $ 3,710.31
EQ/Wells Fargo Montgomery Small Cap $ 1,019.55 $ 2,911.80 $ 4,623.86 $ 8,224.27
- -----------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject to
regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former name.
Fee table 15
CONDENSED FINANCIAL INFORMATION
Please see Appendix I at the end of this Prospectus for the unit values and the
number of units outstanding as of the end of the periods shown for each of the
variable investment options available as of December 31, 2004.
16 Fee table
1. Contract features and benefits
- --------------------------------------------------------------------------------
HOW YOU CAN CONTRIBUTE TO YOUR CONTRACT
You may make additional contributions of at least $1,000 each for NQ, QP and
Rollover TSA contracts and $50 for Rollover IRA and Roth Conversion IRA
contracts, subject to limitations noted below. The following table summarizes
our rules regarding contributions to your contract. All ages in the table refer
to the age of the annuitant named in the contract. Initial contribution amounts
are provided for informational purposes only. This contract is no longer
available to new purchasers.
We may refuse to accept any contribution if the sum of all contributions under
all Accumulator(R) series(SM) contracts with the same annuitant would then total
more than $1,500,000. We reserve the right to limit aggregate contributions
made after the first contract year to 150% of first-year contributions. We may
also refuse to accept any contribution if the sum of all contributions under
all AXA Equitable annuity accumulation contracts that you own would then total
more than $2,500,000.
- --------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining
contract benefits. The annuitant is not necessarily the contract owner.
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant Limitations on
Contract type issue ages Source of contributions contributions
- ------------------------------------------------------------------------------------------------------------------------------------
NQ 0 through 85 o After-tax money. o No additional contributions may be made
after attainment of age 86, or, if later, the
o Paid to us by check or transfer of contract first contract anniversary.
value in a tax-deferred exchange under
Section 1035 of the Internal Revenue Code.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover IRA 20 through 85 o Eligible rollover distributions from TSA con- o No rollover or direct transfer contributions
tracts or other 403(b) arrangements, after attainment of age 86, or, if later, the
qualified plans, and governmental employer first contract anniversary.
457(b) plans.
o Contributions after age 70-1/2 must be net of
o Rollovers from another traditional individual required minimum distributions.
retirement arrangement.
o Although we accept regular IRA contribu-
o Direct custodian-to-custodian transfers from tions (limited to $4,000 for 2005; same for
another traditional individual retirement 2006) under Rollover IRA contracts, we
arrangement. intend that this contract be used primarily for
rollover and direct transfer contributions.
o Regular IRA contributions.
o Additional catch-up contributions of up to
o Additional "catch-up" contributions. $500 can be made for the calendar year
2005 ($1,000 for 2006) where the owner is
at least age 50 but under age 70-1/2 at any
time during the calendar year for which the
contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 17
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant Limitations on
Contract type issue ages Source of contributions contributions
- ------------------------------------------------------------------------------------------------------------------------------------
Roth Conversion 20 through 85 o Rollovers from another Roth IRA. o No additional rollover or direct transfer
IRA contributions may be made after attainment of
o Conversion rollovers from a traditional IRA. age 86 or, if later, the first contract
anniversary.
o Direct transfers from another Roth IRA.
o Conversion rollovers after age 70-1/2 must be
o Regular Roth IRA contributions. net of required minimum distributions for the
traditional IRA you are rolling over.
o Additional catch-up contributions.
o You cannot roll over funds from a traditional
IRA if your adjusted gross income is
$100,000 or more.
o Although we accept regular Roth IRA contri-
butions (limited to $4,000 for 2005; same
for 2006) under Roth IRA contracts, we intend
that this contract be used primarily for
rollover and direct transfer contributions.
o Additional catch-up contributions of up to
$500 can be made for the calendar year
2005 ($1,000 for 2006) where the owner is
at least age 50 at any time during the calen-
dar year for which the contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover TSA 20 through 85 o Direct transfers of pre-tax funds from o No additional rollover or direct transfer con
another contract or arrangement under contributions may be made after attainment of
Section 403(b) of the Internal Revenue age 86 or, if later, the first contract
Code, complying with IRS Revenue Ruling anniversary.
90-24.
o Rollover or direct transfer contributions
o Eligible rollover distributions of pre-tax after age 70-1/2 must be net of any required
funds from other 403(b) plans. Subsequent minimum distributions.
contributions may also be rollovers from
qualified plans, governmental employer o We do not accept employer-remitted contri-
457(b) plans and traditional IRAs. butions.
- ------------------------------------------------------------------------------------------------------------------------------------
QP 20 through 75 o Only transfer contributions from an existing o We do not accept regular ongoing payroll
defined contribution qualified plan trust. contributions.
o The plan must be qualified under Section o Only one additional transfer contribution
401(a) of the Internal Revenue Code. may be made during a contract year.
o For 401(k) plans, transferred contributions o No additional transfer contributions may be
may only include employee pre-tax made after attainment of age 76 or, if later,
contributions. the first contract anniversary.
o Contributions after age 70-1/2 must be net of
any required minimum distributions.
o A separate QP contract must be established
for each plan participant.
o We do not accept employer-remitted
contributions.
o We do not accept contributions from defined
benefit plans.
Please refer to Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts.
- ------------------------------------------------------------------------------------------------------------------------------------
See "Tax information" later in this Prospectus for a more detailed discussion
of sources of contributions and certain contribution limitations.
For information on when contributions are credited under your contract see
"Dates and prices at which contract events occur" in "More information" later
in this Prospectus.
18 Contract features and benefits
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from the owner. We do not
permit partnerships or limited liability corporations to be owners. We also
reserve the right to prohibit availability of this contract to other
non-natural owners. Only natural persons can be joint owners. In general we
will not permit a contract to be owned by a minor unless it is pursuant to the
Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act in your
state.
Under all IRA and Rollover TSA contracts, the owner and annuitant must be the
same person. In some cases, an IRA contract may be held in a custodial
individual retirement account for the benefit of the individual annuitant. This
option may not be available under your contract.
Under QP contracts, the owner must be the trustee of the qualified plan and the
annuitant must be the plan participant/employee. See Appendix II at the end of
this Prospectus for more information on QP contracts.
- --------------------------------------------------------------------------------
A "participant" is an individual who is currently, or was formerly,
participating in an eligible employer's qualified plan or TSA plan.
- --------------------------------------------------------------------------------
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be by check drawn on a U.S. bank, in
U.S. dollars, and made payable to AXA Equitable. We may also apply
contributions made pursuant to a Section 1035 tax-free exchange or a direct
transfer. We do not accept third-party checks endorsed to us except for
rollover contributions, tax-free exchanges or trustee checks that involve no
refund. All checks are subject to our ability to collect the funds. We reserve
the right to reject a payment if it is received in an unacceptable form.
For your convenience, we will accept contributions by wire transmittal from
certain broker-dealers who have agreements with us for this purpose, including
circumstances under which such contributions are considered received by us when
your order is taken by such broker-dealers. Additional contributions may also
be made under our automatic investment program. These methods of payment are
discussed in detail in "More information" later in this Prospectus.
- --------------------------------------------------------------------------------
Our "business day" is generally any day the New York Stock Exchange is open for
trading and generally ends at 4:00 p.m. Eastern Time. A business day does not
include a day we choose not to open due to emergency conditions. We may also
close early due to emergency conditions.
- --------------------------------------------------------------------------------
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
Your investment options are the variable investment options and the fixed
maturity options.
VARIABLE INVESTMENT OPTIONS
Your investment results in any one of the variable investment options will
depend on the investment performance of the underlying portfolios. You can lose
your principal when investing in the variable investment options. In periods of
poor market performance, the net return, after charges and expenses, may result
in negative yields, including for the EQ/Money Market variable investment
option. Listed below are the currently available portfolios, their investment
objectives and their advisers.
- --------------------------------------------------------------------------------
You can choose from among the variable investment options and the fixed
maturity options.
- --------------------------------------------------------------------------------
Contract features and benefits 19
PORTFOLIOS OF THE TRUSTS
You should note that some portfolios have objectives and strategies that are
substantially similar to those of certain funds that are purchased directly
rather than under a variable insurance product such as the Accumulator(R)
Select(SM) contract. These portfolios may even have the same manager(s) and/or a
similar name. However, there are numerous factors that can contribute to
differences in performance between two investments, particularly over short
periods of time. Such factors include the timing of stock purchases and sales;
differences in fund cash flows; and specific strategies employed by the
portfolio manager.
AXA Equitable serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. As such, AXA Equitable oversees
the activities of the investment advisers with respect to the Trusts and is
responsible for retaining or discontinuing the services of those advisers. The
advisers for these Portfolios, listed in the chart below, are those who make the
investment decisions for each Portfolio.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o AXA Equitable
ALLOCATION greater emphasis on current income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o AXA Equitable
ALLOCATION with a greater emphasis on capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
EQUITY o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of risk. o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o AIM Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of current o Alliance Capital Management L.P.
income and capital appreciation. o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P., through
INTERNATIONAL EQUITY its Bernstein Investment Research and
Management Unit
o J.P. Morgan Investment Management Inc.
o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P., through
CORE EQUITY its Bernstein Investment Research and
Management Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH o RCM Capital Management LLC
o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
20 Contract features and benefits
Portfolio of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE o Institutional Capital Corporation
o MFS Investment Management
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management LLC
CAP VALUE o TCW Investment Management Company
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
GOVERNMENT SECURITIES relative stability of principal.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE LARGE CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH(1)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
moderate risk to capital.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BEAR STEARNS Seeks to achieve capital appreciation. o Bear Stearns Asset Management Inc.
SMALL COMPANY GROWTH(7)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment
Research and Management Unit
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BOSTON ADVISORS EQUITY Seeks a combination of growth and income to achieve an o Boston Advisors, Inc.
INCOME(4) above-average and consistent total return.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN GROWTH Seeks long-term growth of capital. o Capital Guardian Trust Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 21
Portfolio of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. o Caywood-Scholl Capital Management
YIELD BOND
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates o Alliance Capital Management L.P.
the total return performance of the S&P 500 Index,
including reinvestment of dividends, at a risk level
consistent with that of the S&P 500 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA Seeks long-term capital growth. o Evergreen Investment Management
Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o SSgA Funds Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent with mod- o J.P. Morgan Investment Management Inc.
erate risk to capital and maintenance of liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JP MORGAN VALUE Long-term capital appreciation. o J.P. Morgan Investment Management Inc.
OPPORTUNITIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LONG TERM BOND Seeks to maximize income and capital appreciation o Boston Advisors, Inc.
through investment in long-maturity debt obligations.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT GROWTH AND Capital appreciation and growth of income without o Lord, Abbett & Co. LLC
INCOME excessive fluctuation in market value.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT LARGE CAP Capital appreciation and growth of income with reason- o Lord, Abbett & Co. LLC
CORE able risk.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT MID CAP VALUE Capital appreciation. o Lord, Abbett & Co, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers
VALUE International Limited
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERGERS AND ACQUISITIONS Seeks to achieve capital appreciation. o GAMCO Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary objec- o MFS Investment Management
tive to seek reasonable current income.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve o Alliance Capital Management L.P.
its assets and maintain liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. o Montag & Caldwell, Inc.
GROWTH(5)
- ------------------------------------------------------------------------------------------------------------------------------------
22 Contract features and benefits
Portfolio of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PIMCO REAL RETURN Seeks maximum real return consistent with preservation o Pacific Investment Management Company,
of real capital and prudent investment management. LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SHORT DURATION BOND Seeks current income with reduced volatility of principal. o Boston Advisors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o Alliance Capital Management L. P.
deduction of portfolio expenses) the total return of the
Russell 2000 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY VALUE(8) Seeks to maximize capital appreciation. o GAMCO Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/TCW EQUITY(3) Seeks to achieve long-term capital appreciation. o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/UBS GROWTH AND INCOME(6) Seeks to achieve total return through capital appreciation o UBS Global Asset Management
with income as a secondary consideration. (Americas) Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN COMSTOCK Capital growth and income. o Morgan Stanley Investment
Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN EMERGING Seeks long-term capital appreciation. o Morgan Stanley Investment
MARKETS EQUITY(2) Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN MID CAP Capital growth. o Morgan Stanley Investment
GROWTH Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/WELLS FARGO MONTGOMERY Seeks long-term capital appreciation. o Wells Capital Management Inc.
SMALL CAP
- ------------------------------------------------------------------------------------------------------------------------------------
* This portfolio information reflects the portfolio's name change effective on
or about May 9, 2005, subject to regulatory approval. The table below
reflects the portfolio name in effect until on or about May 9, 2005. The
number in the "FN" column corresponds with the number contained in the chart
above.
- -------------------------------------------------------
FN Portfolio Name until May 9, 2005
- -------------------------------------------------------
(1) EQ/Alliance Premier Growth
(2) EQ/Emerging Markets Equity
(3) EQ/Enterprise Equity
(4) EQ/Enterprise Equity Income
(5) EQ/Enterprise Growth
(6) EQ/Enterprise Growth and Income
(7) EQ/Enterprise Small Company Growth
(8) EQ/Enterprise Small Company Value
- -------------------------------------------------------
You should consider the investment objectives, risks and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may
call one of our customer service representatives at 1-800-789-7771.
Contract features and benefits 23
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied: (i) the fixed maturity option's
maturity date is within the current calendar year; and (ii) the rate to
maturity is 3%. This means that at points in time there may be no fixed
maturity options available. You can allocate your contributions to one or more
of these fixed maturity options. These amounts become part of a non-unitized
separate account. They will accumulate interest at the "rate to maturity" for
each fixed maturity option. The total amount you allocate to and accumulate in
each fixed maturity option is called the "fixed maturity amount." The fixed
maturity options are not available in all states. Check with your financial
professional to see if fixed maturity options are available in your state.
- --------------------------------------------------------------------------------
Fixed maturity options range from one to ten years to maturity.
- --------------------------------------------------------------------------------
The rate to maturity you will receive for each fixed maturity option is the
rate to maturity in effect for new contributions allocated to that fixed
maturity option on the date we apply your contribution.
On the maturity date of a fixed maturity option your fixed maturity amount,
assuming you have not made any withdrawals or transfers, will equal your
contribution to that fixed maturity option plus interest, at the rate to
maturity for that contribution, to the date of the calculation. This is the
fixed maturity option's "maturity value." Before maturity, the current value we
will report for your fixed maturity amounts will reflect a market value
adjustment. Your current value will reflect the market value adjustment that we
would make if you were to withdraw all of your fixed maturity amounts on the
date of the report. We call this your "market adjusted amount."
FIXED MATURITY OPTIONS AND MATURITY DATES. We currently offer fixed maturity
options ending on February 15th for each of the maturity years 2005 through
2015. Not all of these fixed maturity options will be available for annuitant
ages 76 and older. See "Allocating your contributions" below. As fixed maturity
options expire, we expect to add maturity years so that generally 10 fixed
maturity options are available at any time.
YOUR CHOICES AT THE MATURITY DATE. We will notify you on or before December
31st of the year before each of your fixed maturity options is scheduled to
mature. At that time, you may choose to have one of the following take place on
the maturity date, as long as none of the restrictive conditions listed above
or in "Allocating your contributions," below would apply:
(a) transfer the maturity value into another available fixed maturity option or
into any of the variable investment options; or
(b) withdraw the maturity value.
If we do not receive your choice on or before the fixed maturity option's
maturity date, we will automatically transfer your maturity value into the next
available fixed maturity option with the earliest maturity date. As of February
15, 2005, the next available maturity date was February 15, 2012.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender of your contract or when we make deductions for charges) from a fixed
maturity option before it matures, we will make a market value adjustment,
which will increase or decrease any fixed maturity amount you have in that
fixed maturity option. The amount of the adjustment will depend on two factors:
(a) the difference between the rate to maturity that applies to the amount
being withdrawn and the rate to maturity in effect at that time for new
allocations to that same fixed maturity option, and
(b) the length of time remaining until the maturity date.
In general, if interest rates rise from the time that you originally allocate
an amount to a fixed maturity option to the time that you take a withdrawal,
the market value adjustment will be negative. Likewise, if interest rates drop
at the end of that time, the market value adjustment will be positive. Also,
the amount of the market value adjustment, either up or down, will be greater
the longer the time remaining until the fixed maturity option's maturity date.
Therefore, it is possible that the market value adjustment could greatly reduce
your value in the fixed maturity options, particularly in the fixed maturity
options with later maturity dates.
We provide an illustration of the market adjusted amount of specified maturity
values, an explanation of how we calculate the market value adjustment and
information concerning our general account and investments purchased with
amounts allocated to the fixed maturity options, in "More information" later in
this Prospectus. Appendix III at the end of this Prospectus provides an example
of how the market value adjustment is calculated.
ALLOCATING YOUR CONTRIBUTIONS
You may choose from among three ways to allocate your contributions under your
contract: self-directed, principal assurance (at contract issue only), or
dollar cost averaging. We allocate subsequent contributions according to
instructions on file unless you provide new instructions.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options and fixed maturity options. Allocations must be in whole
percentages and you may change your allocations at any time. However, the total
of your allocations must equal 100%. If the annuitant is age 76 or older, you
may allocate contributions to fixed maturity options if their maturities are
five years or less. Also, you may not allocate amounts to fixed maturity
options with maturity dates that are later than the February 14th immediately
following the date annuity payments are to begin.
PRINCIPAL ASSURANCE ALLOCATION
Principal assurance allocation is only available at contract issue. If you
chose this allocation program, you selected a fixed maturity option. We
specified a portion of your initial contribution and allocated it to that fixed
maturity option in an amount that will cause the maturity value to equal the
amount of your entire initial contribution on the fixed maturity option's
maturity date. The maturity date you selected generally could not be later than
10 years, or earlier than 7 years from your contract date. If you were to make
any withdrawals or transfers
24 Contract features and benefits
from the fixed maturity option before the option's maturity date, the amount in
the fixed maturity option will be adjusted and may no longer grow to equal your
initial contribution under the principal assurance allocation. Principal
assurance was not available if none of those maturity dates were available at
the time your contract was issued. You allocated the remainder of your initial
contribution to the variable investment options however you chose.
For example, if your initial contribution was $25,000, and on February 15, 2005
you chose the fixed maturity option with a maturity date of February 15, 2015
since the rate to maturity was 3.64% on February 15, 2005, we would have
allocated $17,482 to that fixed maturity option and the balance to your choice
of variable investment options. On the maturity date your value in the fixed
maturity option would be $25,000.
The principal assurance allocation was only available for annuitant ages 75 or
younger when the contract was issued. If you anticipated taking required
minimum distributions, you should have considered whether your values in the
variable investment options would be sufficient to meet your required minimum
distributions. See "Tax information" later in this Prospectus.
You could not have elected principal assurance if you participated in the 12
month dollar cost averaging program at application .
DOLLAR COST AVERAGING
We offer two dollar cost averaging programs. You may only participate in one
program at a time. Each program allows you to gradually transfer amounts from
the EQ/Money Market option to the other variable investment options by
periodically transferring approximately the same dollar amount to the other
variable investment options you select. This will cause you to purchase more
units if the unit value is low and fewer units if the unit value is high.
Therefore, you may get a lower average cost per unit over the long term. These
plans of investing, however, do not guarantee that you will earn a profit or be
protected against losses. You may not make transfers to the fixed maturity
options.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
12 MONTH DOLLAR COST AVERAGING PROGRAM. You may dollar cost average from the
EQ/Money Market option into any of the other variable investment options. You
may elect to participate in the 12 month dollar cost averaging program at any
time subject to the age limitation on contributions described in Section 1 of
this Prospectus. Contributions into the account for 12 month dollar cost
averaging may not be transfers from other investment options. You must have
allocated your entire initial contribution into the EQ/Money Market option if
you selected the 12 month dollar cost averaging program at application to
purchase an Accumulator(R) Select(SM) contract; thereafter your initial
allocation to any 12 month dollar cost averaging program time period must be at
least $2,000 and any subsequent contribution to that same time period must be
at least $250. You may only have one time period in effect at any time. We will
transfer your value in the EQ/Money Market option into the other variable
investment options that you select over the next 12 months or such other period
we may offer. Once the time period then in effect has run, you may then select
to participate in the dollar cost averaging program for an additional time
period. At that time, you may also select a different allocation for transfers
to the variable investment options, or, if you wish, we will continue to use
the selection that you have previously made.
Currently, the transfer date will be the same day of the month as the contract
date, but not later than the 28th. For a 12 month dollar cost averaging program
selected after application, the first transfer date and each subsequent
transfer date for the time period selected will be one month from the date the
first contribution is made into the 12 month dollar cost averaging program, but
not later than the 28th of the month. All amounts will be transferred out by
the end of the time period then in effect. Under this program we will not
deduct the mortality and expense risks, administrative and distribution charges
from assets in the EQ/Money Market option.
You may not transfer amounts to the EQ/Money Market option established for this
program that are not part of the 12 month dollar cost averaging program. The
only amounts that should be transferred from the EQ/Money Market option are
your regularly scheduled transfers to the other variable investment options. If
you request to transfer or withdraw any other amounts from the EQ/Money Market
option, we will transfer all of the value that you have remaining in the
account for 12 month dollar cost averaging to the investment options according
to the allocation percentages we have on file for you. You may ask us to cancel
your participation at any time.
GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market
option is at least $5,000, you may choose, at any time, to have a specified
dollar amount or percentage of your value transferred from that option to the
other variable investment options. You can select to have transfers made on a
monthly, quarterly, or annual basis. The transfer date will be the same
calendar day of the month as the contract date, but not later than the 28th day
of the month. You can also specify the number of transfers or instruct us to
continue making the transfers until all amounts in the EQ/Money Market option
have been transferred out.
The minimum amount that we will transfer each time is $250. The maximum amount
we will transfer is equal to your value in the EQ/Money Market option at the
time the program is elected, divided by the number of transfers scheduled to be
made.
If, on any transfer date, your value in the EQ/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The general dollar cost averaging program will then end.
You may change the transfer amount once each contract year or cancel this
program at any time.
----------------------------------
You may not elect general dollar cost averaging or 12 month dollar cost
averaging if you are participating in the rebalancing program. See
"Transferring your money among investment options" later in this Prospectus.
You could not elect the 12 month dollar cost averaging program if you selected
the principal assurance program at application.
YOUR BENEFIT BASE
The benefit base is used to calculate the guaranteed minimum income benefit and
the 5% roll up to age 80 guaranteed minimum death ben-
Contract features and benefits 25
efit. Your benefit base is not an account value or a cash value. See "Our
baseBUILDER option" and "Guaranteed minimum death benefit" below. The benefit
base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
o daily interest; less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death benefit" in "Accessing your
money" later in this Prospectus).
The effective annual interest rate credited to the benefit base is:
o 5% for the benefit base with respect to the variable investment options
(other than the AXA Premier VIP Core Bond, EQ/Alliance Intermediate
Government Securities, EQ/Money Market, EQ/PIMCO Real Return, EQ/Alliance
Quality Bond and EQ/Short Duration Bond options), and the 12 month dollar
cost averaging program; and
o 3% for the benefit base with respect to the AXA Premier VIP Core Bond,
EQ/Alliance Intermediate Government Securities, EQ/Money Market, EQ/PIMCO
Real Return, EQ/Alliance Quality Bond and EQ/Short Duration Bond options, the
fixed maturity options and the loan reserve account under Rollover TSA (if
applicable).
No interest is credited to the benefit base after the contract date anniversary
following the annuitant's 80th birthday.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the guaranteed minimum income benefit and annuity payout
options. The guaranteed minimum income benefit is discussed in "Our baseBUILDER
option" and annuity payout options are discussed in "Accessing your money"
later in this Prospectus. The guaranteed annuity purchase factors are those
factors specified in your contract. The current annuity purchase factors are
those factors that are in effect at any given time. Annuity purchase factors
are based on interest rates, mortality tables, frequency of payments, the form
of annuity benefit and the annuitant's (and any joint annuitant's) age and sex
in certain instances.
OUR BASEBUILDER OPTION
The following section provides information about the baseBUILDER option, which
was only available at the time you purchased your contract, if the annuitant
was age 20 through 75. The baseBUILDER option combines a guaranteed minimum
income benefit with the guaranteed minimum death benefit that was provided
under your contract. If you elected the baseBUILDER option at purchase, you pay
an additional charge that is described under "baseBUILDER benefit charge" in
"Charges and expenses" later in this Prospectus. If you purchased your contract
to fund a Charitable Remainder Trust, the guaranteed minimum income benefit
was, generally, not available to you. Subject to our rules, the baseBUILDER
benefit might have been available for certain split-funded Charitable Remainder
Trusts.
The guaranteed minimum income benefit component of the baseBUILDER option is
described below. Whether you elected the baseBUILDER option or not, the
guaranteed minimum death benefit was provided under the contract. The
guaranteed minimum death benefit is described under "Guaranteed minimum death
benefit" below in this section.
The guaranteed minimum income benefit guarantees you a minimum amount of
lifetime income under our Income Manager(R) contract. Only a life with a period
certain Income Manager(R) payout annuity contract is available. You choose
whether you want the option to be paid on a single or joint life basis at the
time you exercise the option. The maximum period certain available under the
Income Manager(R) payout option is 10 years. This period may be shorter,
depending on the annuitant's age as follows:
- -------------------------------------------
Level payments
- -------------------------------------------
Period certain
years
---------------------
Annuitant's Age
at exercise IRAs NQ
- -------------------------------------------
60 to 75 10 10
76 9 10
77 8 10
78 7 10
79 7 10
80 7 10
81 7 9
82 7 8
83 7 7
- -------------------------------------------
We may also make other forms of payout options available. For a description of
payout options, see "Your annuity payout options" in "Accessing your money"
later in this Prospectus.
- --------------------------------------------------------------------------------
The guaranteed minimum income benefit, which is also known as a living benefit,
should be regarded as a safety net only. It provides income protection if you
elect an income payout while the annuitant is alive.
- --------------------------------------------------------------------------------
When you exercise the guaranteed minimum income benefit, the annual lifetime
income that you will receive will be the greater of (i) your guaranteed minimum
income benefit which is calculated by applying your benefit base at guaranteed
annuity purchase factors, or (ii) the income provided by applying your actual
account value at our then current annuity purchase factors. For Rollover TSA
only, we will subtract from the benefit base or account value any outstanding
loan, including interest accrued but not paid. You may also elect to receive
monthly or quarterly payments as an alternative. The payments will be less than
1/12 or 1/4 of the annual payments respectively, due to the effect of interest
compounding. The benefit base is applied only to the baseBUILDER guaranteed
annuity purchase factors in your contract and not to any other guaranteed or
current annuity purchase rates. The amount of income you actually receive will
be determined when we receive your request to exercise the benefit.
When you elect to receive annual lifetime income, your contract will terminate
and you will receive a new contract for the annuity payout option. For a
discussion of when your payments will begin and end, see "Exercise of
guaranteed minimum income benefit" below.
The guaranteed minimum income benefit provides a form of insurance and is based
on conservative actuarial factors. The guaranteed annuity
26 Contract features and benefits
purchase factors we use to determine your Income Manager(R) benefit under
baseBUILDER are more conservative than the guaranteed annuity purchase factors
we use for the Income Manager(R) payout annuity option. This means that,
assuming the same amount is applied to purchase the benefit and that we use
guaranteed annuity purchase factors to compute the benefit, each periodic
payment under the baseBUILDER Income Manager(R) will be smaller than each
periodic payment under the Income Manager(R) payout annuity option. Therefore,
even if your account value is less than your benefit base, you may generate
more income by applying your account value to current annuity purchase factors.
We will make this comparison for you when the need arises.
ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. The table below
illustrates the guaranteed minimum income benefit amounts per $100,000 of
initial contribution, for a male annuitant age 60 (at issue) on the contract
date anniversaries indicated, who has elected the life annuity fixed payout
option, using the guaranteed annuity purchase factors as of the date of this
Prospectus, assuming no additional contributions, withdrawals or loans under
Rollover TSA contracts, and assuming there were no allocations to the AXA
Premier VIP Core Bond, EQ/Alliance Intermediate Government Securities, EQ/Money
Market, EQ/PIMCO Real Return, EQ/Alliance Quality Bond or EQ/Short Duration
Bond options, the fixed maturity options or the loan reserve account.
- ---------------------------------------------------------------
Guaranteed minimum income
Contract date benefit -- annual income
anniversary at exercise payable for life
- ---------------------------------------------------------------
10 $10,816
15 $16,132
- ---------------------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date
anniversary that you are eligible to exercise the guaranteed minimum income
benefit, we will send you an eligibility notice illustrating how much income
could be provided as of the contract anniversary. You must notify us within 30
days following the contract date anniversary if you want to exercise the
guaranteed minimum income benefit. You must return your contract to us, along
with all required information, within 30 days following your contract date
anniversary, in order to exercise this benefit. You will begin receiving annual
payments one year after the annuity payout contract is issued. If you choose
monthly or quarterly payments, you will receive your payment one month or one
quarter after the annuity payout contract is issued. Payments are made on the
15th of the month and generally begin one payment mode from issue. You may
choose to take a withdrawal prior to exercising the guaranteed minimum income
benefit, which will reduce your payments. You may not partially exercise this
benefit. See "Accessing your money" under "Withdrawing your account value"
later in this Prospectus. Payments end with the last payment before the
annuitant's (or joint annuitant's, if applicable) death.
You will be eligible to exercise the guaranteed minimum income benefit during
your life and the annuitant's life, as follows:
o If the annuitant was at least age 20 and no older than age 44 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 15th contract date anniversary.
o If the annuitant was at least age 45 and no older than age 53 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary after
the annuitant is age 60.
o If the annuitant was at least age 54 and no older than age 75 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 7th contract date anniversary.
Please note:
(i) the latest date you may exercise the guaranteed minimum income benefit is
the contract date anniversary following the annuitant's 83rd birthday; and
(ii) if the annuitant was age 75 when the contract was issued, the only time
you may exercise the guaranteed minimum income benefit is within 30 days
following the first and second contract date anniversary that it becomes
available;
(iii) if the annuitant was older than age 63 at the time an IRA, QP or Rollover
TSA contract was issued, the baseBUILDER option may not be an appropriate
feature because the minimum distributions required by tax law generally
must begin before the guaranteed minimum income benefit can be exercised;
(iv) for Accumulator(R) Select(SM) QP contracts, the Plan participant can
exercise the baseBUILDER option only if he or she elects to take a
distribution from the Plan and, in connection with this distribution, the
Plan's trustee changes the ownership of the contract to the participant.
This effects a rollover of the Accumulator(R) Select(SM) QP contract into
an Accumulator(R) Select(SM) Rollover IRA. This process must be completed
within the 30-day timeframe following the contract date anniversary in
order for the Plan participant to be eligible to exercise;
(v) for Accumulator(R) Select(SM) Rollover TSA contracts, you may exercise the
baseBUILDER option only if you effect a rollover of the TSA contract to an
Accumulator(R) Select(SM) Rollover IRA. This may only occur when you are
eligible for a distribution from the TSA. This process must be completed
within the 30-day timeframe following the contract date anniversary in
order for you to be eligible to exercise;
(vi) for a successor owner/annuitant, the earliest exercise date is based on
the original contract issue date and the age of the successor
owner/annuitant as of the Processing Date successor owner/annuitant takes
effect; and
(vii) if you are the owner but not the annuitant and you die prior to exercise,
then the following applies:
o A successor owner who is not the annuitant may not be able to exercise
the baseBUILDER option without causing a tax problem. You should
consider naming the annuitant as successor owner, or if you do not
name a successor owner, as the sole primary beneficiary. You should
carefully review your successor owner and/or beneficiary designations
at
Contract features and benefits 27
least one year prior to the first contract anniversary on which you
could exercise the benefit.
o If the successor owner is the annuitant, the baseBUILDER option
continues only if the benefit could be exercised under the rules
described above on a contract anniversary that is within one year
following the owner's death. This would be the only opportunity for
the successor owner to exercise. If the baseBUILDER option cannot be
exercised within this timeframe, the benefit will terminate and the
charge for it will no longer apply as of the date we receive proof of
your death and any required information.
o If you designate your surviving spouse as successor owner, the
baseBUILDER option continues and your surviving spouse may exercise
the benefit according to the rules described above even if your spouse
is not the annuitant and even if the benefit is exercised more than
one year after your death. If your surviving spouse dies prior to
exercise, the rule described in the previous bullet applies.
o A successor owner or beneficiary that is a trust or other non- natural
person may not exercise the benefit; in this case, the benefit will
terminate and the charge for it will no longer apply as of the date we
receive proof of your death and any required information.
See "When an NQ contract owner dies before the annuitant" under "Payment of
death benefit" later in this Prospectus for more information.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
GUARANTEED MINIMUM DEATH BENEFIT
A guaranteed minimum death benefit was provided as part of the baseBUILDER
benefit. A guaranteed minimum death benefit was also provided under your
contract even if you did not elect baseBUILDER. In this case, the baseBUILDER
benefit charge does not apply.
Guaranteed minimum death benefit applicable for annuitants who were ages 0
through 79 at issue of NQ contracts; 20 through 79 at issue of Rollover IRA,
Roth Conversion IRA and Rollover TSA contracts; and 20 through 75 at issue of
QP contracts.
You must have elected either the "5% roll up to age 80" or the "annual ratchet
to age 80" guaranteed minimum death benefit when you applied for a contract.
Once you made your election, you cannot change it.
5% ROLL UP TO AGE 80. The guaranteed minimum death benefit is equal to the
benefit base described earlier in "Your benefit base"
ANNUAL RATCHET TO AGE 80. On the contract date, your guaranteed minimum death
benefit equaled your initial contribution. Then, on each contract date
anniversary, we determine your guaranteed minimum death benefit by comparing
your current guaranteed minimum death benefit to your account value on that
contract date anniversary. If your account value is higher than your guaranteed
minimum death benefit, we will increase your guaranteed minimum death benefit
to equal your account value. On the other hand, if your account value on the
contract date anniversary is less than your guaranteed minimum death benefit,
we will not adjust your guaranteed minimum death benefit either up or down. If
you make additional contributions, we will increase your current guaranteed
minimum death benefit by the dollar amount of the contribution on the date the
contribution is allocated to your investment options.
If you take a withdrawal from your contract, we will reduce your guaranteed
minimum death benefit on the date you take the withdrawal.
GUARANTEED MINIMUM DEATH BENEFIT APPLICABLE FOR ANNUITANTS WHO WERE AGES 80
THROUGH 85 AT ISSUE OF NQ, ROLLOVER IRA, ROTH CONVERSION IRA AND ROLLOVER TSA
CONTRACTS.
On the contract date, your guaranteed minimum death benefit equaled your
initial contribution. Thereafter, it is increased by the dollar amount of any
additional contributions. We will reduce your guaranteed minimum death benefit
if you take any withdrawals.
----------------------------------
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
See Appendix IV at the end of this Prospectus for an example of how we
calculate the guaranteed minimum death benefit.
Protection Plus(SM)
The following section provides information about the Protection Plus(SM) option,
which was only available at the time you purchased your contract. If Protection
Plus(SM) was not elected when the contract was first issued, neither the owner
nor the successor owner/annuitant can add it subsequently. Protection Plus(SM)
is an additional death benefit as described below. See the appropriate part of
"Tax information" later in this Prospectus for the potential tax consequences of
having purchased the Protection Plus(SM) feature in an NQ or IRA contract.
If the annuitant was 69 or younger when we issued your Contract (or if the
successor owner/annuitant is 69 or younger when he or she becomes the successor
owner/annuitant), the death benefit will be:
the greater of:
o the account value or
o any applicable guaranteed minimum death benefit
Increased by:
40% of the lesser of:
o the total net contributions or
o the death benefit less total net contributions
For purposes of calculating your Protection Plus(SM) benefit, the following
applies: (i) "Net contributions" are the total contributions made (or, if
applicable, the total amount that would otherwise have been
28 Contract features and benefits
paid as a death benefit had the successor owner/annuitant election not been
made plus any subsequent contributions) reduced on a pro rata basis to reflect
withdrawals (including surrender charges and loans). Reduction on a pro rata
basis means that we calculate the percentage of the current account value that
is being withdrawn and we reduce net contributions by that percentage. For
example, if the account value is $30,000 and you withdraw $12,000, you have
withdrawn 40% of your account value. If contributions aggregated $40,000 before
the withdrawal, it would be reduced by $16,000 ($40,000 x .40) and net
contributions after the withdrawal would be $24,000 ($40,000-$16,000); (ii)
"Death benefit" is equal to the greater of the account value as of the date we
receive satisfactory proof of death or any applicable guaranteed minimum death
benefit as of the date of death.
If the annuitant was age 70 through 75 when we issued your contract (or if the
successor owner/annuitant was between the ages of 70 and 75 when he or she
becomes the successor owner/annuitant under a contract where Protection Plus(SM)
had been elected at issue), the death benefit will be:
the greater of:
o the account value or
o any applicable guaranteed minimum death benefit
Increased by:
25% of the lesser of:
o the total net contributions (as described above) or
o the death benefit (as described above) less total net contributions.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
This is provided for informational purposes only. Since this contract is no
longer available to new purchasers, this cancellation provision is no longer
applicable.
If for any reason you are not satisfied with your contract, you may return it
to us for a refund of the full amount of your contribution. To exercise this
cancellation right you must mail the contract, with a signed letter of
instruction electing this right, to our processing office within 10 days after
you receive it. If state law requires, this "free look" period may be longer.
We may require that you wait six months before you may apply for a contract
with us again if:
o you cancel your contract during the free look period; or
o you change your mind before you receive your contract whether we have
received your contribution or not.
Please see "Tax information" later in this Prospectus for possible consequences
of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA contract, you may
cancel your Roth Conversion IRA contract and return to a Rollover IRA contract.
Our processing office, or your financial professional, can provide you with the
cancellation instructions.
Contract features and benefits 29
2. Determining your contract's value
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the values you have in: (i) the variable
investment options; (ii) market adjusted amounts in the fixed maturity options;
and (iii) the loan reserve account (applicable to Rollover TSA contracts only).
Your contract also has a "cash value." At any time before annuity payments
begin, your contract's cash value is equal to the account value, less the
amount of any outstanding loan plus accrued interest (applicable to Rollover
TSA contracts only). Please see "Surrendering your contract to receive its cash
value" in "Accessing your money" later in this Prospectus.
YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS
Each variable investment option invests in shares of a corresponding portfolio.
Your value in each variable investment option is measured by "units." The value
of your units will increase or decrease as though you had invested it in the
corresponding portfolio's shares directly. Your value, however, will be reduced
by the amount of the fees and charges that we deduct under the contract.
The unit value for each variable investment option depends on the investment
performance of that option, less daily charges for:
(i) mortality and expense;
(ii) administrative expenses; and
(iii) distribution charges.
On any day, your value in any variable investment option equals the number of
units credited to that option, adjusted for any units purchased for or deducted
from your contract under that option, multiplied by that day's value for one
unit. The number of your contract units in any variable investment option does
not change unless they are:
(i) increased to reflect additional contributions;
(ii) decreased to reflect a withdrawal;
(iii) increased to reflect a transfer into, or decreased to reflect a transfer
out of, a variable investment option; or
(iv) increased or decreased to reflect a transfer of your loan amount from or to
the loan reserve account under a Rollover TSA contract.
In addition, when we deduct the baseBUILDER benefit charge and/or the
Protection Plus(SM) benefit charge the number of units credited to your contract
will be reduced. A description of how unit values are calculated is found in
the SAI.
YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS
Your value in each fixed maturity option at any time before the maturity date
is the market adjusted amount in each option. This is equivalent to your fixed
maturity amount increased or decreased by the market value adjustment. Your
value, therefore, may be higher or lower than your contributions (less
withdrawals) accumulated at the rate to maturity. At the maturity date, your
value in the fixed maturity option will equal its maturity value, provided
there have been no withdrawals or transfers.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose all of your rights under your contract and any
applicable guaranteed benefits.
30 Determining your contract's value
3. Transferring your money among investment options
- --------------------------------------------------------------------------------
TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer
some or all of your account value among the investment options, subject to the
following:
o You may not transfer to a fixed maturity option that matures in the current
calendar year or that has a rate to maturity of 3% or less.
o You may not transfer any amount to the 12-month dollar cost averaging
program.
o If the annuitant is 76 or older, you must limit your transfers to fixed
maturity options to those with maturities of five years or less. Also, the
maturity dates may be no later than the February 15th immediately following
the date annuity payments are to begin.
o If you make transfers out of a fixed maturity option other than at its
maturity date the transfer may cause a market value adjustment.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency, or dollar amount of transfers.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value to be
transferred, and
(3) the investment options to and from which you are transferring.
We will confirm all transfers in writing.
DISRUPTIVE TRANSFER ACTIVITY
You should note that the contract is not designed for professional "market
timing" organizations, or other organizations or individuals engaging in a
market timing strategy. The contract is not designed for programmed transfers,
frequent transfers or transfers that are large in relation to the total assets
of the underlying portfolio.
Frequent transfers, including market timing and other program trading or
short-term trading strategies, may be disruptive to the underlying portfolios
in which the variable investment options invest. Disruptive transfer activity
may adversely affect performance and the interests of long-term investors by
requiring a portfolio to maintain larger amounts of cash or to liquidate
portfolio holdings at a disadvantageous time or price. For example, when market
timing occurs, a portfolio may have to sell its holdings to have the cash
necessary to redeem the market timer's investment. This can happen when it is
not advantageous to sell any securities, so the portfolio's performance may be
hurt. When large dollar amounts are involved, market timing can also make it
difficult to use long-term investment strategies because a portfolio cannot
predict how much cash it will have to invest. In addition, disruptive transfers
or purchases and redemptions of portfolio investments may impede efficient
portfolio management and impose increased transaction costs, such as brokerage
costs, by requiring the portfolio manager to effect more frequent purchases and
sales of portfolio securities. Similarly, a portfolio may bear increased
administrative costs as a result of the asset level and investment volatility
that accompanies patterns of excessive or short-term trading. Portfolios that
invest a significant portion of their assets in foreign securities or the
securities of small- and mid-capitalization companies tend to be subject to the
risks associated with market timing and short-term trading strategies to a
greater extent than portfolios that do not. Securities trading in overseas
markets present time zone arbitrage opportunities when events affecting
portfolio securities values occur after the close of the overseas market but
prior to the close of the U.S. markets. Securities of small- and
mid-capitalization companies present arbitrage opportunities because the market
for such securities may be less liquid than the market for securities of larger
companies, which could result in pricing inefficiencies. Please see the
prospectuses for the underlying portfolios for more information on how
portfolio shares are priced.
We currently use the procedures described below to discourage disruptive
transfer activity. You should understand, however, that these procedures are
subject to the following limitations: (1) they primarily rely on the policies
and procedures implemented by the underlying portfolios; (2) they do not
eliminate the possibility that disruptive transfer activity, including market
timing, will occur or that portfolio performance will be affected by such
activity; and (3) the design of market timing procedures involves inherently
subjective judgments, which we seek to make in a fair and reasonable manner
consistent with the interests of all policy and contract owners.
The AXA Premier VIP Trust and EQ Advisors Trust (the "affiliated trusts") have
adopted policies and procedures designed to discourage disruptive transfers by
contract owners investing in the portfolios of the affiliated trusts. The
affiliated trusts discourage frequent purchases and redemptions of portfolio
shares and will not make special arrangements to accommodate such transactions.
As a general matter, the affiliated trusts reserve the right to refuse or limit
any purchase or exchange order by a particular investor (or group of related
investors) if the transaction is deemed harmful to the portfolio's other
investors or would disrupt the management of the portfolio. The affiliated
trusts monitor aggregate inflows and outflows for each portfolio on a daily
basis. On any day when a portfolio's net inflows or outflows exceed an
established monitoring threshold, the affiliated trust obtains from us contract
owner trading activity. The affiliated trusts currently consider transfers into
and out of (or vice versa) the same variable investment option within a five
business day period as potentially disruptive transfer activity. When a
contract owner is identified as having engaged in a potentially disruptive
transfer for the first time, a letter is sent to the contract owner explaining
that there is a policy against disruptive transfer activity and that if such
activity continues certain transfer privileges may be eliminated. If and when
the contract owner is iden-
Transferring your money among investment options 31
tified a second time as engaged in potentially disruptive transfer activity, we
currently prohibit the use of voice, fax and automated transaction services. We
currently apply such action for the remaining life of each affected contract.
We or the affiliated trusts may change the definition of potentially disruptive
transfer activity, the monitoring procedures and thresholds, any notification
procedures, and the procedures to restrict this activity. Any new or revised
policies and procedures will apply to all contract owners uniformly. We do not
permit exceptions to our policies restricting disruptive transfer activity.
We may also offer investment options with underlying portfolios that are not
part of the AXA Premier VIP Trust or EQ Advisors Trust (the "unaffiliated
trusts"). Each unaffiliated trust may have its own policies and procedures
regarding disruptive transfer activity, which may be different than those
applied by the affiliated trusts. In most cases, the unaffiliated trust
reserves the right to reject a transfer that it believes, in its sole
discretion, is disruptive (or potentially disruptive) to the management of one
of its portfolios. Please see the prospectus for the underlying trust for
information regarding the policies and procedures, if any, employed by that
trust and any associated risks of investing in that trust. If an unaffiliated
trust advises us that there may be disruptive transfer activity from our
contract owners, we will work with the unaffiliated trust to review contract
owner trading activity. If the underlying trust determines that the trading
activity of a particular contract owner is disruptive, we will take action to
limit the disruptive trading activity of that contract owner as described
above.
Contract owners should note that it is not always possible for us and the
underlying trusts to identify and prevent disruptive transfer activity. Our
ability to monitor potentially disruptive transfer activity is limited in
particular with respect to certain group contracts. Group annuity contracts may
be owned by retirement plans on whose behalf we provide transfer instructions
on an omnibus (aggregate) basis, which may mask the disruptive transfer
activity of individual plan participants, and/or interfere with our ability to
restrict communication services. In addition, because we do not monitor for all
frequent trading at the separate account level, contract owners may engage in
frequent trading which may not be detected, for example, due to low net inflows
or outflows on the particular day(s). Therefore, no assurance can be given that
we or the trusts will successfully impose restrictions on all disruptive
transfers. Because there is no guarantee that disruptive trading will be
stopped, some contract owners/ participants may be treated differently than
others, resulting in the risk that some contract owners/participants may be
able to engage in frequent transfer activity while others will bear the effect
of that frequent transfer activity. The potential affects of frequent transfer
activity are discussed above.
REBALANCING YOUR ACCOUNT VALUE
We currently offer a rebalancing program that you can use to automatically
reallocate your account value among the variable investment options. You must
tell us:
(a) the percentage you want invested in each variable investment option (whole
percentages only), and
(b) how often you want the rebalancing to occur (quarterly, semiannually or
annually on a contract year basis).
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options so that the percentage of your account value that
you specify is invested in each option at the end of each rebalancing date.
Your entire account value in the variable investment options must be included
in the rebalancing program.
- --------------------------------------------------------------------------------
Rebalancing does not assure a profit or protect against loss. You should
periodically review your allocation percentages as your needs change. You may
want to discuss the rebalancing program with your financial professional before
electing the program.
- --------------------------------------------------------------------------------
You may elect the rebalancing program at any time. You may also change your
allocation instructions or cancel the program at any time. If you request a
transfer while the rebalancing program is in effect, we will process the
transfer as requested. The rebalancing program will remain in effect unless you
request that it be canceled in writing.
You may not elect the rebalancing program if you are participating in the
general dollar cost averaging or 12 month dollar cost averaging program.
Rebalancing is not available for amounts you have allocated in the fixed
maturity options.
32 Transferring your money among investment options
4. Accessing your money
- --------------------------------------------------------------------------------
WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your account value before annuity payments
begin. The table below shows the methods available under each type of contract.
More information follows the table. If you request to withdraw more than 90% of
a contract's current cash value, we will treat it as a request to surrender the
contract for its cash value. See "Surrendering your contract to receive its
cash value" below. For the tax consequences of withdrawals, see "Tax
information" later in this Prospectus.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus and "How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death benefit" below for more information
on how withdrawals affect your guaranteed benefits and could potentially cause
your contract to terminate.
- --------------------------------------------------------------------------------
Method of withdrawal
- --------------------------------------------------------------------------------
Lifetime
required
Substantially minimum
Contract Lump sum Systematic equal distribution
- --------------------------------------------------------------------------------
NQ Yes Yes No No
Rollover IRA Yes Yes Yes Yes
Roth
Conversion IRA Yes Yes Yes No
QP Yes No No Yes
Rollover TSA* Yes Yes No Yes
- --------------------------------------------------------------------------------
* For some Rollover TSA contracts, your ability to take withdrawals, loans or
surrender your contract may be limited. You must provide withdrawal
restriction information when you apply for a contract. See "Tax Sheltered
Annuity contracts (TSAs)" in "Tax information" later in this Prospectus.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time.
(Rollover TSA contracts may have restrictions.) The minimum amount you may
withdraw is $300.
Under Rollover TSA contracts, if a loan is outstanding, you may only take lump
sum withdrawals as long as the cash value remaining after any withdrawal equals
at least 10% of the outstanding loan plus accrued interest.
SYSTEMATIC WITHDRAWALS
(All contracts except QP)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value. (Rollover TSA contracts may have
restrictions).
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 1.2% monthly, 3.6% quarterly and 15.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would
be less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
We will make the withdrawals on any day of the month that you select as long as
it is not later than the 28th day of the month. If you do not select a date, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59-1/2 and 70-1/2.
You may change the payment frequency, the amount or the percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
lump sum withdrawal. You can cancel the systematic withdrawal option at any
time.
SUBSTANTIALLY EQUAL WITHDRAWALS
(All IRA contracts)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus. We use one of the
IRS-approved methods for doing this; this is not the exclusive method of
meeting this exception. After consultation with your tax adviser, you may
decide to use another method which would require you to compute amounts
yourself and request lump sum withdrawals. In such a case, a withdrawal charge
may apply. Once you begin to take substantially equal withdrawals, you should
not stop them or change the pattern of your withdrawals until after the later
of age 59-1/2 or five full years after the first withdrawal. If you stop or
change the withdrawals or take a lump sum withdrawal, you may be liable for the
10% federal tax penalty that would have otherwise been due on prior withdrawals
made under this option and for any interest on the delayed payment of the
penalty.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may change, without penalty, from one of the
IRS-approved methods of calculating fixed payments to another IRS-approved
method (similar to the required minimum distribution rules) of calculating
payments which vary each year.
You may elect to take substantially equal withdrawals at any time before age
59-1/2. We will make the withdrawal on any day of the month that you select as
long as it is not later than the 28th day of the month. You may not elect to
receive the first payment in the same contract year in which you took a lump
sum withdrawal. We will calculate the amount of your substantially equal
withdrawals using the IRS-approved method we offer. The payments will be made
monthly,
Accessing your money 33
quarterly or annually as you select. These payments will continue until we
receive written notice from you to cancel this option or you take a lump sum
withdrawal. You may elect to start receiving substantially equal withdrawals
again, but the payments may not restart in the same contract year in which you
took a lump sum withdrawal. We will calculate the new withdrawal amount.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA, QP and Rollover TSA contracts only -- See "Tax information"
later in this Prospectus)
We offer our "automatic required minimum distribution (RMD) service" to help
you meet lifetime required minimum distributions under federal income tax
rules. This is not the exclusive way for you to meet these rules. After
consultation with your tax adviser, you may decide to compute required minimum
distributions yourself and request lump sum withdrawals. Before electing this
account based withdrawal option, you should consider whether annuitization
might be better in your situation. If you have elected certain additional
benefits, such as the Guaranteed minimum death benefit, amounts withdrawn from
the contract to meet RMDs will reduce the benefit base and may limit the
utility of the benefit. Also, please refer to "Tax information" later in this
Prospectus for considerations on annuity contracts funding qualified plans,
TSAs, and IRAs.
You may elect this service in the year in which you reach age 70-1/2 or in any
later year. The minimum amount we will pay out is $250. Currently, minimum
distribution withdrawal payments will be made annually. See "Required minimum
distributions" in "Tax information" later in this Prospectus for your specific
type of retirement arrangement.
Under Rollover TSA contracts, you may not elect minimum distribution
withdrawals if a loan is outstanding.
- --------------------------------------------------------------------------------
For Rollover IRA and Rollover TSA contracts, we will send a form outlining the
distribution options available in the year you reach age 70-1/2 (if you have not
begun your annuity payments before that time).
- --------------------------------------------------------------------------------
HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your value in the variable investment options. If there is
insufficient value or no value in the variable investment options, any
additional amount of the withdrawal required or the total amount of the
withdrawal will be withdrawn from the fixed maturity options in order of the
earliest maturity date(s) first. A market value adjustment may apply to
withdrawals from the fixed maturity options. If those amounts are insufficient,
we will deduct all or a portion of the charge from amounts in the 12 month
dollar cost averaging program.
HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED
MINIMUM DEATH BENEFIT
Withdrawals will reduce your guaranteed benefits on either a dollar-for-dollar
basis or on a pro rata basis as explained below:
INCOME BENEFIT AND DEATH BENEFIT
5% ROLL UP TO AGE 80 -- If you elected the 5% roll up to age 80 guaranteed
minimum death benefit, your benefit base will be reduced on a dollar-for-dollar
basis as long as the sum of your withdrawals in a contract year is 5% or less
of the benefit base on the most recent contract date anniversary. Once you take
a withdrawal that causes the sum of your withdrawals in a contract year to
exceed 5% of the benefit base on the most recent contract date anniversary,
that withdrawal and any subsequent withdrawals in that same contract year will
reduce your benefit base on a pro rata basis. Additional contributions made
during the contract year do not affect the amount of withdrawals that can be
taken on a dollar-for-dollar basis in that contract year.
The timing of your withdrawals and whether they exceed the 5% threshold
described above can have significant impact on your guaranteed minimum income
benefit or guaranteed minimum death benefit.
ANNUAL RATCHET TO AGE 80 -- If you elected the annual ratchet to age 80
guaranteed minimum death benefit, each withdrawal will reduce both your income
and death benefit on a pro rata basis.
ANNUITANT ISSUE AGES 80 THROUGH 85 -- If your contract was issued when the
annuitant was between ages 80 and 85, each withdrawal will always reduce your
current guaranteed minimum death benefit on a pro rata basis.
----------------------------------
Reduction on a dollar-for-dollar basis means that your current benefit will be
reduced by the dollar amount of the withdrawal. Reduction on a pro rata basis
means that we calculate the percentage of your current account value that is
being withdrawn and we reduce your current benefit by that same percentage. For
example, if your account value is $30,000 and you withdraw $12,000, you have
withdrawn 40% of your account value. If your guaranteed minimum death benefit
was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 x
..40) and your new guaranteed minimum death benefit after the withdrawal would
be $24,000 ($40,000 - $16,000).
LOANS UNDER ROLLOVER TSA CONTRACTS
You may take loans from a Rollover TSA unless restricted by the employer who
provided the Rollover TSA funds. If you cannot take a loan, or cannot take a
loan without approval from the employer who provided the funds, we will have
this information in our records based on what you and the employer who provided
the funds told us when you purchased your contract. The employer must also tell
us whether special employer plan rules of the Employee Retirement Income
Security Act of 1974 ("ERISA") apply. We will not permit you to take a loan
while you are enrolled in our "automatic required minimum distribution (RMD)
service."
You should read the terms and conditions on our loan request form carefully
before taking out a loan. Under Rollover TSA contracts subject to ERISA, you
may only take a loan with the written consent of your spouse. Your contract
contains further details of the loan provision. Also, see "Tax information"
later in this Prospectus for general rules applicable to loans.
34 Accessing your money
We will permit you to have only one loan outstanding at a time. The minimum
loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your
account value, subject to any limits under the federal income tax rules. The
term of a loan is five years. However, if you use the loan to acquire your
primary residence, the term is 10 years. The term may not extend beyond the
earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
(3) the date a death benefit is paid (the outstanding loan will be deducted
from the death benefit amount).
A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the properly completed
loan request form is received. Interest will accrue daily on your outstanding
loan at a rate we set. The loan interest rate will be equal to the Moody's
Corporate Bond Yield Averages for Baa bonds for the calendar month ending two
months before the first day of the calendar quarter in which the rate is
determined.
LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the
amount of your loan to the loan reserve account. Unless you specify otherwise,
we will subtract your loan on a pro rata basis from your value in the variable
investment options. If there is insufficient value or no value in the variable
investment options, any additional amount of the loan will be subtracted from
the fixed maturity options in order of the earliest maturity date(s) first. A
market value adjustment may apply.
We will credit interest to the amount in the loan reserve account at a rate of
2% lower than the loan interest rate that applies for the time your loan is
outstanding. On each contract date anniversary after the date the loan is
processed, we will transfer the amount of interest earned in the loan reserve
account to the variable investment options on a pro rata basis. When you make a
loan repayment, unless you specify otherwise, we will transfer the dollar
amount of the loan repaid from the loan reserve account to the investment
options according to the allocation percentages we have on our records.
SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time while the
annuitant is living and before you begin to receive annuity payments. (Rollover
TSA contracts may have restrictions.) For a surrender to be effective, we must
receive your written request and your contract at our processing office. We
will determine your cash value on the date we receive the required information.
All benefits under the contract will terminate as of that date.
You may receive your cash value in a single sum payment or apply it to one or
more of the annuity payout options. See "Your annuity payout options" below.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments out of the variable investment
options within seven calendar days after the date of the transaction to which
the request relates. These transactions may include applying proceeds to a
variable annuity, payment of a death benefit, payment of any amount you
withdraw and, upon surrender, payment of the cash value. We may postpone such
payments or applying proceeds for any period during which:
(1) the New York Stock Exchange is closed or restricts trading,
(2) sales of securities or determination of the fair value of a variable
investment option's assets is not reasonably practicable because of an
emergency, or
(3) the SEC, by order, permits us to defer payment to protect people remaining
in the variable investment options.
We can defer payment of any portion of your value in the fixed maturity options
(other than for death benefits) for up to six months while you are living. We
also may defer payments for a reasonable amount of time (not to exceed 10 days)
while we are waiting for a contribution check to clear.
All payments are made by check and are mailed to you (or the payee named in a
tax-free exchange) by U.S. mail, unless you request that we use an express
delivery service at your expense.
YOUR ANNUITY PAYOUT OPTIONS
Accumulator(R) Select(SM) offers you several choices of annuity payout options.
Some enable you to receive fixed annuity payments, which can be either level or
increasing, and others enable you to receive variable annuity payments.
You can choose from among the annuity payout options listed below. Restrictions
may apply, depending on the type of contract you own or the annuitant's age
when the contract was issued. In addition, if you are exercising your
guaranteed minimum income benefit under baseBUILDER, your choice of payout
options are those that are available under baseBUILDER (see "Our baseBUILDER
option" in "Contract features and benefits" earlier in this Prospectus).
- --------------------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period certain
Life annuity with refund certain
Period certain annuity
- --------------------------------------------------------------------------------
Variable Immediate Annuity Life annuity
payout options Life annuity with period certain
- --------------------------------------------------------------------------------
Income Manager(R) payout options Life annuity with period certain
(available for annuitants age 83 Period certain annuity
or less at contract issue)
- --------------------------------------------------------------------------------
o Life annuity: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment before the
annuitant's death. Because there is no continuation of benefits following the
annuitant's death with this payout option, it provides the highest monthly
payment of any of the life annuity options, so long as the annuitant is
living.
o Life annuity with period certain: An annuity that guarantees payments for the
rest of the annuitant's life. If the annuitant dies before the end of a
selected period of time ("period certain"), payments continue to the
beneficiary for the balance of the period certain. The period certain cannot
extend beyond the annuitant's life expect-
Accessing your money 35
ancy. A life annuity with a period certain is the form of annuity under the
contracts that you will receive if you do not elect a different payout
option. In this case, the period certain will be based on the annuitant's age
and will not exceed 10 years.
o Life annuity with refund certain: An annuity that guarantees payments for the
rest of the annuitant's life. If the annuitant dies before the amount applied
to purchase the annuity option has been recovered, payments to the
beneficiary will continue until that amount has been recovered. This payout
option is available only as a fixed annuity.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15 or 20 years. This guaranteed period may not
exceed the annuitant's life expectancy. This option does not guarantee
payments for the rest of the annuitant's life. It does not permit any
repayment of the unpaid principal, so you cannot elect to receive part of the
payments as a single sum payment with the rest paid in monthly annuity
payments. This payout option is available only as a fixed annuity.
The life annuity, life annuity with period certain and life annuity with refund
certain payout options are available on a single life or joint and survivor
life basis. The joint and survivor life annuity guarantees payments for the
rest of the annuitant's life and, after the annuitant's death, payments
continue to the survivor. We may offer other payout options not outlined here.
Your financial professional can provide details.
FIXED ANNUITY PAYOUT OPTIONS
With fixed annuities, we guarantee fixed annuity payments will be based either
on the tables of guaranteed annuity purchase factors in your contract or on our
then current annuity purchase factors, whichever is more favorable for you.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS
Variable Immediate Annuities are described in a separate prospectus that is
available from your financial professional. Before you select a Variable
Immediate Annuity payout option, you should read the prospectus which contains
important information that you should know.
Variable Immediate Annuities may be funded through your choice of available
variable investment options investing in portfolios of the EQ/Advisors Trust
and AXA Premier VIP Trust. The contract also offers a fixed income annuity
payout option that can be elected in combination with the variable annuity
payout option. The amount of each variable income annuity payment will
fluctuate, depending upon the performance of the variable investment options,
and whether the actual rate of investment return is higher or lower than an
assumed base rate.
INCOME MANAGER(R) PAYOUT OPTIONS
The Income Manager(R) payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts may provide higher or
lower income levels but do not have all the features of the Income Manager(R)
payout annuity contract. You may request an illustration of the Income
Manager(R) payout annuity contract from your financial professional. Income
Manager(R) payout options are described in a separate prospectus that is
available from your financial professional. Before you select an Income
Manager(R) payout option, you should read the prospectus which contains
important information that you should know.
Income Manager(R) NQ and IRA payout options provide guaranteed level payments.
The Income Manager(R) (life annuity with period certain) also provides
guaranteed increasing payments (NQ contracts only).
For QP and Rollover TSA contracts, if you want to elect an Income Manager(R)
payout option, we will first roll over amounts in such contract to a Rollover
IRA contract with the plan participant as owner. You must be eligible for a
distribution under the QP or Rollover TSA contract.
You may choose to apply the account value of your Accumulator(R) Select(SM)
contract to an Income Manager(R) payout annuity.
Depending upon your circumstances, an Income Manager(R) contract may be
purchased on a tax-free basis. Please consult your tax adviser. The Income
Manager(R) payout options are not available in all states.
If you purchase an Income Manager(R) contract in connection with the exercise
of the Living Benefit option, different payout options may apply as well as
other various differences. See "Our baseBUILDER option" in "Contract features
and benefits" earlier in this Prospectus, as well as the Income Manager(R)
prospectus.
THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION
The amount applied to purchase an annuity payout option varies, depending on
the payout option that you choose, and the timing of your purchase as it
relates to any market value adjustments.
If amounts in a fixed maturity option are used to purchase any annuity payout
option, prior to the maturity date, a market value adjustment will apply.
SELECTING AN ANNUITY PAYOUT OPTION
When you select a payout option, we will issue you a separate written agreement
confirming your right to receive annuity payments. We require you to return
your contract before annuity payments begin. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
thirteen months from the Accumulator(R) Select(SM) contract date. Except with
respect to the Income Manager(R) annuity payout options, where payments are
made on the 15th day of each month, you can change the date your annuity
payments are to begin anytime before that date as long as you do not choose a
date later than the 28th day of any month.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier.
In no event will you ever receive payments under a fixed option or an initial
payment under a variable option of less than the minimum amounts guaranteed by
the contract.
36 Accessing your money
If, at the time you elect a payout option, the amount to be applied is less
than $2,000 or the initial payment under the form elected is less than $20
monthly, we reserve the right to pay the account value in a single sum rather
than as payments under the payout option chosen.
ANNUITY MATURITY DATE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 90th birthday.
Before the last day by which your annuity payments must begin, we will notify
you by letter. Once you have selected an annuity payout option and payments
have begun, no change can be made other than: (i) transfers (if permitted in
the future) among the variable investment options if a Variable Immediate
Annuity payout option is selected; and (ii) withdrawals or contract surrender
if an Income Manager(R) annuity payout option is chosen.
Accessing your money 37
5. Charges and expenses
- --------------------------------------------------------------------------------
CHARGES THAT AXA EQUITABLE DEDUCTS
We deduct the following charges each day from the net assets of each variable
investment option. These charges are reflected in the unit values of each
variable investment option:
o A mortality and expense risks charge
o An administrative charge
o A distribution charge
We deduct the following charges from your account value. When we deduct these
charges from your variable investment options, we reduce the number of units
credited to your contract:
o A charge for baseBUILDER, if you elect this optional benefit.
o At the time annuity payments are to begin -- charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your state.
An annuity administrative fee may also apply.
o A charge for Protection Plus(SM), if you elect this optional benefit.
More information about these charges appears below. We will not increase these
charges for the life of your contract, except as noted. We may reduce certain
charges under group or sponsored arrangements. See "Group or sponsored
arrangements" later in this section.
To help with your retirement planning, we may offer other annuities with
different charges, benefits and features. Please contact your financial
professional for more information.
MORTALITY AND EXPENSE RISKS CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for mortality and expense risks, including the guaranteed
minimum death benefit. The daily charge is equivalent to an annual rate of
1.10% of the net assets in each variable investment option.
The mortality risk we assume is the risk that annuitants as a group will live
for a longer time than our actuarial tables predict. If that happens, we would
be paying more in annuity income than we planned. We also assume a risk that
the mortality assumptions reflected in our guaranteed annuity payment tables,
shown in each contract, will differ from actual mortality experience. Lastly,
we assume a mortality risk to the extent that at the time of death, the
guaranteed minimum death benefit exceeds the cash value of the contract. The
expense risk we assume is the risk that it will cost us more to issue and
administer the contracts than we expect.
ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for administrative expenses under the
contracts. The daily charge is equivalent to an annual rate of 0.25% of the net
assets in each variable investment option.
DISTRIBUTION CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for a portion of our sales expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
BASEBUILDER BENEFIT CHARGE
If you elected the baseBUILDER, we deduct a charge annually from your account
value on each contract date anniversary until such time as you exercise the
guaranteed minimum income benefit, elect another annuity payout option, or the
contract date anniversary after the annuitant reaches age 83, whichever occurs
first. The charge is equal to 0.30% of the benefit base in effect on the
contract date anniversary.
We will deduct this charge from your value in the variable investment options
on a pro rata basis. If there is not enough value in the variable investment
options, we will deduct all or a portion of the charge first, from the fixed
maturity options, in order of the earliest maturity date(s) first. A market
value adjustment may apply.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
PROTECTION PLUS(SM) CHARGE
If you elected Protection Plus(SM), we deduct a charge annually from your
account value on each contract date anniversary for which it is in effect. The
charge is equal to 0.20% of the account value on each contract date anniversary.
We will deduct this charge from your value in the variable investment option on
a pro rata basis. If there is not enough value in the variable investment
options, we will deduct all or a portion of the charge first, from the fixed
maturity options, in the order of the earliest maturity date(s) first. A market
value adjustment may apply.
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state. Generally, we deduct the charge from
the amount applied to provide an annuity payout option. The current tax charge
that might be imposed varies by jurisdiction and ranges from 0% to 3.5%.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $350 from the amount to be applied to the Variable Immediate
Annuity payout option.
38 Charges and expenses
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
o Management fees ranging from 0.10% to 1.20%.
o 12b-1 fees of 0.25%.
o Operating expenses, such as trustees' fees, independent public accounting
firm's fees, legal counsel fees, administrative service fees, custodian fees
and liability insurance.
o Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of each Trust are purchased at their net asset value, these fees and
expenses are, in effect, passed on to the variable investment options and are
reflected in their unit values. For more information about these charges,
please refer to the prospectuses for the Trusts.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the mortality and
expense risks charge or change the minimum initial contribution requirements.
We also may change the guaranteed minimum income benefit and the guaranteed
minimum death benefit or offer variable investment options that invest in
shares of either Trust that are not subject to the 12b-1 fee. Group
arrangements include those in which a trustee or an employer, for example,
purchases contracts covering a group of individuals on a group basis. Group
arrangements are not available for Rollover IRA and Roth Conversion IRA
contracts. Sponsored arrangements include those in which an employer allows us
to sell contracts to its employees or retirees on an individual basis.
Our costs for sales, administration and mortality generally vary with the size
and stability of the group or sponsoring organization, among other factors. We
take all these factors into account when reducing charges. To qualify for
reduced charges, a group or sponsored arrangement must meet certain
requirements, such as requirements for size and number of years in existence.
Group or sponsored arrangements that have been set up solely to buy contracts
or that have been in existence less than six months will not qualify for
reduced charges.
We also may establish different rates to maturity for the fixed maturity
options under different classes of contracts for group or sponsored
arrangements.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these rules from time to
time. Any variation will reflect differences in costs or services and will not
be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules,
ERISA, or both. We make no representations with regard to the impact of these
and other applicable laws on such programs. We recommend that employers,
trustees and others purchasing or making contracts available for purchase under
such programs seek the advice of their own legal and benefits advisers.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that result
in savings of sales and administrative expenses, such as sales through persons
who are compensated by clients for recommending investments and who receive no
commission or reduced commissions in connection with the sale of the contracts.
We will not permit a reduction or elimination of charges where it would be
unfairly discriminatory.
Charges and expenses 39
6. Payment of death benefit
- --------------------------------------------------------------------------------
YOUR BENEFICIARY AND PAYMENT OF BENEFIT
You designated your beneficiary when you applied for your contract. You may
change your beneficiary at any time. The change will be effective on the date
the written request for the change is received in our processing office. We are
not responsible for any beneficiary change request that we do not receive. We
will send you written confirmation when we receive your request.
Under jointly owned contracts, the surviving owner is considered the
beneficiary, and will take the place of any other beneficiary. You may be
limited as to the beneficiary you can designate in a Rollover TSA contract. In
a QP contract, the beneficiary must be the trustee. Where an NQ contract is
owned by a minor pursuant to the Uniform Gift to Minors Act or the Uniform
Transfers to Minors Act, the beneficiary must be the estate of the annuitant.
Where an IRA contract is owned in a custodial individual retirement account,
the custodian must be the beneficiary so that the custodian can reinvest or
distribute the death benefit as the beneficiary of the account desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
guaranteed minimum death benefit. The guaranteed minimum death benefit is part
of your contract, whether you select the baseBUILDER benefit or not. We
determine the amount of the death benefit (other than the guaranteed minimum
death benefit) and any amount applicable under the Protection Plus(SM) feature,
as of the date we receive satisfactory proof of the annuitant's death, any
required instructions for the method of payment, information and forms
necessary to effect payment. The amount of the guaranteed minimum death benefit
will be the guaranteed minimum death benefit as of the date of the annuitant's
death, adjusted for any subsequent withdrawals. Under Rollover TSA contracts we
will deduct the amount of any outstanding loan plus accrued interest from the
amount of the death benefit.
EFFECT OF THE ANNUITANT'S DEATH
If the annuitant dies before the annuity payments begin, we will pay the death
benefit to your beneficiary.
Generally, the death of the annuitant terminates the contract. However, a
surviving spouse of the deceased owner/annuitant can choose to be treated as
the successor owner/annuitant and continue the contract. Only a spouse who is
the sole primary beneficiary can be a successor owner/annuitant. The successor
owner/annuitant feature is only available under NQ and individually owned IRA
contracts.
For individually owned IRA contracts, a beneficiary may be able to have limited
ownership as discussed under "Beneficiary continuation option" below.
WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT
Under certain conditions the owner changes after the original owner's death for
purposes of receiving federal tax law required distributions from the contract.
When the owner is not the annuitant under an NQ contract and the owner dies
before annuity payments begin, unless you specify otherwise, the beneficiary
named to receive this death benefit upon the annuitant's death will become the
successor owner. If you do not want this beneficiary to be the successor owner,
you should name a specific successor owner. You may name a successor owner at
any time during your life by sending satisfactory notice to our processing
office. If the contract is jointly owned and the first owner to die is not the
annuitant, the surviving owner becomes the sole contract owner. This person
will be considered the successor owner for purposes of the distribution rules
described in this section. The surviving owner automatically takes the place of
any other beneficiary designation.
You should carefully consider the following if you have elected the guaranteed
minimum income benefit and you are the owner but not the annuitant. Because the
payments under the guaranteed minimum income benefit are based on the life of
the annuitant, and the federal tax law required distributions described below
are based on the life of the successor owner, a successor owner who is not also
the annuitant may not be able to exercise the guaranteed minimum income
benefit, if you die before annuity payments begin. Therefore, one year before
you become eligible to exercise the guaranteed minimum income benefit, you
should consider the effect of your beneficiary designations on potential
payments after your death. For more information, see "Exercise of guaranteed
minimum income benefit," under "Our baseBUILDER option," in "Contract features
and benefits" earlier in this Prospectus.
Unless the surviving spouse of the owner who has died (or in the case of a
joint ownership situation, the surviving spouse of the first owner to die) is
the successor owner for this purpose, the entire interest in the contract must
be distributed under the following rules:
o The cash value of the contract must be fully paid to the successor owner (new
owner) within five years after your death (or in a joint ownership situation,
the death of the first owner to die).
o The successor owner may instead elect to receive the cash value as a life
annuity (or payments for a period certain of not longer than the new owner's
life expectancy). Payments must begin within one year after the non-annuitant
owner's death. Unless this alternative is elected, we will pay any cash value
five years after your death (or the death of the first owner to die).
o A successor owner should name a new beneficiary.
If the surviving spouse is the successor owner or joint owner, the spouse may
elect to continue the contract. No distributions are required as long as the
surviving spouse and annuitant are living.
HOW DEATH BENEFIT PAYMENT IS MADE
We will pay the death benefit to the beneficiary in the form of the annuity
payout option you have chosen. If you have not chosen an
40 Payment of death benefit
annuity payout option as of the time of the annuitant's death, the beneficiary
will receive the death benefit in a single sum. However, subject to any
exceptions in the contract, our rules and any applicable requirements under
federal income tax rules, the beneficiary may elect to apply the death benefit
to one or more annuity payout options we offer at the time. See "Your annuity
payout options" in "Accessing your money" earlier in this Prospectus. Please
note that any annuity payout option chosen may not extend beyond the life
expectancy of the beneficiary.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may elect to
receive the death benefit or continue the contract as successor
owner/annuitant.
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required instructions,
information and forms necessary to effect the successor owner/annuitant feature,
we will increase the account value to equal your guaranteed minimum death
benefit as of the date of your death if such death benefit is greater than such
account value, plus any amount applicable under the Protection Plus(SM) feature
and adjusted for any subsequent withdrawals. The increase in the account value
will be allocated to the investment options according to the allocation
percentages we have on file for your contract. In determining whether the
guaranteed minimum death benefit will continue to grow, we will use your
surviving spouse's age (as of the date we receive satisfactory proof of your
death, any required instructions and the information and forms necessary to
effect the successor owner/annuitant feature).
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole beneficiary of the account, the custodian may
request that the spouse be substituted as annuitant after your death.
BENEFICIARY CONTINUATION OPTION
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. This feature permits a designated individual, upon the contract owner's
death, to maintain the contract in the deceased contract owner's name and
receive distributions under the contract instead of receiving the death benefit
in a lump sum. The beneficiary continuation option must be elected by September
30th of the year following the calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this option. If the election is made, then, as of the
date we receive satisfactory proof of death, any required instructions,
information and forms necessary to effect the beneficiary continuation option
feature, we will increase the account value to equal the applicable death
benefit if such death benefit is greater than such account value plus any
amount applicable under the Protection Plus(SM) feature, adjusted for any
subsequent withdrawals. Where an IRA contract is owned in a custodial
individual retirement account, the custodian may reinvest the death benefit in
an individual retirement annuity contract, using the account beneficiary as the
annuitant. Please speak with your financial professional for further
information.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy (determined in the calendar year after your death
and determined on a term certain basis). These payments must begin no later
than December 31st of the calendar year after the year of your death. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70-1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed later in this Prospectus in
"Tax information" under "Individual retirement arrangements (IRAs')," the
beneficiary may choose the "5-year rule" option instead of annual payments over
life expectancy. The 5-year rule is always available to beneficiaries under
Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may
take withdrawals as desired, but the entire account value must be fully
withdrawn by December 31st of the calendar year which contains the fifth
anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA contracts:
o The contract continues in your name for the benefit of your beneficiary.
o This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals
for this purpose.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's own
life expectancy, if payments over life expectancy are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the guaranteed minimum income benefit or Protection
Plus(SM) feature under the contract, they will no longer be in effect and
charges for such benefits will stop. Also, any guaranteed minimum death
benefit feature will no longer be in effect.
o The beneficiary may choose at any time to withdraw all or a portion of the
account value.
o Any partial withdrawal must be at least $300.
o Your beneficiary will have the right to name a beneficiary to
receive any remaining interest in the contract.
o Upon the death of your beneficiary, the beneficiary he or she has
named has the option to either continue taking required minimum
distributions based on the remaining life expectancy of the deceased
beneficiary or to receive any remaining interest in the contract in a lump
sum. The option elected will be processed when we receive satisfactory
proof of death, any required instructions for the method of payment and
any required information and forms necessary to effect payment.
Payment of death benefit 41
7. Tax information
- --------------------------------------------------------------------------------
OVERVIEW
In this part of the Prospectus, we discuss the current federal income tax rules
that generally apply to Accumulator(R) Select(SM) contracts owned by United
States individual taxpayers. The tax rules can differ, depending on the type of
contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. Therefore, we
discuss the tax aspects of each type of contract separately.
Federal income tax rules include the United States laws in the Internal Revenue
Code, and Treasury Department Regulations and Internal Revenue Service ("IRS")
interpretations of the Internal Revenue Code. These tax rules may change
without notice. We cannot predict whether, when or how these rules could
change. Any change could affect contracts purchased before the change. Congress
may also consider proposals in the future to comprehensively reform or overhaul
the United States tax and retirement systems, which if enacted, could affect
the tax benefits of a contract.
We cannot provide detailed information on all tax aspects of the contracts.
Moreover, the tax aspects that apply to a particular person's contract may vary
depending on the facts applicable to that person. We do not discuss state
income and other state taxes, federal income tax and withholding rules for
non-U.S. taxpayers or federal gift and estate taxes. Transfers of the contract,
rights or values under the contract, or payments under the contract, for
example, the amounts due to beneficiaries, may be subject to federal or state
gift, estate, or inheritance taxes. You should not rely only on this document,
but should consult your tax adviser before your purchase.
President Bush signed the Economic Growth and Tax Relief Reconciliation Act of
2001 ("EGTRRA") on June 7, 2001. Many of the provisions of EGTRRA became
effective on January 1, 2002, and are phased in during the first decade of the
twenty-first century. In the absence of future legislation, all of the
amendments made by EGTRRA will no longer apply after December 31, 2010, and the
law in effect in 2001 will apply again. In general, EGTRRA liberalizes
contributions which can be made to all types of tax-favored retirement plans.
In addition to increasing amounts which can be contributed and permitting
individuals over age 50 to make additional contributions, EGTRRA also permits
rollover contributions to be made between different types of tax-favored
retirement plans. Please discuss with your tax adviser how EGTRRA affects your
personal financial situation.
CONTRACTS THAT FUND A RETIREMENT ARRANGEMENT
Generally, there are two types of funding vehicles that are available for
Individual Retirement Arrangements ("IRAs") and Code Section 403(b)
Arrangements ("TSAs"), respectively: an IRA or 403(b) annuity contract such as
this one, or an IRA or 403(b)(7) custodial or other qualified account. Annuity
contracts can also be purchased in connection with retirement plans qualified
under Code Section 401 ("QP contracts"). How these arrangements work, including
special rules applicable to each, are described in the specific sections for
each type of arrangement, below. You should be aware that the funding vehicle
for a qualified arrangement does not provide any tax deferral benefit beyond
that already provided by the Code for all permissible funding vehicles.
Therefore, you should consider the annuity's features and benefits, such as
Accumulator(R) Select(SM)'s 12 Month Dollar Cost Averaging, choice of death
benefits, baseBUILDER guaranteed minimum income benefit, selection of
investment funds and fixed maturity options and its choices of pay-out options,
as well as the features and benefits of other permissible funding vehicles and
the relative costs of annuities and other arrangements. You should be aware
that cost may vary depending on the features and benefits made available and
the charges and expenses of the investment options or funds that you elect.
Beginning 2006, certain provisions of the Treasury Regulations on required
minimum distributions concerning the actuarial present value of additional
contract benefits could increase the amount required to be distributed from
annuity contracts funding qualified plans, TSAs and IRAs. You should consider
the potential implication of these Regulations before you purchase additional
features under this annuity contract. See also Appendix II at the end of this
Prospectus for a discussion of QP contracts.
TRANSFERS AMONG INVESTMENT OPTIONS
You can make transfers among investment options inside the contract without
triggering taxable income.
TAXATION OF NONQUALIFIED ANNUITIES
CONTRIBUTIONS
You may not deduct the amount of your contributions to a nonqualified annuity
contract.
CONTRACT EARNINGS
Generally, you are not taxed on contract earnings until you receive a
distribution from your contract, whether as a withdrawal or as an annuity
payment. However, earnings are taxable even without a distribution:
o if a contract fails investment diversification requirements as specified in
federal income tax rules (these rules are based on or are similar to those
specified for mutual funds under the securities laws);
o if you transfer a contract, for example, as a gift to someone other than your
spouse (or former spouse);
o if you use a contract as security for a loan (in this case, the amount
pledged will be treated as a distribution); and
o if the owner is other than an individual (such as a corporation, partnership,
trust or other non-natural person).
42 Tax information
All nonqualified deferred annuity contracts that AXA Equitable and its
affiliates issue to you during the same calendar year are linked together and
treated as one contract for calculating the taxable amount of any distribution
from any of those contracts.
ANNUITY PAYMENTS
Once annuity payments begin, a portion of each payment is taxable as ordinary
income. You get back the remaining portion without paying taxes on it. This is
your "investment in the contract." Generally, your investment in the contract
equals the contributions you made, less any amounts you previously withdrew
that were not taxable.
For fixed annuity payments, the tax-free portion of each payment is determined
by (1) dividing your investment in the contract by the total amount you are
expected to receive out of the contract, and (2) multiplying the result by the
amount of the payment. For variable annuity payments, your tax-free portion of
each payment is your investment in the contract divided by the number of
expected payments.
Once you have received the amount of your investment in the contract, all
payments after that are fully taxable. If payments under a life annuity stop
because the annuitant dies, there is an income tax deduction for any
unrecovered investment in the contract.
PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN
If you make withdrawals before annuity payments begin under your contract, they
are taxable to you as ordinary income if there are earnings in the contract.
Generally, earnings are your account value less your investment in the
contract. If you withdraw an amount which is more than the earnings in the
contract as of the date of the withdrawal, the balance of the distribution is
treated as a return of your investment in the contract and is not taxable.
PROTECTION PLUS(SM) FEATURE
In order to enhance the amount of the death benefit to be paid at the
annuitant's death, you may have purchased a Protection Plus(SM) rider for your
NQ contract. Although we regard this benefit as an investment protection feature
which is part of the contract and which should have no adverse tax effect, it is
possible that the IRS could take a contrary position or assert that the
Protection Plus(SM) rider is not part of the contract. In such a case the
charges for the Protection Plus(SM) rider could be treated for federal income
tax purposes as a partial withdrawal from the contract. If this were so, such a
deemed withdrawal could be taxable and, for contract owners under age 59-1/2,
also subject to a tax penalty. Were the IRS to take this position, AXA Equitable
would take all reasonable steps to attempt to avoid this result, which would
include amending the contract (with appropriate notice to you).
CONTRACTS PURCHASED THROUGH EXCHANGES
The following information applies if you purchased your NQ contract through an
exchange of another contract. Normally, exchanges of contracts are taxable
events. The exchange was not taxable under Section 1035 of the Internal Revenue
Code if:
o the contract that was the source of the funds you used to purchase the NQ
contract was another nonqualified deferred annuity contract (or life
insurance or endowment contract).
o The owner and the annuitant were the same under the source contract and the
Accumulator(R) Select(SM) NQ contract. If you used a life insurance or
endowment contract the owner and the insured must have been the same on both
sides of the exchange transaction.
The tax basis, also referred to as your investment in the contract, of the
source contract carried over to the Accumulator(R) Select(SM) NQ contract.
An owner may direct the proceeds of a partial withdrawal from one nonqualified
deferred annuity contract to a different insurer to purchase a new nonqualified
deferred annuity contract on a tax-deferred basis. Special forms, agreement
between carriers and provision of cost basis information may be required to
process this type of an exchange.
SURRENDERS
If you surrender or cancel the contract, the distribution is taxable as
ordinary income (not capital gain) to the extent it exceeds your investment in
the contract.
DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER
YOUR DEATH
For the rules applicable to death benefits, see "Payment of death benefit"
earlier in this Prospectus. The tax treatment of a death benefit taken as a
single sum is generally the same as the tax treatment of a withdrawal from or
surrender of your contract. The tax treatment of a death benefit taken as
annuity payments is generally the same as the tax treatment of annuity payments
under your contract.
EARLY DISTRIBUTION PENALTY TAX
If you take distributions before you are age 59-1/2 a penalty tax of 10% of the
taxable portion of your distribution applies in addition to the income tax.
Some of the available exceptions to the pre-age 59-1/2 penalty tax include
distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o in the form of substantially equal periodic annuity payments for your life
(or life expectancy), or the joint lives (or joint life expectancy) of you
and a beneficiary, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If
you were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. The IRS has said that the owners of variable annuities will
not be treated as owning the separate account assets provided the underlying
portfolios are restricted to variable life and annuity assets. The variable
annuity owners must have the right only to choose among the portfolios, and
must have no right to direct the particular investment decisions within the
portfolios.
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some
issues that remain unclear. For example, the IRS has not
Tax information 43
issued any guidance as to whether having a larger number of portfolios
available, or an unlimited right to transfer among them, could cause you to be
treated as the owner. We do not know whether the IRS will ever provide such
guidance or whether such guidance, if unfavorable, would apply retroactively to
your contract. Furthermore, the IRS could reverse its current guidance at any
time. We reserve the right to modify your contract as necessary to prevent you
from being treated as the owner of the assets of Separate Accounts 45 and 49.
SPECIAL RULES FOR NQ CONTRACTS ISSUED IN PUERTO RICO
Income from NQ contracts we issue is U.S. source. A Puerto Rico resident is
subject to U.S. taxation on such U.S. source income. Only Puerto Rico source
income of Puerto Rico residents is excludable from U.S. taxation. Income from
NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable
portion of amounts distributed from a contract may differ in the two
jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax
returns, showing different amounts of income from the contract for each tax
return. Puerto Rico generally provides a credit against Puerto Rico tax for
U.S. tax paid. Depending on your personal situation and the timing of the
different tax liabilities, you may not be able to take full advantage of this
credit.
INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS)
GENERAL
"IRA" stands for individual retirement arrangement. There are two basic types
of such arrangements, individual retirement accounts and individual retirement
annuities. In an individual retirement account, a trustee or custodian holds
the assets for the benefit of the IRA owner. The assets funding the account
typically include mutual funds and/or individual stocks and/or securities in a
custodial account and bank certificates of deposit in a trusteed account . In
an individual retirement annuity, an insurance company issues an annuity
contract that serves as the IRA.
There are two basic types of IRAs, as follows:
o Traditional IRAs, typically funded on a pre-tax basis, including SEP-IRAs and
SIMPLE IRAs issued and funded in connection with employer-sponsored
retirement plans; and
o Roth IRAs, funded on an after-tax basis.
Regardless of the type of IRA, your ownership interest in the IRA cannot be
forfeited. You or your beneficiaries who survive you are the only ones who can
receive the IRA's benefits or payments. All types of IRAs qualify for tax
deferral regardless of the funding vehicle selected.
You can hold your IRA assets in as many different accounts and annuities as you
would like, as long as you meet the rules for setting up and making
contributions to IRAs. However, if you own multiple IRAs, you may be required
to combine IRA values or contributions for tax purposes. For further
information about individual retirement arrangements, you can read Internal
Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)").
This publication is usually updated annually, and can be obtained from any IRS
district office or the IRS website (www.irs.gov).
AXA Equitable designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may have
purchased the contract as either a traditional IRA ("Rollover IRA") or Roth IRA
("Roth Conversion IRA"). The first part of this section covers some of the
special tax rules that apply to traditional IRAs. The next part of this section
covers Roth IRAs. The disclosure generally assumes direct ownership of the
individual retirement annuity contract. For contracts owned in a custodial
individual retirement account, the disclosure will apply only if you terminate
your account or transfer ownership of the contract to yourself.
We have received an opinion letter from the IRS approving the respective forms
of the Accumulator(R) Select(SM)traditional and Roth IRA contracts, as amended
to reflect recent tax law changes, for use as a traditional IRA and a Roth IRA,
respectively. We do not know if and when any such IRS formal approval will be
received. This IRS approval is a determination only as to the form of the
annuity. It does not represent a determination of the merits of the annuity as
an investment. The contracts submitted for IRS approval do not include every
feature possibly available under the Accumulator(R) Select(SM) traditional and
Roth IRA contracts.
PROTECTION PLUS(SM) FEATURE
The Protection Plus(SM) feature was offered for IRA contracts, subject to state
and contract availability. We have received IRS opinion letters that the
contract with a Protection Plus(SM) feature qualifies as to form for use as a
traditional IRA and Roth IRA, respectively. This IRS approval is a
determination only as to the form of the annuity. It does not represent a
determination of the merits of the annuity as an investment. The contracts
submitted for IRS approval do not include every feature possibly available
under the Accumulator(R) Select(SM) traditional and Roth IRA contracts. You
should consult with your tax adviser for further information.
Your right to cancel within a certain number of days
This is provided for informational purposes only. Since this contract is no
longer available to new purchasers, this cancellation provision is no longer
applicable. You can cancel any version of the Accumulator(R) IRA contract
(traditional IRA or Roth IRA) by following the directions in "Your right to
cancel within a certain number of days" under "Contract features and benefits"
earlier in this Prospectus. If you cancel a traditional IRA or Roth IRA
contract, we may have to withhold tax, and we must report the transaction to
the IRS. A contract cancellation could have an unfavorable tax impact.
Traditional individual retirement annuities (traditional IRAs)
Contributions to traditional IRAs. Individuals may make three different types
of contributions to a traditional IRA:
o regular contributions out of earned income or compensation; or
o tax-free "rollover" contributions; or
o direct custodian-to-custodian transfers from other traditional IRAs
("direct transfers").
Regular contribution to traditional IRAs
Limits on contributions. The "maximum regular contribution amount" for any
taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the par-
44 Tax information
ticular taxable year. The maximum regular contribution amount depends on age,
earnings, and year, among other things. Generally, $4,000 is the maximum amount
that you may contribute to all IRAs (including Roth IRAs) for each of the
taxable years 2005 and 2006. When your earnings are below $4,000, your earned
income or compensation for the year is the most you can contribute. This limit
does not apply to rollover contributions or direct custodian-to-custodian
transfers into a traditional IRA. You cannot make regular traditional IRA
contributions for the tax year in which you reach age 70-1/2 or any tax year
after that.
If you reach age 50 before the close of the taxable year for which you are
making a regular contribution to your IRA, you may be eligible to make an
additional "catch-up contribution" of up to $500 to your traditional IRA for
2005. This amount increases to $1,000 for the taxable year 2006.
Special rules for spouses. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to traditional IRAs
(and Roth IRAs discussed below). Even if one spouse has no compensation, or
compensation under $4,000, married individuals filing jointly can contribute up
to $8,000 for each of the taxable years 2005 and 2006 to any combination of
traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the
ability to contribute to traditional IRAs and vice versa. The maximum amount
may be less if earned income is less and the other spouse has made IRA
contributions. No more than a combined total of $4,000 can be contributed
annually to either spouse's traditional and Roth IRAs. Each spouse owns his or
her traditional IRAs and Roth IRAs even if the other spouse funded the
contributions. A working spouse age 70-1/2 or over can contribute up to the
lesser of $4,000 or 100% of "earned income" to a traditional IRA for a
nonworking spouse until the year in which the nonworking spouse reaches age
70-1/2. Catch-up contributions may be made as described above for spouses who
are at least age 50 but under age 70-1/2 at any time during the taxable year
for which the contribution is made.
Deductibility of contributions. The amount of traditional IRA contributions
that you can deduct for a taxable year depends on whether you are covered by an
employer-sponsored, tax-favored retirement plan, as defined under special
federal income tax rules. Your Form W-2 will indicate whether or not you are
covered by such a retirement plan.
If you are not covered by a retirement plan during any part of the year, you
can make fully deductible contributions to your traditional IRAs for the
taxable year up to the maximum amount discussed earlier in this section under
"Limits on contributions". That is, for each of the taxable years 2005 and
2006, your fully deductible contribution can be up to $4,000, or if less, your
earned income. The dollar limit is $4,500 for people eligible to make age
50-701/2 catch-up contributions for 2005 and $5,000 for 2006, respectively.
If you are covered by a retirement plan during any part of the year, and your
adjusted gross income (AGI) is below the lower dollar figure in a phase-out
range, you can make fully deductible contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls within a phase-out range, you can make partially deductible
contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls above the higher figure in the phase-out range, you may not deduct
any of your regular contributions to your traditional IRAs.
If you are single and covered by a retirement plan during any part of the
taxable year, the deduction for traditional IRA contributions phases out with
AGI between $50,000 and $60,000 in 2005 and later years.
If you are married and file a joint return, and you are covered by a retirement
plan during any part of the taxable year, the deduction for traditional IRA
contributions phases out with AGI between $70,000 and $80,000 in 2005 and AGI
between $75,000 and $85,000 in 2006. In 2007, the deduction will phase out for
AGI between $80,000 and $100,000.
Married individuals filing separately and living apart at all times are not
considered married for purposes of this deductible contribution calculation.
Generally, the active participation in an employer-sponsored retirement plan of
an individual is determined independently for each spouse. Where spouses have
"married filing jointly" status, however, the maximum deductible traditional
IRA contribution for an individual who is not an active participant (but whose
spouse is an active participant) is phased out for taxpayers with an AGI
between $150,000 and $160,000.
To determine the deductible amount of the contribution for 2005 for example,
you determine AGI and subtract $50,000 if you are single, or $70,000 if you are
married and file a joint return with your spouse. The resulting amount is your
excess AGI. You then determine the limit on the deduction for traditional IRA
contributions using the following formula:
($10,000-excess AGI) times the maximum Equals the adjusted
-------------------- x regular = deductible
divided by $10,000 contribution contribution
for the year limit
Additional "Saver's Credit" for contributions to a
traditional IRA or Roth IRA
You may be eligible for a nonrefundable income tax credit for contributions you
make to a traditional IRA or Roth IRA. The final year this credit is available
is 2006. If you qualify, you may take this credit even though your traditional
IRA contribution is already fully or partially deductible. To take advantage of
this "saver's credit" you must be 18 or over before the end of the taxable year
for which the contribution is made. You cannot be a full-time student or
claimed as a dependent on another's tax return and your adjusted gross income
cannot exceed $50,000. The amount of the tax credit you can get varies from 10%
of your contribution to 50% of your contribution and depends on your income tax
filing status and your adjusted gross income. The maximum annual contribution
eligible for the saver's credit is $2,000. If you and your spouse file a joint
return, and each of you qualifies, each is eligible for a maximum annual
contribution of $2,000. Your saver's credit may also be reduced if you take or
have taken a taxable distribution from any plan eligible for a saver's credit
contribution -- even
Tax information 45
if you make a contribution to one plan and take the distribution from another
plan -- during the "testing period." The "testing period" begins two years
before the year for which you make the contribution and ends when your tax
return is due for the year for which you make the contribution.
Saver's-credit-eligible contributions may be made to a 401(k) plan, 403(b) TSA,
governmental employer 457(b) plan, SIMPLE IRA, or SARSEP IRA, as well as a
traditional IRA or Roth IRA.
Nondeductible regular contributions. If you are not eligible to deduct part or
all of the traditional IRA contribution, you may still make nondeductible
contributions on which earnings will accumulate on a tax-deferred basis. The
combined deductible and nondeductible contributions to your traditional IRA (or
the nonworking spouse's traditional IRA) may not, however, exceed the maximum
dollar per person limit for the applicable taxable year ($4,000 for 2005 and
2006). The dollar limit is $4,500 in 2005 and $5,000 in 2006 for people
eligible to make ages 50 - 70-1/2 catch-up contributions. See "Excess
contributions" later in this section. You must keep your own records of
deductible and nondeductible contributions in order to prevent double taxation
on the distribution of previously taxed amounts. See "Withdrawals, payments and
transfers of funds out of traditional IRAs" later in this section.
If you are making nondeductible contributions in any taxable year, or you have
made nondeductible contributions to a traditional IRA in prior years and are
receiving distributions from any traditional IRA, you must file the required
information with the IRS. Moreover, if you are making nondeductible traditional
IRA contributions, you must retain all income tax returns and records
pertaining to such contributions until interests in all traditional IRAs are
fully distributed.
When you can make regular contributions. If you file your tax returns on a
calendar year basis like most taxpayers, you have until the April 15 return
filing deadline (without extensions) of the following calendar year to make
your regular traditional IRA contributions for a tax year.
Rollover and transfer contributions to traditional IRAs
Rollover contributions may be made to a traditional IRA from these "eligible
retirement plans":
o qualified plans;
o governmental employer 457(b) plans;
o TSAs (including Internal Revenue Code Section 403(b)(7) custodial
accounts); and
o other traditional IRAs.
Direct transfer contributions may only be made directly from one traditional
IRA to another. Any amount contributed to a traditional IRA after you reach age
70-1/2 must be net of your required minimum distribution for the year in which
the rollover or direct transfer contribution is made.
Rollovers from "eligible retirement plans" other than traditional IRAs
Your plan administrator will tell you whether or not your distribution is
eligible to be rolled over. Spousal beneficiaries and spousal alternate payees
under qualified domestic relations orders may roll over funds on the same basis
as the plan participant.
There are two ways to do rollovers:
o Do it yourself:
You actually receive a distribution that can be rolled over and you roll it
over to a traditional IRA within 60 days after the date you receive the
funds. The distribution from your eligible retirement plan will be net of
20% mandatory federal income tax withholding. If you want, you can replace
the withheld funds yourself and roll over the full amount.
o Direct rollover:
You tell the trustee or custodian of the eligible retirement plan to send
the distribution directly to your traditional IRA issuer. Direct rollovers
are not subject to mandatory federal income tax withholding.
All distributions from a TSA, qualified plan or governmental employer 457(b)
plan are eligible rollover distributions, unless the distributions are:
o "required minimum distributions" after age 70-1/2 or retirement from
service with the employer; or
o substantially equal periodic payments made at least annually for your life
(or life expectancy) or the joint lives (or joint life expectancies) of you
and your designated beneficiary; or
o substantially equal periodic payments made for a specified period of 10
years or more; or
o hardship withdrawals; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o death benefit payments to a beneficiary who is not your surviving spouse;
or
o qualified domestic relations order distributions to a beneficiary who is
not your current spouse or former spouse.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental employer 457(b) plan are not subject to the
additional 10% federal income tax penalty for premature distributions, but they
may become subject to this penalty if you roll the funds to a different type of
eligible retirement plan such as a traditional IRA and subsequently take a
premature distribution.
Rollovers of after-tax contributions from eligible retirement plans other than
traditional IRAs
Any after-tax contributions you have made to a qualified plan or TSA (but not a
governmental employer 457(b) plan) may be rolled over to a traditional IRA
(either in a direct rollover or a rollover you do yourself). When the recipient
plan is a traditional IRA, you are responsible for recordkeeping and
calculating the taxable amount of any distribu-
46 Tax information
tions you take from that traditional IRA. See "Taxation of Payments" later in
this section under "Withdrawals, payments and transfers of funds out of
traditional IRAs." After-tax contributions in a traditional IRA cannot be
rolled over from your traditional IRA into, or back into, a qualified plan, TSA
or governmental employer 457(b) plan.
Rollovers from traditional IRAs to traditional IRAs
You may roll over amounts from one traditional IRA to one or more of your other
traditional IRAs if you complete the transaction within 60 days after you
receive the funds. You may make such a rollover only once in every 12-month
period for the same funds. Trustee-to-trustee or custodian-to-custodian direct
transfers are not rollover transactions. You can make these more frequently
than once in every 12-month period.
SPOUSAL ROLLOVERS AND DIVORCE-RELATED DIRECT TRANSFERS
The surviving spouse beneficiary of a deceased individual can roll over funds
from, or directly transfer funds from, an inherited traditional IRA to one or
more other traditional IRAs. Also, in some cases, traditional IRAs can be
transferred on a tax-free basis between spouses or former spouses as a result
of a court ordered divorce or separation decree.
Excess contributions
Excess contributions to IRAs are subject to a 6% excise tax for the year in
which made and for each year after until withdrawn. The following are excess
contributions to IRAs:
o contributions of more than the maximum regular contribution
amount for the applicable taxable year); or
o regular contributions to a traditional IRA made after you reach
age 70-1/2; or
o rollover contributions of amounts which are not eligible to be
rolled over, for example, minimum distributions required to be made after
age 70-1/2.
You can avoid the excise tax by withdrawing an excess contribution (rollover or
regular) before the due date (including extensions) for filing your federal
income tax return for the year. If it is an excess regular traditional IRA
contribution, you cannot take a tax deduction for the amount withdrawn. You do
not have to include the excess contribution withdrawn as part of your income.
It is also not subject to the 10% additional penalty tax on early
distributions, discussed later in this section under "Early distribution
penalty tax." You do have to withdraw any earnings that are attributed to the
excess contribution. The withdrawn earnings would be included in your gross
income and could be subject to the 10% penalty tax.
Even after the due date for filing your return, you may withdraw an excess
rollover contribution, without income inclusion or 10% penalty, if:
(1) the rollover was from an eligible retirement plan to a traditional IRA;
(2) the excess contribution was due to incorrect information that the plan
provided; and
(3) you took no tax deduction for the excess contribution.
Recharacterizations
Amounts that have been contributed as traditional IRA funds may subsequently be
treated as Roth IRA funds. Special federal income tax rules allow you to change
your mind again and have amounts that are subsequently treated as Roth IRA
funds, once again treated as traditional IRA funds. You do this by using the
forms we prescribe. This is referred to as having "recharacterized" your
contribution.
Withdrawals, payments and transfers of funds out of traditional IRAs
No federal income tax law restrictions on withdrawals. You can withdraw any or
all of your funds from a traditional IRA at any time. You do not need to wait
for a special event like retirement.
Taxation of payments. Earnings in traditional IRAs are not subject to federal
income tax until you or your beneficiary receive them. Taxable payments or
distributions include withdrawals from your contract, surrender of your
contract and annuity payments from your contract. Death benefits are also
taxable.
Except as discussed below, the total amount of any distribution from a
traditional IRA must be included in your gross income as ordinary income. We
report all payments from traditional IRA contracts on IRS Form 1099R as fully
taxable.
If you have ever made nondeductible IRA contributions to any traditional IRA
(it does not have to be to this particular traditional IRA contract), those
contributions are recovered tax free when you get distributions from any
traditional IRA. It is your responsibility to keep permanent tax records of all
of your nondeductible contributions to traditional IRAs so that you can
correctly report the taxable amount of any distribution on your own tax return.
At the end of any year in which you have received a distribution from any
traditional IRA, you calculate the ratio of your total nondeductible
traditional IRA contributions (less any amounts previously withdrawn tax free)
to the total account balances of all traditional IRAs you own at the end of the
year plus all traditional IRA distributions made during the year. Multiply this
by all distributions from the traditional IRA during the year to determine the
nontaxable portion of each distribution.
A distribution from a traditional IRA is not taxable if:
o the amount received is a withdrawal of excess contributions, as
described under "Excess contributions" earlier in this section; or
o the entire amount received is rolled over to another traditional
IRA or other eligible retirement plan which agrees to accept the funds.
(See "Rollovers from eligible retirement plans other than traditional
IRAs" under "Rollover and transfer contributions to traditional IRAs"
earlier in this section.)
The following are eligible to receive rollovers of distributions from a
traditional IRA: a qualified plan, a TSA or a governmental employer 457(b)
plan. After-tax contributions in a traditional IRA cannot be rolled from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan. Before you decide to roll over a distribution from a
traditional IRA to another eligible retirement
Tax information 47
plan, you should check with the administrator of that plan about whether the
plan accepts rollovers and, if so, the types it accepts. You should also check
with the administrator of the receiving plan about any documents required to be
completed before it will accept a rollover.
Distributions from a traditional IRA are not eligible for favorable ten-year
averaging and long-term capital gain treatment available under limited
circumstances for certain distributions from qualified plans. If you might be
eligible for such tax treatment from your qualified plan, you may be able to
preserve such tax treatment even though an eligible rollover from a qualified
plan is temporarily rolled into a "conduit IRA" before being rolled back into a
qualified plan. See your tax adviser.
Required minimum distributions
Background on Regulations -- Required Minimum Distributions. Distributions must
be made from traditional IRAs according to the rules contained in the Code and
the Treasury Regulations. Certain provisions of the Treasury Regulations will
require, beginning in 2006, that the actuarial present value of additional
annuity contract benefits be added to the dollar amount credited for purposes
of calculating certain types of required minimum distributions from individual
retirement annuity contracts. This could increase the amount required to be
distributed from these contracts if you take annual withdrawals instead of
annuitizing. Please consult your tax adviser concerning applicability of these
complex rules to your situation.
Lifetime required minimum distributions. You must start taking annual
distributions from your traditional IRAs for the year in which you turn age
70-1/2.
When you have to take the first lifetime required minimum distribution. The
first required minimum distribution is for the calendar year in which you turn
age 70-1/2. You have the choice to take this first required minimum
distribution during the calendar year you actually reach age 70-1/2, or to
delay taking it until the first three-month period in the next calendar year
(January 1 - April 1). Distributions must start no later than your "Required
Beginning Date," which is April 1st of the calendar year after the calendar
year in which you turn age 70-1/2. If you choose to delay taking the first
annual minimum distribution, then you will have to take two minimum
distributions in that year -- the delayed one for the first year and the one
actually for that year. Once minimum distributions begin, they must be made at
some time each year.
How you can calculate required minimum distributions.
There are two approaches to taking required minimum distributions --
"account-based" or "annuity-based."
ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the
value of your traditional IRA as of December 31st of the past calendar year by
a number corresponding to your age from an IRS table. This gives you the
required minimum distribution amount for that particular IRA for that year. If
your spouse is your sole beneficiary and more than 10 years younger than you,
the dividing number you use may be from another IRS table and may produce a
smaller lifetime required minimum distribution amount. Regardless of the table
used, the required minimum distribution amount will vary each year as the
account value and the divisor change. If you initially choose an account-based
method, you may later apply your traditional IRA funds to a life annuity-based
payout with any certain period not exceeding remaining life expectancy,
determined in accordance with IRS tables.
ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to
do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a designated beneficiary or for a
period certain not extending beyond applicable life expectancies, determined in
accordance with IRS tables.
Do you have to pick the same method to calculate your required minimum
distributions for all of your traditional IRAs and other retirement plans? No.
If you want, you can choose a different method for each of your traditional
IRAs and other retirement plans. For example, you can choose an annuity payout
from one IRA, a different annuity payout from a qualified plan and an
account-based annual withdrawal from another IRA.
Will we pay you the annual amount every year from your traditional IRA based on
the method you choose? We will only pay you automatically if you affirmatively
select an annuity payout option or an account-based withdrawal option such as
our "automatic required minimum distribution (RMD) service." Even if you do not
enroll in our service, we will calculate the amount of the required minimum
distribution withdrawal for you, if you so request in writing. However, in that
case you will be responsible for asking us to pay the required minimum
distribution withdrawals to you.
Also, the IRS will let you calculate the required minimum distribution for each
traditional IRA that you maintain, using the method that you picked for that
particular IRA. You can add these required minimum distribution amount
calculations together. As long as the total amount you take out every year
satisfies your overall traditional IRA required minimum distribution amount,
you may choose to take your annual required minimum distribution from any one
or more traditional IRAs that you own.
What if you take more than you need to for any year? The required minimum
distribution amount for your traditional IRAs is calculated on a year-by-year
basis. There are no carry-back or carry-forward provisions. Also, you cannot
apply required minimum distribution amounts you take from your qualified plans
to the amounts you have to take from your traditional IRAs and vice versa.
What if you take less than you need to for any year? Your IRA could be
disqualified, and you could have to pay tax on the entire value. Even if your
IRA is not disqualified, you could have to pay a 50% penalty tax on the
shortfall (required amount for traditional IRAs less amount actually taken). It
is your responsibility to meet the required minimum distribution rules. We will
remind you when our records show that you are within the age group which must
take lifetime required minimum distributions. If you do not select a method
with us, we will assume you are taking your required minimum distribution from
another traditional IRA that you own.
What are the required minimum distribution payments after you die? These could
vary depending on whether you die before or after your Required Beginning Date
for lifetime required minimum distribution payments, and the status of your
beneficiary. The following
48 Tax information
assumes that you have not yet elected an annuity-based payout at the time of
your death. If you elect an annuity-based payout, payments (if any) after your
death must be made at least as rapidly as when you were alive.
Individual beneficiary. Regardless of whether your death occurs before or
after your Required Beginning Date, an individual death beneficiary calculates
annual post-death required minimum distribution payments based on the
beneficiary's life expectancy using the "term certain method." That is, he or
she determines his or her life expectancy using the IRS-provided life
expectancy tables as of the calendar year after the owner's death and reduces
that number by one each subsequent year.
If you die before your Required Beginning Date, the rules permit any individual
beneficiary, including a spousal beneficiary, to elect instead to apply the
"5-year rule." Under this rule, instead of annual payments having to be made
beginning with the first in the year following the owner's death, the entire
account must be distributed by the end of the calendar year which contains the
fifth anniversary of the owner's death. No distribution is required before that
fifth year.
Spousal beneficiary. If you die after your Required Beginning Date, and your
death beneficiary is your surviving spouse, your spouse has a number of
choices. Post-death distributions may be made over your spouse's single life
expectancy. Any amounts distributed after that surviving spouse's death are
made over the spouse's life expectancy calculated in the year of his/her death,
reduced by one for each subsequent year. In some circumstances, your surviving
spouse may elect to become the owner of the traditional IRA and halt
distributions until he or she reaches age 70-1/2, or roll over amounts from
your traditional IRA into his/her own traditional IRA or other eligible
retirement plan.
If you die before your Required Beginning Date, and the death beneficiary is
your surviving spouse, the rules permit the spouse to delay starting payments
over his/her life expectancy until the year in which you would have attained
age 70-1/2.
Non-individual beneficiary. If you die after your Required Beginning Date, and
your death beneficiary is a non-individual, such as the estate, the rules
permit the beneficiary to calculate post-death required minimum distribution
amounts based on the owner's life expectancy in the year of death. However,
note that we need an individual annuitant to keep an annuity contract in force.
If the beneficiary is not an individual, we must distribute amounts remaining
in the annuity contract after the death of the annuitant.
If you die before your Required Beginning Date for lifetime required minimum
distribution payments, and the death beneficiary is a non-individual such as
the estate, the rules continue to apply the 5-year rule discussed earlier under
"Individual beneficiary." Please note that we need an individual annuitant to
keep an annuity contract in force. If the beneficiary is not an individual, we
must distribute amounts remaining in the annuity contract after the death of
the annuitant.
Successor owner and annuitant
If your spouse is the sole primary beneficiary and elects to become the
successor owner and annuitant, no death benefit is payable until your surviving
spouse's death.
Payments to a beneficiary after your death
IRA death benefits are taxed the same as IRA distributions.
Borrowing and loans are prohibited transactions
You cannot get loans from a traditional IRA. You cannot use a traditional IRA
as collateral for a loan or other obligation. If you borrow against your IRA or
use it as collateral, its tax-favored status will be lost as of the first day
of the tax year in which this prohibited event occurs. If this happens, you
must include the value of the traditional IRA in your federal gross income.
Also, the early distribution penalty tax of 10% may apply if you have not
reached age 59-1/2 before the first day of that tax year.
Early distribution penalty tax
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a traditional IRA made before you reach age 59-1/2. Some of
the available exceptions to the pre-age 59-1/2 penalty tax include
distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition);
or
o used to pay certain extraordinary medical expenses (special fed
eral income tax definition); or
o used to pay medical insurance premiums for unemployed indi
viduals (special federal income tax definition); or
o used to pay certain first-time home buyer expenses (special fed
eral income tax definition; $10,000 lifetime total limit for these
distributions from all your traditional and Roth IRAs); or
o used to pay certain higher education expenses (special federal
income tax definition); or
o in the form of substantially equal periodic payments made at
least annually over your life (or your life expectancy) or over the joint
lives of you and your beneficiary (or your joint life expectancies) using
an IRS-approved distribution method.
To meet this last exception, you could elect to apply your contract value to an
Income Manager(R) (life annuity with a period certain) payout annuity contract
(level payments version). You could also elect the substantially equal
withdrawals option. We will calculate the substantially equal annual payments
using your choice of IRS-approved methods we offer. Although substantially
equal withdrawals and Income Manager(R) payments are not subject to the 10%
penalty tax, they are taxable as discussed in "Withdrawals, payments and
transfers of funds out of traditional IRAs" earlier in this section. Once
substantially equal withdrawals or Income Manager(R) annuity payments begin,
the distributions should not be stopped or changed until after the later
Tax information 49
of your reaching age 59-1/2 or five years after the date of the first
distribution, or the penalty tax, including an interest charge for the prior
penalty avoidance, may apply to all prior distributions under this option.
Also, it is possible that the IRS could view any additional withdrawal or
payment you take from your contract as changing your pattern of substantially
equal withdrawals or Income Manager(R) payments for purposes of determining
whether the penalty applies.
Roth individual retirement annuities (Roth IRAs)
This section of the Prospectus covers some of the special tax rules that apply
to Roth IRAs. If the rules are the same as those that apply to the traditional
IRA, we will refer you to the same topic under "traditional IRAs."
Accumulator(R) Select(SM) Roth Conversion IRA contract is designed to qualify as
a Roth individual retirement annuity under Sections 408A(b) and 408(b) of the
Internal Revenue Code.
Contributions to Roth IRAs
Individuals may make four different types of contributions to a Roth IRA:
o regular after-tax contributions out of earnings; or
o taxable rollover contributions from traditional IRAs ("conversion"
contributions); or
o tax-free rollover contributions from other Roth IRAs; or
o tax-free direct custodian-to-custodian transfers from other Roth
IRAs ("direct transfers").
Regular after-tax, direct transfer and rollover contributions may be made to a
Roth Conversion contract. See "Rollovers and direct transfers" later in this
section. If you use the forms we require, we will also accept traditional IRA
funds which are subsequently recharacterized as Roth IRA funds following
special federal income tax rules.
Regular contributions to Roth IRAs
Limits on regular contributions. The "maximum regular contribution amount" for
any taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $4,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for each of the taxable years 2005
and 2006. This limit does not apply to rollover contributions or direct
custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth
IRAs reduce your ability to contribute to traditional IRAs and vice versa. When
your earnings are below $4,000, your earned income or compensation for the year
is the most you can contribute. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to Roth IRAs and
traditional IRAs. See the discussion earlier in this section under traditional
IRAs. If you or your spouse are at least age 50 at any time during the taxable
year for which you are making a regular contribution, additional catch-up
contributions totaling up to $500 can be made for the taxable year 2005. This
amount increases to $1,000 for the taxable year 2006.
With a Roth IRA, you can make regular contributions when you reach age 70-1/2,
as long as you have sufficient earnings. But, you cannot make contributions,
regardless of your age, for any year that:
o your federal income tax filing status is "married filing jointly" and
your modified adjusted gross income is over $160,000; or
o your federal income tax filing status is "single" and your modified
adjusted gross income is over $110,000.
However, you can make regular Roth IRA contributions in reduced amounts when:
o your federal income tax filing status is "married filing jointly" and
your modified adjusted gross income is between $150,000 and $160,000; or
o your federal income tax filing status is "single" and your modified
adjusted gross income is between $95,000 and $110,000.
If you are married and filing separately and your modified adjusted gross
income is between $0 and $10,000 the amount of regular contributions you are
permitted to make is phased out. If your modified adjusted gross income is more
than $10,000 you cannot make regular Roth IRA contributions.
When you can make contributions. Same as traditional IRAs.
Deductibility of contributions. Roth IRA contributions are not tax deductible.
Rollovers and direct transfers
What is the difference between rollover and direct transfer transactions? You
may make rollover contributions to a Roth IRA from only two sources:
o another Roth IRA ("tax-free rollover contribution"); or
o another traditional IRA, including a SEP-IRA or SIMPLE IRA (after
a two-year rollover limitation period for SIMPLE IRA funds), in a taxable
conversion rollover ("conversion contribution").
You may not make contributions to a Roth IRA from a qualified plan under
Section 401(a) of the Internal Revenue Code, a TSA under Section 403(b) of the
Internal Revenue Code or any other eligible retirement plan. You may make
direct transfer contributions to a Roth IRA only from another Roth IRA.
The difference between a rollover transaction and a direct transfer transaction
is the following: in a rollover transaction you actually take possession of the
funds rolled over or are considered to have received them under tax law in the
case of a change from one type of plan to another. In a direct transfer
transaction, you never take possession of the funds, but direct the first Roth
IRA custodian, trustee or issuer to transfer the first Roth IRA funds directly
to the recipient Roth IRA custodian, trustee or issuer. You can make direct
transfer transactions only between identical plan types (for example, Roth IRA
to Roth IRA). You can also make rollover transactions between identical plan
types. However, you can only use rollover transactions between different plan
types (for example, traditional IRA to Roth IRA).
You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to
Roth IRA direct transfer transactions. This can be accom-
50 Tax information
plished on a completely tax-free basis. However, you may make Roth IRA to Roth
IRA rollover transactions only once in any 12-month period for the same funds.
Trustee-to-trustee or custodian-to-custodian direct transfers can be made more
frequently than once a year. Also, if you send us the rollover contribution to
apply it to a Roth IRA, you must do so within 60 days after you receive the
proceeds from the original IRA to get rollover treatment.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some
cases, Roth IRAs can be transferred on a tax-free basis between spouses or
former spouses as a result of a court-ordered divorce or separation decree.
Conversion contributions to Roth IRAs
In a conversion rollover transaction, you withdraw (or are considered to have
withdrawn) all or a portion of funds from a traditional IRA you maintain and
convert it to a Roth IRA within 60 days after you receive (or are considered to
have received) the traditional IRA proceeds. Unlike a rollover from a
traditional IRA to another traditional IRA, the conversion rollover transaction
is not tax-free. Instead, the distribution from the traditional IRA is
generally fully taxable. For this reason, we are required to withhold 10%
federal income tax from the amount converted unless you elect out of such
withholding. If you have ever made nondeductible regular contributions to any
traditional IRA -- whether or not it is the traditional IRA you are converting
- -- a pro rata portion of the distribution is tax free.
There is, however, no early distribution penalty tax on the traditional IRA
withdrawal that you are converting to a Roth IRA, even if you are under age
59-1/2.
You cannot make conversion contributions to a Roth IRA for any taxable year in
which your modified adjusted gross income exceeds $100,000. (For this purpose,
your modified adjusted gross income is calculated without the gross income
stemming from the traditional IRA conversion. Beginning in 2005, modified
adjusted gross income for this purpose will also exclude any lifetime required
minimum distribution from a traditional IRA.) You also cannot make conversion
contributions to a Roth IRA for any taxable year in which your federal income
tax filing status is "married filing separately."
You cannot make conversion contributions to a Roth IRA to the extent that the
funds in your traditional IRA are subject to the annual required minimum
distribution rule applicable to traditional IRAs beginning at age 70-1/2.
You cannot convert and reconvert an amount during the same taxable year, or if
later, during the 30-day period following a recharacterization. If you
reconvert during either of these periods, it will be a failed Roth IRA
conversion.
Recharacterizations
You may be able to treat a contribution made to one type of IRA as having been
made to a different type of IRA. This is called recharacterizing the
contribution.
How to recharacterize. To recharacterize a contribution, you generally must
have the contribution transferred from the first IRA (the one to which it was
made) to the second IRA in a deemed trustee-to-trustee transfer. If the
transfer is made by the due date (including extensions) for your tax return for
the year during which the contribution was made, you can elect to treat the
contribution as having been originally made to the second IRA instead of to the
first IRA. It will be treated as having been made to the second IRA on the same
date that it was actually made to the first IRA. You must report the
recharacterization and must treat the contribution as having been made to the
second IRA, instead of the first IRA, on your tax return for the year during
which the contribution was made.
The contribution will not be treated as having been made to the second IRA
unless the transfer includes any net income allocable to the contribution. You
can take into account any loss on the contribution while it was in the IRA when
calculating the amount that must be transferred. If there was a loss, the net
income you must transfer may be a negative amount.
No deduction is allowed for the contribution to the first IRA and any net
income transferred with the recharacterized contribution is treated as earned
in the second IRA. The contribution will not be treated as having been made to
the second IRA to the extent any deduction was allowed with respect to the
contribution to the first IRA.
For recharacterization purposes, a distribution from a traditional IRA that is
received in one tax year and rolled over into a Roth IRA in the next year, but
still within 60 days of the distribution from the traditional IRA, is treated
as a contribution to the Roth IRA in the year of the distribution from the
traditional IRA.
Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be
recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or
SIMPLE IRA).
To recharacterize a contribution, you must use our forms.
The recharacterization of a contribution is not treated as a rollover for
purposes of the 12-month limitation period described above. This rule applies
even if the contribution would have been treated as a rollover contribution by
the second IRA if it had been made directly to the second IRA rather than as a
result of a recharacterization of a contribution to the first IRA.
Withdrawals, payments and transfers of funds out of Roth IRAs
No federal income tax law restrictions on withdrawals. You can withdraw any or
all of your funds from a Roth IRA at any time; you do not need to wait for a
special event like retirement.
Distributions from Roth IRAs
Distributions include withdrawals from your contract, surrender of your
contract and annuity payments from your contract. Death benefits are also
distributions.
You must keep your own records of regular and conversion contributions to all
Roth IRAs to assure appropriate taxation. You may have to file information on
your contributions to and distributions from any Roth IRA on your tax return.
You may have to retain all income tax
Tax information 51
returns and records pertaining to such contributions and distributions until
your interests in all Roth IRAs are distributed.
Like traditional IRAs, taxable distributions from a Roth IRA are not entitled
to the special favorable ten-year averaging and long-term capital gain
treatment available in limited cases to certain distributions from qualified
plans.
The following distributions from Roth IRAs are free of income tax:
o rollovers from a Roth IRA to another Roth IRA;
o direct transfers from a Roth IRA to another Roth IRA;
o qualified distributions from a Roth IRA; and
o return of excess contributions or amounts recharacterized to a
traditional IRA.
Qualified distributions from Roth IRAs. Qualified distributions from Roth IRAs
made because of one of the following four qualifying events or reasons are not
includable in income:
o you are age 59-1/2 or older; or
o you die; or
o you become disabled (special federal income tax definition); or
o your distribution is a "qualified first-time homebuyer distribution"
(special federal income tax definition; $10,000 lifetime total limit for
these distributions from all of your traditional and Roth IRAs).
You also have to meet a five-year aging period. A qualified distribution is any
distribution made after the five-taxable- year period beginning with the first
taxable year for which you made any contribution to any Roth IRA (whether or
not the one from which the distribution is being made).
Nonqualified distributions from Roth IRAs. Nonqualified distributions from
Roth IRAs are distributions that do not meet both the qualifying event and
five-year aging period tests described above. If you receive such a
distribution, part of it may be taxable. For purposes of determining the
correct tax treatment of distributions (other than the withdrawal of excess
contributions and the earnings on them), there is a set order in which
contributions (including conversion contributions) and earnings are considered
to be distributed from your Roth IRA. The order of distributions is as follows:
(1) Regular contributions.
(2) Conversion contributions, on a first-in-first-out basis (generally, total
conversions from the earliest year first). These conversion contributions
are taken into account as follows:
(a) Taxable portion (the amount required to be included in gross income
because of conversion) first, and then the
(b) Nontaxable portion.
(3) Earnings on contributions.
Rollover contributions from other Roth IRAs are disregarded for this purpose.
To determine the taxable amount distributed, distributions and contributions
are aggregated or grouped together as follows:
(1) All distributions made during the year from all Roth IRAs you maintain --
with any custodian or issuer -- are added together.
(2) All regular contributions made during and for the year (contributions made
after the close of the year, but before the due date of your return) are
added together. This total is added to the total undistributed regular
contributions made in prior years.
(3) All conversion contributions made during the year are added together. For
purposes of the ordering rules, in the case of any conversion in which the
conversion distribution is made in 2005 and the conversion contribution is
made in 2006, the conversion contribution is treated as contributed prior
to other conversion contributions made in 2006.
Any recharacterized contributions that end up in a Roth IRA are added to the
appropriate contribution group for the year that the original contribution
would have been taken into account if it had been made directly to the Roth
IRA.
Any recharacterized contribution that ends up in an IRA other than a Roth IRA
is disregarded for the purpose of grouping both contributions and
distributions. Any amount withdrawn to correct an excess contribution
(including the earnings withdrawn) is also disregarded for this purpose.
Required minimum distributions during life
Lifetime required minimum distributions do not apply.
Required minimum distributions at death
Same as traditional IRA under "What are the required minimum distribution
payments after you die?"
Payments to a beneficiary after your death
Distributions to a beneficiary generally receive the same tax treatment as if
the distribution had been made to you.
Borrowing and loans are prohibited transactions
Same as traditional IRA.
Excess contributions
Generally the same as traditional IRA, except that regular contributions made
after age 70-1/2 are not excess contributions.
Excess rollover contributions to Roth IRAs are contributions not eligible to be
rolled over (for example, conversion contributions from a traditional IRA if
your modified adjusted gross income is in excess of $100,000 in the conversion
year).
You can withdraw or recharacterize any contribution to a Roth IRA before the
due date (including extensions) for filing your federal income tax return for
the tax year. If you do this, you must also withdraw or recharacterize any
earnings attributable to the contribution.
52 Tax information
Early distribution penalty tax
Same as traditional IRA.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
General
This section of the Prospectus covers some of the special tax rules that apply
to TSA contracts under Section 403(b) of the Internal Revenue Code (TSAs). If
the rules are the same as those that apply to another kind of contract, for
example, traditional IRAs, we will refer you to the same topic under
"traditional IRAs."
Please Note: The following discussion reflects our understanding of some of the
current federal income tax rules applicable to Section 403(b) of the Code. The
IRS and Treasury have recently issued Proposed Regulations on Section 403(b) of
the Code. If finalized in their current form, these Proposed Regulations would
affect the establishment and operation of plans and arrangements under Section
403(b) of the Code, and the contracts issued to fund such plans. Please consult
your tax adviser concerning how these Proposed Regulations could affect you.
Generally there are two types of funding vehicles available for 403(b)
arrangements -- an annuity contract under Section 403(b)(1) of the Code or a
custodial account which invests only in mutual funds and which is treated as an
annuity contract under Section 403(b)(7) of the Code. Both types of 403(b)
arrangements qualify for tax deferral.
Protection Plus(SM) feature
The Protection Plus(SM) feature was offered for Rollover TSA contracts, subject
to state and contract availability. There is no assurance that the contract with
the Protection Plus(SM) feature meets the qualification requirements for TSAs.
There is a limit to the amount of life insurance benefits that TSAs may offer.
Although we view the optional Protection Plus(SM) benefit as an investment
protection feature which should have no adverse tax effect and not as a life
insurance benefit, it is possible that the IRS could take a contrary position
regarding tax qualification or assert that the Protection Plus(SM) rider is not
a permissible part of a TSA contract. If the IRS were to take the position that
the optional Protection Plus(SM) benefit is not part of the contract, in such a
case, the charges for the Protection Plus(SM) rider could be treated for federal
income tax purposes as a partial withdrawal from the contract. If this were so,
such a deemed withdrawal could affect the tax qualification of the TSA and could
be taxable. Were the IRS to take any adverse position, AXA Equitable would take
all reasonable steps to attempt to avoid any adverse result, which would include
amending the contract (with appropriate notice to you). You should consult with
your tax adviser for further information.
Contributions to TSAs
There were two ways you might have contributed to establish this Accumulator(R)
Select(SM) Rollover TSA contract:
o a full or partial direct transfer of assets ("direct transfer") from
another contract or arrangement that met the requirements of Section
403(b) of the Internal Revenue Code by means of IRS Revenue Ruling 90-24;
or
o a rollover from another 403(b) arrangement.
If you made a direct transfer, you filled out our transfer form.
We do not accept after-tax contribution rollovers to the Accumulator(R)
Select(SM) TSA.
Employer-remitted contributions. The Accumulator(R) Select(SM) Rollover TSA
contract does not accept employer-remitted contributions. However, we provide
the following discussion as part of our description of restrictions on the
distribution of funds directly transferred, which include employer-remitted
contributions to other TSAs.
Employer-remitted contributions to TSAs made through the employer's payroll are
subject to annual limits. (Tax-free direct transfer contributions from another
403(b) arrangement and rollover contributions from another eligible retirement
plan are not subject to these annual contribution limits.) Commonly, some or
all of the contributions made to a TSA are made under a salary reduction
agreement between the employee and the employer. These contributions are called
"salary reduction" or "elective deferral" contributions. However, a TSA can
also be wholly or partially funded through nonelective employer contributions
or after-tax employee contributions. Amounts attributable to salary reduction
contributions to TSAs are generally subject to withdrawal restrictions. Also,
all amounts attributable to investments in a 403(b)(7) custodial account are
subject to withdrawal restrictions discussed below.
Rollover or direct transfer contributions. Once you establish your Rollover
TSA contract with 403(b)-source funds, you may make rollover contributions to
your Rollover TSA contract from these sources: qualified plans, governmental
employer 457(b) plans, other TSAs and 403(b) arrangements and traditional IRAs.
All rollover contributions must be pre-tax funds only with appropriate
documentation satisfactory to us.
Generally, you may make a rollover contribution to your TSA when you have a
distributable event from an existing TSA or other eligible retirement plan as a
result of your:
o termination of employment with the employer who provided the
funds for the plan; or
o reaching age 59-1/2 even if you are still employed; or
o disability (special federal income tax definition).
You can roll over pre-tax funds from a traditional IRA to a TSA at any time.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental employer 457(b) plan are not subject to the
additional 10% federal income tax penalty for premature distributions, but they
may become subject to this penalty if you roll the funds to a different type of
eligible retirement plan and subsequently take a premature distribution.
If the recipient plan separately accounts for funds rolled-over from another
eligible retirement plan, the IRS has ruled that an exception is available in
certain situations to withdrawal restrictions that would
Tax information 53
otherwise apply to the rollover contribution funds in the recipient plan. We do
not currently separately account for rollover contributions from other eligible
retirement plans.
A transfer occurs when changing the funding vehicle, even if there is no
distributable event. Under a direct transfer, you do not receive a
distribution. We accept direct transfers of TSA funds under Revenue Ruling
90-24 only if:
o you give us acceptable written documentation as to the source of
the funds, and
o the Accumulator(R) Select(SM) contract receiving the funds has provisions
at least as restrictive as the source contract.
Before you transfer funds to an Accumulator(R) Select(SM) Rollover TSA contract,
you may have to obtain your employer's authorization or demonstrate that you do
not need employer authorization. For example, the transferring TSA may be
subject to Title I of ERISA, if the employer makes matching contributions to
salary reduction contributions made by employees. In that case, the employer
must continue to approve distributions from the plan or contract.
Your contribution to the Accumulator(R) Select(SM) TSA must be net of the
required minimum distribution for the tax year in which we issue the contract
if:
o you are or will be at least age 70-1/2 in the current calendar year,
and
o you have retired from service with the employer who provided the
funds to purchase the TSA you are transferring or rolling over to the
Accumulator(R) Select(SM) Rollover TSA.
This rule applies regardless of whether the source of funds is a:
o rollover by check of the proceeds from another TSA or eligible
retirement plan; or
o direct rollover from another TSA or eligible retirement plan; or
o direct transfer under Revenue Ruling 90-24 from another TSA.
Distributions from TSAs
General. Depending on the terms of the employer plan and your employment
status, you may have to get your employer's consent to take a loan or
withdrawal. Your employer will tell us this when you establish the TSA through
a direct transfer.
Withdrawal restrictions. If this is a Revenue Ruling 90-24 direct transfer, we
will treat all amounts transferred to this contract and any future earnings on
the amount transferred as not eligible for withdrawal until one of the
following events happens:
o you are severed from employment with the employer who provided
the funds to purchase the TSA you are transferring to the
Accumulator(R) Select(SM) Rollover TSA; or
o you reach age 59-1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o you take a hardship withdrawal (special federal income tax
definition).
If any portion of the funds directly transferred to your TSA contract is
attributable to amounts that you invested in a 403(b)(7) custodial account,
such amounts, including earnings, are subject to withdrawal restrictions. With
respect to the portion of the funds that were never invested in a 403(b)(7)
custodial account, these restrictions apply to the salary reduction (elective
deferral) contributions to a TSA annuity contract you made and any earnings on
them. These restrictions do not apply to the amount directly transferred to
your TSA contract that represents your December 31, 1988, account balance
attributable to salary reduction contributions to a TSA annuity contract and
earnings. To take advantage of this grandfathering you must properly notify us
in writing at our processing office of your December 31, 1988, account balance
if you have qualifying amounts transferred to your TSA contract.
This paragraph applies only to participants in a Texas Optional Retirement
Program. Texas Law permits withdrawals only after one of the following
distributable events occur:
(1) the requirements for minimum distribution (discussed under "Required
minimum distributions" later in this section) are met; or
(2) death; or
(3) retirement; or
(4) termination of employment in all Texas public institutions of higher
education.
For you to make a withdrawal, we must receive a properly completed written
acknowledgment from the employer. If a distributable event occurs before you
are vested, we will refund to the employer any amounts provided by an
employer's first-year matching contribution. We reserve the right to change
these provisions without your consent but only to the extent necessary to
maintain compliance with applicable law. Loans are not permitted under Texas
Optional Retirement Programs.
Tax treatment of distributions. Amounts held under TSAs are generally not
subject to federal income tax until benefits are distributed. Distributions
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSAs are includable in
gross income as ordinary income. Distributions from TSAs may be subject to 20%
federal income tax withholding. See "Federal and state income tax withholding
and information reporting" later in this section. In addition, TSA
distributions may be subject to additional tax penalties.
54 Tax information
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since we currently do not accept
after-tax funds, we do not track your after-tax investment in the contract, if
any. We will report all distributions from this Rollover TSA as fully taxable.
It is your responsibility to determine how much of the distribution is taxable.
Distributions before annuity payments begin. On a total surrender, the amount
received in excess of the investment in the contract is taxable. The amount of
any partial distribution from a TSA prior to the annuity starting date is
generally taxable, except to the extent that the distribution is treated as a
withdrawal of after-tax contributions. Distributions are normally treated as
pro rata withdrawals of any contributions and earnings on those contributions.
Annuity payments. If you elect an annuity payout option, you will recover any
investment in the contract as each payment is received by dividing the
investment in the contract by an expected return determined under an IRS table
prescribed for qualified annuities. The amount of each payment not excluded
from income under this exclusion ratio is fully taxable. The full amount of the
payments received after your investment in the contract is recovered is fully
taxable. If you (and your beneficiary under a joint and survivor annuity) die
before recovering the full investment in the contract, a deduction is allowed
on your (or your beneficiary's) final tax return.
Payments to a beneficiary after your death. Death benefit distributions from a
TSA generally receive the same tax treatment as distributions during your
lifetime. In some instances, distributions from a TSA made to your surviving
spouse may be rolled over to a traditional IRA or other eligible retirement
plan.
Loans from TSAs. You may take loans from a TSA unless restricted by the
employer (for example, under an employer plan subject to ERISA). If you cannot
take a loan, or cannot take a loan without approval from the employer who
provided the funds, we will have this information in our records based on what
you and the employer who provided the TSA funds told us when you purchased your
contract.
Loans are generally not treated as a taxable distribution. If the amount of the
loan exceeds permissible limits under federal income tax rules when made, the
amount of the excess is treated (solely for tax purposes) as a taxable
distribution. Additionally, if the loan is not repaid at least quarterly,
amortizing (paying down) interest and principal, the amount not repaid when due
will be treated as a taxable distribution. The entire unpaid balance of the
loan is includable in income in the year of the default.
TSA loans are subject to federal income tax limits and may also be subject to
the limits of the plan from which the funds came. Federal income tax rule
requirements apply even if the plan is not subject to ERISA. For example, loans
offered by TSAs are subject to the following conditions:
o The amount of a loan to a participant, when combined with all
other loans to the participant from all qualified plans of the employer,
cannot exceed the lesser of:
(1) the greater of $10,000 or 50% of the participant's nonforfeitable
accrued benefits; and
(2) $50,000 reduced by the excess (if any) of the highest out standing
loan balance over the previous twelve months over the outstanding loan
balance of plan loans on the date the loan was made.
o In general, the term of the loan cannot exceed five years unless
the loan is used to acquire the participant's primary residence.
Accumulator(R) Select(SM) Rollover TSA contracts have a term limit of 10
years for loans used to acquire the participant's primary residence.
o All principal and interest must be amortized in substantially level
payments over the term of the loan, with payments being made at least
quarterly. In very limited circumstances, the repayment obligation may be
temporarily suspended during a leave of absence.
The amount borrowed and not repaid may be treated as a distribution if:
o the loan does not qualify under the conditions above;
o the participant fails to repay the interest or principal when due; or
o in some instances, the participant separates from service with the
employer who provided the funds or the plan is terminated.
In this case, the participant may have to include the unpaid amount due as
ordinary income. In addition, the 10% early distribution penalty tax may apply.
The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as
a distribution.
Tax-deferred rollovers and direct transfers. You may roll over any "eligible
rollover distribution" from a TSA into another eligible retirement plan which
agrees to accept the rollover. The rollover may be a direct rollover or one you
do yourself within 60 days after you receive the distribution. To the extent
rolled over, a distribution remains tax-deferred.
You may roll over a distribution from a TSA to any of the following: a
qualified plan, a governmental employer 457(b) plan (separate accounting
required) or a traditional IRA. A spousal beneficiary may also roll over death
benefits as above.
The taxable portion of most distributions will be eligible for rollover, except
as specifically excluded under federal income tax rules. Distributions that you
cannot roll over generally include periodic payments for life or for a period
of 10 years or more, hardship withdrawals and required minimum distributions
under federal income tax rules.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling
90-24 are not distributions.
Required minimum distributions
Generally the same as traditional IRA with these differences:
When you have to take the first required minimum distribution. The minimum
distribution rules force TSA participants to start calculating and taking
annual distributions from their TSAs by a required date. Generally, you must
take the first required minimum distribution for the calendar year in which you
turn age 70-1/2. You may
Tax information 55
be able to delay the start of required minimum distributions for all or part of
your account balance until after age 70-1/2, as follows:
o For TSA participants who have not retired from service with the
employer who provided the funds for the TSA by the calendar year the
participant turns age 70-1/2, the required beginning date for minimum
distributions is extended to April 1 following the calendar year of
retirement.
o TSA plan participants may also delay the start of required mini
mum distributions to age 75 of the portion of their account value
attributable to their December 31, 1986, TSA account balance, even if
retired at age 70-1/2. We will know whether or not you qualify for this
exception because it will only apply to people who establish their
Accumulator(R) Select(SM) Rollover TSA by direct Revenue Ruling 90-24
transfers. If you do not give us the amount of your December 31, 1986,
account balance that is being transferred to the Accumulator(R) Select(SM)
Rollover TSA on the form used to establish the TSA, you do not qualify.
Spousal consent rules
This only applies to you if you established your Accumulator(R) Select(SM)
Rollover TSA by direct Revenue Ruling 90-24 transfer. Your employer will tell
us on the form used to establish the TSA whether or not you need to get spousal
consent for loans, withdrawals or other distributions. If you do, you will need
such consent if you are married when you request a withdrawal under the TSA
contract. In addition, unless you elect otherwise with the written consent of
your spouse, the retirement benefits payable under the plan must be paid in the
form of a qualified joint and survivor annuity. A qualified joint and survivor
annuity is payable for the life of the annuitant with a survivor annuity for
the life of the spouse in an amount not less than one-half of the amount
payable to the annuitant during his or her lifetime. In addition, if you are
married, the beneficiary must be your spouse, unless your spouse consents in
writing to the designation of another beneficiary.
If you are married and you die before annuity payments have begun, payments
will be made to your surviving spouse in the form of a life annuity unless at
the time of your death a contrary election was in effect. However, your
surviving spouse may elect, before payments begin, to receive payments in any
form permitted under the terms of the TSA contract and the plan of the employer
who provided the funds for the TSA.
Early distribution penalty tax
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a TSA before you reach age 59-1/2. This is in addition to
any income tax. There are exceptions to the extra penalty tax. Some of the
available exceptions to the pre-age 59-1/2 penalty tax include distributions
made:
o on or after your death; or
o because you are disabled (special federal income tax definition);
or
o to pay for certain extraordinary medical expenses (special federal
income tax definition); or
o in any form of payout after you have separated from service (only
if the separation occurs during or after the calendar year you reach age
55); or
o in a payout in the form of substantially equal periodic payments
made at least annually over your life (or your life expectancy), or over
the joint lives of you and your beneficiary (or your joint life
expectancies) using an IRS-approved distribution method (only after have
separated from service at any age).
FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING
We must withhold federal income tax from distributions from annuity contracts.
You may be able to elect out of this income tax withholding in some cases.
Generally, we do not have to withhold if your distributions are not taxable.
The rate of withholding will depend on the type of distribution and, in certain
cases, the amount of your distribution. Any income tax withheld is a credit
against your income tax liability. If you do not have sufficient income tax
withheld or do not make sufficient estimated income tax payments, you may incur
penalties under the estimated income tax rules.
You must file your request not to withhold in writing before the payment or
distribution is made. Our processing office will provide forms for this
purpose. You cannot elect out of withholding unless you provide us with your
correct Taxpayer Identification Number and a United States residence address.
You cannot elect out of withholding if we are sending the payment out of the
United States.
You should note the following special situations:
o We might have to withhold and/or report on amounts we pay
under a free look or cancellation.
o We are generally required to withhold on conversion rollovers of
traditional IRAs to Roth IRAs, as it is considered a withdrawal from the
traditional IRA and is taxable.
o We are required to withhold on the gross amount of a distribu
tion from a Roth IRA to the extent it is reasonable for us to believe that
a distribution is includable in your gross income. This may result in tax
being withheld even though the Roth IRA distribution is ultimately not
taxable. You can elect out of withholding as described below.
Special withholding rules apply to foreign recipients and United States
citizens residing outside the United States. We do not discuss these rules here
in detail. However we may require additional documentation in the case of
payments made to non United States persons and United States persons living
abroad prior to processing any requested transaction.
Certain states have indicated that state income tax withholding will also apply
to payments from the contracts made to residents. In some states, you may elect
out of state withholding, even if federal withholding applies. Generally, an
election out of federal withholding will also be considered an election out of
state withholding. If you need
56 Tax information
more information concerning a particular state or any required forms, call our
processing office at the toll-free number.
Federal income tax withholding on periodic annuity payments
We withhold differently on "periodic" and "non-periodic" payments. For a
periodic annuity payment, for example, unless you specify a different number of
withholding exemptions, we withhold assuming that you are married and claiming
three withholding exemptions. If you do not give us your correct Taxpayer
Identification Number, we withhold as if you are single with no exemptions.
Based on the assumption that you are married and claiming three withholding
exemptions, if you receive less than $17,760 in periodic annuity payments in
2005, your payments will generally be exempt from federal income tax
withholding. You could specify a different choice of withholding exemption or
request that tax be withheld. Your withholding election remains effective
unless and until you revoke it. You may revoke or change your withholding
election at any time.
Federal income tax withholding on non-periodic annuity payments (withdrawals)
For a non-periodic distribution (total surrender or partial withdrawal), we
generally withhold at a flat 10% rate. We apply that rate to the taxable amount
in the case of nonqualified contracts and to the payment amount in the case of
traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is
includable in gross income. I
You cannot elect out of withholding if the payment is an eligible rollover
distribution from a TSA. If a non-periodic distribution from a TSA is not an
eligible rollover distribution then the 10% withholding rate applies.
Mandatory withholding from TSA distributions
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans and TSAs are subject to mandatory 20%
withholding. An eligible rollover distribution from a TSA can be rolled over to
another eligible retirement plan. All distributions from a TSA are eligible
rollover distributions unless they are on the following list of exceptions:
o any distributions which are required minimum distributions after
age 70-1/2 or retirement from service with the employer; or
o substantially equal periodic payments made at least annually for
your life (or life expectancy) or the joint lives (or joint life
expectancies) of you and your designated beneficiary; or
o substantially equal periodic payments made for a specified period
of 10 years or more; or
o hardship withdrawals; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviving
spouse; or
o a qualified domestic relations order distribution to a beneficiary
who is not your current spouse or former spouse.
A death benefit payment to your surviving spouse, or a qualified domestic
relations order distribution to your current or former spouse, may be a
distribution subject to mandatory 20% withholding.
SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS
For QP contracts, your plan administrator or trustee notifies you as to tax
consequences. See Appendix II at the end of this Prospectus.
IMPACT OF TAXES TO AXA EQUITABLE
The contracts provide that we may charge Separate Account No. 45 and Separate
Account No. 49 for taxes. We do not now, but may in the future set up reserves
for such taxes.
Tax information 57
8. More information
- --------------------------------------------------------------------------------
ABOUT SEPARATE ACCOUNT NO. 45 AND SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 45 and
Separate Account No. 49. We established Separate Account No. 45 in 1994 and
Separate Account No. 49 in 1996 under special provisions of the New York
Insurance Law. These provisions prevent creditors from any other business we
conduct from reaching the assets we hold in our variable investment options for
owners of our variable annuity contracts. We are the legal owner of all of the
assets in Separate Account No. 45 and in Separate Account No. 49 and may
withdraw any amounts that exceed our reserves and other liabilities with
respect to variable investment options under our contracts. The results of the
Separate Accounts' operations are accounted for without regard to AXA
Equitable's other operations.
Each Separate Account is registered under the Investment Company Act of 1940
and is classified by that act as a "unit investment trust." The SEC, however,
does not manage or supervise AXA Equitable or the Separate Accounts.
Each subaccount (variable investment option) within the Separate Accounts
invests solely in Class IB/B shares issued by the corresponding portfolio of
either Trust.
We reserve the right subject to compliance with laws that apply:
(1) to add variable investment options to, or to remove variable investment
options from either Separate Account, or to add other separate accounts;
(2) to combine any two or more variable investment options;
(3) to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment option
to another variable investment option;
(4) to operate each Separate Account or any variable investment option as a
management investment company under the Investment Company Act of 1940 (in
which case, charges and expenses that otherwise would be assessed against
an underlying mutual fund would be assessed against each Separate Account
or a variable investment option directly);
(5) to deregister the Separate Accounts under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to the Separate Accounts ;
and
(7) to cause one or more variable investment options to invest some or all of
their assets in one or more other trusts or investment companies.
ABOUT THE TRUSTS
EQ Advisors Trust and AXA Premier VIP Trust are registered under the Investment
Company Act of 1940. They are classified as "open-end management investment
companies," more commonly called mutual funds. Each Trust issues different
shares relating to each portfolio.
AXA Equitable serves as the investment manager of the Trusts. As such, AXA
Equitable oversees the activities of the investment advisers with respect to
the Trusts and is responsible for retaining or discontinuing the services of
those advisers.
The Trusts do not impose sales charges or "loads" for buying and selling its
shares. All dividends and other distributions on the Trusts' shares are
reinvested in full. The Board of Trustees of each Trust may establish
additional portfolios or eliminate existing portfolios at any time. More
detailed information about each Trust, its portfolio investment objectives,
policies, restrictions, risks, expenses, its Rule 12b-1 Plan and other aspects
of its operations, appears generally in the prospectuses for each Trust, or in
the respective SAIs which generally are available upon request.
ABOUT OUR FIXED MATURITY OPTIONS
RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE
We can determine the amount required to be allocated to one or more fixed
maturity options in order to produce specified maturity values. For example, we
can tell you how much you need to allocate per $100 of maturity value.
FMO rates are determined daily. The rates in the table are illustrative only
and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
The rates to maturity for new allocations as of February 15, 2005 and the
related price per $100 of maturity value were as shown below:
- -----------------------------------------------------------
Fixed Maturity
Options with
February 15th Rate to Price
Maturity Date of Maturity as of Per $100 of
Maturity Year February 15, 2005 Maturity Value
- -----------------------------------------------------------
2006 3.00%* $ 97.09
2007 3.00%* $ 94.26
2008 3.00%* $ 91.51
2009 3.00%* $ 88.84
2010 3.00%* $ 86.25
2011 3.00%* $ 83.74
2012 3.19% $ 80.26
2013 3.35% $ 76.81
2014 3.50% $ 73.36
2015 3.64% $ 69.93
- -----------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated to
these options.
HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT
We use the following procedure to calculate the market value adjustment (up or
down) we make if you withdraw all of your value from a fixed maturity option
before its maturity date.
58 More information
(1) We determine the market adjusted amount on the date of the withdrawal as
follows:
(a) We determine the fixed maturity amount that would be payable on the
maturity date, using the rate to maturity for the fixed maturity
option.
(b) We determine the period remaining in your fixed maturity option (based
on the withdrawal date) and convert it to fractional years based on a
365-day year. For example, three years and 12 days becomes 3.0329.
(c) We determine the current rate to maturity that applies on the
withdrawal date to new allocations to the same fixed maturity option.
(d) We determine the present value of the fixed maturity amount payable at
the maturity date, using the period determined in (b) and the rate
determined in (c).
(2) We determine the fixed maturity amount as of the current date.
(3) We subtract (2) from the result in (1)(d). The result is the market value
adjustment applicable to such fixed maturity option, which may be positive
or negative.
- --------------------------------------------------------------------------------
Your market adjusted amount is the present value of the maturity value
discounted at the rate to maturity in effect for new contributions to that same
fixed maturity option on the date of the calculation.
- --------------------------------------------------------------------------------
If you withdraw only a portion of the amount in a fixed maturity option, the
market value adjustment will be a percentage of the market value adjustment
that would have applied if you had withdrawn the entire value in that fixed
maturity option. This percentage is equal to the percentage of the value in the
fixed maturity option that you are withdrawing. See Appendix III at the end of
this Prospectus for an example.
For purposes of calculating the rate to maturity for new allocations to a fixed
maturity option (see (1)(c) above), we use the rate we have in effect for new
allocations to that fixed maturity option. We use this rate even if new
allocations to that option would not be accepted at that time. This rate will
not be less than 3%. If we do not have a rate to maturity in effect for a fixed
maturity option to which the "current rate to maturity" in (1)(c) above would
apply, we will use the rate at the next closest maturity date. If we are no
longer offering new fixed maturity options, the "current rate to maturity" will
be determined in accordance with our procedures then in effect. We reserve the
right to add up to 0.25% to the current rate in (1)(c) above for purposes of
calculating the market value adjustment only.
INVESTMENTS UNDER THE FIXED MATURITY OPTIONS
Amounts allocated to the fixed maturity options are held in a "nonunitized"
separate account we have established under the New York Insurance Law. This
separate account provides an additional measure of assurance that we will make
full payment of amounts due under the fixed maturity options. Under New York
Insurance Law, the portion of the separate account's assets equal to the
reserves and other contract liabilities relating to the contracts are not
chargeable with liabilities from any other business we may conduct. We own the
assets of the separate account, as well as any favorable investment performance
on those assets. You do not participate in the performance of the assets held
in this separate account. We may, subject to state law that applies, transfer
all assets allocated to the separate account to our general account. We
guarantee all benefits relating to your value in the fixed maturity options,
regardless of whether assets supporting fixed maturity options are held in a
separate account or our general account.
We have no specific formula for establishing the rates to maturity for the
fixed maturity options. We expect the rates to be influenced by, but not
necessarily correspond to, among other things, the yields that we can expect to
realize on the separate account's investments from time to time. Our current
plans are to invest in fixed-income obligations, including corporate bonds,
mortgage-backed and asset-backed securities, and government and agency issues
having durations in the aggregate consistent with those of the fixed maturity
options.
Although the above generally describes our plans for investing the assets
supporting our obligations under the fixed maturity options under the
contracts, we are not obligated to invest those assets according to any
particular plan except as we may be required to by state insurance laws. We
will not determine the rates to maturity we establish by the performance of the
nonunitized separate account.
ABOUT THE GENERAL ACCOUNT
Our general account supports all of our policy and contract guarantees,
including those that apply to the fixed maturity options, as well as our
general obligations.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations
of all jurisdictions where we are authorized to do business. Because of
exemptions and exclusionary provisions that apply, interests in the general
account have not been registered under the Securities Act of 1933, nor is the
general account an investment company under the Investment Company Act of 1940.
However, the market value adjustment interests under the contracts are
registered under the Securities Act of 1933.
We have been advised that the staff of the SEC has not reviewed the portions of
this Prospectus that relate to the general account (other than market value
adjustment interests). The disclosure with regard to the general account,
however, may be subject to certain provisions of the federal securities laws
relating to the accuracy and completeness of statements made in prospectuses.
ABOUT OTHER METHODS OF PAYMENT
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept subsequent contributions sent by wire to our processing office by
agreement with certain broker-dealers. Such transmittals must be accompanied by
information we require to allocate your contribution. Wire orders not
accompanied by complete information may be retained as described under "How you
can make your contributions" in "Contract features and benefits" earlier in
this Prospectus.
Even if we accepted the wire order and essential information, a contract
generally was not issued until we received and accepted a
More information 59
properly completed application. In certain cases, we may have issued a contract
based on information provided through certain broker-dealers with whom we have
established electronic facilities. In any such case, you must have signed our
Acknowledgment of Receipt form.
Where we required a signed application, the above procedures did not apply and
no financial transactions were permitted until we received the signed
application and issued the contract. Where we issued a contract based on
information provided through electronic facilities, we required an
Acknowledgment of Receipt form. Financial transactions were only permitted if
you requested them in writing, signed the request and had it signature
guaranteed, until we received the signed Acknowledgment of Receipt form. After
a contract is issued, additional contributions are allowed by wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find our more about such arrangements.
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY
You may use our automatic investment program, or "AIP," to have a specified
amount automatically deducted from a checking account, money market account or
credit union checking account and contributed as an additional contribution
into an NQ contract on a monthly or quarterly basis. AIP is not available for
Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contracts.
The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP
additional contributions may be allocated to any of the variable investment
options and available fixed maturity options. You choose the day of the month
you wish to have your account debited. However, you may not choose a date later
than the 28th day of the month.
You may cancel AIP at any time by notifying our processing office. We are not
responsible for any debits made to your account before the time written notice
of cancellation is received at our processing office.
DATES AND PRICES AT WHICH CONTRACT
EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this Prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our business day, generally, is any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions. Our business day generally ends at 4:00 p.m., Eastern Time for
purposes of determining the date when contributions are applied and any other
transaction requests are processed. Contributions will be applied and any other
transaction requests will be processed when they are received along with all
the required information unless another date applies as indicated below.
o If your contribution, transfer or any other transaction request, containing
all the required information, reaches us on a non-business day or after 4:00
p.m. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then the
transaction will occur on the 1st day of the next month.
o When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
o If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your contribution
will be considered received at the time your broker-dealer receives your
contribution and all information needed to process your application, along
with any required documents, and transmits your order to us in accordance
with our processing procedures. Such arrangements may apply to initial
contributions, subsequent contributions, or both, and may be commenced or
terminated at any time without prior notice. If required by law, the "closing
time" for such orders will be earlier than 4 p.m., Eastern Time.
CONTRIBUTIONS AND TRANSFERS
o Contributions allocated to the variable investment options are invested at
the value next determined after the close of the business day.
o Contributions allocated to a fixed maturity option will receive the rate to
maturity in effect for that fixed maturity option on that business day.
o Transfers to or from variable investment options will be made at the value
next determined after the close of the business day.
o Transfers to a fixed maturity option will be based on the rate to maturity in
effect for that fixed maturity option on the business day of the transfer.
ABOUT YOUR VOTING RIGHTS
As the owner of the shares of the Trusts we have the right to vote on certain
matters involving the portfolios, such as:
o the election of trustees; or
o the formal approval of Independent Public Accounting Firm selected for each
Trust; or
60 More information
o any other matters described in each prospectus for the Trusts or requiring a
shareholders' vote under the Investment Company Act of 1940.
We will give contract owners the opportunity to instruct us how to vote the
number of shares attributable to their contracts if a shareholder vote is
taken. If we do not receive instructions in time from all contract owners, we
will vote the shares of a portfolio for which no instructions have been
received in the same proportion as we vote shares of that portfolio for which
we have received instructions. We will also vote any shares that we are
entitled to vote directly because of amounts we have in a portfolio in the same
proportions that contract owners vote.
VOTING RIGHTS OF OTHERS
Currently, we control the Trusts. Their shares are sold to our separate
accounts and an affiliated qualified plan trust. In addition, shares of the
Trusts are held by separate accounts of insurance companies both affiliated and
unaffiliated with us. Shares held by these separate accounts will probably be
voted according to the instructions of the owners of insurance policies and
contracts issued by those insurance companies. While this will dilute the
effect of the voting instructions of the contract owners, we currently do not
foresee any disadvantages because of this. The Board of Trustees of each Trust
intends to monitor events in order to identify any material irreconcilable
conflicts that may arise and to determine what action, if any, should be taken
in response. If we believe that a response to any of those events
insufficiently protects our contract owners, we will see to it that appropriate
action is taken.
SEPARATE ACCOUNT NO. 45 AND SEPARATE ACCOUNT NO. 49 VOTING RIGHTS
If actions relating to the Separate Accounts require contract owner approval,
contract owners will be entitled to one vote for each unit they have in the
variable investment options. Each contract owner who has elected a variable
annuity payout option may cast the number of votes equal to the dollar amount
of reserves we are holding for that annuity in a variable investment option
divided by the annuity unit value for that option. We will cast votes
attributable to any amounts we have in the variable investment options in the
same proportion as votes cast by contract owners.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this Prospectus are created under applicable
federal securities laws. To the extent that those laws or the regulations
published under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
ABOUT LEGAL PROCEEDINGS
AXA Equitable and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings would be considered material with respect
to a contract owner's interest in Separate Account Nos. 45 and 49,
respectively, nor would any of these proceedings be likely to have a material
adverse effect upon either Separate Account, our ability to meet our
obligations under the contracts, or the distribution of the contracts.
ABOUT OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The consolidated financial statements of AXA Equitable at December 31, 2004 and
2003, and for the three years ended December 31, 2004, incorporated in this
Prospectus by reference to the 2004 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, the independent
registered public accounting firm, given on the authority of said firm as
experts in auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 45 and Separate Account No.
49, as well as the consolidated financial statements of AXA Equitable, are in
the applicable SAI. The SAI is available free of charge. You may request one by
writing to our processing office or calling 1-800-789-7771.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING
You can transfer ownership of an NQ contract at any time before annuity
payments begin. We will continue to treat you as the owner until we receive
written notification of any change at our processing office. You cannot assign
your NQ contract as collateral or security for a loan. Loans are also not
available under your NQ contract. In some cases, an assignment or change of
ownership may have adverse tax consequences. See "Tax information" earlier in
this Prospectus.
You cannot assign or transfer ownership of Rollover IRA, Roth Conversion IRA,
QP or Rollover TSA contract except by surrender to us. If your individual
retirement annuity contract is held in your custodial individual retirement
account, you may only assign or transfer ownership of such an IRA contract to
yourself. Loans are not available and you cannot assign Rollover IRA, Roth
Conversion IRA, QP or Rollover TSA contracts as security for a loan or other
obligation. If the employer that provided the funds does not restrict them,
loans are available under a Rollover TSA contract.
For limited transfers of ownership after the owner's death see "Beneficiary
continuation option" in "Payment of death benefit" earlier in this Prospectus.
You may direct the transfer of the values under your Rollover IRA, Roth
Conversion IRA, QP or Rollover TSA contract to another similar arrangement
under federal income tax rules.
DISTRIBUTION OF THE CONTRACTS
The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and
AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). AXA
Advisors serves as the principal underwriter of Separate Account No. 45, and
AXA Distributors serves as the principal underwriter of Separate Account No.
49. The offering of the contracts is intended to be continuous.
More information 61
AXA Advisors (the successor to EQ Financial Consultants, Inc.), an affiliate of
AXA Equitable, and AXA Distributors, an indirect wholly owned subsidiary of AXA
Equitable, are registered with the SEC as broker-dealers and are members of the
National Association of Securities Dealers, Inc. ("NASD"). Their principal
business address is 1290 Avenue of the Americas, New York, NY 10104. Both
broker-dealers also act as distributors for other AXA Equitable annuity
products. AXA Distributors is a successor by merger to all of the functions,
rights and obligations of Equitable Distributors, Inc. ("EDI"). Like AXA
Distributors, EDI was owned by Equitable Holdings, LLC.
The contracts are sold by financial professionals of AXA Advisors and its
affiliates and by financial professionals of both affiliated and unaffiliated
broker-dealers that have entered into selling agreements with the Distributors
("Selling broker-dealers"). Affiliated broker-dealers include MONY Securities
Corporation ("MSC")* and Advest, Inc. The Distributors, MSC and Advest are all
under the common control of AXA Financial, Inc.
AXA Equitable pays sales compensation to both Distributors. In general,
broker-dealers receiving sales compensation will pay all or a portion of it to
its individual financial representatives (or to its Selling broker-dealers) as
commissions related to the sale of contracts.
Sales compensation paid to AXA Advisors will generally not exceed 8.5% of the
total contributions made under the contracts. AXA Advisors, in turn, may pay
its financial professionals (or Selling broker-dealers) either a portion of the
contribution-based compensation or a reduced portion of the contribution-based
compensation in combination with ongoing annual compensation ("asset-based
compensation") up to 1.00% of the account value of the contract sold, based on
the financial professional's choice. Contribution-based compensation, when
combined with asset-based compensation, could exceed 8.5% of the total
contributions made under the contracts.
Sales compensation paid to AXA Distributors will generally not exceed 2.00% of
the total contributions made under the contracts. AXA Distributors passes all
sales compensation it receives through to the Selling broker-dealer. The
Selling broker-dealer may elect to receive reduced contribution-based
compensation in combination with asset-based compensation of up to 1.25% of the
account value of all or a portion of the contracts sold through the
broker-dealer. Contribution-based compensation, when combined with asset-based
compensation, could exceed 2.00% of the total contributions made under the
contracts. The sales compensation we pay varies among broker-dealers. AXA
Distributors may also receive compensation and reimbursement for its marketing
services under the terms of its distribution agreement with AXA Equitable.
The Distributors may also pay certain affiliated and/or unaffiliated
broker-dealers and other financial intermediaries additional compensation for
certain services and/or in recognition of certain expenses that may be incurred
by them or on their behalf (commonly referred to as "marketing allowances").
Services for which such payments are made may include, but are not limited to,
the preferred placement of AXA Equitable and/or Accumulator(R) Select(SM) on a
company and/or product list; sales personnel training; due diligence and related
costs; marketing and related services; conferences; and/or other support
services, including some that may benefit the contract owner. Payments may be
based on the amount of assets or purchase payments attributable to contracts
sold through a broker-dealer. We may also make fixed payments to broker-dealers
in connection with the initiation of a new relationship or the introduction of a
new product. These payments may serve as an incentive for Selling broker-dealers
to promote the sale of our products. Additionally, as an incentive for financial
professionals of Selling broker-dealers to promote the sale of our products, we
may increase the sales compensation paid to the Selling broker-dealer for a
period of time (commonly referred to as "compensation enhancements"). These
types of payments are made out of the Distributors' assets. Not all Selling
broker-dealers receive additional compensation. For more information about any
such arrangements, ask your financial professional.
The Distributors will receive 12b-1 fees from certain portfolios for providing
certain distribution and/or shareholder support services. In connection with
portfolios offered through unaffiliated insurance trusts, the Distributors may
also receive other payments from the portfolio advisers and/or their affiliates
for administrative costs, as well as payments for sales meetings and/or seminar
sponsorships.
In an effort to promote the sale of our products, AXA Advisors may provide its
financial professionals and managerial personnel with a higher percentage of
sales commissions and/or compensation for the sale of an affiliated variable
product than it would the sale of an unaffiliated product. Such practice is
known as providing "differential compensation." Other forms of compensation
financial professionals may receive include health and retirement benefits. In
addition, managerial personnel may receive expense reimbursements, marketing
allowances and commission-based payments known as "overrides." For tax reasons,
AXA Advisors financial professionals qualify for health and retirement benefits
based solely on their sales of our affiliated products.
These payments and differential compensation (together, the "payments") can
vary in amount based on the applicable product and/or entity or individual
involved. As with any incentive, such payments may cause the financial
professional to show preference in recommending the purchase or sale of our
products. However, under applicable rules of the NASD, AXA Advisors may only
recommend to you products that they reasonably believe are suitable for you
based on facts that you have disclosed as to your other security holdings,
financial situation and needs. In making any recommendation, financial
professionals may nonetheless face conflicts of interest because of the
differences in compensation from one product category to another, and because
of differences in compensation between products in the same category.
In addition, AXA Advisors financial professionals who meet specified production
levels for the sale of both affiliated and unaffiliated products may qualify,
under sales incentive programs, to receive non-cash compensation such as stock
options awards and/or stock appreciation rights, expense-paid trips,
expense-paid educational seminars and merchandise.
- ----------------------
* On or about June 6, 2005, MSC financial professionals are expected to become
financial professionals of AXA Advisors. From that date forward, former MSC
financial professionals will be compensated by AXA Advisors, and the
Distributors will replace MSC as the principal underwriters of its affiliated
products.
62 More information
Although AXA Equitable takes all of its costs into account in establishing the
level of fees and expenses in our products, any compensation paid will not
result in any separate charge to you under your contract. All payments made
will be in compliance with all applicable NASD rules and other laws and
regulations.
More information 63
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
AXA Equitable's Annual Report on Form 10-K for the year ended December 31,
2004, is considered to be a part of this Prospectus because it is incorporated
by reference.
After the date of this Prospectus and before we terminate the offering of the
securities under this Prospectus, all documents or reports we file with the SEC
under the Securities Exchange Act of 1934 ("Exchange Act"), will be considered
to become part of this Prospectus because they are incorporated by reference.
Any statement contained in a document that is or becomes part of this
Prospectus, will be considered changed or replaced for purposes of this
Prospectus if a statement contained in this Prospectus changes or is replaced.
Any statement that is considered to be a part of this Prospectus because of its
incorporation will be considered changed or replaced for the purpose of this
Prospectus if a statement contained in any other subsequently filed document
that is considered to be part of this Prospectus changes or replaces that
statement. After that, only the statement that is changed or replaced will be
considered to be part of this Prospectus.
We file our Exchange Act documents and reports, including our Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR
under CIK No. 0000727920. The SEC maintains a website that contains reports,
proxy and information statements, and other information regarding registrants
that file electronically with the SEC. The address of the website is
www.sec.gov.
Upon written or oral request, we will provide, free of charge, to each person
to whom this Prospectus is delivered, a copy of any or all of the documents
considered to be part of this Prospectus because they are incorporated herein.
This does not include exhibits not specifically incorporated by reference into
the text of such documents. Requests for documents should be directed to AXA
Equitable Life Insurance Company , 1290 Avenue of the Americas, New York, New
York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234).
64 Incorporation of certain documents by reference
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Accounts No. 45 and No. 49 with the same daily asset
charges of 1.60%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- ------------------------------------------------------------------------------------------------------------------------------------
Years Ended December 31,
-----------------------------------------------------------------------
2004 2003 2002 2001 2000 1999 1998 1997
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $10.59 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 24 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 726 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Conservative Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $10.27 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 63 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 686 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Conservative-Plus Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $10.37 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 279 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 787 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Moderate Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $42.17 $39.41 $33.62 $39.15 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,400 1,489 1,564 1,005 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,907 2,733 598 97 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Moderate-Plus Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $10.61 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 180 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,664 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $51.36 $46.56 $34.41 $49.16 $66.77 $78.30 $67.13 $68.19
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 74 79 66 73 65 16 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 388 429 338 402 420 141 16 --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $11.11 $10.87 $10.64 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,124 1,240 1,234 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 8,293 8,217 3,282 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $10.96 $ 9.93 $ 7.88 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 301 265 189 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,231 1,758 398 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $28.15 $26.32 $21.83 $22.86 $23.07 $25.73 $27.12 $29.13
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 647 634 511 500 219 35 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,526 5,467 2,248 1,835 1,211 574 170 2
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $11.94 $10.29 $ 7.79 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 460 371 286 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,160 1,684 553 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $10.37 $ 9.61 $ 7.62 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 255 249 213 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,038 1,850 635 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- ------------------------------------------------------------------------------------------------------------------------------------
Years Ended December 31,
-------------------------------------------------------------------------
2004 2003 2002 2001 2000 1999 1998 1997
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.13 $ 8.70 $ 6.77 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 384 385 283 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,852 4,258 1,299 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.46 $ 10.17 $ 7.89 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 304 297 292 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,712 3,848 1,272 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.38 $ 8.53 $ 6.18 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 503 538 344 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6,078 5,628 1,488 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.53 $ 10.17 $ 7.35 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 575 467 381 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,059 3,927 1,262 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.05 $ 8.76 $ 5.65 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,346 281 96 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,725 1,117 205 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $220.94 $196.75 $133.70 $203.81 $232.08 $275.01 $223.79 $176.22
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 275 301 314 380 310 66 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 683 689 581 661 618 255 35 1
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 27.49 $ 24.85 $ 19.37 $ 25.00 $ 25.80 $ 24.13 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,231 2,534 2,830 3,407 1,662 342 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,420 3,013 1,002 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 18.01 $ 17.95 $ 17.86 $ 16.72 $ 15.75 $ 14.70 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,200 2,818 3,868 2,545 486 59 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,326 3,448 2,501 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.97 $ 11.15 $ 8.38 $ 9.48 $ 12.56 $ 16.61 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,745 1,928 1,910 404 302 38 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,337 4,026 604 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 6.19 $ 5.81 $ 4.79 $ 7.07 $ 9.45 $ 11.77 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3,283 3,962 4,522 5,608 4,909 1,112 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 15,822 17,115 16,550 18,765 17,412 5,630 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 15.45 $ 15.13 $ 14.85 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 279 282 347 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,951 3,122 1,064 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 15.07 $ 13.43 $ 9.69 $ 14.11 $ 16.53 $ 14.78 $ 11.77 $ 12.52
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,230 1,362 1,384 1,276 718 30 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,346 4,534 3,377 3,423 3,189 818 211 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Bear Stearns Small Company Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 7.51 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 11 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 22 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- ------------------------------------------------------------------------------------------------------------------------------------
Years Ended December 31,
--------------------------------------------------------------------------
2004 2003 2002 2001 2000 1999 1998 1997
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.16 $ 12.68 $ 10.01 $ 11.78 $11.61 $12.04 $11.81 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,814 1,839 1,712 1,138 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 17,155 15,959 8,615 6,000 3,700 1,532 315 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Boston Advisors Equity Income
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 5.57 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 56 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 370 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.01 $ 7.86 $ 6.24 $ 8.62 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 11 25 38 6 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 498 478 128 13 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.71 $ 11.27 $ 9.24 $ 12.75 $17.16 $21.20 $16.54 $12.33
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 29 39 16 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,715 2,971 2,171 2,221 1,658 576 282 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.53 $ 9.42 $ 7.22 $ 8.64 $11.09 $13.93 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 193 146 59 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 11,933 10,611 5,973 5,697 5,514 1,286 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.14 $ 10.21 $ 7.89 $ 10.65 $11.04 $10.60 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 867 896 961 166 112 13 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 12,694 12,682 9,408 3,151 2,953 987 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.94 $ 10.17 $ 7.57 $ 10.09 $10.46 $10.26 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 805 770 643 337 155 31 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 15,720 14,963 8,308 6,886 5,538 2,436 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 24.94 $ 22.99 $ 18.28 $ 23.93 $27.69 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 968 1,030 1,042 1,038 734 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 11,584 11,512 7,152 6,601 6,057 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.20 $ 7.79 $ 5.73 $ 7.66 $ 9.38 $10.80 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 242 184 143 90 17 8 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,500 2,016 424 141 78 6 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.02 $ 9.65 $ 6.83 $ 8.51 $ 9.99 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,558 1,665 1,471 932 126 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 11,422 10,509 4,322 2,644 617 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.13 $ 12.18 $ 9.29 $ 11.07 $10.82 $10.45 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,805 2,005 2,145 1,487 87 18 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 7,736 7,229 3,714 2,090 251 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.60 $ 13.28 $ 13.05 $ 12.10 $11.40 $10.39 $10.73 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 748 804 702 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 15,208 16,175 13,419 10,537 5,112 2,026 379 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JP Morgan Value Opportunities
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.94 $ 11.86 $ 9.51 $ 11.94 $13.02 $12.39 $12.76 $11.50
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 338 377 359 287 124 12 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,325 5,701 4,777 4,156 1,755 978 714 17
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- ------------------------------------------------------------------------------------------------------------------------------------
Years Ended December 31,
--------------------------------------------------------------------------
2004 2003 2002 2001 2000 1999 1998 1997
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 5.96 $ 5.40 $ 4.36 $ 6.36 $ 8.39 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,047 1,206 1,333 1,187 295 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6,714 6,805 4,722 3,856 1,315 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 16.33 $ 14.17 $10.49 $ 12.37 $ 10.68 $ 9.15 $ 9.14 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 499 370 275 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 7,850 7,354 5,021 3,274 2,109 98 344 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.84 $ 12.72 $ 9.86 $ 11.33 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 676 685 427 24 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 11,463 10,296 2,423 78 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 19.58 $ 17.99 $13.94 $ 17.00 $ 16.37 $ 14.88 $ 12.71 $11.58
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,213 1,296 1,419 1,305 431 163 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,909 4,335 2,235 1,559 1,079 173 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury International Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 16.57 $ 13.84 $10.98 $ 13.39 $ 17.34 $ 20.10 $ 12.75 $10.84
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 468 487 498 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,077 5,316 3,555 3,126 2,033 771 422 4
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.94 $ 11.68 $ 9.18 $ 14.20 $ 21.88 $ 27.40 $ 16.03 $12.11
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,142 1,345 1,556 1,966 1,834 383 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,258 4,710 4,661 5,707 5,759 1,680 200 2
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.84 $ 8.07 $ 6.72 $ 8.64 $ 10.45 $ 10.70 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 421 474 474 543 359 103 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 8,941 9,707 8,237 8,655 7,052 2,906 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 26.55 $ 26.78 $27.06 $ 27.16 $ 26.65 $ 25.55 $ 24.80 $23.98
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,478 1,911 2,863 3,954 1,882 549 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,693 6,370 9,288 13,759 -- 9,875 5,805 349
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Montag & Caldwell Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 4.36 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 19 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.10 $ 12.18 $ 8.48 $ 10.90 $ 10.86 $ 11.42 $ 9.61 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 378 358 240 239 113 23 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3.996 4,084 1,913 1,535 1,382 522 211 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 21.86 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 21 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 74 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/TCW Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 16.30 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 19 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/UBS Growth and Income
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 5.08 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 4 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 69 -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
A-4 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- ------------------------------------------------------------------------------------------------------------------------------------
Years Ended December 31,
2004 2003 2002 2001 2000 1999 1998 1997
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Van Kampen Emerging Markets Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.45 $ 8.58 $ 5.59 $ 6.04 $ 6.47 $ 10.97 $ 5.70 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 860 837 857 821 715 126 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,587 4,232 2,823 3,043 2,958 962 203 --
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-5
Appendix II: Purchase considerations for QP contracts
- --------------------------------------------------------------------------------
Trustees who are considering the purchase of an Accumulator(R) Select(SM) QP
contract should discuss with their tax advisers whether this is an appropriate
investment vehicle for the employer's plan. Trustees should consider whether
the plan provisions permit the investment of plan assets in the QP contract,
the distribution of such an annuity, the purchase of the guaranteed minimum
income benefit and the payment of death benefits in accordance with the
requirements of the federal income tax rules. The QP contract and this
Prospectus should be reviewed in full, and the following factors, among others,
should be noted. Assuming continued plan qualification and operation, earnings
on qualified plan assets will accumulate value on a tax-deferred basis even if
the plan is not funded by the Accumulator(R) Select(SM) QP contract or another
annuity. Therefore, you should purchase an Accumulator(R) QP contract to fund a
plan for the contract's features and benefits other than tax deferral, after
considering the relative costs and benefits of annuity contracts and other
types of arrangements and funding vehicles. This QP contract accepts transfer
contributions only and not regular, ongoing payroll contributions. For 401(k)
plans under defined contribution plans, no employee after-tax contributions are
accepted.
We will not accept defined benefit plans. For defined contribution plans we
will only accept transfers from another defined contribution plan or a change
of investment vehicles in the plan. Only one additional transfer contribution
may be made per contract year. If overfunding of a plan occurs, withdrawals
from the QP contract may be required. A market value adjustment may apply.
Further, AXA Equitable will not perform or provide any plan recordkeeping
services with respect to the QP contracts. The plan's administrator will be
solely responsible for performing or providing for all such services. There is
no loan feature offered under the QP contracts, so if the plan provides for
loans and a participant/employee takes a loan from the plan, other plan assets
must be used as the source of the loan and any loan repayments must be credited
to other investment vehicles and/or accounts available under the plan.
Given that required minimum distributions must generally commence from the plan
for annuitants after age 70-1/2, trustees should consider that:
o the QP contract may not be an appropriate purchase for annuitants approaching
or over age 70-1/2;
o provisions in the Treasury Regulations on required minimum distributions
which will require, beginning 2006, that the actuarial present value of
additional annuity contract benefits be added to the dollar amount credited
for purposes of calculating required minimum distribution. This could
increase the amounts required to be distributed from the contract; and
o the guaranteed minimum income benefit under baseBUILDER may not be an
appropriate feature for annuitants who are older than age 60-1/2 when the
contract is issued.
Finally, because the method of purchasing the QP contract, including the large
initial contribution and the features of the QP contract may appeal more to
plan participants/employees who are older and tend to be highly paid, and
because certain features of the QP contract are available only to plan
participants/employees who meet certain minimum and/or maximum age
requirements, plan trustees should discuss with their advisers whether the
purchase of the QP contract would cause the plan to engage in prohibited
discrimination in contributions, benefits or otherwise.
B-1 Appendix II: Purchase considerations for QP contracts
Appendix III: Market value adjustment example
- --------------------------------------------------------------------------------
The example below shows how the market value adjustment would be determined and
how it would be applied to a withdrawal, assuming that $100,000 was allocated
on February 15, 2005 to a fixed maturity option with a maturity date of
February 15, 2014 (nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value of $183,846 on the maturity date. We
further assume that a withdrawal of $50,000 is made four years later on
February 15, 2009.
- -----------------------------------------------------------------------------------------------------------------------
Hypothetical assumed rate to maturity on February 15, 2009
5.00% 9.00%
- -----------------------------------------------------------------------------------------------------------------------
As of February 15, 2009 (before withdrawal)
- -----------------------------------------------------------------------------------------------------------------------
(1) Market adjusted amount $144,048 $ 119,487
- -----------------------------------------------------------------------------------------------------------------------
(2) Fixed maturity amount $131,080 $ 131,080
- -----------------------------------------------------------------------------------------------------------------------
(3) Market value adjustment:
(1) - (2) $ 12,968 $ (11,593)
- -----------------------------------------------------------------------------------------------------------------------
On February 15, 2009 (after withdrawal)
- -----------------------------------------------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with withdrawal:
(3) x [$50,000/(1)] $ 4,501 $ (4,851)
- -----------------------------------------------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount: [$50,000 - (4)] $ 45,499 $ 54,851
- -----------------------------------------------------------------------------------------------------------------------
(6) Fixed maturity amount: (2) - (5) $ 85,581 $ 76,229
- -----------------------------------------------------------------------------------------------------------------------
(7) Maturity value $120,032 $ 106,915
- -----------------------------------------------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,048 $ 69,487
- -----------------------------------------------------------------------------------------------------------------------
You should note that under this example if a withdrawal is made when rates have
increased from 7.00% to 9.00% (right column), a portion of a negative market
value adjustment is realized. On the other hand, if a withdrawal is made when
rates have decreased from 7.00% to 5.00% (left column), a portion of a positive
market value adjustment is realized.
Appendix III: Market value adjustment example C-1
Appendix IV: Guaranteed minimum death benefit example
- --------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the guaranteed minimum death benefit.
The following illustrates the guaranteed minimum death benefit calculation.
Assuming $100,000 is allocated to the variable investment options (with no
allocation to the AXA Premier VIP Core Bond, EQ/Alliance Intermediate
Government Securities, EQ/Money Market, EQ/PIMCO Real Return, EQ/Alliance
Quality Bond or EQ/Short Duration Bond options or the fixed maturity options),
no additional contributions, no transfers, no withdrawals and no loans under a
Rollover TSA contract, the guaranteed minimum death benefit for an annuitant
age 45 would be calculated as follows:
- ---------------------------------------------------------------------------------------
End of 5% roll up to age 80 Annual ratchet to age 80
contract guaranteed minimum guaranteed minimum
year Account value death benefit(1) death benefit
- ---------------------------------------------------------------------------------------
1 $105,000 $ 105,000(1) $ 105,000(3)
- ---------------------------------------------------------------------------------------
2 $115,500 $ 110,250(2) $ 115,500(3)
- ---------------------------------------------------------------------------------------
3 $129,360 $ 115,763(2) $ 129,360(3)
- ---------------------------------------------------------------------------------------
4 $103,488 $ 121,551(1) $ 129,360(4)
- ---------------------------------------------------------------------------------------
5 $113,837 $ 127,628(1) $ 129,360(4)
- ---------------------------------------------------------------------------------------
6 $127,497 $ 134,010(1) $ 129,360(4)
- ---------------------------------------------------------------------------------------
7 $127,497 $ 140,710(1) $ 129,360(4)
- ---------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%.
We are using these rates solely to illustrate how the benefit is determined.
The return rates bear no relationship to past or future investment results.
5% ROLL UP TO AGE 80
(1) At the end of contract year 1, and again at the end of contract years 4
through 7, the death benefit will be the guaranteed minimum death benefit.
(2) At the end of contract years 2 and 3, the death benefit will be the current
account value since it is higher than the current guaranteed minimum death
benefit.
ANNUAL RATCHET TO AGE 80
(3) At the end of contract years 1 through 3, the guaranteed minimum death
benefit is the current account value.
(4) At the end of contract years 4 through 7, the guaranteed minimum death
benefit is the guaranteed minimum death benefit at the end of the prior year
since it is equal to or higher than the current account value.
D-1 Appendix IV: Guaranteed minimum death benefit example
Appendix V: Hypothetical illustrations
- --------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM
BENEFITS
The following tables illustrate the changes in account value, cash value and the
values of the "5% Roll up to age 80" Guaranteed minimum death benefit, the
Protection Plus(SM) benefit and the Guaranteed minimum income benefit under
certain hypothetical circumstances for an Accumulator(R) Select(SM) contract.
The table illustrates the operation of a contract based on a male, issue age 60,
who makes a single $100,000 contribution and takes no withdrawals. The amounts
shown are for the beginning of each contract year and assume that all of the
account value is invested in portfolios that achieve investment returns at
constant gross annual rates of 0% and 6% (i.e., before any investment management
fees, 12b-1 fees or other expenses are deducted from the underlying portfolio
assets). After the deduction of the arithmetic average of the investment
management fees, 12b-1 fees and other expenses of all of the underlying
Portfolios (as described below), the corresponding net annual rates of return
would be (2.93)% and 3.07% for the Accumulator(R) Select(SM) contract, at the 0%
and 6% gross annual rates, respectively. These net annual rates of return
reflect the trust and separate account level charges, but they do not reflect
the charges we deduct from your account value annually for the 5% Roll up to age
80 Guaranteed minimum death benefit, Protection Plus(SM) benefit, and the
Guaranteed minimum income benefit features, as well as the annual administrative
charge. If the net annual rates of return did reflect these charges, the net
annual rates of return shown would be lower; however, the values shown in the
following tables reflect all contract charges. The values shown under "Lifetime
Annual Guaranteed Minimum Income Benefit" reflect the lifetime income that would
be guaranteed if the Guaranteed minimum income benefit is selected at that
contract anniversary. An "N/A" in these columns indicates that the benefit is
not exercisable in that year. A "0" under any of the death benefit and/or
"Lifetime Annual Guaranteed Minimum Income Benefit" columns indicates that the
contract has terminated due to insufficient account value and, consequently, the
guaranteed benefit has no value.
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in all tables reflect (1) investment management
fees equivalent to an effective annual rate of 0.69%, and (2) an assumed
average asset charge for all other expenses of the underlying portfolios
equivalent to an effective annual rate of 0.39% and (3) 12b-1 fees equivalent
to an effective annual rate of 0.25%. These rates are the arithmetic average
for all portfolios that are available as investment options. In other words,
they are based on the hypothetical assumption that account values are allocated
equally among the variable investment options. The actual rates associated with
any contract will vary depending upon the actual allocation of contract values
among the investment options. These rates do not reflect expense limitation
arrangements in effect with respect to certain of the underlying portfolios as
described in the footnotes to the fee table for the underlying portfolios in
"Fee Table" earlier in this prospectus. With these arrangements, the charges
shown above would be lower. This would result in higher values than those shown
in the following tables.
Because your circumstances will no doubt differ from those in the illustrations
that follow, values under your contract will differ, in most cases
substantially. Upon request, we will furnish you with a personalized
illustration.
Appendix V: Hypothetical illustrations E-1
Variable deferred annuity
Accumulator Select
$100,000 Single contribution and no withdrawals
Male, issue age 60
Benefits:
5% Roll up to age 80 Guaranteed minimum death benefit
Protection Plus
Guaranteed minimum income benefit
5% Roll up
to age 80 Lifetime Annual
Guaranteed Total Death Benefit Guaranteed
Minimum Death with Protection Minimum
Account Value Cash Value Benefit Plus Income Benefit
Contract ------------------- ------------------- ------------------- ------------------- ----------------
Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6%
Age --------- --------- --------- --------- --------- --------- --------- --------- --------- -------- -------
60 1 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 N/A N/A
61 2 96,561 102,549 96,561 102,549 105,000 105,000 107,000 107,000 N/A N/A
62 3 93,213 105,155 93,213 105,155 110,250 110,250 114,350 114,350 N/A N/A
63 4 89,954 107,819 89,954 107,819 115,763 115,763 122,068 122,068 N/A N/A
64 5 86,779 110,542 86,779 110,542 121,551 121,551 130,171 130,171 N/A N/A
65 6 83,685 113,325 83,685 113,325 127,628 127,628 138,679 138,679 N/A N/A
66 7 80,669 116,169 80,669 116,169 134,010 134,010 147,613 147,613 N/A N/A
67 8 77,726 119,073 77,726 119,073 140,710 140,710 156,994 156,994 N/A N/A
68 9 74,855 122,040 74,855 122,040 147,746 147,746 166,844 166,844 N/A N/A
69 10 72,051 125,070 72,051 125,070 155,133 155,133 177,186 177,186 N/A N/A
74 15 58,933 141,183 58,933 141,183 197,993 197,993 237,190 237,190 13,860 13,860
79 20 47,037 158,952 47,037 158,952 252,695 252,695 313,773 313,773 21,201 21,201
84 25 36,396 178,840 36,396 178,840 265,330 265,330 331,462 331,462 26,560 26,560
89 30 30,354 205,067 30,354 205,067 265,330 265,330 331,462 331,462 N/A N/A
94 35 25,899 236,161 25,899 236,161 265,330 265,330 331,462 331,462 N/A N/A
95 36 25,090 242,925 25,090 242,925 265,330 265,330 331,462 331,462 N/A N/A
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for
individual contract years. We can make no representation that these
hypothetical investment results can be achieved for any one year or continued
over any period of time. In fact, for any given period of time, the investment
results could be negative.
E-2 Appendix V: Hypothetical illustrations
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Unit Values 2
Custodian and Independent Registered Public Accounting Firm 2
Distribution of the Contracts 2
Financial Statements 2
How to obtain an Accumulator(R) Select(SM) Statement of Additional Information
for Separate Account No. 45 and Separate Account No. 49
Send this request form to:
Accumulator(R) Select(SM)
P.O. Box 1547 Secaucus, NJ 07096-1547
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me a combined Accumulator(R) Select SAI for Separate Account No. 45
and Separate Account No. 49 dated May 1, 2005:
- --------------------------------------------------------------------------------
Name
- --------------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
City State Zip
(SAI 4ACS(5/03))
X00999
Accum `02, OR and `04 Series
Accumulator(R) Select(SM)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2005
Please read and keep this Prospectus for future reference. It contains
important information that you should know before taking any action under your
contract. You should read the prospectuses for each Trust, which contain
important information about the portfolios.
- --------------------------------------------------------------------------------
WHAT IS THE ACCUMULATOR(R) Select(SM)
Accumulator(R) Select(SM) is a deferred annuity contract issued by AXA Equitable
Life Insurance Company. It provides for the accumulation of retirement savings
and for income. The contract offers income and death benefit protection. It
also offers a number of payout options. You invest to accumulate value on a
tax-deferred basis in one or more of our variable investment options, the
guaranteed interest option or fixed maturity options ("investment options").
There is no withdrawal charge under the contract. Certain features and benefits
described in this Prospectus may vary in your state; all features and benefits
may not be available in all contracts or in all states. Please contact your
financial professional and/or review your contract for state variations that
may apply to you.
- --------------------------------------------------------------------------------
Variable investment options
- --------------------------------------------------------------------------------
o AXA Aggressive Allocation(1) o EQ/Equity 500 Index
o AXA Conservative Allocation(1) o EQ/Evergreen Omega
o AXA Conservative-Plus Allocation(1) o EQ/FI Mid Cap
o AXA Moderate Allocation(1) o EQ/FI Small/Mid Cap Value
o AXA Moderate-Plus Allocation(1) o EQ/International Growth(3)
o AXA Premier VIP Aggressive Equity o EQ/J.P. Morgan Core Bond
o AXA Premier VIP Core Bond o EQ/JP Morgan Value Opportunities
o AXA Premier VIP Health Care o EQ/Janus Large Cap Growth
o AXA Premier VIP High Yield o EQ/Lazard Small Cap Value
o AXA Premier VIP International Equity o EQ/Long Term Bond(3)
o AXA Premier VIP Large Cap Core o EQ/Lord Abbett Growth and Income(3)
Equity o EQ/Lord Abbett Large Cap Core(3)
o AXA Premier VIP Large Cap Growth o EQ/Lord Abbett Mid Cap Value(3)
o AXA Premier VIP Large Cap Value o EQ/Marsico Focus
o AXA Premier VIP Small/Mid Cap o EQ/Mercury Basic Value Equity
Growth o EQ/Mercury International Value
o AXA Premier VIP Small/Mid Cap Value o EQ/Mergers and Acquisitions(3)
o AXA Premier VIP Technology o EQ/MFS Emerging Growth Companies
o EQ/Alliance Common Stock o EQ/MFS Investors Trust
o EQ/Alliance Growth and Income o EQ/Money Market
o EQ/Alliance Intermediate Government o EQ/Montag & Caldwell Growth(2)
Securities o EQ/PIMCO Real Return(3)
o EQ/Alliance International o EQ/Short Duration Bond(3)
o EQ/Alliance Large Cap Growth(2) o EQ/Small Company Index
o EQ/Alliance Quality Bond o EQ/Small Company Value(2)
o EQ/Alliance Small Cap Growth o EQ/TCW Equity(2)
o EQ/Bear Stearns Small Company o EQ/UBS Growth and Income(2)
Growth(2) o EQ/Van Kampen Comstock(3)
o EQ/Bernstein Diversified Value o EQ/Van Kampen Emerging Markets
o EQ/Boston Advisors Equity Income(2) Equity(2)
o EQ/Calvert Socially Responsible o EQ/Van Kampen Mid Cap Growth(3)
o EQ/Capital Guardian Growth o EQ/Wells Fargo Montgomery Small
o EQ/Capital Guardian International Cap(3)
o EQ/Capital Guardian Research o Laudus Rosenberg VIT Value Long/
o EQ/Capital Guardian U.S. Equity Short Equity
o EQ/Caywood-Scholl High Yield Bond(3) o U.S. Real Estate -- Class II
- --------------------------------------------------------------------------------
(1) The "AXA Allocation" portfolios.
(2) This is the option's new name, effective on or about May 9, 2005, subject
to regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former
name.
(3) Available on or about May 9, 2005, subject to regulatory approval. Please
see "Portfolios of the Trusts" in "Contract features and benefits" later in
this Prospectus for more information on the new investment option.
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of Separate Account No. 49. Each
variable investment option, in turn, invests in a corresponding securities
portfolio ("portfolio") of EQ Advisors Trust, AXA Premier VIP Trust, The
Universal Institutional Funds, Inc. or Laudus Variable Insurance Trust (The
"Trusts"). Your investment results in a variable investment option will depend
on the investment performance of the related portfolio.
You may also allocate amounts to the guaranteed interest option and the fixed
maturity options, which are discussed later in this Prospectus.
TYPES OF CONTRACTS. Contracts were offered for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only.
o An individual retirement annuity ("IRA"), either traditional IRA ("Rollover
IRA") or Roth IRA ("Roth Conversion IRA").
o Traditional and Roth Inherited IRA beneficiary continuation contract
("Inherited IRA")
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") --
("Rollover TSA").
A contribution of at least $25,000 was required to purchase a contract.
Registration statements relating to this offering have been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2005, is part of the registration statement.
The SAI is available free of charge. You may request one by writing to our
processing office or calling 1-800-789-7771. The SAI has been incorporated by
reference into this Prospectus. This Prospectus and the SAI can also be
obtained from the SEC's website at www.sec.gov. The table of contents for the
SAI appears at the back of this Prospectus.
The SEC has not approved or disapproved these securities or determined if this
Prospectus is accurate or complete. Any representation to the contrary is a
criminal offense. The contracts are not insured by the FDIC or any other
agency. They are not deposits or other obligations of any bank and are not bank
guaranteed. They are subject to investment risks and possible loss of
principal.
This contract is no longer available for new purchasers. This Prospectus is
designed for current contract owners. In addition to the possible state
variations noted above, you should note that your contract features and charges
may vary depending on the date on which you purchased your contract. For more
information about the particular features, charges and options applicable to
you, please contact your financial professional or refer to your contract, as
well as review Appendix V later in this Prospectus for contract variation
information and timing. You may not change your contract or its features as
issued.
X00998/Select '02 Series
(R-4/15)
Contents of this Prospectus
- --------------------------------------------------------------------------------
ACCUMULATOR(R) Select(SM)
- --------------------------------------------------------------------------------
Index of key words and phrases 4
Who is AXA Equitable? 5
How to reach us 6
Accumulator(R) Select(SM) at a glance -- key features 8
- --------------------------------------------------------------------------------
FEE TABLE 10
- --------------------------------------------------------------------------------
Example 13
Condensed financial information 16
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 17
- --------------------------------------------------------------------------------
How you can contribute to your contract 17
Owner and annuitant requirements 19
How you can make your contributions 19
What are your investment options under the contract? 19
Portfolios of the Trusts 20
Allocating your contributions 26
Your benefit base 27
Annuity purchase factors 28
Our Living Benefit option 28
Guaranteed minimum death benefit 30
Inherited IRA beneficiary continuation contract 31
Your right to cancel within a certain number of days 32
- --------------------------------------------------------------------------------
2. DETERMINING YOUR CONTRACT'S VALUE 33
- --------------------------------------------------------------------------------
Your account value and cash value 33
Your contract's value in the variable investment options 33
Your contract's value in the guaranteed interest option 33
Your contract's value in the fixed maturity options 33
Termination of your contract 33
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 34
- --------------------------------------------------------------------------------
Transferring your account value 34
Disruptive transfer activity 34
Rebalancing your account value 35
- ----------------------
"We," "our," and "us" refer to AXA Equitable.
When we address the reader of this Prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the contract owner.
When we use the word "contract" it also includes certificates that are issued
under group contracts in some states.
2 Contents of this Prospectus
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 37
- --------------------------------------------------------------------------------
Withdrawing your account value 37
How withdrawals are taken from your account value 38
How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death
benefit 38
Loans under Rollover TSA contracts 38
Surrendering your contract to receive its cash value 39
When to expect payments 39
Your annuity payout options 39
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 42
- --------------------------------------------------------------------------------
Charges that AXA Equitable deducts 42
Charges that the Trusts deduct 43
Group or sponsored arrangements 43
Other distribution arrangements 43
- --------------------------------------------------------------------------------
6. PAYMENT OF DEATH BENEFIT 45
- --------------------------------------------------------------------------------
Your beneficiary and payment of benefit 45
How death benefit payment is made 45
Beneficiary continuation option 46
- --------------------------------------------------------------------------------
7. TAX INFORMATION 48
- --------------------------------------------------------------------------------
Overview 48
Contracts that fund a retirement arrangement 48
Transfers among investment options 48
Taxation of nonqualified annuities 48
Individual retirement arrangements (IRAs) 50
Tax-Sheltered Annuity contracts (TSAs) 59
Federal and state income tax withholding and
information reporting 63
Impact of taxes to AXA Equitable 63
- --------------------------------------------------------------------------------
8. MORE INFORMATION 64
- --------------------------------------------------------------------------------
About Separate Account No. 49 64
About the Trusts 64
About our fixed maturity options 64
About the general account 65
About other methods of payment 65
Dates and prices at which contract events occur 66
About your voting rights 66
About legal proceedings 67
About our independent registered public accounting firm 67
Financial statements 67
Transfers of ownership, collateral assignments, loans
and borrowing 67
Distribution of the contracts 67
- --------------------------------------------------------------------------------
9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 70
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed financial information A-1
II -- Market value adjustment example B-1
III -- Enhanced death benefit example C-1
IV -- Hypothetical illustrations D-1
V -- Contract variations E-1
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Contents of this Prospectus 3
Index of key words and phrases
- --------------------------------------------------------------------------------
This index should help you locate more information on the terms used in this
Prospectus.
Page in
Term Prospectus
6% Roll up to age 85 enhanced death benefit 27
12 month dollar cost averaging 26
account value 33
administrative charge 42
annual administrative charge 42
Annual ratchet to age 85 enhanced death benefit 28
annuitant 17
annuity maturity date 41
annuity payout options 39
annuity purchase factors 28
automatic investment program 66
beneficiary 45
Beneficiary continuation option ("BCO") 46
benefit base 27
business day 66
cash value 33
charges for state premium and other applicable taxes 43
contract date 9
contract date anniversary 9
contract year 9
contributions to traditional IRAs 51
regular contributions 51
rollovers and transfers 52
disruptive transfer activity 34
distribution charge 42
EQAccess 6
ERISA 38
Fixed-dollar option 27
fixed maturity options 25
free look 32
general account 65
general dollar cost averaging 27
guaranteed interest option 25
guaranteed minimum death benefit 30
guaranteed minimum death benefit charge 42
guaranteed minimum income benefit 28
IRA cover
IRS 48
Inherited IRA cover
Page in
Term Prospectus
investment options cover
Investment simplifier 27
Lifetime minimum distribution withdrawals 38
Living Benefit option 28
Living Benefit charge 43
loan reserve account 39
loans under Rollover TSA 38
lump sum withdrawals 37
market adjusted amount 25
market timing 34
maturity dates 25
market value adjustment 25
maturity value 25
Mortality and expense risks charge 42
NQ cover
participant 19
portfolio cover
Principal assurance allocation 26
processing office 6
Protection Plus(SM) 30
Protection Plus(SM) charge 43
rate to maturity 25
Rebalancing 35
Rollover IRA cover
Roth IRA cover
SAI cover
SEC cover
self-directed allocation 26
Separate Account 49 64
Standard death benefit 27
substantially equal withdrawals 37
Successor owner and annuitant 46
Systematic withdrawals 37
TOPS 6
Trusts cover
traditional IRA cover
TSA cover
unit 33
wire transmittals and electronic applications 65
To make this Prospectus easier to read, we sometimes use different words than
in the contract or supplemental materials. This is illustrated below. Although
we use different words, they have the same meaning in this Prospectus as in the
contract. Your financial professional can provide further explanation about
your contract or supplemental materials.
- --------------------------------------------------------------------------------------
Prospectus Contract or Supplemental Materials
- --------------------------------------------------------------------------------------
fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts
in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
Living Benefit Guaranteed Minimum Income Benefit
Guaranteed Interest Option Guaranteed Interest Account
- --------------------------------------------------------------------------------------
4 Index of key words and phrases
Who is AXA Equitable?
- --------------------------------------------------------------------------------
We are AXA Equitable Life Insurance Company ("AXA Equitable") (previously, The
Equitable Life Assurance Society of the United States), a New York stock life
insurance corporation. We have been doing business since 1859. AXA Equitable is
a subsidiary of AXA Financial, Inc. AXA, a French holding company for an
international group of insurance and related financial services companies, is
the sole shareholder of AXA Financial, Inc. As the sole shareholder, and under
its other arrangements with AXA Equitable and AXA Equitable's parent, AXA
exercises significant influence over the operations and capital structure of
AXA Equitable and its parent. No company other than AXA Equitable, however, has
any legal responsibility to pay amounts that AXA Equitable owes under the
contracts.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$598 billion in assets as of December 31, 2004. For over 100 years AXA
Equitable has been among the largest insurance companies in the United States.
We are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office
is located at 1290 Avenue of the Americas, New York, N.Y. 10104.
Who is AXA Equitable? 5
HOW TO REACH US
You may communicate with our processing office as listed below for the purposes
described. Certain methods of contacting us, such as by telephone or
electronically, may be unavailable or delayed (for example our facsimile
service may not be available at all times and/or we may be unavailable due to
emergency closing). In addition, the level and type of service available may be
restricted based on criteria established by us.
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY REGULAR MAIL
- --------------------------------------------------------------------------------
Accumulator(R) Select(SM)
P.O. Box 13014
Newark, NJ 07188-0014
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY
- --------------------------------------------------------------------------------
Accumulator(R) Select(SM)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY REGULAR MAIL
- --------------------------------------------------------------------------------
Accumulator(R) Select(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY EXPRESS DELIVERY
- --------------------------------------------------------------------------------
Accumulator(R) Select(SM)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year and
any calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract
year, including notification of eligibility to exercise the guaranteed
minimum income benefit, if applicable.
- --------------------------------------------------------------------------------
TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS:
- --------------------------------------------------------------------------------
TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQAccess is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for the fixed maturity options (not available through
EQAccess);
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
available through TOPS).
You can also:
o change your allocation percentages and/or transfer among the investment
options;
o elect to receive certain contract statements electronically;
o change your address (not available through TOPS);
o change your TOPS personal identification number ("PIN") (through TOPS only)
and your EQAccess password (through EQAccess only); and
o access Frequently Asked Questions and Service Forms (not available through
TOPS).
TOPS and EQAccess are normally available seven days a week, 24 hours a day. You
may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our website at www.axaonline.com and
logging in to access your account.. All other clients may access EQAccess by
visiting our website at www.axa-equitable.com. Of course, for reasons beyond
our control, these services may sometimes be unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or the Internet are genuine. For example, we will
require certain personal identification information before we will act on
telephone or Internet instructions and we will provide written confirmation of
your transfers. If we do not employ reasonable procedures to confirm the
genuineness of telephone or Internet instructions, we may be liable for any
losses arising out of any act or omission that constitutes negligence, lack of
good faith, or willful misconduct. In light of our procedures, we will not be
liable for following telephone or Internet instructions we reasonably believe
to be genuine.
We reserve the right to limit access to these services if we determine that you
engaged in a disruptive transfer activity, such as "market timing" (see
"Disruptive transfer activity" in "Transferring your money among investment
options" later in this Prospectus).
- --------------------------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVE:
- --------------------------------------------------------------------------------
You may also use our toll-free number (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
6 Who is AXA Equitable?
(2) conversion of a traditional IRA to a Roth Conversion IRA contract;
(3) election of the automatic investment program;
(4) election of the rebalancing program;
(5) requests for loans under Rollover TSA contracts;
(6) spousal consent for loans under Rollover TSA contracts;
(7) requests for withdrawals or surrenders from Rollover TSA contracts;
(8) tax withholding elections;
(9) election of the beneficiary continuation option;
(10) IRA contribution recharacterizations;
(11) certain Section 1035 exchanges;
(12) direct transfers;
(13) exercise of Guaranteed minimum income benefit; and
(14) death claims.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between investment options;
(4) contract surrender and withdrawal requests;
(5) general dollar cost averaging (including the fixed dollar and interest
sweep options); and
(6) 12 month dollar cost averaging.
TO CANCEL OR CHANGE ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) automatic investment program;
(2) general dollar cost averaging (including the fixed dollar and interest
sweep options);
(3) rebalancing;
(4) 12 month dollar cost averaging;
(5) substantially equal withdrawals;
(6) systematic withdrawals; and
(7) the date annuity payments are to begin.
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us to
take.
SIGNATURES:
The proper person to sign forms, notices and requests would normally be the
owner. If there are joint owners all must sign.
Who is AXA Equitable? 7
Accumulator(R) Select(SM) at a glance -- key features
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Professional investment Accumulator(R) Select(SM)'s variable investment options invest in different portfolios managed by
management professional investment advisers.
- ------------------------------------------------------------------------------------------------------------------------------------
Fixed maturity options o Fixed maturity options with maturities ranging from approximately 1 to 10 years (subject to
availability).
o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to
maturity.
--------------------------------------------------------------------------------------------------------
If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a
market value adjustment due to differences in interest rates. If you withdraw or transfer only a
portion of a fixed maturity amount, this may increase or decrease any value that you have left in
that fixed maturity option. If you surrender your contract, a market value adjustment also applies.
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed interest o Principal and interest guarantees.
option o Interest rates set periodically.
- ------------------------------------------------------------------------------------------------------------------------------------
Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or
receive annuity payments.
o No tax on transfers among investment options inside the contract.
--------------------------------------------------------------------------------------------------------
Annuity contracts that were purchased as an Individual Retirement Annuity (IRA), or tax sheltered
annuity (TSA) do not provide tax deferral benefits beyond those already provided by the Internal
Revenue Code. Before you purchased your contract, you should have considered its features and
benefits beyond tax deferral -- as well as its features, benefits and costs relative to any other
investment that you may have chosen in connection with your retirement plan or arrangement -- to
determine whether it would meet your needs and goals. Depending on your personal situation, the
contract's guaranteed benefits may have limited usefulness because of required minimum distributions
("RMDs").
- ------------------------------------------------------------------------------------------------------------------------------------
Living Benefit protection The Living Benefit provides a guaranteed minimum income benefit. The guaranteed minimum income
benefit provides income protection for you during the annuitant's life once you elect to annuitize the
contract.
- ------------------------------------------------------------------------------------------------------------------------------------
Contribution amounts o Initial minimum: $25,000
o Additional minimum: $500 (NQ and Rollover TSA)
$100 monthly and $300 quarterly under our automatic investment program
(NQ contracts)
$1,000 (Inherited IRA contracts)
$50 (IRA contracts)
Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million.
- ------------------------------------------------------------------------------------------------------------------------------------
Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Loans under Rollover TSA contracts
o Contract surrender
You may incur income tax and a tax penalty.
- ------------------------------------------------------------------------------------------------------------------------------------
Payout options o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout option
- ------------------------------------------------------------------------------------------------------------------------------------
8 Accumulator(R) Select(SM) at a glance -- key features
Additional features o Guaranteed minimum death benefit options
o Dollar cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually and annually)
o Free transfers
o Protection Plus(SM), an optional death benefit available under certain contracts (subject to
state availability)
- ------------------------------------------------------------------------------------------------------------------------------------
Fees and charges o Daily charges on amounts invested in the variable investment options for mortality and expense
risks, administrative charges and distribution charges at an annual rate of 1.70%.
o The charges for the guaranteed minimum death benefits range from 0.0% to 0.60%, annually, of
the applicable benefit base. The benefit base is described under "Your benefit base" in
"Contract features and benefits" later in this Prospectus.
o Annual 0.60% of the applicable benefit base charge for the optional Living Benefit until you
exercise your guaranteed minimum income benefit, elect another annuity payout option or the
contract date anniversary after the annuitant reaches age 85, whichever occurs first. The
benefit base is described under "Your benefit base" in "Contract features and benefits" later
in this Prospectus.
o If your account value at the end of the contract year is less than $50,000, we deduct an annual
administrative charge equal to $30, or during the first two contract years, 2% of your account
value, if less. If your account value, on the contract date anniversary, is $50,000 or more, we
will not deduct the charge.
o An annual charge of 0.35% of the account value for the Protection Plus(SM) optional death
benefit.
o No sales charge deducted at the time you make contributions and no withdrawal charge.
--------------------------------------------------------------------------------------------------------
The "contract date" is the effective date of a contract. This usually is the business day we
received the properly completed and signed application, along with any other required
documents, and your initial contribution. Your contract date appears in your contract. The
12-month period beginning on your contract date and each 12-month period after that date is a
"contract year." The end of each 12-month period is your "contract date anniversary." For
example, if your contract date is May 1, your contract date anniversary is April 30.
--------------------------------------------------------------------------------------------------------
o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as
premium taxes in your state. This charge is generally deducted from the amount applied to an
annuity payout option.
o We deduct a $350 annuity administrative fee from amounts applied to the Variable Immediate
Annuity payout options.
o Annual expenses of the Trusts' portfolios are calculated as a percentage of the average daily
net assets invested in each portfolio. These expenses include management fees ranging from
0.10% to 1.50% annually, 12b-1 fees of either 0.25% or 0.35% annually and other expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant issue ages NQ: 0-85
Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-85
Inherited IRA: 0-70
- ------------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the
contract. In some cases, restrictions or exceptions apply. Also, all features
of the contract are not necessarily available in your state or at certain ages.
For more detailed information, we urge you to read the contents of this
Prospectus, as well as your contract. Please feel free to speak with your
financial professional or call us, if you have questions.
Other contracts
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, credits, fees and/or charges that are
different from those in the contracts offered by this Prospectus. Not every
contract is offered through the same distributor. Upon request, your financial
professional can show you information regarding other AXA Equitable annuity
contracts that he or she distributes. You can also contact us to find out more
about any of the AXA Equitable annuity contracts.
Accumulator(R) Select(SM) at a glance -- key features 9
Fee table
- --------------------------------------------------------------------------------
The following tables describe the fees and expenses that you pay when owning
the contract. Each of the charges and expenses is more fully described in
"Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay if you purchase a
Variable Immediate Annuity payout option. Charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your state,
may also apply. Charges for certain features shown in the fee table are
mutually exclusive.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value at the time you request certain transactions
- ------------------------------------------------------------------------------------------------------------------------------------
Charge if you elect a Variable Immediate Annuity payout option $350
- ------------------------------------------------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not
including the underlying trust portfolio fees and expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Mortality and expense risks 1.10%
Administrative 0.25%
Distribution 0.35%
----
Total annual expenses 1.70%
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value on each contract date anniversary
- ------------------------------------------------------------------------------------------------------------------------------------
Maximum annual administrative charge
If your account value on a contract date anniversary is less than
$50,000(1) $ 30
If your account value on a contract date anniversary is $50,000
or more $ 0
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value each year if you elect the optional benefit
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum death benefit charge (calculated as a
percentage of the applicable benefit base. Deducted annually on each
contract date anniversary for which the benefit is in effect.)
Standard death benefit 0.00%
Annual Ratchet to age 85 0.30% of the Annual Ratchet to age 85 benefit base
6% Roll-up to age 85 0.45% of the 6% roll-up to age 85 benefit base
Greater of 6% Roll-up to age 85 or Annual Ratchet to age 85 0.60% of the greater of the 6% roll-up to age 85
benefit base or the Annual Ratchet to age 85 benefit
base, as applicable
- ------------------------------------------------------------------------------------------------------------------------------------
Living Benefit charge (calculated as a percentage of the applicable
benefit base. Deducted annually on each contract date anniversary for
which the benefit is in effect.) 0.60%
- ------------------------------------------------------------------------------------------------------------------------------------
Protection Plus(SM) benefit charge (calculated as a percentage of
the account value. Deducted annually on each contract date anniver-
sary for which the benefit is in effect.) 0.35%
- ------------------------------------------------------------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net
asset value each day. Therefore, they reduce the investment return of the
Portfolio and the related variable investment option. Actual fees and expenses
are likely to fluctuate from year to year. More detail concerning each
Portfolio's fees and expenses is contained in the Trust prospectus for the
Portfolio.
10 Fee table
- -----------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets
- -----------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2004 (expenses that are deducted Lowest Highest
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ----- ------
other expenses)(2) 0.55% 7.61%
- -----------------------------------------------------------------------------------------------------
This table shows the fees and expenses for 2004 as an annual percentage of each Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------------------------------------------------------
Fee Net Total
Under- Total Annual Waivers Annual
lying Expenses and/or Expenses
Manage- Portfolio (Before Expense After
ment 12b-1 Other Fees and Expense Reim- Expense
Portfolio Name Fees(3) Fees(4) Expenses(5) Expenses(6) Limitation) bursements(7) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 0.29% 0.99% 1.63% (0.29)% 1.34%
AXA Conservative Allocation 0.10% 0.25% 0.41% 0.75% 1.51% (0.41)% 1.10%
AXA Conservative-Plus Allocation 0.10% 0.25% 0.30% 0.80% 1.45% (0.30)% 1.15%
AXA Moderate Allocation 0.10% 0.25% 0.16% 0.83% 1.34% (0.16)% 1.18%
AXA Moderate-Plus Allocation 0.10% 0.25% 0.20% 1.02% 1.57% (0.20)% 1.37%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.18% -- 1.05% -- 1.05%
AXA Premier VIP Core Bond 0.60% 0.25% 0.20% -- 1.05% (0.10)% 0.95%
AXA Premier VIP Health Care 1.20% 0.25% 0.40% -- 1.85% 0.00% 1.85%
AXA Premier VIP High Yield 0.58% 0.25% 0.18% -- 1.01% -- 1.01%
AXA Premier VIP International Equity 1.05% 0.25% 0.50% -- 1.80% 0.00% 1.80%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.32% -- 1.47% (0.12)% 1.35%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.26% -- 1.41% (0.06)% 1.35%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.25% -- 1.40% (0.05)% 1.35%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.25% -- 1.60% 0.00% 1.60%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.25% -- 1.60% 0.00% 1.60%
AXA Premier VIP Technology 1.20% 0.25% 0.40% -- 1.85% 0.00% 1.85%
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.47% 0.25% 0.05% -- 0.77% -- 0.77%
EQ/Alliance Growth and Income 0.56% 0.25% 0.05% -- 0.86% -- 0.86%
EQ/Alliance Intermediate
Government Securities 0.50% 0.25% 0.06% -- 0.81% -- 0.81%
EQ/Alliance International 0.73% 0.25% 0.12% -- 1.10% 0.00% 1.10%
EQ/Alliance Large Cap Growth* 0.90% 0.25% 0.05% -- 1.20% (0.10)% 1.10%
EQ/Alliance Quality Bond 0.50% 0.25% 0.06% -- 0.81% -- 0.81%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.06% -- 1.06% -- 1.06%
EQ/Bear Stearns Small Company Growth* 1.00% 0.25% 0.18% -- 1.43% (0.13)% 1.30%
EQ/Bernstein Diversified Value 0.63% 0.25% 0.07% -- 0.95% 0.00% 0.95%
EQ/Boston Advisors Equity Income* 0.75% 0.25% 0.21% -- 1.21% (0.16)% 1.05%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.29% -- 1.19% (0.14)% 1.05%
EQ/Capital Guardian Growth 0.65% 0.25% 0.09% -- 0.99% (0.04)% 0.95%
EQ/Capital Guardian International 0.85% 0.25% 0.17% -- 1.27% (0.07)% 1.20%
EQ/Capital Guardian Research 0.65% 0.25% 0.05% -- 0.95% 0.00% 0.95%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.05% -- 0.95% 0.00% 0.95%
EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.12% -- 0.97% (0.12)% 0.85%
EQ/Equity 500 Index 0.25% 0.25% 0.05% -- 0.55% -- 0.55%
EQ/Evergreen Omega 0.65% 0.25% 0.11% -- 1.01% (0.06)% 0.95%
EQ/FI Mid Cap 0.70% 0.25% 0.06% -- 1.01% (0.01)% 1.00%
EQ/FI Small/Mid Cap Value 0.74% 0.25% 0.08% -- 1.07% 0.00% 1.07%
EQ/International Growth 0.85% 0.25% 0.22% -- 1.32% 0.00% 1.32%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.06% -- 0.75% 0.00% 0.75%
EQ/JP Morgan Value Opportunities 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.08% -- 1.23% (0.08)% 1.15%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.05% -- 1.05% 0.00% 1.05%
EQ/Long Term Bond 0.50% 0.25% 0.25% -- 1.00% 0.00% 1.00%
EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.19% -- 1.14% (0.09)% 1.05%
EQ/Marsico Focus 0.88% 0.25% 0.06% -- 1.19% (0.04)% 1.15%
EQ/Mercury Basic Value Equity 0.58% 0.25% 0.05% -- 0.88% 0.00% 0.88%
EQ/Mercury International Value 0.85% 0.25% 0.15% -- 1.25% 0.00% 1.25%
- ------------------------------------------------------------------------------------------------------------------------------------
Fee table 11
- ------------------------------------------------------------------------------------------------------------------------------------
Fee Net Total
Under- Total Annual Waivers Annual
lying Expenses and/or Expenses
Manage- Portfolio (Before Expense After
ment 12b-1 Other Fees and Expense Reim- Expense
Portfolio Name Fees(3) Fees(4) Expenses(5) Expenses(6) Limitation) bursements(7) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mergers and Acquisitions 0.90% 0.25% 1.21% -- 2.36% (0.91)% 1.45%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.06% -- 0.96% -- 0.96%
EQ/MFS Investors Trust 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Money Market 0.34% 0.25% 0.05% -- 0.64% -- 0.64%
EQ/Montag & Caldwell Growth* 0.75% 0.25% 0.12% -- 1.12% 0.00% 1.12%
EQ/PIMCO Real Return 0.55% 0.25% 0.20% -- 1.00% (0.35)% 0.65%
EQ/Short Duration Bond 0.45% 0.25% 0.52% -- 1.22% (0.57)% 0.65%
EQ/Small Company Index 0.25% 0.25% 0.13% -- 0.63% 0.00% 0.63%
EQ/Small Company Value* 0.80% 0.25% 0.12% -- 1.17% 0.00% 1.17%
EQ/TCW Equity* 0.80% 0.25% 0.12% -- 1.17% (0.02)% 1.15%
EQ/UBS Growth and Income* 0.75% 0.25% 0.16% -- 1.16% (0.11)% 1.05%
EQ/Van Kampen Comstock 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Van Kampen Emerging Markets Equity* 1.15% 0.25% 0.40% -- 1.80% 0.00% 1.80%
EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.19% -- 1.14% (0.09)% 1.05%
EQ/Wells Fargo Montgomery Small Cap 0.85% 0.25% 6.51% -- 7.61% (6.33)% 1.28%
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity 1.50% 0.25% 2.35% -- 4.10% (0.96)% 3.14%
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II** 0.76% 0.35% 0.26% -- 1.37% (0.10)% 1.27%
- ------------------------------------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject
to regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former
name.
** Expense information has been restored to reflect current fees in effect as
of November 1, 2004.
Notes:
(1) During the first two contract years this charge, if it applies, is equal to
the lesser of $30 or 2% of your account value. Thereafter, the charge is
$30 for each contract year.
(2) "Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2004 and for the
underlying portfolios.
(3) The management fees for each Portfolio cannot be increased without a vote
of that Portfolio's Shareholders. See footnote (7) for any expense
limitation agreement information.
(4) Portfolio shares are all subject to fees imposed under the distribution
plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1
under the Investment Company Act of 1940. The 12b-1 fee will not be
increased for the life of the contracts.
(5) Other expenses shown are those incurred in 2004. The amounts shown as
"Other Expenses" will fluctuate from year to year depending on actual
expenses. See footnote (7) for any expense limitation agreement
information.
(6) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and AXA
Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolio's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocations
as of 12/31/04. A "-" indicates that the listed portfolio does not invest
in underlying portfolios, i.e., it is not an allocation portfolio.
(7) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A "-" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver or reimbursement. AXA Equitable,
the investment manager of the AXA Premier VIP Trust and the EQ Advisors
Trust, has entered into Expense Limitation Agreements with respect to
certain Portfolios, which are effective through April 30, 2006. Under these
Agreements, AXA Equitable has agreed to waive or limit its fees and assume
other expenses of certain Portfolios, if necessary, in an amount that
limits such Portfolio's Total Annual Expenses (exclusive of interest,
taxes, brokerage commissions, capitalized expenditures and extraordinary
expenses) to not more than specified amounts. Each Portfolio may at a later
date make a reimbursement to AXA Equitable for any of the management fees
waived or limited and other expenses assumed and paid by AXA Equitable
pursuant to the expense limitation agreement provided that the Portfolio's
current annual operating expenses do not exceed the operating expense limit
determined for such Portfolio. Morgan Stanley Investment Management Inc.,
which does business in certain instances as "Van Kampen," is the manager of
the The Universal Institutional Funds, Inc.--U.S. Real Estate
Portfolio--Class II, and has voluntarily agreed to reduce its management
fee and/or reimburse the Portfolio so that total annual operating expenses
of the Portfolio (exclusive of investment related expenses, such as foreign
country tax expense and interest expense on amounts borrowed) are not more
than specified amounts. Additionally, the distributor of The Universal
Institutional Funds, Inc. has agreed to waive a portion of the 12b-1 fee
for Class II shares. Van Kampen and/or the fund's distributor reserves the
right to terminate any waiver and/or reimbursement at any time without
notice. Charles Schwab Investment Management, Inc., the manager of the
Laudus Variable Insurance Trust -- Laudus Rosenberg VIT Value Long/Short
Equity Portfolio, has voluntarily agreed to reimburse expenses in excess of
specified amounts . See the prospectuses for each applicable underlying
Trust for more information about the arrangements. In addition, a portion
of the brokerage commissions of certain Portfolios of EQ Advisors Trust and
AXA Premier VIP Trust is used to reduce the applicable Portfolio's
expenses. If the above table reflected both the expense limitation
arrangements plus the portion of the brokerage commissions used to reduce
portfolio expenses, the net expenses would be as shown in the table below:
---------------------------------------------------------------------------
Portfolio Name
---------------------------------------------------------------------------
AXA Moderate Allocation 1.17%
AXA Premier VIP Aggressive Equity 0.93%
AXA Premier VIP Health Care 1.81%
AXA Premier VIP International Equity 1.75%
AXA Premier VIP Large Cap Core Equity 1.32%
AXA Premier VIP Large Cap Growth 1.30%
---------------------------------------------------------------------------
12 Fee table
---------------------------------------------------------------------------
Portfolio Name
---------------------------------------------------------------------------
AXA Premier VIP Large Cap Value 1.21%
---------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value 1.54%
---------------------------------------------------------------------------
AXA Premier VIP Technology 1.75%
---------------------------------------------------------------------------
EQ/Alliance Common Stock 0.68%
---------------------------------------------------------------------------
EQ/Alliance Growth and Income 0.80%
---------------------------------------------------------------------------
EQ/Alliance International 1.08%
---------------------------------------------------------------------------
EQ/Alliance Large Cap Growth 1.04%
---------------------------------------------------------------------------
EQ/Alliance Small Cap Growth 0.98%
---------------------------------------------------------------------------
EQ/Calvert Socially Responsible 1.00%
---------------------------------------------------------------------------
EQ/Capital Guardian Growth 0.67%
---------------------------------------------------------------------------
EQ/Capital Guardian International 1.17%
---------------------------------------------------------------------------
EQ/Capital Guardian Research 0.90%
---------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity 0.93%
---------------------------------------------------------------------------
EQ/Evergreen Omega 0.57%
---------------------------------------------------------------------------
EQ/FI Mid Cap 0.96%
---------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value 1.05%
---------------------------------------------------------------------------
EQ/JP Morgan Value Opportunities 0.76%
---------------------------------------------------------------------------
EQ/Lazard Small Cap Value 0.86%
---------------------------------------------------------------------------
EQ/Marsico Focus 1.12%
---------------------------------------------------------------------------
EQ/Mercury Basic Value Equity 0.86%
---------------------------------------------------------------------------
EQ/Mercury International Value 1.18%
---------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies 0.91%
---------------------------------------------------------------------------
EQ/MFS Investors Trust 0.91%
---------------------------------------------------------------------------
EQ/Small Company Value 1.16%
---------------------------------------------------------------------------
EQ/TCW Equity 1.14%
---------------------------------------------------------------------------
EQ/Van Kampen Emerging Markets Equity 1.75%
---------------------------------------------------------------------------
EQ/Wells Fargo Montgomery Small Cap 1.26%
---------------------------------------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses).
The example below shows the expenses that a hypothetical contract owner (who
has elected the Living Benefit with the enhanced death benefit that provides
for the greater of the 6% Roll-up or the Annual Ratchet to age 85 and
Protection Plus(SM)) would pay in the situations illustrated. The annual
administrative charge is based on the charges that apply to a mix of estimated
contract sizes, resulting in an estimated administrative charge for the purpose
of these examples of $0.70 per $10,000.
The fixed maturity options, guaranteed interest option and the 12 month dollar
cost averaging program are not covered by the examples. However, the annual
administrative charge, the charge for any optional benefits and the charge if
you elect a Variable Immediate Annuity payout option do apply to the fixed
maturity options, guaranteed interest option and the 12 month dollar cost
averaging program. A market value adjustment (up or down) may apply as a result
of a withdrawal, transfer, or surrender of amounts from a fixed maturity
option.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes that your investment has a 5%
return each year. This example should not be considered a representation of
past or future expenses for each option. Actual expenses may be greater or less
than those shown. Similarly, the annual rate of return assumed in the example
is not an estimate or guarantee of future investment performance. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
Fee table 13
- ------------------------------------------------------------------------------------------------------------
If you surrender your contract at the end of the
applicable time period
- ------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 514.31 $ 1,564.31 $ 2,643.92 $ 5,481.77
AXA Conservative Allocation $ 501.71 $ 1,528.00 $ 2,585.97 $ 5,379.71
AXA Conservative-Plus Allocation $ 495.41 $ 1,509.81 $ 2,556.88 $ 5,328.19
AXA Moderate Allocation $ 483.65 $ 1,475.79 $ 2,502.38 $ 5,231.12
AXA Moderate-Plus Allocation $ 508.01 $ 1,546.17 $ 2,614.98 $ 5,430.90
AXA Premier VIP Aggressive Equity $ 453.41 $ 1,387.93 $ 2,360.98 $ 4,976.13
AXA Premier VIP Core Bond $ 453.41 $ 1,387.93 $ 2,360.98 $ 4,976.13
AXA Premier VIP Health Care $ 537.41 $ 1,630.64 $ 2,749.35 $ 5,665.48
AXA Premier VIP High Yield $ 449.21 $ 1,375.68 $ 2,341.19 $ 4,940.09
AXA Premier VIP International Equity $ 532.16 $ 1,615.60 $ 2,725.48 $ 5,624.11
AXA Premier VIP Large Cap Core Equity $ 497.51 $ 1,515.88 $ 2,566.59 $ 5,345.40
AXA Premier VIP Large Cap Growth $ 491.21 $ 1,497.67 $ 2,537.45 $ 5,293.66
AXA Premier VIP Large Cap Value $ 490.16 $ 1,494.63 $ 2,532.58 $ 5,285.00
AXA Premier VIP Small/Mid Cap Growth $ 511.16 $ 1,555.25 $ 2,629.46 $ 5,456.38
AXA Premier VIP Small/Mid Cap Value $ 511.16 $ 1,555.25 $ 2,629.46 $ 5,456.38
AXA Premier VIP Technology $ 537.41 $ 1,630.64 $ 2,749.35 $ 5,665.48
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 424.01 $ 1,301.98 $ 2,221.77 $ 4,720.61
EQ/Alliance Growth and Income $ 433.46 $ 1,329.66 $ 2,266.70 $ 4,803.57
EQ/Alliance Intermediate Government Securities $ 428.21 $ 1,314.29 $ 2,241.76 $ 4,757.58
EQ/Alliance International $ 458.66 $ 1,403.22 $ 2,385.65 $ 5,020.96
EQ/Alliance Large Cap Growth* $ 469.16 $ 1,433.76 $ 2,434.85 $ 5,109.92
EQ/Alliance Quality Bond $ 428.21 $ 1,314.29 $ 2,241.76 $ 4,757.58
EQ/Alliance Small Cap Growth $ 454.46 $ 1,390.99 $ 2,365.92 $ 4,985.11
EQ/Bear Stearns Small Company Growth* $ 493.31 $ 1,503.74 $ 2,547.17 $ 5,310.94
EQ/Bernstein Diversified Value $ 442.91 $ 1,357.29 $ 2,311.46 $ 4,885.74
EQ/Boston Advisors Equity Income* $ 470.21 $ 1,436.81 $ 2,439.75 $ 5,118.76
EQ/Calvert Socially Responsible $ 468.11 $ 1,430.71 $ 2,429.94 $ 5,101.06
EQ/Capital Guardian Growth $ 447.11 $ 1,369.55 $ 2,331.29 $ 4,922.01
EQ/Capital Guardian International $ 476.51 $ 1,455.09 $ 2,469.15 $ 5,171.62
EQ/Capital Guardian Research $ 442.91 $ 1,357.29 $ 2,311.46 $ 4,885.74
EQ/Capital Guardian U.S. Equity $ 442.91 $ 1,357.29 $ 2,311.46 $ 4,885.74
EQ/Caywood-Scholl High Yield Bond $ 445.01 $ 1,363.42 $ 2,321.38 $ 4,903.90
EQ/Equity 500 Index $ 400.92 $ 1,234.09 $ 2,111.18 $ 4,514.47
EQ/Evergreen Omega $ 449.21 $ 1,375.68 $ 2,341.19 $ 4,940.09
EQ/FI Mid Cap $ 449.21 $ 1,375.68 $ 2,341.19 $ 4,940.09
EQ/FI Small/Mid Cap Value $ 455.51 $ 1,394.05 $ 2,370.85 $ 4,994.09
EQ/International Growth $ 481.76 $ 1,470.31 $ 2,493.59 $ 5,215.42
EQ/J.P. Morgan Core Bond $ 421.91 $ 1,295.82 $ 2,211.76 $ 4,702.07
EQ/JP Morgan Value Opportunities $ 442.91 $ 1,357.29 $ 2,311.46 $ 4,885.74
EQ/Janus Large Cap Growth $ 472.31 $ 1,442.90 $ 2,449.56 $ 5,136.42
EQ/Lazard Small Cap Value $ 453.41 $ 1,387.93 $ 2,360.98 $ 4,976.13
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
If you annuitize at the end of the applicable time period
- ------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 864.31 $ 1,914.31 $ 2,993.92 $ 5,831.77
AXA Conservative Allocation $ 851.71 $ 1,878.00 $ 2,935.97 $ 5,729.71
AXA Conservative-Plus Allocation $ 845.41 $ 1,859.81 $ 2,906.88 $ 5,678.19
AXA Moderate Allocation $ 833.65 $ 1,825.79 $ 2,852.38 $ 5,581.12
AXA Moderate-Plus Allocation $ 858.01 $ 1,896.17 $ 2,964.98 $ 5,780.90
AXA Premier VIP Aggressive Equity $ 803.41 $ 1,737.93 $ 2,710.98 $ 5,326.13
AXA Premier VIP Core Bond $ 803.41 $ 1,737.93 $ 2,710.98 $ 5,326.13
AXA Premier VIP Health Care $ 887.41 $ 1,980.64 $ 3,099.35 $ 6,015.48
AXA Premier VIP High Yield $ 799.21 $ 1,725.68 $ 2,691.19 $ 5,290.09
AXA Premier VIP International Equity $ 882.16 $ 1,965.60 $ 3,075.48 $ 5,974.11
AXA Premier VIP Large Cap Core Equity $ 847.51 $ 1,865.88 $ 2,916.59 $ 5,695.40
AXA Premier VIP Large Cap Growth $ 841.21 $ 1,847.67 $ 2,887.45 $ 5,643.66
AXA Premier VIP Large Cap Value $ 840.16 $ 1,844.63 $ 2,882.58 $ 5,635.00
AXA Premier VIP Small/Mid Cap Growth $ 861.16 $ 1,905.25 $ 2,979.46 $ 5,806.38
AXA Premier VIP Small/Mid Cap Value $ 861.16 $ 1,905.25 $ 2,979.46 $ 5,806.38
AXA Premier VIP Technology $ 887.41 $ 1,980.64 $ 3,099.35 $ 6,015.48
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 774.01 $ 1,651.98 $ 2,571.77 $ 5,070.61
EQ/Alliance Growth and Income $ 783.46 $ 1,679.66 $ 2,616.70 $ 5,153.57
EQ/Alliance Intermediate Government Securities $ 778.21 $ 1,664.29 $ 2,591.76 $ 5,107.58
EQ/Alliance International $ 808.66 $ 1,753.22 $ 2,735.65 $ 5,370.96
EQ/Alliance Large Cap Growth* $ 819.16 $ 1,783.76 $ 2,784.85 $ 5,459.92
EQ/Alliance Quality Bond $ 778.21 $ 1,664.29 $ 2,591.76 $ 5,107.58
EQ/Alliance Small Cap Growth $ 804.46 $ 1,740.99 $ 2,715.92 $ 5,335.11
EQ/Bear Stearns Small Company Growth* $ 843.31 $ 1,853.74 $ 2,897.17 $ 5,660.94
EQ/Bernstein Diversified Value $ 792.91 $ 1,707.29 $ 2,661.46 $ 5,235.74
EQ/Boston Advisors Equity Income* $ 820.21 $ 1,786.81 $ 2,789.75 $ 5,468.76
EQ/Calvert Socially Responsible $ 818.11 $ 1,780.71 $ 2,779.94 $ 5,451.06
EQ/Capital Guardian Growth $ 797.11 $ 1,719.55 $ 2,681.29 $ 5,272.01
EQ/Capital Guardian International $ 826.51 $ 1,805.09 $ 2,819.15 $ 5,521.62
EQ/Capital Guardian Research $ 792.91 $ 1,707.29 $ 2,661.46 $ 5,235.74
EQ/Capital Guardian U.S. Equity $ 792.91 $ 1,707.29 $ 2,661.46 $ 5,235.74
EQ/Caywood-Scholl High Yield Bond $ 795.01 $ 1,713.42 $ 2,671.38 $ 5,253.90
EQ/Equity 500 Index $ 750.92 $ 1,584.09 $ 2,461.18 $ 4,864.47
EQ/Evergreen Omega $ 799.21 $ 1,725.68 $ 2,691.19 $ 5,290.09
EQ/FI Mid Cap $ 799.21 $ 1,725.68 $ 2,691.19 $ 5,290.09
EQ/FI Small/Mid Cap Value $ 805.51 $ 1,744.05 $ 2,720.85 $ 5,344.09
EQ/International Growth $ 831.76 $ 1,820.31 $ 2,843.59 $ 5,565.42
EQ/J.P. Morgan Core Bond $ 771.91 $ 1,645.82 $ 2,561.76 $ 5,052.07
EQ/JP Morgan Value Opportunities $ 792.91 $ 1,707.29 $ 2,661.46 $ 5,235.74
EQ/Janus Large Cap Growth $ 822.31 $ 1,792.90 $ 2,799.56 $ 5,486.42
EQ/Lazard Small Cap Value $ 803.41 $ 1,737.93 $ 2,710.98 $ 5,326.13
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end of the
applicable time period
- ------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 514.31 $ 1,564.31 $ 2,643.92 $ 5,481.77
AXA Conservative Allocation $ 501.71 $ 1,528.00 $ 2,585.97 $ 5,379.71
AXA Conservative-Plus Allocation $ 495.41 $ 1,509.81 $ 2,556.88 $ 5,328.19
AXA Moderate Allocation $ 483.65 $ 1,475.79 $ 2,502.38 $ 5,231.12
AXA Moderate-Plus Allocation $ 508.01 $ 1,546.17 $ 2,614.98 $ 5,430.90
AXA Premier VIP Aggressive Equity $ 453.41 $ 1,387.93 $ 2,360.98 $ 4,976.13
AXA Premier VIP Core Bond $ 453.41 $ 1,387.93 $ 2,360.98 $ 4,976.13
AXA Premier VIP Health Care $ 537.41 $ 1,630.64 $ 2,749.35 $ 5,665.48
AXA Premier VIP High Yield $ 449.21 $ 1,375.68 $ 2,341.19 $ 4,940.09
AXA Premier VIP International Equity $ 532.16 $ 1,615.60 $ 2,725.48 $ 5,624.11
AXA Premier VIP Large Cap Core Equity $ 497.51 $ 1,515.88 $ 2,566.59 $ 5,345.40
AXA Premier VIP Large Cap Growth $ 491.21 $ 1,497.67 $ 2,537.45 $ 5,293.66
AXA Premier VIP Large Cap Value $ 490.16 $ 1,494.63 $ 2,532.58 $ 5,285.00
AXA Premier VIP Small/Mid Cap Growth $ 511.16 $ 1,555.25 $ 2,629.46 $ 5,456.38
AXA Premier VIP Small/Mid Cap Value $ 511.16 $ 1,555.25 $ 2,629.46 $ 5,456.38
AXA Premier VIP Technology $ 537.41 $ 1,630.64 $ 2,749.35 $ 5,665.48
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 424.01 $ 1,301.98 $ 2,221.77 $ 4,720.61
EQ/Alliance Growth and Income $ 433.46 $ 1,329.66 $ 2,266.70 $ 4,803.57
EQ/Alliance Intermediate Government Securities $ 428.21 $ 1,314.29 $ 2,241.76 $ 4,757.58
EQ/Alliance International $ 458.66 $ 1,403.22 $ 2,385.65 $ 5,020.96
EQ/Alliance Large Cap Growth* $ 469.16 $ 1,433.76 $ 2,434.85 $ 5,109.92
EQ/Alliance Quality Bond $ 428.21 $ 1,314.29 $ 2,241.76 $ 4,757.58
EQ/Alliance Small Cap Growth $ 454.46 $ 1,390.99 $ 2,365.92 $ 4,985.11
EQ/Bear Stearns Small Company Growth* $ 493.31 $ 1,503.74 $ 2,547.17 $ 5,310.94
EQ/Bernstein Diversified Value $ 442.91 $ 1,357.29 $ 2,311.46 $ 4,885.74
EQ/Boston Advisors Equity Income* $ 470.21 $ 1,436.81 $ 2,439.75 $ 5,118.76
EQ/Calvert Socially Responsible $ 468.11 $ 1,430.71 $ 2,429.94 $ 5,101.06
EQ/Capital Guardian Growth $ 447.11 $ 1,369.55 $ 2,331.29 $ 4,922.01
EQ/Capital Guardian International $ 476.51 $ 1,455.09 $ 2,469.15 $ 5,171.62
EQ/Capital Guardian Research $ 442.91 $ 1,357.29 $ 2,311.46 $ 4,885.74
EQ/Capital Guardian U.S. Equity $ 442.91 $ 1,357.29 $ 2,311.46 $ 4,885.74
EQ/Caywood-Scholl High Yield Bond $ 445.01 $ 1,363.42 $ 2,321.38 $ 4,903.90
EQ/Equity 500 Index $ 400.92 $ 1,234.09 $ 2,111.18 $ 4,514.47
EQ/Evergreen Omega $ 449.21 $ 1,375.68 $ 2,341.19 $ 4,940.09
EQ/FI Mid Cap $ 449.21 $ 1,375.68 $ 2,341.19 $ 4,940.09
EQ/FI Small/Mid Cap Value $ 455.51 $ 1,394.05 $ 2,370.85 $ 4,994.09
EQ/International Growth $ 481.76 $ 1,470.31 $ 2,493.59 $ 5,215.42
EQ/J.P. Morgan Core Bond $ 421.91 $ 1,295.82 $ 2,211.76 $ 4,702.07
EQ/JP Morgan Value Opportunities $ 442.91 $ 1,357.29 $ 2,311.46 $ 4,885.74
EQ/Janus Large Cap Growth $ 472.31 $ 1,442.90 $ 2,449.56 $ 5,136.42
EQ/Lazard Small Cap Value $ 453.41 $ 1,387.93 $ 2,360.98 $ 4,976.13
- ------------------------------------------------------------------------------------------------------------
14 Fee table
- ------------------------------------------------------------------------------------------------------------
If you surrender your contract at the end of the
applicable time period
- ------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 448.16 $ 1,372.62 $ 2,336.24 $ 4,931.06
EQ/Lord Abbett Growth and Income $ 457.61 $ 1,400.16 $ 2,380.72 $ 5,012.01
EQ/Lord Abbett Large Cap Core $ 457.61 $ 1,400.16 $ 2,380.72 $ 5,012.01
EQ/Lord Abbett Mid Cap Value $ 462.86 $ 1,415.44 $ 2,405.36 $ 5,056.66
EQ/Marsico Focus $ 468.11 $ 1,430.71 $ 2,429.94 $ 5,101.06
EQ/Mercury Basic Value Equity $ 435.56 $ 1,335.81 $ 2,276.66 $ 4,821.90
EQ/Mercury International Value $ 474.41 $ 1,449.00 $ 2,459.36 $ 5,154.04
EQ/Mergers and Acquisitions $ 590.95 $ 1,783.19 $ 2,989.82 $ 6,074.91
EQ/MFS Emerging Growth Companies $ 443.96 $ 1,360.36 $ 2,316.42 $ 4,894.82
EQ/MFS Investors Trust $ 442.91 $ 1,357.29 $ 2,311.46 $ 4,885.74
EQ/Money Market $ 410.37 $ 1,261.90 $ 2,156.55 $ 4,599.38
EQ/Montag & Caldwell Growth* $ 460.76 $ 1,409.33 $ 2,395.51 $ 5,038.83
EQ/PIMCO Real Return $ 448.16 $ 1,372.62 $ 2,336.24 $ 4,931.06
EQ/Short Duration Bond $ 471.26 $ 1,439.86 $ 2,444.66 $ 5,127.59
EQ/Small Company Index $ 409.32 $ 1,258.82 $ 2,151.52 $ 4,589.98
EQ/Small Company Value* $ 466.01 $ 1,424.60 $ 2,420.11 $ 5,083.33
EQ/TCW Equity* $ 466.01 $ 1,424.60 $ 2,420.11 $ 5,083.33
EQ/UBS Growth and Income* $ 464.96 $ 1,421.55 $ 2,415.20 $ 5,074.45
EQ/Van Kampen Comstock $ 457.61 $ 1,400.16 $ 2,380.72 $ 5,012.01
EQ/Van Kampen Emerging Markets Equity* $ 532.16 $ 1,615.60 $ 2,725.48 $ 5,624.11
EQ/Van Kampen Mid Cap Growth $ 462.86 $ 1,415.44 $ 2,405.36 $ 5,056.66
EQ/Wells Fargo Montgomery Small Cap $ 1,142.16 $ 3,256.90 $ 5,165.01 $ 9,166.91
- ------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 773.64 $ 2,290.97 $ 3,769.87 $ 7,311.00
- ------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II $ 487.01 $ 1,485.52 $ 2,517.98 $ 5,258.98
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
If you annuitize at the end of the applicable time period
- ------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 798.16 $ 1,722.62 $ 2,686.24 $ 5,281.06
EQ/Lord Abbett Growth and Income $ 807.61 $ 1,750.16 $ 2,730.72 $ 5,362.01
EQ/Lord Abbett Large Cap Core $ 807.61 $ 1,750.16 $ 2,730.72 $ 5,362.01
EQ/Lord Abbett Mid Cap Value $ 812.86 $ 1,765.44 $ 2,755.36 $ 5,406.66
EQ/Marsico Focus $ 818.11 $ 1,780.71 $ 2,779.94 $ 5,451.06
EQ/Mercury Basic Value Equity $ 785.56 $ 1,685.81 $ 2,626.66 $ 5,171.90
EQ/Mercury International Value $ 824.41 $ 1,799.00 $ 2,809.36 $ 5,504.04
EQ/Mergers and Acquisitions $ 940.95 $ 2,133.19 $ 3,339.82 $ 6,424.91
EQ/MFS Emerging Growth Companies $ 793.96 $ 1,710.36 $ 2,666.42 $ 5,244.82
EQ/MFS Investors Trust $ 792.91 $ 1,707.29 $ 2,661.46 $ 5,235.74
EQ/Money Market $ 760.37 $ 1,611.90 $ 2,506.55 $ 4,949.38
EQ/Montag & Caldwell Growth* $ 810.76 $ 1,759.33 $ 2,745.51 $ 5,388.83
EQ/PIMCO Real Return $ 798.16 $ 1,722.62 $ 2,686.24 $ 5,281.06
EQ/Short Duration Bond $ 821.26 $ 1,789.86 $ 2,794.66 $ 5,477.59
EQ/Small Company Index $ 759.32 $ 1,608.82 $ 2,501.52 $ 4,939.98
EQ/Small Company Value* $ 816.01 $ 1,774.60 $ 2,770.11 $ 5,433.33
EQ/TCW Equity* $ 816.01 $ 1,774.60 $ 2,770.11 $ 5,433.33
EQ/UBS Growth and Income* $ 814.96 $ 1,771.55 $ 2,765.20 $ 5,424.45
EQ/Van Kampen Comstock $ 807.61 $ 1,750.16 $ 2,730.72 $ 5,362.01
EQ/Van Kampen Emerging Markets Equity* $ 882.16 $ 1,965.60 $ 3,075.48 $ 5,974.11
EQ/Van Kampen Mid Cap Growth $ 812.86 $ 1,765.44 $ 2,755.36 $ 5,406.66
EQ/Wells Fargo Montgomery Small Cap $ 1,492.16 $ 3,606.90 $ 5,515.01 $ 9,516.91
- ------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,123.64 $ 2,640.97 $ 4,119.87 $ 7,661.00
- ------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II $ 837.01 $ 1,835.52 $ 2,867.98 $ 5,608.98
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end of the
applicable time period
- ------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 448.16 $ 1,372.62 $ 2,336.24 $ 4,931.06
EQ/Lord Abbett Growth and Income $ 457.61 $ 1,400.16 $ 2,380.72 $ 5,012.01
EQ/Lord Abbett Large Cap Core $ 457.61 $ 1,400.16 $ 2,380.72 $ 5,012.01
EQ/Lord Abbett Mid Cap Value $ 462.86 $ 1,415.44 $ 2,405.36 $ 5,056.66
EQ/Marsico Focus $ 468.11 $ 1,430.71 $ 2,429.94 $ 5,101.06
EQ/Mercury Basic Value Equity $ 435.56 $ 1,335.81 $ 2,276.66 $ 4,821.90
EQ/Mercury International Value $ 474.41 $ 1,449.00 $ 2,459.36 $ 5,154.04
EQ/Mergers and Acquisitions $ 590.95 $ 1,783.19 $ 2,989.82 $ 6,074.91
EQ/MFS Emerging Growth Companies $ 443.96 $ 1,360.36 $ 2,316.42 $ 4,894.82
EQ/MFS Investors Trust $ 442.91 $ 1,357.29 $ 2,311.46 $ 4,885.74
EQ/Money Market $ 410.37 $ 1,261.90 $ 2,156.55 $ 4,599.38
EQ/Montag & Caldwell Growth* $ 460.76 $ 1,409.33 $ 2,395.51 $ 5,038.83
EQ/PIMCO Real Return $ 448.16 $ 1,372.62 $ 2,336.24 $ 4,931.06
EQ/Short Duration Bond $ 471.26 $ 1,439.86 $ 2,444.66 $ 5,127.59
EQ/Small Company Index $ 409.32 $ 1,258.82 $ 2,151.52 $ 4,589.98
EQ/Small Company Value* $ 466.01 $ 1,424.60 $ 2,420.11 $ 5,083.33
EQ/TCW Equity* $ 466.01 $ 1,424.60 $ 2,420.11 $ 5,083.33
EQ/UBS Growth and Income* $ 464.96 $ 1,421.55 $ 2,415.20 $ 5,074.45
EQ/Van Kampen Comstock $ 457.61 $ 1,400.16 $ 2,380.72 $ 5,012.01
EQ/Van Kampen Emerging Markets Equity* $ 532.16 $ 1,615.60 $ 2,725.48 $ 5,624.11
EQ/Van Kampen Mid Cap Growth $ 462.86 $ 1,415.44 $ 2,405.36 $ 5,056.66
EQ/Wells Fargo Montgomery Small Cap $ 1,142.16 $ 3,256.90 $ 5,165.01 $ 9,166.91
- ------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 773.64 $ 2,290.97 $ 3,769.87 $ 7,311.00
- ------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II $ 487.01 $ 1,485.52 $ 2,517.98 $ 5,258.98
- ------------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject
to regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former
name.
Fee table 15
CONDENSED FINANCIAL INFORMATION
Please see Appendix I at the end of this Prospectus for the unit values and the
number of units outstanding as of the end of the periods shown for each of the
variable investment options available as of December 31, 2004.
16 Fee table
1. Contract features and benefits
- --------------------------------------------------------------------------------
HOW YOU CAN CONTRIBUTE TO YOUR CONTRACT
You may make additional contributions of at least $500 each for NQ and Rollover
TSA contracts and $50 for Rollover IRA and Roth Conversion contracts and $1000
for Inherited IRA contracts, subject to limitations noted below. The following
table summarizes our rules regarding contributions to your contract. All ages
in the table refer to the age of the annuitant named in the contract. Initial
contribution amounts are provided for informational purposes only. This
contract is no longer available to new purchasers.
We may refuse to accept any contribution if the sum of all contributions under
all Accumulator(R) series contracts with the same annuitant would then total
more than $1,500,000. We reserve the right to limit aggregate contributions
made after the first contract year to 150% of first-year contributions. We may
also refuse to accept any contribution if the sum of all contributions under
all AXA Equitable annuity accumulation contracts that you own would then total
more than $2,500,000.
- --------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining
contract benefits. The annuitant is not necessarily the contract owner.
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Contract Annuitant Limitations on
type issue ages Source of contributions contributions
- ------------------------------------------------------------------------------------------------------------------------------------
NQ 0 through 85 o After-tax money. o No additional contributions after attainment
of age 86 or, if later, the first contract
o Paid to us by check or transfer of contract anniversary.
value in a tax-deferred exchange under
Section 1035 of the Internal Revenue Code.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover IRA 20 through 85 o Eligible rollover distributions from TSA con- o No rollover or direct transfer contributions
tracts or other 403(b) arrangements, after attainment of age 86 or, if later, the
qualified plans, and governmental employer first contract anniversary.
457(b) plans.
o Contributions after age 70-1/2 must be net of
o Rollovers from another traditional individual required minimum distributions.
retirement arrangement.
o Although we accept regular IRA
o Direct custodian-to-custodian transfers from contributions (limited to $4,000 for 2005;
another traditional individual retirement same for 2006) under the Rollover IRA con-
arrangement. tracts, we intend that this contract be used
primarily for rollover and direct transfer
o Regular IRA contributions. contributions.
o Additional "catch-up" contributions. o Additional catch-up contributions of up to
$500 can be made for the calendar year
2005 ($1,000 for 2006) where the owner is
at least age 50 but under age 70-1/2 at any
time during the calendar year for which the
contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 17
- ------------------------------------------------------------------------------------------------------------------------------------
Contract Annuitant Limitations on
type issue ages Source of contributions contributions
- ------------------------------------------------------------------------------------------------------------------------------------
Roth 20 through 85 o Rollovers from another Roth IRA. o No additional rollover or direct transfer con-
Conversion tributions after attainment of age 86 or, if
IRA o Conversion rollovers from a traditional IRA. later, the first contract anniversary.
o Direct transfers from another Roth IRA. o Conversion rollovers after age 70-1/2 must be
net of required minimum distributions for the
o Regular Roth IRA contributions. traditional IRA you are rolling over.
o Additional catch-up contributions. o You cannot roll over funds from a traditional
IRA if your adjusted gross income is
$100,000 or more.
o Although we accept regular Roth IRA contri-
butions (limited to $4,000 for 2005; same
for 2006) under the Roth IRA contracts, we
intend that this contract be used primarily for
rollover and direct transfer contributions.
o Additional catch-up contributions of up to
$500 can be made for the calendar year
2005 ($1,000 for 2006) where the owner is
at least age 50 at any time during the calen-
dar year for which the contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
Inherited IRA 0-70 o Direct custodian-to-custodian transfers of o Any additional contributions must be from
Beneficiary your interest as a death beneficiary of the same type of IRA of same deceased owner.
Continuation deceased owner's traditional individual
Contract retirement arrangement or Roth IRA to an
(traditional IRA of the same type.
IRA or Roth IRA)
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover TSA 20 through 85 o Direct transfers of pre-tax funds from o No additional rollover or direct transfer con-
another contract or arrangement under tributions after attainment of age 86 or, if
Section 403(b) of the Internal Revenue later, the first contract anniversary.
Code, complying with IRS Revenue Ruling
90-24. o Rollover or direct transfer contributions after
age 70-1/2 must be net of any required mini-
o Eligible rollover distributions of pre-tax mum distributions.
funds from other 403(b) plans. Subsequent
contributions may also be rollovers from o We do not accept employer-remitted
qualified plans, governmental employer contributions.
457(b) plans and traditional IRAs.
o We do not accept contributions from
defined benefit plans.
- ------------------------------------------------------------------------------------------------------------------------------------
See "Tax information" later in this Prospectus for a more detailed discussion
of sources of contributions and certain contribution limitations.
For information on when contributions are credited under your contract see
"Dates and prices at which contract events occur" in "More information" later
in this Prospectus.
18 Contract features and benefits
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from the owner. We do not
permit partnerships or limited liability corporations to be owners. We also
reserve the right to prohibit availability of this contract to other
non-natural owners. Only natural persons can be joint owners. In general, we
will not permit a contract to be owned by a minor unless it is pursuant to the
Uniform Gift to Minors Act or the Uniform Transfers to Minors Act in your
state.
Under all IRA and Rollover TSA contracts, the owner and annuitant must be the
same person. In some cases, an IRA contract may be held in a custodial
individual retirement account for the benefit of the individual annuitant. This
option may not be available under your contract. See Inherited IRA beneficiary
continuation contract later in this section for inherited IRA owner and
annuitant requirements.
- --------------------------------------------------------------------------------
A "participant" is an individual who is currently, or was formerly,
participating in an eligible employer's qualified plan or TSA plan.
- --------------------------------------------------------------------------------
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be by check drawn on a U.S. bank, in
U.S. dollars, and made payable to AXA Equitable. We may also apply
contributions made pursuant to a Section 1035 tax-free exchange or a direct
transfer. We do not accept third-party checks endorsed to us except for
rollover contributions, tax-free exchanges or trustee checks that involve no
refund. All checks are subject to our ability to collect the funds. We reserve
the right to reject a payment if it is received in an unacceptable form.
For your convenience, we will accept contributions by wire transmittal from
certain broker-dealers who have agreements with us for this purpose including
circumstances under which certain contributions are considered received by us
when your order is taken by such broker-dealers. Additional contributions may
also be made under our automatic investment program. These methods of payment
are discussed in detail in "More information" later in this Prospectus.
- --------------------------------------------------------------------------------
Our "business day" is generally any day the New York Stock Exchange is open for
trading and generally ends at 4:00 p.m. Eastern Time. A business day does not
include a day we choose not to open due to emergency conditions. We may also
close early due to emergency conditions.
- --------------------------------------------------------------------------------
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
Your investment options are the variable investment options, the guaranteed
interest option and the fixed maturity options.
VARIABLE INVESTMENT OPTIONS
Your investment results in any one of the variable investment options will
depend on the investment performance of the underlying portfolios. You can lose
your principal when investing in the variable investment options. In periods of
poor market performance, the net return, after charges and expenses, may result
in negative yields, including for the EQ/Money Market variable investment
option. Listed below are the currently available portfolios, their investment
objectives and their advisers.
- --------------------------------------------------------------------------------
You can choose from among the variable investment options, the guaranteed
interest option and the fixed maturity options.
- --------------------------------------------------------------------------------
Contract features and benefits 19
PORTFOLIOS OF THE TRUSTS
You should note that some portfolios have objectives and strategies that are
substantially similar to those of certain funds that are purchased directly
rather than under a variable insurance product such as the Accumulator(R)
Select(SM) contract. These portfolios may even have the same manager(s) and/or a
similar name. However, there are numerous factors that can contribute to
differences in performance between two investments, particularly over short
periods of time. Such factors include the timing of stock purchases and sales;
differences in fund cash flows; and specific strategies employed by the
portfolio manager.
AXA Equitable serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. As such, AXA Equitable oversees
the activities of the investment advisers with respect to the Trusts and is
responsible for retaining or discontinuing the services of those advisers. The
advisers for these Portfolios, listed in the chart below, are those who make the
investment decisions for each Portfolio. The chart also indicates the investment
manager for each of the other Portfolios.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o AXA Equitable
ALLOCATION greater emphasis on current income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o AXA Equitable
ALLOCATION with a greater emphasis on capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
EQUITY o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of risk.
o Pacific Investment Management
Company LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o AIM Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of current o Alliance Capital Management L.P.
income and capital appreciation.
o Pacific Investment Management
Company LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P.,
INTERNATIONAL EQUITY through its Bernstein Investment
Research and Management Unit
o J.P. Morgan Investment
Management Inc.
o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.,
CORE EQUITY through its Bernstein Investment
Research and Management Unit
o Janus Capital Management LLC
o Thornburg Investment Management,
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
20 Contract features and benefits
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH o RCM Capital Management LLC
o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE o Institutional Capital Corporation
o MFS Investment Management
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment
CAP VALUE Management LLC
o TCW Investment Management Company
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
GOVERNMENT SECURITIES relative stability of principal.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE LARGE CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH(1)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
moderate risk to capital.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BEAR STEARNS Seeks to achieve capital appreciation. o Bear Stearns Asset Management Inc.
SMALL COMPANY GROWTH(7)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment
Research and Management Unit
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BOSTON ADVISORS EQUITY Seeks a combination of growth and income to achieve an o Boston Advisors, Inc.
INCOME(4) above-average and consistent total return.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management
RESPONSIBLE Company, Inc. and Brown Capital
Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN GROWTH Seeks long-term growth of capital. o Capital Guardian Trust Company
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 21
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. o Caywood-Scholl Capital Management
YIELD BOND
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates o Alliance Capital Management L.P.
the total return performance of the S&P 500 Index,
including reinvestment of dividends, at a risk level consis-
tent with that of the S&P 500 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA Seeks long-term capital growth. o Evergreen Investment Management
Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research
Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research
Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o SSgA Funds Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent with mod- o J.P. Morgan Investment
erate risk to capital and maintenance of liquidity. Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JP MORGAN VALUE Long-term capital appreciation. o J.P. Morgan Investment
OPPORTUNITIES Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LONG TERM BOND Seeks to maximize income and capital appreciation o Boston Advisors, Inc.
through investment in long-maturity debt obligations.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT GROWTH AND Capital appreciation and growth of income without o Lord, Abbett & Co. LLC
INCOME excessive fluctuation in market value.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT LARGE CAP Capital appreciation and growth of income with reason- o Lord, Abbett & Co. LLC
CORE able risk.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT MID CAP VALUE Capital appreciation. o Lord, Abbett & Co, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers
VALUE International Limited
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERGERS AND ACQUISITIONS Seeks to achieve capital appreciation. o GAMCO Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary objec- o MFS Investment Management
tive to seek reasonable current income.
- ------------------------------------------------------------------------------------------------------------------------------------
22 Contract features and benefits
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve o Alliance Capital Management L.P.
its assets and maintain liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. o Montag & Caldwell, Inc.
GROWTH(5)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PIMCO REAL RETURN Seeks maximum real return consistent with preservation o Pacific Investment Management
of real capital and prudent investment management. Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SHORT DURATION BOND Seeks current income with reduced volatility of principal. o Boston Advisors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o Alliance Capital Management L.P.
deduction of portfolio expenses) the total return of the
Russell 2000 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY VALUE(8) Seeks to maximize capital appreciation. o GAMCO Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/TCW EQUITY(3) Seeks to achieve long-term capital appreciation. o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/UBS GROWTH AND INCOME(6) Seeks to achieve total return through capital appreciation o UBS Global Asset Management
with income as a secondary consideration. (Americas) Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN COMSTOCK Capital growth and income. o Morgan Stanley Investment
Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN EMERGING Seeks long-term capital appreciation. o Morgan Stanley Investment
MARKETS EQUITY(2) Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN MID CAP Capital growth. o Morgan Stanley Investment
GROWTH Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/WELLS FARGO MONTGOMERY Seeks long-term capital appreciation. o Wells Capital Management Inc.
SMALL CAP
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Variable
Insurance Trust
Portfolio Name Objective Investment Manager/Adviser
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Seeks to increase the value of your investment in bull o Charles Schwab Investment
Long/Short Equity markets and bear markets through strategies that are Management, Inc.
designed to have limited exposure to general equity
market risk. o AXA Rosenberg Investment
Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
The Universal Institutional
Funds, Inc.
Portfolio Name Objective Investment Manager
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II Seeks to provide above average current income and long- o Van Kampen (is the name under
term capital appreciation by investing primarily in equity which Morgan Stanley Investment
securities of companies in the U.S. real estate industry, Management Inc. does business in
including real estate investment trusts. certain situations)
- ------------------------------------------------------------------------------------------------------------------------------------
* This portfolio information reflects the portfolio's name change effective
on or about May 9, 2005, subject to regulatory approval. The table below
reflects the portfolio name in effect until on or about May 9, 2005. The
number in the "FN" column corresponds with the number contained in the
chart above.
- -----------------------------------------------------------
FN Portfolio Name until May 9, 2005
- -----------------------------------------------------------
(1) EQ/Alliance Premier Growth
- -----------------------------------------------------------
(2) EQ/Emerging Markets Equity
- -----------------------------------------------------------
(3) EQ/Enterprise Equity
- -----------------------------------------------------------
(4) EQ/Enterprise Equity Income
- -----------------------------------------------------------
(5) EQ/Enterprise Growth
- -----------------------------------------------------------
(6) EQ/Enterprise Growth and Income
- -----------------------------------------------------------
(7) EQ/Enterprise Small Company Growth
- -----------------------------------------------------------
(8) EQ/Enterprise Small Company Value
- -----------------------------------------------------------
Contract features and benefits 23
You should consider the investment objectives, risks and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may
call one of our customer service representatives at 1-800-789-7771.
24 Contract features and benefits
GUARANTEED INTEREST OPTION
The guaranteed interest option is part of our general account and pays interest
at guaranteed rates. We discuss our general account under "More information"
later in this Prospectus.
We assign an interest rate to each amount allocated to the guaranteed interest
option. This rate is guaranteed for a specified period. Therefore, different
interest rates may apply to different amounts in the guaranteed interest
option.
We credit interest daily to amounts in the guaranteed interest option. There
are three levels of interest in effect at the same time in the guaranteed
interest option:
(1) the minimum interest rate guaranteed over the life of the contract,
(2) the yearly guaranteed interest rate for the calendar year, and
(3) the current interest rate.
We set current interest rates periodically, according to our procedures that we
have in effect at the time. We reserve the right to change these procedures.
All interest rates are effective annual rates, but before deduction of annual
administrative charges (if permitted in your state) and any optional benefit
changes.
The minimum yearly guaranteed interest rate is 3% for 2005. The minimum yearly
rates we set will never be less than the minimum guaranteed interest rate of 3%
for the life of the contract. Current interest rates will never be less than
the yearly guaranteed interest rate.
Generally, contributions and transfers into the guaranteed interest option are
limited to 25% of the account value. See "Transferring your money among the
investment options" later in the prospectus for restrictions on transfers to
and from the Guaranteed Interest Option.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied the rate to maturity is 3%. This
means that at points in time there may be no fixed maturity options available.
You can allocate your contributions to one or more of these fixed maturity
options, however, you may not have more than 12 different maturities running
during any contract year. This limit includes maturities that have had any
allocation or transfers even if the entire amount is withdrawn or transferred
during the contract year. These amounts become part of a non-unitized separate
account. They will accumulate interest at the "rate to maturity" for each fixed
maturity option. The total amount you allocate to and accumulate in each fixed
maturity option is called the "fixed maturity amount." The fixed maturity
options are not available in all states. Check with your financial professional
to see if fixed maturity options are available in your state.
- --------------------------------------------------------------------------------
Fixed maturity options range from one to ten years to maturity.
- --------------------------------------------------------------------------------
The rate to maturity you will receive for each fixed maturity option is the
rate to maturity in effect for new contributions allocated to that fixed
maturity option on the date we apply your contribution.
On the maturity date of a fixed maturity option your fixed maturity amount,
assuming you have not made any withdrawals or transfers, will equal your
contribution to that fixed maturity option plus interest, at the rate to
maturity for that contribution, to the date of the calculation. This is the
fixed maturity option's "maturity value." Before maturity, the current value we
will report for your fixed maturity amounts will reflect a market value
adjustment. Your current value will reflect the market value adjustment that we
would make if you were to withdraw all of your fixed maturity amounts on the
date of the report. We call this your "market adjusted amount."
FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with
maturity dates ranging from one to ten years. Not all of these fixed maturity
options will be available for annuitant ages 76 and older. See "Allocating your
contributions" below.
Each new contribution is applied to a new fixed maturity option. When you
applied for an Accumulator(R) Select(SM) contract, a 60-day rate lock-in was
applied from the date the application was signed. Any contributions received
and designated for a fixed maturity option during that period received the then
current fixed maturity option rate or the rate that was in effect on the date
that the application was signed, whichever had been greater. There is no rate
lock available for subsequent contributions to the contract after 60 days,
transfers from the variable investment options or the guaranteed interest
option into a fixed maturity option, or transfers from one fixed maturity
option to another.
YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days
before each of your fixed maturity options is scheduled to mature. At that
time, you may choose to have one of the following take place on the maturity
date, as long as none of the restrictive conditions listed in "Allocating your
contributions," below would apply:
(a) transfer the maturity value into another available fixed maturity option,
any of the variable investment options or the guaranteed interest option;
or
(b) withdraw the maturity value.
If we do not receive your choice on or before the fixed maturity option's
maturity date, we will automatically transfer your maturity value into the
shortest available maturity option beginning on that date. As of February 15,
2005, the next available maturity date was February 15, 2013. If no fixed
maturity options are available we will transfer your maturity value to the
EQ/Money Market option.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender of your contract or when we make deductions for charges) from a fixed
maturity option before it matures, we will make a market value adjustment,
which will increase or decrease any fixed maturity amount you have in that
fixed maturity option. The amount of the adjustment will depend on two factors:
(a) the difference between the rate to maturity that applies to the amount
being withdrawn and the rate we have in effect at that time for new fixed
maturity options, (adjusted to reflect a similar maturity date) and
(b) the length of time remaining until the maturity date.
Contract features and benefits 25
In general, if interest rates rise from the time that you originally allocate
an amount to a fixed maturity option to the time that you take a withdrawal,
the market value adjustment will be negative. Likewise, if interest rates drop
at the end of that time, the market value adjustment will be positive. Also,
the amount of the market value adjustment, either up or down, will be greater
the longer the time remaining until the fixed maturity option's maturity date.
Therefore, it is possible that the market value adjustment could greatly reduce
your value in the fixed maturity options, particularly in the fixed maturity
options with later maturity dates.
We provide an illustration of the market adjusted amount of specified maturity
values, an explanation of how we calculate the market value adjustment, and
information concerning our general account and investments purchased with
amounts allocated to the fixed maturity options, in "More information" later in
this Prospectus. Appendix II at the end of this Prospectus provides an example
of how the market value adjustment is calculated.
ALLOCATING YOUR CONTRIBUTIONS
You may choose from among three ways to allocate your contributions under your
contract: self-directed, principal assurance (at contract issue only), or
dollar cost averaging. We allocate subsequent contributions according to
instructions on file unless you provide new instructions.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options, guaranteed interest option and fixed maturity options.
Allocations must be in whole percentages and you may change your allocations at
any time. No more than 25% of any contribution may be allocated to the
guaranteed interest option. The total of your allocations into all available
investment options must equal 100%. If the annuitant is age 76-80, you may
allocate contributions to fixed maturity options with maturities of seven years
or less. If the annuitant is age 81 or older, you may allocate contributions to
fixed maturity options with maturities of five years or less. Also, you may not
allocate amounts to fixed maturity options with maturity dates that are later
than the date annuity payments are to begin.
PRINCIPAL ASSURANCE ALLOCATION
Principal assurance allocation is only available at contract issue. If you
chose this allocation program, you selected a fixed maturity option. We
specified a portion of your initial contribution and allocated it to that fixed
maturity option in an amount that will cause the maturity value to equal the
amount of your entire initial contribution on the fixed maturity option's
maturity date. The maturity date you selected generally could not be later than
10 years, or earlier than 7 years from your contract date. If you were to make
any withdrawals or transfers from the fixed maturity option before the option's
maturity date, the amount in the fixed maturity option will be adjusted and may
no longer grow to equal your initial contribution under the principal assurance
allocation. Principal assurance was not available if none of those maturity
dates were available at the time your contract was issued. You allocated the
remainder of your initial contribution to the variable investment options and
guaranteed interest option. No more than 25% of the contribution could be
allocated to the Guaranteed Interest Option.
For example, if your initial contribution was $25,000, and on February 15, 2005
you chose the fixed maturity option with a maturity date of February 15, 2015
since the rate to maturity was 3.32% on February 15, 2005, we would have
allocated $18,031 to that fixed maturity option and the balance to your choice
of variable investment options. On the maturity date your value in the fixed
maturity option would be $25,000.
The principal assurance allocation was only available for annuitants ages 80 or
younger when the contract was issued. Had the annuitant been age 76-80, your
principal assurance allocation was limited to the seven year fixed maturity
option only. If you anticipated taking required minimum distributions, you
should have considered whether your values in the variable investment options
and guaranteed interest option would be sufficient to meet your required
minimum distributions. See "Tax information" later in this Prospectus.
The principal assurance allocation feature is not available in every state.
Also, you could not have elected principal assurance if you participated in the
12 month dollar cost averaging program at application.
DOLLAR COST AVERAGING
We offer a variety of dollar cost averaging programs. You may only participate
in one program at a time. Each program allows you to gradually allocate amounts
to the other variable investment options by periodically transferring
approximately the same dollar amount to the variable investment options you
select. This will cause you to purchase more units if the unit value is low and
fewer units if the unit value is high. Therefore, you may get a lower average
cost per unit over the long term. These plans of investing, however, do not
guarantee that you will earn a profit or be protected against losses. You may
not make transfers to the fixed maturity options or the guaranteed interest
option.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
12 MONTH DOLLAR COST AVERAGING PROGRAM. You may dollar cost average from the
EQ/Money Market option into any of the other variable investment options. You
may elect to participate in the 12 month dollar cost averaging program at any
time subject to the age limitation on contributions described earlier in this
Prospectus. Contributions into the account for 12 month dollar cost averaging
may not be transfers from other investment options. You must have allocated your
entire initial contribution into the EQ/Money Market option if you selected the
12 month dollar cost averaging program at application to purchase an
Accumulator(R) Select(SM) contract; thereafter, initial allocations to any new
12 month dollar cost averaging program time period must be at least $2,000 and
any subsequent contribution to that same time period must be at least $250. You
may only have one time period in effect at any time. We will transfer your value
in the EQ/Money Market option into the other variable investment options that
you select over the next 12 months or such other period we may offer. Once the
time period then in effect has run, you may then select to participate in the
26 Contract features and benefits
dollar cost averaging program for an additional time period. At that time, you
may also select a different allocation for transfers to the variable investment
options, or, if you wish, we will continue to use the selection that you have
previously made.
Currently, the transfer date will be the same day of the month as the contract
date, but not later than the 28th. For a 12 month dollar cost averaging program
selected after application, the first transfer date and each subsequent
transfer date for the time period selected will be one month from the date the
first contribution is made into the 12 month dollar cost averaging program, but
not later than the 28th of the month. All amounts will be transferred out by
the end of the time period then in effect. Under this program we will not
deduct the mortality and expense risks, administrative, and distribution
charges from assets in the EQ/Money Market option.
You may not transfer amounts to the EQ/Money Market option established for this
program that are not part of the 12 month dollar cost averaging program. The
only amounts that should be transferred from the EQ/Money Market option are
your regularly scheduled transfers to the other variable investment options. If
you request to transfer or withdraw any other amounts from the EQ/Money Market
option, we will transfer all of the value that you have remaining in the
account for 12 month dollar cost averaging to the investment options according
to the allocation percentages we have on file for you. You may ask us to cancel
your participation at any time.
GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market
option is at least $5,000, you may choose, at any time, to have a specified
dollar amount or percentage of your value transferred from that option to the
other variable investment options. You can select to have transfers made on a
monthly, quarterly or annual basis. The transfer date will be the same calendar
day of the month as the contract date, but not later than the 28th day of the
month. You can also specify the number of transfers or instruct us to continue
making the transfers until all amounts in the EQ/Money Market option have been
transferred out.
The minimum amount that we will transfer each time is $250. The maximum amount
we will transfer is equal to your value in the EQ/Money Market option at the
time the program is elected, divided by the number of transfers scheduled to be
made.
If, on any transfer date, your value in the EQ/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The general dollar cost averaging program will then end.
You may change the transfer amount once each contract year or cancel this
program at any time.
INVESTMENT SIMPLIFIER
Fixed-dollar option. Under this option you may elect to have a fixed-dollar
amount transferred out of the guaranteed interest option and into the variable
investment options of your choice. Transfers may be made on a monthly,
quarterly or annual basis. You can specify the number of transfers or instruct
us to continue to make transfers until all available amounts in the guaranteed
interest option have been transferred out.
In order to elect the fixed-dollar option, you must have a minimum of $5,000 in
the guaranteed interest option on the date we receive your election form at our
processing office. The transfer date will be the same calendar day of the month
as the contract date but not later than the 28th day of the month. The minimum
transfer amount is $50. The fixed-dollar option is subject to the guaranteed
interest option transfer limitations described under "Transferring your account
value" in "Transferring your money among investment options" later in this
Prospectus. While the program is running, any transfer that exceeds those
limitations will cause the program to end for that contract year. You will be
notified. You must send in a request form to resume the program in the next or
subsequent contract years.
If, on any transfer date your value in the guaranteed interest option is equal
to or less than the amount you have elected to have transferred, the entire
amount will be transferred, and the program will end. You may change the
transfer amount once each contract year or cancel this program at any time.
Interest sweep option. Under this option, you may elect to have monthly
transfers from amounts in the guaranteed interest option into the variable
investment options of your choice. The transfer date will be the last business
day of the month. The amount we will transfer will be the interest credited to
amounts you have in the guaranteed interest option from the last business day
of the prior month to the last business day of the current month. You must have
at least $7,500 in the guaranteed interest option on the date we receive your
election and on the last business day of each month thereafter to participate
in the interest sweep option. We will automatically cancel the interest sweep
program if the amount in the guaranteed interest option is less than $7,500 on
the last day of the month for two months in a row. For the interest sweep
option, the first monthly transfer will occur on the last business day of the
month following the month that we receive your election form at our processing
office.
----------------------------------
You may not participate in any dollar cost averaging program if you are
participating in the rebalancing program. You could not elect the 12 month
dollar cost averaging program if you elected the principal assurance program at
application. See "Transferring your money among investment options" later in
this Prospectus.
YOUR BENEFIT BASE
A benefit base is used to calculate the guaranteed minimum income benefit and
any death benefit as described in this section. Your benefit base is not an
account value or a cash value. See also "Our Living Benefit option" and
"Guaranteed minimum death benefit" below.
STANDARD DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money" later in this Prospectus).
6% ROLL UP TO AGE 85 ENHANCED DEATH BENEFIT. Your benefit base is equal to:
Contract features and benefits 27
o your initial contribution and any additional contributions to the contract;
plus
o daily interest; less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money" later in this Prospectus).
The effective annual interest rate credited to this benefit base is:
o 6% (4% in Washington for the enhanced death benefit only) with respect to
the variable investment options (other than EQ/Alliance Intermediate
Government Securities, EQ/Money Market, EQ/PIMCO Real Return and EQ/Short
Duration Bond) and monies allocated to the 12 month dollar cost averaging
program; and
o 3% with respect to the EQ/Alliance Intermediate Government Securities,
EQ/Money Market, EQ/PIMCO Real Return and EQ/Short Duration Bond, the fixed
maturity options, the guaranteed interest option and the loan reserve
account under Rollover TSA (if applicable).
No interest is credited to the benefit base after the contract anniversary
following the annuitant's 85th birthday.
ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT. Your benefit base is equal to
the greater of either:
o your initial contribution to the contract (plus any additional
contributions),
or
o your highest account value on any contract anniversary up to the contract
anniversary following the annuitant's 85th birthday, plus any contributions
made since the most recent contract anniversary,
less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money" later in this Prospectus).
GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED
DEATH BENEFIT AND THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is
equal to the greater of the benefit base computed for the 6% Roll up to age 85
or the benefit base computed for the Annual ratchet to age 85, as described
immediately above, on each contract anniversary.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the guaranteed minimum income benefit and annuity payout
options. The guaranteed minimum income benefit is discussed in "Our Living
Benefit option" below and annuity payout options are discussed in "Accessing
your money" later in this Prospectus. The guaranteed annuity purchase factors
are those factors specified in your contract. The current annuity purchase
factors are those factors that are in effect at any given time. Annuity
purchase factors are based on interest rates, mortality tables, frequency of
payments, the form of annuity benefit, and the annuitant's (and any joint
annuitant's) age and sex in certain instances.
OUR LIVING BENEFIT OPTION
The following section provides information about the Living Benefit option,
which was only available at the time you purchased your contract, if the
annuitant was age 20 through 75. The Living Benefit option is a guaranteed
minimum income benefit. If you elected the Living Benefit option at purchase,
you pay an additional charge that is described under "Living Benefit charge" in
"Charges and expenses" or in Appendix V, depending on when the contract was
issued, later in this Prospectus. The Living Benefit may not have been
available in your state at the time of your purchase. If you purchased your
contract as an Inherited IRA, the guaranteed minimum income benefit was not
available to you. If you purchased your contract to fund a Charitable Remainder
Trust, the guaranteed minimum income benefit was, generally, not available to
you. Subject to our rules, the guaranteed minimum income benefit might have
been available for certain split-funded Charitable Remainder Trusts.
The guaranteed minimum income benefit guarantees you a minimum amount of fixed
income under your choice of a life annuity fixed payout option or an Income
Manager(R) level payment life with a period certain payout option, subject to
state availability. You choose which of these payout options you want and
whether you want the option to be paid on a single or joint life basis at the
time you exercise your guaranteed minimum income benefit. The maximum period
certain available under the Income Manager(R) payout option is 10 years. This
period may be shorter, depending on the annuitant's age as follows:
Level payments
- ---------------------------------------
Period certain
years
---------------------
Annuitant's
age at exercise IRAs NQ
- ---------------------------------------
60 to 75 10 10
76 9 10
77 8 10
78 7 10
79 7 10
80 7 10
81 7 9
82 7 8
83 7 7
84 6 6
- ---------------------------------------
28 Contract features and benefits
- --------------------------------------------------
Level payments
- --------------------------------------------------
85 5 5
- --------------------------------------------------
We may also make other forms of payout options available. For a description of
payout options, see "Your annuity payout options" in "Accessing your money"
later in this Prospectus.
- --------------------------------------------------------------------------------
The guaranteed minimum income benefit, which is also known as a living benefit,
should be regarded as a safety net only. It provides income protection if you
elect an income payout while the annuitant is alive.
- --------------------------------------------------------------------------------
When you exercise the guaranteed minimum income benefit, the annual lifetime
income that you will receive will be the greater of (i) your guaranteed minimum
income benefit which is calculated by applying your guaranteed minimum income
benefit base at guaranteed annuity purchase factors, or (ii) the income
provided by applying your account value at our then current annuity purchase
factors. For Rollover TSA only, we will subtract from the benefit base or
account value any outstanding loan, including interest accrued but not paid.
You may also elect to receive monthly or quarterly payments as an alternative.
The payments will be less than 1/12 or 1/4 of the annual payments respectively,
due to the effect of interest compounding. The benefit base is applied only to
the Living Benefit guaranteed annuity purchase factors in your contract and not
to any other guaranteed or current annuity purchase rates. The amount of income
you actually receive will be determined when we receive your request to
exercise the benefit.
When you elect to receive annual lifetime income, your contract will terminate
and you will receive a new contract for the annuity payout option. For a
discussion of when your payments will begin and end, see "Exercise of
guaranteed minimum income benefit" below.
The guaranteed minimum income benefit provides a form of insurance and is based
on conservative actuarial factors. The guaranteed annuity purchase factors we
use to determine your Income Manager(R) benefit under the Living Benefit are
more conservative than the guaranteed annuity purchase factors we use for the
Income Manager(R) payout annuity option. This means that, assuming the same
amount is applied to purchase the benefit and that we use guaranteed annuity
purchase factors to compute the benefit, each periodic payment under the Living
Benefit Income Manager will be smaller than each periodic payment under the
Income Manager payout annuity option. Therefore, even if your account value is
less than your benefit base, you may generate more income by applying your
account value to current annuity purchase factors. We will make this comparison
for you when the need arises.
ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll up to
age 85 benefit base, the table below illustrates the guaranteed minimum income
benefit amounts per $100,000 of initial contribution, for a male annuitant age
60 (at issue) on the contract date anniversaries indicated, who has elected the
life annuity fixed payout option, using the guaranteed annuity purchase factors
as of the date of this Prospectus, assuming no additional contributions,
withdrawals or loans under Rollover TSA contracts, and assuming there were no
allocations to the EQ/Alliance Intermediate Government Securities, EQ/Money
Market, EQ/PIMCO Real Return, EQ/Short Duration Bond, the guaranteed interest
option, the fixed maturity options or the loan reserve account.
- ------------------------------------------------------------------
Guaranteed minimum income
Contract date benefit -- annual income pay-
anniversary at exercise able for life
- ------------------------------------------------------------------
10 $11,891
15 $18,597
- ------------------------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date
anniversary that you are eligible to exercise the guaranteed minimum income
benefit, we will send you an eligibility notice illustrating how much income
could be provided as of the contract date anniversary. You must notify us
within 30 days following the contract date anniversary if you want to exercise
the guaranteed minimum income benefit. You must return your contract to us
along with all required information within 30 days following your contract date
anniversary in order to exercise this benefit. You will begin receiving annual
payments one year after the annuity payout contract is issued. If you choose
monthly or quarterly payments, you will receive your payment one month or one
quarter after the annuity payout contract is issued. Payments are always made
on the 15th of the month and generally begin one payment mode from issue. You
may choose to take a withdrawal prior to exercising the guaranteed minimum
income benefit, which will reduce your payments. You may not partially exercise
this benefit. See "Accessing your money" under "Withdrawing your account value"
later in this Prospectus. Payments end with the last payment before the
annuitant's (or joint annuitant's, if applicable) death or, if later, then end
of the period certain (where the payout option chosen includes a period
certain).
You will be eligible to exercise the guaranteed minimum income benefit during
your life and the annuitant's life, as follows:
o If the annuitant was at least age 20 and no older than age 44 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 15th contract date anniversary.
o If the annuitant was at least age 45 and no older than age 49 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
after the annuitant is age 60.
o If the annuitant was at least age 50 and no older than age 75 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 10th contract date anniversary.
Please note:
(i) the latest date you may exercise the guaranteed minimum income benefit is
the contract date anniversary following the annuitant's 85th birthday;
(ii) if the annuitant was age 75 when the contract was issued, the only time you
may exercise the guaranteed minimum income benefit is within 30 days
following the first contract date anniversary that it becomes available;
Contract features and benefits 29
(iii) if the annuitant was older than age 60 at the time an IRA or Rollover TSA
contract was issued, the Living Benefit may not be an appropriate feature
because the minimum distributions required by tax law generally must begin
before the guaranteed minimum income benefit can be exercised;
(iv) for Accumulator(R) Select(SM) Rollover TSA contracts, you may exercise the
Living Benefit option only if you effect a rollover of the TSA contract to
an Accumulator(R) Select(SM) Rollover IRA. This may only occur when you are
eligible for a distribution from the TSA. This process must be completed
within the 30-day timeframe following the contract date anniversary in
order for you to be eligible to exercise;
(v) for a successor owner/annuitant, the earliest exercise date is based on the
original contract issue date and the age of the successor owner/annuitant
as of the Processing Date successor owner/annuitant takes effect; and
(vi) if you are the owner but not the annuitant and you die prior to exercise,
then the following applies:
o A successor owner who is not the annuitant may not be able to exercise
the Living Benefit option without causing a tax problem. You should
consider naming the annuitant as successor owner, or if you do not
name a successor owner, as the sole primary beneficiary. You should
carefully review your successor owner and/or beneficiary designations
at least one year prior to the first contract anniversary on which you
could exercise the benefit.
o If the successor owner is the annuitant, the Living Benefit option
continues only if the benefit could be exercised under the rules
described above on a contract anniversary that is within one year
following the owner's death. This would be the only opportunity for
the successor owner to exercise. If the Living Benefit option cannot
be exercised within this timeframe, the benefit will terminate and the
charge for it will no longer apply as of the date we receive proof of
your death and any required information.
o If you designate your surviving spouse as successor owner, the Living
Benefit option continues and your surviving spouse may exercise the
benefit according to the rules described above even if your spouse is
not the annuitant and even if the benefit is exercised more than one
year after your death. If your surviving spouse dies prior to
exercise, the rule described in the previous bullet applies.
o A successor owner or beneficiary that is a trust or other non-natural
person may not exercise the benefit; in this case, the benefit will
terminate and the charge for it will no longer apply as of the date we
receive proof of your death and any required information.
See "When an NQ contract owner dies before the annuitant" under "Payment of
death benefit" later in this Prospectus for more information.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
GUARANTEED MINIMUM DEATH BENEFIT
Your contract provides a death benefit. If you did not elect one of the
enhanced death benefits described below, the death benefit is equal to your
account value (without adjustment for any otherwise applicable negative market
value adjustment) as of the date we receive satisfactory proof of death, any
required instructions for the method of payment, information and forms
necessary to effect payment OR the standard death benefit, whichever provides
the highest amount. The standard death benefit is equal to your total
contributions (adjusted for any withdrawals and any taxes that apply). The
standard death benefit was the only death benefit available for annuitants who
were age 85 at issue.
If you elected one of the enhanced death benefits, the death benefit is equal
to your account value as of the date we receive satisfactory proof of the
annuitant's death, any required instructions for the method of payment,
information and forms necessary to effect payment OR your elected enhanced
death benefit on the date of the annuitant's death (adjusted for any subsequent
withdrawals and taxes that apply), whichever provides the highest amount.
OPTIONAL ENHANCED DEATH BENEFITS APPLICABLE FOR ANNUITANTS WHO WERE AGES 0
THROUGH 84 AT ISSUE OF NQ CONTRACTS; 20 THROUGH 84 AT ISSUE OF ROLLOVER IRA,
ROTH CONVERSION IRA AND ROLLOVER TSA CONTRACTS; AND 0 THROUGH 70 AT ISSUE OF
INHERITED IRA CONTRACTS.
Subject to state availability, you may have elected one of the following
enhanced death benefits:
6% ROLL UP TO AGE 85.
ANNUAL RATCHET TO AGE 85.
THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85.
Each enhanced death benefit is equal to its corresponding benefit base
described earlier in "Your benefit base." Your enhanced death benefit election
may not be changed. In New York, only the standard death benefit and the annual
ratchet to age 85 enhanced death benefit were available.
----------------------------------
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
See Appendix III at the end of this Prospectus for an example of how we
calculate an enhanced death benefit.
Protection Plus(SM)
The following section provides information about the Protection Plus(SM) option,
which was only available at the time you purchased your contract. If Protection
Plus(SM) was not elected when the contract was first issued, neither the owner
nor the successor owner/annuitant can add
30 Contract features and benefits
it subsequently. Protection Plus(SM) is an additional death benefit as described
below. See the appropriate part of "Tax information" later in this Prospectus
for the potential tax consequences of having purchased the Protection Plus(SM)
feature in an NQ, IRA or Rollover TSA contract.
If the annuitant was 70 or younger when we issued your Contract (or if the
successor owner/annuitant is 70 or younger when he or she becomes the successor
owner/annuitant), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit less total net contributions, multiplied by 40%.
For purposes of calculating your Protection Plus(SM) benefit, the following
applies: (i) "Net contributions" are the total contributions made (or, if
applicable, the total amount that would otherwise have been paid as a death
benefit had the successor owner/annuitant election not been made plus any
subsequent contributions) reduced on a pro rata basis to reflect withdrawals
(including loans). Reduction on a pro rata basis means that we calculate the
percentage of the current account value that is being withdrawn and we reduce
net contributions by that percentage. For example, if the account value is
$30,000 and you withdraw $12,000, you have withdrawn 40% of your account value.
If contributions aggregated $40,000 before the withdrawal, it would be reduced
by $16,000 ($40,000 x .40) and net contributions after the withdrawal would be
$24,000 ($40,000-$16,000); (ii) "Death benefit" is equal to the greater of the
account value as of the date we receive satisfactory proof of death or any
applicable guaranteed minimum death benefit as of the date of death.
If the annuitant was age 71 through 79 when we issued your contract (or if the
successor owner/annuitant is between the ages of 71 and 79 when he or she
becomes the successor owner/annuitant under a contract where Protection Plus(SM)
had been elected at issue), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit (as described above) less total net contributions,
multiplied by 25%.
The value of the Protection Plus(SM) death benefit is frozen on the first
contract date anniversary after the annuitant turns age 80, except that the
benefit will be reduced for withdrawals on a pro rata basis. This feature is
not available in every state.
INHERITED IRA BENEFICIARY CONTINUATION CONTRACT
This contract was available to an individual beneficiary of a traditional IRA
or a Roth IRA where the deceased owner held the individual retirement account
or annuity (or Roth individual retirement account or annuity) with an insurance
company or financial institution other than AXA Equitable. The purpose of the
inherited IRA beneficiary continuation contract is to permit the beneficiary to
change the funding vehicle that the deceased owner selected ("original IRA")
while taking the required minimum distribution payments that must be made to
the beneficiary after the deceased owner's death. This contract is intended
only for beneficiaries who want to take payments at least annually over their
life expectancy. These payments generally must begin (or must have begun) no
later than December 31 of the calendar year following the year the deceased
owner died. This contract is not suitable for beneficiaries electing the
"5-year rule." See "Beneficiary continuation option for IRA and Roth IRA
contracts" under "Beneficiary continuation option" in "Payment of death
benefit" later in this Prospectus. You should discuss with your tax adviser
your own personal situation. This contract may not be available in all states.
Please speak with your financial professional for further information.
The inherited IRA beneficiary continuation contract could only have been
purchased by a direct transfer of the beneficiary's interest under the deceased
owner's original IRA. The owner of the inherited IRA beneficiary continuation
contract is the individual who is the beneficiary of the original IRA. (Certain
trusts with only individual beneficiaries are treated as individuals for this
purpose). The contract also contains the name of the deceased owner. In this
discussion, "you" refers to the owner of the inherited IRA beneficiary
continuation contract.
The inherited IRA beneficiary continuation contract could have been purchased
whether or not the deceased owner had begun taking required minimum
distribution payments during his or her life from the original IRA or whether
you had already begun taking required minimum distribution payments of your
interest as a beneficiary from the deceased owner's original IRA. You should
discuss with your own tax adviser when payments must begin or must be made.
Under the inherited IRA beneficiary continuation contract:
o You must receive payments at least annually (but may have elected to
receive payments monthly or quarterly). Payments are generally made over
your life expectancy determined in the calendar year after the deceased
owner's death and determined on a term certain basis.
o The beneficiary of the original IRA is the annuitant under the inherited
IRA beneficiary continuation contract. In the case where the beneficiary is
a "See Through Trust," the oldest beneficiary of the trust is the
annuitant.
o An inherited IRA beneficiary continuation contract was not available for
annuitants over age 70.
o The initial contribution had to be a direct transfer from the deceased
owner's original IRA and was subject to minimum contribution amounts. See
"How you can contribute to your contract" earlier in this section.
o Subsequent contributions of at least $1,000 are permitted but must be
direct transfers of your interest as a beneficiary from another IRA with a
financial institution other than AXA Equitable, where the deceased owner is
the same as under the original IRA contract.
Contract features and benefits 31
o You may make transfers among the investment options.
o You may choose at any time to withdraw all or a portion of the account
value. Any partial withdrawal must be at least $300.
o The Living Benefit, successor owner/annuitant feature, 12-month dollar cost
averaging program, automatic investment program and systematic withdrawals
are not available under the Inherited IRA beneficiary continuation
contract.
o If you die, we will pay to a beneficiary that you choose the greater of the
annuity account value or the applicable death benefit.
o Upon your death, your beneficiary has the option to continue taking
required minimum distributions based on your remaining life expectancy or
to receive any remaining interest in the contract in a single sum. The
option elected will be processed when we receive satisfactory proof of
death, any required instructions for the method of payment and any required
information and forms necessary to effect payment. If your beneficiary
elects to continue to take distributions, we will increase the account
value to equal the applicable death benefit if such death benefit is
greater than such account value as of the date we receive satisfactory
proof of death and any required instructions, information and forms. If you
had elected any enhanced death benefits, they will no longer be in effect
and charges for such benefits will stop. The minimum guaranteed death
benefit will also no longer be in effect.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
This is provided for informational purposes only. Since this contract is no
longer available to new purchasers, this cancellation provision is no longer
applicable.
If for any reason you are not satisfied with your contract, you may return it
to us for a refund. To exercise this cancellation right you must mail the
contract, with a signed letter of instruction electing this right, to our
processing office within 10 days after you receive it. If state law requires,
this "free look" period may be longer.
Generally, your refund will be the same as any other surrender and you will
receive your account value (less loan reserve account) under the contract on
the day we receive notification of your decision to cancel the contract, which
will reflect (i) any investment gain or loss in the variable investment options
(less the daily charges we deduct), (ii) any guaranteed interest in the
guaranteed interest option, and (iii) any positive or negative market value
adjustments in the fixed maturity options through the date we receive your
contract. Some states, however, require that we refund the full amount of your
contribution (not reflecting (i), (ii) or (iii) above). For any IRA contract
returned to us within seven days after you receive it, we are required to
refund the full amount of your contribution.
We may require that you wait six months before you may apply for a contract
with us again if:
o you cancel your contract during the free look period; or
o you change your mind before you receive your contract whether we have
received your contribution or not.
Please see "Tax information" later in this Prospectus for possible consequences
of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA contract, you may
cancel your Roth Conversion IRA contract and return to a Rollover IRA contract.
Our processing office, or your financial professional, can provide you with the
cancellation instructions.
32 Contract features and benefits
2. Determining your contract's value
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the values you have in: (i) the variable
investment options; (ii) the guaranteed interest option; (iii) market adjusted
amounts in the fixed maturity options; and (iv) the loan reserve account
(applicable to Rollover TSA contracts only).
Your contract also has a "cash value." At any time before annuity payments
begin, your contract's cash value is equal to the account value, less: (i) the
total amount or a pro rata portion of the annual administrative charge as well
as optional benefit charges; and (ii) the amount of any outstanding loan plus
accrued interest (applicable to Rollover TSA contracts only). Please see
"Surrendering your contract to receive its cash value" in "Accessing your
money" later in this Prospectus.
YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS
Each variable investment option invests in shares of a corresponding portfolio.
Your value in each variable investment option is measured by "units." The value
of your units will increase or decrease as though you had invested it in the
corresponding portfolio's shares directly. Your value, however, will be reduced
by the amount of the fees and charges that we deduct under the contract.
The unit value for each variable investment option depends on the investment
performance of that option, less daily charges for:
(i) mortality and expense;
(ii) administrative expenses; and
(iii) distribution charges.
On any day, your value in any variable investment option equals the number of
units credited to that option, adjusted for any units purchased for or deducted
from your contract under that option, multiplied by that day's value for one
unit. The number of your contract units in any variable investment option does
not change unless they are:
(i) increased to reflect additional contributions;
(ii) decreased to reflect a withdrawal;
(iii) increased to reflect a transfer into, or decreased to reflect a transfer
out of, a variable investment option; or
(iv) increased or decreased to reflect a transfer of your loan amount from or
to the loan reserve account under a Rollover TSA contract.
In addition, when we deduct the enhanced death benefit, Living Benefit and/or
the Protection Plus(SM) benefit charges the number of units credited to your
contract will be reduced. Your units are also reduced when we deduct the annual
administrative charge. A description of how unit values are calculated is found
in the SAI.
YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION
Your value in the guaranteed interest option at any time will equal: your
contributions and transfers to that option, plus interest, minus withdrawals
out of the option, and charges we deduct.
YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS
Your value in each fixed maturity option at any time before the maturity date
is the market adjusted amount in each option. This is equivalent to your fixed
maturity amount increased or decreased by the market value adjustment. Your
value, therefore, may be higher or lower than your contributions (less
withdrawals) accumulated at the rate to maturity. At the maturity date, your
value in the fixed maturity option will equal its maturity value, provided
there have been no withdrawals or transfers.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose all of your rights under your contract and any
applicable guaranteed benefits.
Determining your contract's value 33
3. Transferring your money among investment options
- --------------------------------------------------------------------------------
TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer
some or all of your account value among the investment options, subject to the
following:
o You may not transfer to a fixed maturity option that has a rate to maturity
of 3% or less.
o You may not transfer any amount to the 12-month dollar cost averaging
program.
o If the annuitant is age 76-80, you must limit your transfers to fixed
maturity options with maturities of seven years or less. If the annuitant
is age 81 or older, you must limit your transfers to fixed maturity options
of five years or less. As of February 15, 2005 maturities of less than
eight years were not available. Also, the maturity dates may be no later
than the date annuity payments are to begin.
o If you make transfers out of a fixed maturity option other than at its
maturity date, the transfer may cause a market value adjustment.
o During the first contract year, transfers into the guaranteed interest
option are not permitted.
o After the first contract year, a transfer into the guaranteed interest
option will not be permitted if such transfer would result in more than 25%
of the annuity account value being allocated to the guaranteed interest
option, based on the annuity account value as of the previous business day.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency, or dollar amount of transfers.
The maximum amount that may be transferred from the guaranteed interest option
to any investment option (including amounts transferred pursuant to the
fixed-dollar option and interest sweep option dollar cost averaging programs
described under "Allocating your contributions" in "Contract features and
benefits" earlier in this Prospectus) in any contract year is the greatest of:
(a) 25% of the amount you have in the guaranteed interest option on the last
day of the prior contract year; or
(b) the total of all amounts transferred at your request from the guaranteed
interest option to any of the Investment options in the prior contract
year; or
(c) 25% of amounts transferred or allocated to the guaranteed interest option
during the current contract year.
From time to time, we may remove the restrictions regarding transferring
amounts out of the guaranteed interest option. If we do so, we will tell you.
We will also tell you at least 45 days in advance of the day that we intend to
reimpose the transfer restrictions. When we reimpose the transfer restrictions,
if any dollar cost averaging transfer out of the guaranteed interest option
causes a violation of the 25% outbound restriction, that dollar cost averaging
program will be terminated for the current contract year. A new dollar cost
averaging program can be started in the next or subsequent contract years.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value to be
transferred, and
(3) the investment options to and from which you are transferring.
We will confirm all transfers in writing.
DISRUPTIVE TRANSFER ACTIVITY
You should note that the contract is not designed for professional "market
timing" organizations, or other organizations or individuals engaging in a
market timing strategy. The contract is not designed for programmed transfers,
frequent transfers or transfers that are large in relation to the total assets
of the underlying portfolio.
Frequent transfers, including market timing and other program trading or
short-term trading strategies, may be disruptive to the underlying portfolios
in which the variable investment options invest. Disruptive transfer activity
may adversely affect performance and the interests of long-term investors by
requiring a portfolio to maintain larger amounts of cash or to liquidate
portfolio holdings at a disadvantageous time or price. For example, when market
timing occurs, a portfolio may have to sell its holdings to have the cash
necessary to redeem the market timer's investment. This can happen when it is
not advantageous to sell any securities, so the portfolio's performance may be
hurt. When large dollar amounts are involved, market timing can also make it
difficult to use long-term investment strategies because a portfolio cannot
predict how much cash it will have to invest. In addition, disruptive transfers
or purchases and redemptions of portfolio investments may impede efficient
portfolio management and impose increased transaction costs, such as brokerage
costs, by requiring the portfolio manager to effect more frequent purchases and
sales of portfolio securities. Similarly, a portfolio may bear increased
administrative costs as a result of the asset level and investment volatility
that accompanies patterns of excessive or short-term trading. Portfolios that
invest a significant portion of their assets in foreign securities or the
securities of small- and mid-capitalization companies tend to be subject to the
risks associated with market timing and short-term trading strategies to a
greater extent than portfolios that do not. Securities trading in overseas
markets present time zone arbitrage opportunities when events affecting
portfolio securities values occur after the close of the overseas market but
prior to the close of the U.S. markets. Securities of small- and
mid-capitalization companies present arbitrage opportunities because the market
for such securities may be less liquid than the market for securities of larger
companies,
34 Transferring your money among investment options
which could result in pricing inefficiencies. Please see the prospectuses for
the underlying portfolios for more information on how portfolio shares are
priced.
We currently use the procedures described below to discourage disruptive
transfer activity. You should understand, however, that these procedures are
subject to the following limitations: (1) they primarily rely on the policies
and procedures implemented by the underlying portfolios; (2) they do not
eliminate the possibility that disruptive transfer activity, including market
timing, will occur or that portfolio performance will be affected by such
activity; and (3) the design of market timing procedures involves inherently
subjective judgments, which we seek to make in a fair and reasonable manner
consistent with the interests of all policy and contract owners.
The AXA Premier VIP Trust and EQ Advisors Trust (the "affiliated trusts") have
adopted policies and procedures designed to discourage disruptive transfers by
contract owners investing in the portfolios of the affiliated trusts. The
affiliated trusts discourage frequent purchases and redemptions of portfolio
shares and will not make special arrangements to accommodate such transactions.
As a general matter, the affiliated trusts reserve the right to refuse or limit
any purchase or exchange order by a particular investor (or group of related
investors) if the transaction is deemed harmful to the portfolio's other
investors or would disrupt the management of the portfolio. The affiliated
trusts monitor aggregate inflows and outflows for each portfolio on a daily
basis. On any day when a portfolio's net inflows or outflows exceed an
established monitoring threshold, the affiliated trust obtains from us contract
owner trading activity. The affiliated trusts currently consider transfers into
and out of (or vice versa) the same variable investment option within a five
business day period as potentially disruptive transfer activity. When a
contract owner is identified as having engaged in a potentially disruptive
transfer for the first time, a letter is sent to the contract owner explaining
that there is a policy against disruptive transfer activity and that if such
activity continues certain transfer privileges may be eliminated. If and when
the contract owner is identified a second time as engaged in potentially
disruptive transfer activity, we currently prohibit the use of voice, fax and
automated transaction services. We currently apply such action for the
remaining life of each affected contract. We or the affiliated trusts may
change the definition of potentially disruptive transfer activity, the
monitoring procedures and thresholds, any notification procedures, and the
procedures to restrict this activity. Any new or revised policies and
procedures will apply to all contract owners uniformly. We do not permit
exceptions to our policies restricting disruptive transfer activity.
We may also offer investment options with underlying portfolios that are not
part of the AXA Premier VIP Trust or EQ Advisors Trust (the "unaffiliated
trusts"). Each unaffiliated trust may have its own policies and procedures
regarding disruptive transfer activity, which may be different than those
applied by the affiliated trusts. In most cases, the unaffiliated trust
reserves the right to reject a transfer that it believes, in its sole
discretion, is disruptive (or potentially disruptive) to the management of one
of its portfolios. Please see the prospectus for the underlying trust for
information regarding the policies and procedures, if any, employed by that
trust and any associated risks of investing in that trust. If an unaffiliated
trust advises us that there may be disruptive transfer activity from our
contract owners, we will work with the unaffiliated trust to review contract
owner trading activity. If the underlying trust determines that the trading
activity of a particular contract owner is disruptive, we will take action to
limit the disruptive trading activity of that contract owner as discussed
above.
Contract owners should note that it is not always possible for us and the
underlying trusts to identify and prevent disruptive transfer activity. Our
ability to monitor potentially disruptive transfer activity is limited in
particular with respect to certain group contracts. Group annuity contracts may
be owned by retirement plans on whose behalf we provide transfer instructions
on an omnibus (aggregate) basis, which may mask the disruptive transfer
activity of individual plan participants, and/or interfere with our ability to
restrict communication services. In addition, because we do not monitor for all
frequent trading at the separate account level, contract owners may engage in
frequent trading which may not be detected, for example, due to low net inflows
or outflows on the particular day(s). Therefore, no assurance can be given that
we or the trusts will successfully impose restrictions on all disruptive
transfers. Because there is no guarantee that disruptive trading will be
stopped, some contract owners/ participants may be treated differently than
others, resulting in the risk that some contract owners/participants may be
able to engage in frequent transfer activity while others will bear the effect
of that frequent transfer activity. The potential affects of frequent transfer
activity are discussed above.
REBALANCING YOUR ACCOUNT VALUE
We currently offer a rebalancing program that you can use to automatically
reallocate your account value among the variable investment options. You must
tell us:
(a) the percentage you want invested in each variable investment option (whole
percentages only), and
(b) how often you want the rebalancing to occur (quarterly, semiannually, or
annually on a contract year basis).
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options so that the percentage of your account value that
you specify is invested in each option at the end of each rebalancing date.
Your entire account value in the variable investment options must be included
in the rebalancing program.
- --------------------------------------------------------------------------------
Rebalancing does not assure a profit or protect against loss. You should
periodically review your allocation percentages as your needs change. You may
want to discuss the rebalancing program with your financial professional before
electing the program.
- --------------------------------------------------------------------------------
You may elect the rebalancing program at any time. You may also change your
allocation instructions or cancel the program at any time. If you request a
transfer while the rebalancing program is in effect, we will process the
transfer as requested; your rebalancing allocations will
Transferring your money among investment options 35
not be changed, and the rebalancing program will remain in effect unless you
request that it be canceled in writing. There is no charge for the rebalancing
feature.
You may not elect the rebalancing program if you are participating in any
dollar cost or 12-month dollar cost averaging program. Rebalancing is not
available for amounts you have allocated to the guaranteed interest option or
the fixed maturity options.
36 Transferring your money among investment options
4. Accessing your money
- --------------------------------------------------------------------------------
WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your account value before annuity payments
begin. The table below shows the methods available under each type of contract.
More information follows the table. If you request to withdraw more than 90% of
a contract's current cash value, we will treat it as a request to surrender the
contract for its cash value. See "Surrendering your contract to receive its
cash value" below. For the tax consequences of withdrawals, see "Tax
information" later in this Prospectus.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus and "How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death benefit" below for more information
on how withdrawals affect your guaranteed benefits and could potentially cause
your contract to terminate.
- --------------------------------------------------------------------------------
Method of withdrawal
-------------------------------------------------------------
Lifetime
required
Substantially minimum
Contract Lump sum Systematic equal distribution
- --------------------------------------------------------------------------------
NQ Yes Yes No No
- --------------------------------------------------------------------------------
Rollover IRA Yes Yes Yes Yes
- --------------------------------------------------------------------------------
Roth
Conversion IRA Yes Yes Yes No
- --------------------------------------------------------------------------------
Rollover TSA* Yes Yes No Yes
- --------------------------------------------------------------------------------
Inherited IRA Yes No No **
- --------------------------------------------------------------------------------
* For some Rollover TSA contracts, your ability to take withdrawals, loans or
surrender your contract may be limited. You must provide withdrawal
restriction information when you apply for a contract. See "Tax Sheltered
Annuity contracts (TSAs)" in "Tax information" later in this Prospectus.
** This contract pays out post-death required minimum distributions. See
"Inherited beneficiary contract" in "Contract features and benefits"
earlier in this Prospectus.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time.
(Rollover TSA contracts may have restrictions.) The minimum amount you may
withdraw is $300.
Under Rollover TSA contracts, if a loan is outstanding, you may only take lump
sum withdrawals as long as the cash value remaining after any withdrawal equals
at least 10% of the outstanding loan plus accrued interest.
SYSTEMATIC WITHDRAWALS
(All contracts except Inherited IRAs)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value. (Rollover TSA contracts may have
restrictions).
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 1.2% monthly, 3.6% quarterly and 15.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would
be less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
We will make the withdrawals on any day of the month that you select as long as
it is not later than the 28th day of the month. If you do not select a date, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59-1/2 and 70-1/2.
You may change the payment frequency, or the amount or percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
lump sum withdrawal. You can cancel the systematic withdrawal option at any
time.
SUBSTANTIALLY EQUAL WITHDRAWALS
(All Rollover IRA and Roth Conversion IRA contracts)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus. We use one of the
IRS-approved methods for doing this; this is not the exclusive method of
meeting this exception. After consultation with your tax adviser, you may
decide to use another method which would require you to compute amounts
yourself and request lump sum withdrawals. In such a case, a withdrawal charge
may apply. Once you begin to take substantially equal withdrawals, you should
not stop them or change the pattern of your withdrawals until after the later
of age 59-1/2 or five full years after the first withdrawal. If you stop or
change the withdrawals or take a lump sum withdrawal, you may be liable for the
10% federal tax penalty that would have otherwise been due on prior withdrawals
made under this option and for any interest on the delayed payment of the
penalty.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may change, without penalty, from one of the
IRS-approved methods of calculating fixed payments to another IRS-approved
method (similar to the required minimum distribution rules) of calculating
payments which vary each year.
You may elect to take substantially equal withdrawals at any time before age
59-1/2. We will make the withdrawal on any day of the month that you select as
long as it is not later than the 28th day of the month. You may not elect to
receive the first payment in the same contract year in which you took a lump
sum withdrawal. We will
Accessing your money 37
calculate the amount of your substantially equal withdrawals using the
IRS-approved method we offer. The payments will be made monthly, quarterly or
annually as you select. These payments will continue until we receive written
notice from you to cancel this option or you take a lump sum withdrawal. You
may elect to start receiving substantially equal withdrawals again, but the
payments may not restart in the same contract year in which you took a lump sum
withdrawal. We will calculate the new withdrawal amount.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA and Rollover TSA contracts only -- See "Tax information" later in
this Prospectus)
We offer our "automatic required minimum distribution (RMD) service" to help
you meet lifetime required minimum distributions under federal income tax
rules. This is not the exclusive way for you to meet these rules. After
consultation with your tax adviser, you may decide to compute required minimum
distributions yourself and request lump sum withdrawals. Before electing this
account based withdrawal option, you should consider whether annuitization
might be better in your situation. If you have elected certain additional
benefits, such as the Guaranteed minimum death benefit, amounts withdrawn from
the contract to meet RMDs will reduce the benefit base and may limit the
utility of the benefit. Also, please refer to "Tax information" later in this
Prospectus for considerations on annuity contracts funding TSAs, and IRAs.
You may elect this service in the year in which you reach age 70-1/2 or in any
later year. The minimum amount we will pay out is $250. Currently, minimum
distribution withdrawal payments will be made annually. See "Required minimum
distributions" in "Tax information" later in this Prospectus for your specific
type of retirement arrangement.
Under Rollover TSA contracts, you may not elect minimum distribution
withdrawals if a loan is outstanding.
- --------------------------------------------------------------------------------
For Rollover IRA and Rollover TSA contracts, we will send a form outlining the
distribution options available in the year you reach age 70-1/2 (if you have not
begun your annuity payments before that time).
- --------------------------------------------------------------------------------
HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your value in the variable investment options and the guaranteed
interest option. If there is insufficient value or no value in the variable
investment options, and the guaranteed interest option, any additional amount
of the withdrawal required or the total amount of the withdrawal will be
withdrawn from the fixed maturity options in order of the earliest maturity
date(s) first. A market value adjustment may apply to withdrawals from the
fixed maturity options.
HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED
MINIMUM DEATH BENEFIT
Withdrawals will reduce your guaranteed benefits on either a dollar-for-dollar
basis or on a pro rata basis as explained below:
INCOME BENEFIT AND DEATH BENEFIT
Your applicable benefit base will be reduced on a dollar-for-dollar basis as
long as the sum of your withdrawals in a contract year is 6% or less of the
applicable benefit base on the most recent contract date anniversary. Any
portion of a withdrawal that causes the sum of your withdrawals in a contract
year to exceed 6% of the applicable benefit base on the most recent contract
date anniversary, and any subsequent withdrawals in that same contract year
will reduce your applicable benefit base on a pro rata basis. Additional
contributions made during the contract year do not affect the amount of
withdrawals that can be taken on a dollar-for-dollar basis in that contract
year.
The timing of your withdrawals and whether they exceed the 6% threshold
described above can have significant impact on your guaranteed minimum income
benefit or guaranteed minimum death benefit.
----------------------------------
Reduction on a dollar-for-dollar basis means that your current benefit will be
reduced by the dollar amount of the withdrawal. Reduction on a pro rata basis
means that we calculate the percentage of your current account value that is
being withdrawn and we reduce your current benefit by that same percentage. For
example, if your account value is $30,000 and you withdraw $12,000, you have
withdrawn 40% of your account value. If your death benefit was $40,000 before
the withdrawal, it would be reduced by $16,000 ($40,000 x .40) and your new
death benefit after the withdrawal would be $24,000 ($40,000 - $16,000). This
pro rata example assumes that the annual 6% threshold described above has
already been exceeded.
LOANS UNDER ROLLOVER TSA CONTRACTS
You may take loans from a Rollover TSA unless restricted by the employer who
provided the Rollover TSA funds. If you cannot take a loan, or cannot take a
loan without approval from the employer who provided the funds, we will have
this information in our records based on what you and the employer who provided
the funds told us when you purchased your contract. The employer must also tell
us whether special employer plan rules of the Employee Retirement Income
Security Act of 1974 ("ERISA") apply. We will not permit you to take a loan
while you are enrolled in our "automatic required minimum distribution (RMD)
service."
You should read the terms and conditions on our loan request form carefully
before taking out a loan. Under Rollover TSA contracts subject to ERISA, you
may only take a loan with the written consent of your spouse. Your contract
contains further details of the loan provision. Also, see "Tax information"
later in this Prospectus for general rules applicable to loans.
We will permit you to have only one loan outstanding at a time. The minimum
loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your
account value, subject to any limits under the federal income tax rules. The
term of a loan is five years. However, if you use the loan to acquire your
primary residence, the term is 10 years. The term may not extend beyond the
earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
38 Accessing your money
(3) the date a death benefit is paid (the outstanding loan will be deducted
from the death benefit amount).
A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the properly completed
loan request form is received. Interest will accrue daily on your outstanding
loan at a rate we set. The loan interest rate will be equal to the Moody's
Corporate Bond Yield Averages for Baa bonds for the calendar month ending two
months before the first day of the calendar quarter in which the rate is
determined.
LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the
amount of your loan to the loan reserve account. Unless you specify otherwise,
we will subtract your loan on a pro rata basis from your value in the variable
investment options and the guaranteed interest option. If these amounts are
insufficient, any additional amount of the loan will be subtracted from the
fixed maturity options in order of the earliest maturity date(s) first. A
market value adjustment may apply.
We will credit interest to the amount in the loan reserve account at a rate of
2% lower than the loan interest rate that applies for the time your loan is
outstanding. On each contract date anniversary after the date the loan is
processed, we will transfer the amount of interest earned in the loan reserve
account to the variable investment options on a pro rata basis. When you make a
loan repayment, unless you specify otherwise, we will transfer the dollar
amount of the loan repaid from the loan reserve account to the investment
options according to the allocation percentages we have on our records.
SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time while the
annuitant is living and before you begin to receive annuity payments. (Rollover
TSA contracts may have restrictions.) For a surrender to be effective, we must
receive your written request and your contract at our processing office. We
will determine your cash value on the date we receive the required information.
All benefits under the contract will terminate as of that date.
You may receive your cash value in a single sum payment or apply it to one or
more of the annuity payout options. See "Your annuity payout options" below.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments out of the variable investment
options within seven calendar days after the date of the transaction to which
the request relates. These transactions may include applying proceeds to a
variable annuity, payment of a death benefit, payment of any amount you
withdraw and, upon surrender, payment of the cash value. We may postpone such
payments or applying proceeds for any period during which:
(1) the New York Stock Exchange is closed or restricts trading,
(2) sales of securities or determination of the fair value of a variable
investment option's assets is not reasonably practicable because of an
emergency, or
(3) the SEC, by order, permits us to defer payment to protect people remaining
in the variable investment options.
We can defer payment of any portion of your value in the guaranteed interest
option and fixed maturity options (other than for death benefits) for up to six
months while you are living. We also may defer payments for a reasonable amount
of time (not to exceed 10 days) while we are waiting for a contribution check
to clear.
All payments are made by check and are mailed to you (or the payee named in a
tax-free exchange) by U.S. mail, unless you request that we use an express
delivery service at your expense.
YOUR ANNUITY PAYOUT OPTIONS
Accumulator(R) Select(SM) offers you several choices of annuity payout options.
Some enable you to receive fixed annuity payments, which can be either level or
increasing, and others enable you to receive variable annuity payments.
You can choose from among the annuity payout options listed below. Restrictions
may apply, depending on the type of contract you own or the annuitant's age
when the contract was issued. In addition, if you are exercising your
guaranteed minimum income benefit under the Living Benefit, your choice of
payout options are those that are available under the Living Benefit (see "Our
Living Benefit option" in "Contract features and benefits" earlier in this
Prospectus).
- --------------------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period certain
Life annuity with refund certain
Period certain annuity
- --------------------------------------------------------------------------------
Variable Immediate Annuity Life annuity
payout options (not available in New York)
Life annuity with period certain
- --------------------------------------------------------------------------------
Income Manager(R) payout options Life annuity with period certain
(available for annuitants age 83 Period certain annuity
or less at contract issue)
- --------------------------------------------------------------------------------
o Life annuity: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment before the
annuitant's death. Because there is no continuation of benefits following
the annuitant's death with this payout option, it provides the highest
monthly payment of any of the life annuity options, so long as the
annuitant is living.
o Life annuity with period certain: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the end of a
selected period of time ("period certain"), payments continue to the
beneficiary for the balance of the period certain. The period certain
cannot extend beyond the annuitant's life expectancy. A life annuity with a
period certain is the form of annuity under the contracts that you will
receive if you do not elect a different payout option. In this case, the
period certain will be based on the annuitant's age and will not exceed 10
years.
o Life annuity with refund certain: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the amount
applied to purchase the annuity option has been recov-
Accessing your money 39
ered, payments to the beneficiary will continue until that amount has been
recovered. This payout option is available only as a fixed annuity.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15, or 20 years. This guaranteed period may
not exceed the annuitant's life expectancy. This option does not guarantee
payments for the rest of the annuitant's life. It does not permit any
repayment of the unpaid principal, so you cannot elect to receive part of
the payments as a single sum payment with the rest paid in monthly annuity
payments. This payout option is available only as a fixed annuity.
The life annuity, life annuity with period certain, and life annuity with
refund certain payout options are available on a single life or joint and
survivor life basis. The joint and survivor life annuity guarantees payments
for the rest of the annuitant's life and, after the annuitant's death, payments
continue to the survivor. We may offer other payout options not outlined here.
Your financial professional can provide details.
FIXED ANNUITY PAYOUT OPTIONS
With fixed annuities, we guarantee fixed annuity payments will be based either
on the tables of guaranteed annuity purchase factors in your contract or on our
then current annuity purchase factors, whichever is more favorable for you.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS
Variable Immediate Annuities are described in a separate prospectus that is
available from your financial professional. Before you select a Variable
Immediate Annuity payout option, you should read the prospectus which contains
important information that you should know.
Variable Immediate Annuities may be funded through your choice of available
variable investment options investing in portfolios of EQ/Advisors Trust and
AXA Premier VIP Trust. The contract also offers a fixed income annuity payout
option that can be elected in combination with the variable annuity payout
option. The amount of each variable income annuity payment will fluctuate,
depending upon the performance of the variable investment options, and whether
the actual rate of investment return is higher or lower than an assumed base
rate.
INCOME MANAGER(R) PAYOUT OPTIONS
The Income Manager(R) payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts may provide higher or
lower income levels, but do not have all the features of the Income Manager(R)
payout annuity contract. You may request an illustration of the Income
Manager(R) payout annuity contract from your financial professional. Income
Manager(R) payout options are described in a separate prospectus that is
available from your financial professional. Before you select an Income
Manager(R) payout option, you should read the prospectus which contains
important information that you should know.
Both NQ and IRA Income Manager(R) payout options provide guaranteed level
payments. The Income Manager(R) (life annuity with period certain) also
provides guaranteed increasing payments (NQ contracts only).
For Rollover TSA contracts, if you want to elect an Income Manager(R) payout
option, we will first roll over amounts in such contract to a Rollover IRA
contract with the plan participant as owner. You must be eligible for a
distribution under the Rollover TSA contract.
You may choose to apply the account value of your Accumulator(R) Select(SM)
contract to an Income Manager(R) payout annuity.
Depending upon your circumstances, an Income Manager(R) contract may be
purchased on a tax-free basis. Please consult your tax adviser. The Income
Manager(R) payout options are not available in all states.
If you purchase an Income Manager(R) contract in connection with the exercise
of the Living Benefit option, different payout options may apply as well as
other various differences. See "Our Living Benefit Option" in "Contract
features and benefits" earlier in this Prospectus as well as the Income
Manager(R) Prospectus.
THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION
The amount applied to purchase an annuity payout option varies, depending on
the payout option that you choose, and the timing of your purchase as it
relates to any market value adjustments.
If amounts in a fixed maturity option are used to purchase any annuity payout
option, prior to the maturity date, a market value adjustment will apply.
SELECTING AN ANNUITY PAYOUT OPTION
When you select a payout option, we will issue you a separate written agreement
confirming your right to receive annuity payments. We require you to return
your contract before annuity payments begin. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
thirteen months from the Accumulator(R) Select(SM) contract date. Except with
respect to the Income Manager(R) annuity payout options, where payments are
made on the 15th day of each month, you can change the date your annuity
payments are to begin anytime before that date as long as you do not choose a
date later than the 28th day of any month. Also, that date may not be later
than the annuity maturity date described below.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier.
In no event will you ever receive payments under a fixed option or an initial
payment under a variable option of less than the minimum amounts guaranteed by
the contract.
If, at the time you elect a payout option, the amount to be applied is less
than $2,000 or the initial payment under the form elected is less than $20
monthly, we reserve the right to pay the account value in a single sum rather
than as payments under the payout option chosen.
40 Accessing your money
ANNUITY MATURITY DATE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 95th birthday.
For contracts issued in Pennsylvania and New York, the maturity date is related
to the contract issue date, as follows:
- ------------------------------ ------------------------------
New York Pennsylvania
- ------------------------------ ------------------------------
Maximum Maximum
annuitization annuitization
Issue age age Issue age age
- ------------------------------ ------------------------------
0-80 90 0-75 85
81 91 76 86
82 92 77 87
83 93 78-80 88
84 94 81-85 90
85 95
- ------------------------------ ------------------------------
Before the last day by which your annuity payments must begin, we will notify
you by letter. Once you have selected an annuity payout option and payments
have begun, no change can be made other than: (i) transfers (if permitted in
the future) among the variable investment options if a Variable Immediate
Annuity payout option is selected; and (ii) withdrawals or contract surrender
(subject to a market value adjustment) if an Income Manager(R) payout option is
chosen.
Accessing your money 41
5. Charges and expenses
- --------------------------------------------------------------------------------
CHARGES THAT AXA EQUITABLE DEDUCTS
We deduct the following charges each day from the net assets of each variable
investment option. These charges are reflected in the unit values of each
variable investment option:
o A mortality and expense risks charge
o An administrative charge
o A distribution charge
We deduct the following charges from your account value. When we deduct these
charges from your variable investment options, we reduce the number of units
credited to your contract:
o On each contract date anniversary -- an annual administrative charge, if
applicable.
o On each contract date anniversary -- a charge if you elect a death benefit
(other than the Standard death benefit).
o On each contract date anniversary -- a charge for the Living Benefit, if
you elect this optional benefit.
o At the time annuity payments are to begin -- charges designed to
approximate certain taxes that may be imposed on us, such as premium taxes
in your state. An annuity administrative fee may also apply.
o On each contract date anniversary -- a charge for Protection Plus(SM), if
you elect this optional benefit.
More information about these charges appears below. We will not increase these
charges for the life of your contract, except as noted. We may reduce certain
charges under group or sponsored arrangements. See "Group or sponsored
arrangements" later in this section.
To help with your retirement planning, we may offer other annuities with
different charges, benefits and features. Please contact your financial
professional for more information.
MORTALITY AND EXPENSE RISKS CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for mortality and expense risks, including the Standard
guaranteed minimum death benefit. The daily charge is equivalent to an annual
rate of 1.10% of the net assets in each variable investment option.
The mortality risk we assume is the risk that annuitants as a group will live
for a longer time than our actuarial tables predict. If that happens, we would
be paying more in annuity income than we planned. We also assume a risk that
the mortality assumptions reflected in our guaranteed annuity payment tables,
shown in each contract, will differ from actual mortality experience. Lastly,
we assume a mortality risk to the extent that at the time of death, the
guaranteed minimum death benefit exceeds the cash value of the contract. The
expense risk we assume is the risk that it will cost us more to issue and
administer the contracts than we expect.
ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for administrative expenses under the contracts. The daily
charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
DISTRIBUTION CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for a portion of our sales expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.35% of the net assets in each
variable investment option.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on each contract
date anniversary. We deduct the charge if your account value on the last
business day of the contract year is less than $50,000. If your account value
on such date is $50,000 or more, we do not deduct the charge. During the first
two contract years, the charge is equal to $30 or, if less, 2% of your account
value. The charge is $30 for contract years three and later.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (if permitted in your state) on a pro rata
basis. If those amounts are insufficient, we will deduct all or a portion of
the charge from the fixed maturity options in order of the earliest maturity
date(s) first. A market value adjustment may apply. If you surrender your
contract during the contract year, we will deduct a pro rata portion of the
charge.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
GUARANTEED MINIMUM DEATH BENEFIT CHARGE
ANNUAL RATCHET TO AGE 85. If you elected the Annual ratchet to age 85 enhanced
death benefit, we deduct a charge annually from your account value on each
contract date anniversary for which it is in effect. The charge is equal to
0.30% of the Annual ratchet to age 85 benefit base.
6% ROLL UP TO AGE 85. If you elected the 6% Roll up to age 85 enhanced death
benefit, we deduct a charge annually from your account value on each contract
date anniversary for which it is in effect. The charge is equal to 0.45% of the
6% Roll up to age 85 benefit base.
GREATER OF 6% ROLL UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elected
this enhanced death benefit, we deduct a charge annually from your account
value on each contract date anniversary for which it is in effect. The charge
is equal to 0.60% of the greater of the 6% Roll up to age 85 or the Annual
ratchet to age 85 benefit base.
42 Charges and expenses
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in order of the earliest maturity date(s) first. A market
value adjustment may apply.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
STANDARD DEATH BENEFIT. There is no additional charge for the standard death
benefit.
LIVING BENEFIT CHARGE
If you elected the Living Benefit, we deduct a charge annually from your
account value on each contract date anniversary until such time as you exercise
the guaranteed minimum income benefit, elect another annuity payout option, or
the contract date anniversary after the annuitant reaches 85, whichever occurs
first. The charge is equal to 0.60% of the applicable benefit base in effect on
the contract date anniversary.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in order of the earliest maturity date(s) first. A market
value adjustment may apply.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
PROTECTION Plus(SM) CHARGE
If you elected Protection Plus(SM), we deduct a charge annually from your
account value on each contract date anniversary for which it is in effect. The
charge is equal to 0.35% of the account value on each contract date anniversary.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in the order of the earliest maturity date(s) first. A market
value adjustment may apply.
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state. Generally, we deduct the charge from
the amount applied to provide an annuity payout option. The current tax charge
that might be imposed varies by jurisdiction and ranges from 0% to 3.5%.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $350 from the amount to be applied to the Variable Immediate
Annuity payout option.
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
o Management fees ranging from 0.10% to 1.50%.
o 12b-1 fees of either 0.25% or 0.35%.
o Operating expenses, such as trustees' fees, independent public accounting
firms' fees, legal counsel fees, administrative service fees, custodian
fees and liability insurance.
o Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of each Trust are purchased at their net asset value, these fees and
expenses are, in effect, passed on to the variable investment options and are
reflected in their unit values. For more information about these charges,
please refer to the prospectuses for the Trusts.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the mortality and
expense risks charge or change the minimum initial contribution requirements.
We also may change the guaranteed minimum income benefit or the guaranteed
minimum death benefit, or offer variable investment options that invest in
shares of the Trusts that are not subject to the 12b-1 fee. Group arrangements
include those in which a trustee or an employer, for example, purchases
contracts covering a group of individuals on a group basis. Group arrangements
are not available for Rollover IRA and Roth Conversion IRA contracts. Sponsored
arrangements include those in which an employer allows us to sell contracts to
its employees or retirees on an individual basis.
Our costs for sales, administration and mortality generally vary with the size
and stability of the group or sponsoring organization, among other factors. We
take all these factors into account when reducing charges. To qualify for
reduced charges, a group or sponsored arrangement must meet certain
requirements, such as requirements for size and number of years in existence.
Group or sponsored arrangements that have been set up solely to buy contracts
or that have been in existence less than six months will not qualify for
reduced charges.
We also may establish different rates to maturity for the fixed maturity
options under different classes of contracts for group or sponsored
arrangements.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these rules from time to
time. Any variation will reflect differences in costs or services and will not
be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules,
ERISA or both. We make no representations with regard to the impact of these
and other applicable laws on such programs. We recommend that employers,
trustees, and others purchasing or making contracts available for purchase
under such programs seek the advice of their own legal and benefits advisers.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that results
in savings of sales and administrative expenses, such
Charges and expenses 43
as sales through persons who are compensated by clients for recommending
investments and who receive no commission or reduced commissions in connection
with the sale of the contracts. We will not permit a reduction or elimination
of charges where it would be unfairly discriminatory.
44 Charges and expenses
6. Payment of death benefit
- --------------------------------------------------------------------------------
YOUR BENEFICIARY AND PAYMENT OF BENEFIT
You designated your beneficiary when you applied for your contract. You may
change your beneficiary at any time. The change will be effective on the date
the written request for the change is received in our processing office. We are
not responsible for any beneficiary change request that we do not receive. We
will send you written confirmation when we receive your request.
Under jointly owned contracts, the surviving owner is considered the
beneficiary, and will take the place of any other beneficiary. You may be
limited as to the beneficiary you can designate in a Rollover TSA contract.
Where an NQ contract is owned by a minor pursuant to the Uniform Gift to Minors
Act or the Uniform Transfers to Minors Act, the beneficiary must be the estate
of the annuitant. Where an IRA contract is owned in a custodial individual
retirement account, the custodian must be the beneficiary so that the custodian
can reinvest or distribute the death benefit as the beneficiary of the account
desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
applicable guaranteed minimum death benefit. We determine the amount of the
death benefit (other than the applicable guaranteed minimum death benefit) and
any amount applicable under the Protection Plus(SM) feature, as of the date we
receive satisfactory proof of the annuitant's death, any required instructions
for the method of payment, information and forms necessary to effect payment.
The amount of the applicable guaranteed minimum death benefit will be such
guaranteed minimum death benefit as of the date of the annuitant's death,
adjusted for any subsequent withdrawals. The death benefit will be less a
deduction for any outstanding loan plus accrued interest on the date that the
death benefit payment is made (applies to Rollover TSA only).
EFFECT OF THE ANNUITANT'S DEATH
If the annuitant dies before the annuity payments begin, we will pay the death
benefit to your beneficiary.
Generally, the death of the annuitant terminates the contract. However, a
surviving spouse of the deceased owner/annuitant can choose to be treated as
the successor owner/annuitant and continue the contract. Only a spouse who is
the sole primary beneficiary can be a successor owner/annuitant. The successor
owner/annuitant feature is only available under NQ and individually owned IRA
(other than Inherited IRAs) contracts. See "Inherited IRA beneficiary
continuation contract" in "Contracts features and benefits," earlier in this
Prospectus.
For NQ and all types of IRA contracts, a beneficiary may be able to have
limited ownership as discussed under "Beneficiary continuation option" below.
WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT
Under certain conditions the owner changes after the original owner's death for
purposes of receiving federal tax law required distributions from the contract.
When the owner is not the annuitant under an NQ contract and the owner dies
before annuity payments begin, unless you specify otherwise, the beneficiary
named to receive this death benefit upon the annuitant's death will become the
successor owner. If you do not want this beneficiary to be the successor owner,
you should name a specific successor owner. You may name a successor owner at
any time during your life by sending satisfactory notice to our processing
office. If the contract is jointly owned and the first owner to die is not the
annuitant, the surviving owner becomes the sole contract owner. This person
will be considered the successor owner for purposes of the distribution rules
described in this section. The surviving owner automatically takes the place of
any other beneficiary designation.
You should carefully consider the following if you have elected the Living
Benefit and you are the owner, but not the annuitant. Because the payments
under the Living Benefit are based on the life of the annuitant, and the
federal tax law required distributions described below are based on the life of
the successor owner, a successor owner who is not also the annuitant may not be
able to exercise the Living Benefit option, if you die before annuity payments
begin. Therefore, one year before you become eligible to exercise the Living
Benefit option, you should consider the effect of your beneficiary designations
on potential payments after your death. For more information, see "Exercise of
guaranteed minimum income benefit," under "Our Living Benefit option," in
"Contract features and benefits" earlier in this Prospectus.
Unless the surviving spouse of the owner who has died (or in the case of a
joint ownership situation, the surviving spouse of the first owner to die) is
the successor owner for this purpose, the entire interest in the contract must
be distributed under the following rules:
o The cash value of the contract must be fully paid to the successor owner
(new owner) within five years after your death (or in a joint ownership
situation, the death of the first owner to die).
o The successor owner may instead elect to receive the cash value as a life
annuity (or payments for a period certain of not longer than the new
owner's life expectancy). Payments must begin within one year after the
non-annuitant owner's death. Unless this alternative is elected, we will
pay any cash value five years after your death (or the death of the first
owner to die).
o A successor owner should name a new beneficiary.
If the surviving spouse is the successor owner or joint owner, the spouse may
elect to continue the contract. No distributions are required as long as the
surviving spouse and annuitant are living. An eligible successor owner,
including a surviving joint owner after the first owner dies, may elect the
beneficiary continuation option for NQ contracts discussed in "Beneficiary
continuation option" below.
HOW DEATH BENEFIT PAYMENT IS MADE
We will pay the death benefit to the beneficiary in the form of the annuity
payout option you have chosen. If you have not chosen an
Payment of death benefit 45
annuity payout option as of the time of the annuitant's death, the beneficiary
will receive the death benefit in a single sum. However, subject to any
exceptions in the contract, our rules and any applicable requirements under
federal income tax rules, the beneficiary may elect to apply the death benefit
to one or more annuity payout options we offer at the time. See "Your annuity
payout options" in "Accessing your money" earlier in this Prospectus. Please
note that any annuity payout option chosen may not extend beyond the life
expectancy of the beneficiary.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may elect to
receive the death benefit or continue the contract as successor
owner/annuitant.
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required instructions,
information and forms necessary to effect the successor owner/annuitant
feature, we will increase the account value to equal your elected guaranteed
minimum death benefit as of the date of your death if such death benefit is
greater than such account value, plus any amount applicable under the
Protection Plus(SM) feature and adjusted for any subsequent withdrawals. The
increase in the account value will be allocated to the investment options
according to the allocation percentages we have on file for your contract. In
determining whether your applicable guaranteed minimum death benefit option
will continue to grow, we will use your surviving spouse's age (as of the date
we receive satisfactory proof of your death, any required instructions and the
information and forms necessary to effect the successor owner/annuitant
feature).
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole beneficiary of the account, the custodian may
request that the spouse be substituted as annuitant after your death.
BENEFICIARY CONTINUATION OPTION
This feature permits a designated individual, on the contract owner's death, to
maintain a contract in the deceased contract owner's name and receive
distributions under the contract, instead of receiving the death benefit in a
single sum. We make this option available to beneficiaries under traditional
IRA, Roth IRA and NQ contracts, subject to state availability. Please speak
with your financial professional for further information.
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. The beneficiary continuation option must be elected by September 30th of
the year following the calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this option. If the election is made, then, as of the
date we receive satisfactory proof of death, any required instructions,
information and forms necessary to effect the beneficiary continuation option
feature, we will increase the account value to equal the applicable death
benefit if such death benefit is greater than such account value, plus any
amount applicable under the Protection Plus(SM) feature, adjusted for any
subsequent withdrawals. Where an IRA contract is owned in a custodial
individual retirement account, the custodian may reinvest the death benefit in
an individual retirement annuity contract, using the account beneficiary as the
annuitant. Please speak with your financial professional for further
information.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy (determined in the calendar year after your death
and determined on a term certain basis). These payments must begin no later
than December 31st of the calendar year after the year of your death. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70-1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed later in this Prospectus in
"Tax information" under "Individual retirement arrangements (IRAs)," the
beneficiary may choose the "5-year rule" option instead of annual payments over
life expectancy. The 5-year rule is always available to beneficiaries under
Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may
take withdrawals as desired, but the entire account value must be fully
withdrawn by December 31st of the calendar year which contains the fifth
anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA contracts:
o The contract continues in your name for the benefit of your beneficiary.
o This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals
for this purpose.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's own
life expectancy, if payments over life expectancy are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the guaranteed minimum income benefit or an optional
enhanced death benefit under the contract, they will no longer be in effect
and charges for such benefits will stop. Also, any minimum death benefit
feature will no longer be in effect.
o The beneficiary may choose at any time to withdraw all or a portion of the
account value.
o Any partial withdrawal must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking required minimum distributions based
on the remaining life expectancy of the deceased beneficiary or to receive
any remaining interest in the contract in a lump sum. The option elected
will be processed when we receive satisfactory proof of death, any required
instruc-
46 Payment of death benefit
tions for the method of payment and any required information and forms
necessary to effect payment.
BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known
as the Inherited annuity, may only be elected when the NQ contract owner dies
before the annuity commencement date, whether or not the owner and the
annuitant are the same person. If the owner and annuitant are different and the
owner dies before the annuitant, for purposes of this discussion, "beneficiary"
refers to the successor owner. For a discussion of successor owner, see "When
an NQ contract owner dies before the annuitant" earlier in this section. This
feature must be elected within 9 months following the date of your death and
before any other inconsistent election is made. Beneficiaries who do not make a
timely election will not be eligible for this option.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy, determined on a term certain basis and in the
year payments start. These payments must begin no later than one year after the
date of your death and are referred to as "scheduled payments." The beneficiary
may choose the "5-year rule" instead of scheduled payments over life
expectancy. If the beneficiary chooses the 5-year rule, there will be no
scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals
as desired, but the entire account value must be fully withdrawn by the fifth
anniversary of your death.
Under the beneficiary continuation option for NQ contracts (regardless of
whether the owner and annuitant are the same person):
o This feature is only available if the beneficiary is an individual. It is
not available for any entity such as a trust, even if all of the
beneficiaries of the trust are individuals.
o The contract continues in your name for the benefit of your beneficiary.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the respective
beneficiary's own life expectancy, if scheduled payments are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected guaranteed minimum income benefit or an optional
enhanced death benefit under the contract, they will no longer be in effect
and charges for such benefits will stop. Also, any minimum death benefit
feature will no longer be in effect.
o If the beneficiary chooses the "5-year rule," withdrawals may be made at
any time. If the beneficiary instead chooses scheduled payments, the
beneficiary must also choose between two potential withdrawal options at
the time of election. If the beneficiary chooses "Withdrawal Option 1", the
beneficiary cannot later withdraw funds in addition to the scheduled
payments the beneficiary is receiving; "Withdrawal Option 1" permits total
surrender only. "Withdrawal Option 2" permits the beneficiary to take
withdrawals, in addition to scheduled payments, at any time. However, the
scheduled payments under "Withdrawal Option 1" are afforded favorable tax
treatment as "annuity payments." See "Taxation of nonqualified annuities"
in "Tax Information" later in this Prospectus.
o Any partial withdrawals must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract on the beneficiary's death.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking scheduled payments based on the
remaining life expectancy of the deceased beneficiary (if scheduled
payments were chosen) or to receive any remaining interest in the contract
in a lump sum. We will pay any remaining interest in the contract in a lump
sum if your beneficiary elects the 5-year rule. The option elected will be
processed when we receive satisfactory proof of death, any required
instructions for the method of payment and any required information and
forms necessary to effect payment.
If you are both the owner and annuitant:
o As of the date we receive satisfactory proof of death, any required
instructions, information and forms necessary to effect the beneficiary
continuation option feature, we will increase the annuity account value to
equal the applicable death benefit if such death benefit is greater than
such account value, plus any amount applicable under the Protection
Plus(SM) feature, adjusted for any subsequent withdrawals.
If the owner and annuitant are not the same person:
o If the beneficiary continuation option is elected, the beneficiary
automatically becomes the new annuitant of the contract, replacing the
existing annuitant.
o The annuity account value will not be reset to the death benefit amount.
If a contract is jointly owned:
o The surviving owner supersedes any other named beneficiary and may elect
the beneficiary continuation option.
o If the deceased joint owner was also the annuitant, see "If you are both
the owner and annuitant" earlier in this section.
o If the deceased joint owner was not the annuitant, see "If the owner and
annuitant are not the same person" earlier in this section.
Payment of death benefit 47
7. Tax information
- --------------------------------------------------------------------------------
OVERVIEW
In this part of the Prospectus, we discuss the current federal income tax rules
that generally apply to Accumulator(R) Select(SM) contracts owned by United
States individual taxpayers. The tax rules can differ, depending on the type of
contract, whether NQ, traditional IRA, Roth IRA or TSA. Therefore, we discuss
the tax aspects of each type of contract separately.
Federal income tax rules include the United States laws in the Internal Revenue
Code, and Treasury Department Regulations and Internal Revenue Service ("IRS")
interpretations of the Internal Revenue Code. These tax rules may change
without notice. We cannot predict whether, when, or how these rules could
change. Any change could affect contracts purchased before the change. Congress
may also consider proposals in the future to comprehensively reform or overhaul
the United States tax and retirement systems, which if enacted, could affect
the tax benefits of a contract.
We cannot provide detailed information on all tax aspects of the contracts.
Moreover, the tax aspects that apply to a particular person's contract may vary
depending on the facts applicable to that person. We do not discuss state
income and other state taxes, federal income tax, and withholding rules for
non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the
contract, rights or values under the contract, or payments under the contract,
for example, the amounts due to beneficiaries, may be subject to federal or
state gift, estate, or inheritance taxes. You should not rely only on this
document, but should consult your tax adviser before your purchase.
President Bush signed the Economic Growth and Tax Relief Reconciliation Act of
2001 ("EGTRRA") on June 7, 2001. Many of the provisions of EGTRRA became
effective on January 1, 2002, and are phased in during the first decade of the
twenty-first century. In the absence of future legislation, all of the
amendments made by EGTRRA will no longer apply after December 31, 2010, and the
law in effect in 2001 will apply again. In general, EGTRRA liberalizes
contributions which can be made to all types of tax-favored retirement plans.
In addition to increasing the amounts which can be contributed and permitting
individuals over age 50 to make additional contributions, EGTRRA also permits
rollover contributions to be made between different types of tax-favored
retirement plans. Please discuss with your tax adviser how EGTRRA affects your
personal financial situation.
CONTRACTS THAT FUND A RETIREMENT ARRANGEMENT
Generally, there are two types of funding vehicles that are available for
Individual Retirement Arrangements ("IRAs") and Code Section 403(b)
Arrangements ("TSAs"), respectively: an IRA or 403(b) annuity contract such as
this one, or an IRA or 403(b)(7) custodial or other qualified account. How
these arrangements work, including special rules applicable to each, are
described in the specific sections for each type of arrangement, below. You
should be aware that the funding vehicle for a qualified arrangement does not
provide any tax deferral benefit beyond that already provided by the Code for
all permissible funding vehicles. Therefore, you should consider the annuity's
features and benefits, such as Accumulator(R) Select(SM)'s 12 month dollar cost
averaging, choice of death benefits, the Living Benefit guaranteed minimum
income benefit selection of investment funds, guaranteed interest option, fixed
maturity options and its choices of pay-out options, as well as the features
and benefits of other permissible funding vehicles and the relative costs of
annuities and other arrangements. You should be aware that cost may vary
depending on the features and benefits made available and the charges and
expenses of the investment options or funds that you elect.
Beginning 2006, certain provisions of the Treasury Regulations on required
minimum distributions concerning the actuarial present value of additional
contract benefits could increase the amount required to be distributed from
annuity contracts funding qualified plans, TSAs and IRAs. You should consider
the potential implication of these Regulations before you purchase additional
features under this annuity contract.
TRANSFERS AMONG INVESTMENT OPTIONS
You can make transfers among investment options inside the contract without
triggering taxable income.
TAXATION OF NONQUALIFIED ANNUITIES
CONTRIBUTIONS
You may not deduct the amount of your contributions to a nonqualified annuity
contract.
CONTRACT EARNINGS
Generally, you are not taxed on contract earnings until you receive a
distribution from your contract, whether as a withdrawal or as an annuity
payment. However, earnings are taxable, even without a distribution:
o if a contract fails investment diversification requirements as specified in
federal income tax rules (these rules are based on or are similar to those
specified for mutual funds under the securities laws);
o if you transfer a contract, for example, as a gift to someone other than
your spouse (or former spouse);
o if you use a contract as security for a loan (in this case, the amount
pledged will be treated as a distribution); and
o if the owner is other than an individual.
All nonqualified deferred annuity contracts that AXA Equitable and its
affiliates issue to you during the same calendar year are linked together and
treated as one contract for calculating the taxable amount of any distribution
from any of those contracts.
48 Tax information
ANNUITY PAYMENTS
Once annuity payments begin, a portion of each payment is taxable as ordinary
income. You get back the remaining portion without paying taxes on it. This is
your "investment in the contract." Generally, your investment in the contract
equals the contributions you made, less any amounts you previously withdrew
that were not taxable.
For fixed annuity payments, the tax-free portion of each payment is determined
by (1) dividing your investment in the contract by the total amount you are
expected to receive out of the contract, and (2) multiplying the result by the
amount of the payment. For variable annuity payments, your tax-free portion of
each payment is your investment in the contract divided by the number of
expected payments.
Once you have received the amount of your investment in the contract, all
payments after that are fully taxable. If payments under a life annuity stop
because the annuitant dies, there is an income tax deduction for any
unrecovered investment in the contract.
PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN
If you make withdrawals before annuity payments begin under your contract, they
are taxable to you as ordinary income if there are earnings in the contract.
Generally, earnings are your account value less your investment in the
contract. If you withdraw an amount which is more than the earnings in the
contract as of the date of the withdrawal, the balance of the distribution is
treated as a return of your investment in the contract and is not taxable.
PROTECTION Plus(SM) FEATURE
In order to enhance the amount of the death benefit to be paid at the
annuitant's death, you may have purchased a Protection Plus(SM) rider for your
NQ contract. Although we regard this benefit as an investment protection feature
which is part of the contract and which should have no adverse tax effect, it is
possible that the IRS could take a contrary position or assert that the
Protection Plus(SM) rider is not part of the contract. In such a case the
charges for the Protection Plus(SM) rider could be treated for federal income
tax purposes as a partial withdrawal from the contract. If this were so, such a
deemed withdrawal could be taxable, and for contract owners under age 59-1/2,
also subject to a tax penalty. Were the IRS to take this position, AXA Equitable
would take all reasonable steps to attempt to avoid this result, which could
include amending the contract (with appropriate notice to you).
CONTRACTS PURCHASED THROUGH EXCHANGES
The following information applies if you purchased your NQ contract through an
exchange of another contract. Normally, exchanges of contracts are taxable
events. The exchange was not taxable under Section 1035 of the Internal Revenue
Code if:
o the contract that was the source of the funds you used to purchase the NQ
contract was another nonqualified deferred annuity contract (or life
insurance or endowment contract).
o The owner and the annuitant were the same under the source contract and the
Accumulator(R) Select(SM) NQ contract. If you used a life insurance or
endowment contract, the owner and the insured must have been the same on
both sides of the exchange transaction.
The tax basis, also referred to as your investment in the contract, of the
source contract carried over to the Accumulator(R) Select(SM) NQ contract.
An owner may direct the proceeds of a partial withdrawal from one nonqualified
deferred annuity contract to a different insurer to purchase a new nonqualified
deferred annuity contract on a tax-deferred basis. Special forms, agreement
between carriers, and provision of cost basis information may be required to
process this type of an exchange.
SURRENDERS
If you surrender or cancel the contract, the distribution is taxable as
ordinary income (not capital gain) to the extent it exceeds your investment in
the contract.
DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER
YOUR DEATH
For the rules applicable to death benefits, see "Payment of death benefit"
earlier in this Prospectus. The tax treatment of a death benefit taken as a
single sum is generally the same as the tax treatment of a withdrawal from or
surrender of your contract. The tax treatment of a death benefit taken as
annuity payments is generally the same as the tax treatment of annuity payments
under your contract.
BENEFICIARY CONTINUATION OPTION
We have received a private letter ruling from the IRS regarding certain tax
consequences of scheduled payments under the beneficiary continuation option
for NQ contracts. See the discussion "Beneficiary continuation option for NQ
Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among
other things, the IRS rules that:
o scheduled payments under the beneficiary continuation option for NQ
contracts satisfy the death of owner rules of Section 72(s)(2) of the Code,
regardless of whether the beneficiary elects Withdrawal Option 1 or
Withdrawal Option 2;
o scheduled payments, any additional withdrawals under Withdrawal Option 2,
or contract surrenders under Withdrawal Option 1 will only be taxable to
the beneficiary when amounts are actually paid, regardless of the
Withdrawal Option selected by the beneficiary;
o a beneficiary who irrevocably elects scheduled payments with Withdrawal
Option 1 will receive "excludable amount" tax treatment on scheduled
payments. See "Annuity payments" earlier in this section. If the
beneficiary elects to surrender the contract before all scheduled payments
are paid, the amount received upon surrender is a non-annuity payment
taxable to the extent it exceeds any remaining investment in the contract.
The ruling specifically does not address the taxation of any payments received
by a beneficiary electing Withdrawal Option 2 (whether scheduled payments or
any withdrawal that might be taken). Before electing the beneficiary
continuation option feature, the individuals you designate as beneficiary or
successor owner should discuss with their tax advisers the consequences of such
elections.
The tax treatment of a withdrawal after the death of the owner taken as a
single sum or taken as withdrawals under the 5-year rule is generally the same
as the tax treatment of a withdrawal from or surrender of your contract.
Tax information 49
EARLY DISTRIBUTION PENALTY TAX
If you take distributions before you are age 59-1/2 a penalty tax of 10% of the
taxable portion of your distribution applies in addition to the income tax.
Some of the available exceptions to the pre-age 59-1/2 penalty tax include
distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o in the form of substantially equal periodic annuity payments for your life
(or life expectancy), or the joint lives (or joint life expectancy) of you
and a beneficiary, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If
you were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. The IRS has said that the owners of variable annuities will
not be treated as owning the separate account assets provided the underlying
portfolios are restricted to variable life and annuity assets. The variable
annuity owners must have the right only to choose among the portfolios, and
must have no right to direct the particular investment decisions within the
portfolios.
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some
issues that remain unclear. For example, the IRS has not issued any guidance as
to whether having a larger number of portfolios available, or an unlimited
right to transfer among them, could cause you to be treated as the owner. We do
not know whether the IRS will ever provide such guidance or whether such
guidance, if unfavorable, would apply retroactively to your contract.
Furthermore, the IRS could reverse its current guidance at any time. We reserve
the right to modify your contract as necessary to prevent you from being
treated as the owner of the assets of Separate Accounts 45 and 49.
SPECIAL RULES FOR NQ CONTRACTS ISSUED IN PUERTO RICO
Income from NQ contracts we issue is U.S. source. A Puerto Rico resident is
subject to U.S. taxation on such U.S. source income. Only Puerto Rico source
income of Puerto Rico residents is excludable from U.S. taxation. Income from
NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable
portion of amounts distributed from a contract may differ in the two
jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax
returns, showing different amounts of income from the contract for each tax
return. Puerto Rico generally provides a credit against Puerto Rico tax for
U.S. tax paid. Depending on your personal situation and the timing of the
different tax liabilities, you may not be able to take full advantage of this
credit.
INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS)
GENERAL
"IRA" stands for individual retirement arrangement. There are two basic types
of such arrangements, individual retirement accounts and individual retirement
annuities. In an individual retirement account, a trustee or custodian holds
the assets for the benefit of the IRA owner. The assets funding the account
typically include mutual funds and/or individual stocks and/or securities in a
custodial account and bank certificates of deposit in a trusteed account. In an
individual retirement annuity, an insurance company issues an annuity contract
that serves as the IRA.
There are two basic types of IRAs, as follows:
o Traditional IRAs, typically funded on a pre-tax basis, including SEP-IRAs
and SIMPLE IRAs issued and funded in connection with employer-sponsored
retirement plans; and
o Roth IRAs funded on an after-tax basis.
Regardless of the type of IRA, your ownership interest in the IRA cannot be
forfeited. You or your beneficiaries who survive you are the only ones who can
receive the IRA's benefits or payments. All types of IRAs qualify for tax
deferral regardless of the funding vehicle selected.
You can hold your IRA assets in as many different accounts and annuities as you
would like, as long as you meet the rules for setting up and making
contributions to IRAs. However, if you own multiple IRAs, you may be required
to combine IRA values or contributions for tax purposes. For further
information about individual retirement arrangements, you can read Internal
Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)").
This publication is usually updated annually, and can be obtained from any IRS
district office or the IRS website (www.irs.gov).
AXA Equitable designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may have
purchased the contract as either a traditional IRA ("Rollover IRA") or Roth IRA
("Roth Conversion IRA"). We also offered the Inherited IRA for payment of
post-death required minimum distributions in traditional IRA and Roth IRA. The
first part of this section covers some of the special tax rules that apply to
traditional IRAs. The next part of this section covers Roth IRAs. The
disclosure generally assumes direct ownership of the individual retirement
annuity contract. For contracts owned in a custodial individual retirement
account, the disclosure will apply only if you terminate your account or
transfer ownership of the contract to yourself.
We have received an opinion letter from the IRS approving the respective forms
of the Accumulator(R) Select(SM) traditional and Roth IRA contracts, as amended
to reflect recent tax law changes, for use as a traditional IRA and a Roth IRA,
respectively. This IRS approval is a determination only as to the form of the
annuity. It does not represent a determination of the merits of the annuity as
an investment. The contracts submitted for IRS approval do not include every
feature possibly available under the Accumulator(R) Select(SM) traditional and
Roth IRA contracts.
The Inherited IRA beneficiary continuation contract has not been submitted to
the IRS for approval as to form for use as a traditional IRA or Roth IRA.
PROTECTION Plus(SM) FEATURE
The Protection Plus(SM) feature was offered for IRA contracts, subject to state
and contract availability. We have received IRS opinion letters
50 Tax information
that the contract with a Protection Plus(SM) feature qualifies as to form for
use as a traditional IRA and Roth IRA, respectively. This IRS approval is a
determination only as to the form of the annuity. It does not represent a
determination of the merits of the annuity as an investment. The contracts
submitted for IRS approval do not include every feature possibly available under
the Accumulator(R) Select(SM) traditional and Roth IRA contracts. You should
consult with your tax adviser for further information.
Your right to cancel within a certain number of days
This is provided for informational purposes only. Since this contract is no
longer available to new purchasers, this cancellation provision is no longer
applicable.
You can cancel any version of the Accumulator(R) IRA contract (traditional IRA
or Roth IRA) by following the directions in "Your right to cancel with a
certain number of days" under "Contract features and benefits" earlier in this
Prospectus. If you cancel a traditional IRA or Roth IRA contract, we may have
to withhold tax, and we must report the transaction to the IRS. A contract
cancellation could have an unfavorable tax impact.
Traditional individual retirement annuities (traditional IRAs)
Contributions to traditional IRAs. Individuals may make three different types
of contributions to a traditional IRA:
o regular contributions out of earned income or compensation; or
o tax-free "rollover" contributions; or
o direct custodian-to-custodian transfers from other traditional IRAs
("direct transfers").
Regular contribution to traditional IRAs
Limits on contributions. The "maximum regular contribution amount" for any
taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $4,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for each of the taxable years 2005
and 2006. When your earnings are below $4,000, your earned income or
compensation for the year is the most you can contribute. This limit does not
apply to rollover contributions or direct custodian-to-custodian transfers into
a traditional IRA. You cannot make regular traditional IRA contributions for
the tax year in which you reach age 70-1/2 or any tax year after that.
If you reach age 50 before the close of the taxable year for which you are
making a regular contribution to your IRA, you may be eligible to make an
additional "catch-up contribution" of up to $500 to your traditional IRA for
2005. This amount increases to $1,000 for the taxable year 2006.
Special rules for spouses. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to traditional IRAs
(and Roth IRAs discussed below). Even if one spouse has no compensation, or
compensation under $4,000, married individuals filing jointly can contribute up
to $8,000 for each of the taxable years 2005 and 2006 to any combination of
traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the
ability to contribute to traditional IRAs and vice versa. The maximum amount
may be less if earned income is less and the other spouse has made IRA
contributions. No more than a combined total of $4,000 can be contributed
annually to either spouse's traditional and Roth IRAs. Each spouse owns his or
her traditional IRAs and Roth IRAs even if the other spouse funded the
contributions. A working spouse age 70-1/2 or over can contribute up to the
lesser of $4,000 or 100% of "earned income" to a traditional IRA for a
nonworking spouse until the year in which the nonworking spouse reaches age
70-1/2. Catch-up contributions may be made as described above for spouses who
are at least age 50 but under age 70-1/2 at any time during the taxable year
for which the contribution is made.
Deductibility of contributions. The amount of traditional IRA contributions
that you can deduct for a taxable year depends on whether you are covered by an
employer-sponsored, tax-favored retirement plan, as defined under special
federal income tax rules. Your Form W-2 will indicate whether or not you are
covered by such a retirement plan.
If you are not covered by a retirement plan during any part of the year, you
can make fully deductible contributions to your traditional IRAs for the
taxable year up to the maximum amount discussed earlier in this section under
"Limits on contributions." That is, for each of the taxable years 2005 and
2006, your fully deductible contribution can be up to $4,000, or if less, your
earned income. The dollar limit is $4,500 for people eligible to make age
50-70-1/2 catch-up contributions for 2005 and $5,000 for 2006, respectively.
If you are covered by a retirement plan during any part of the year, and your
adjusted gross income (AGI) is below the lower dollar figure in a phase-out
range, you can make fully deductible contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls within a phase-out range, you can make partially deductible
contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls above the higher figure in the phase-out range, you may not deduct
any of your regular contributions to your traditional IRAs.
If you are single and covered by a retirement plan during any part of the
taxable year, the deduction for traditional IRA contributions phases out with
AGI between $50,000 and $60,000 in 2005 and later years.
If you are married and file a joint return, and you are covered by a retirement
plan during any part of the taxable year, the deduction for traditional IRA
contributions phases out with AGI between $70,000 and $80,000 in 2005, and AGI
between $75,000 and $85,000 in 2006. In 2007, the deduction will phase out for
AGI between $80,000 and $100,000.
Married individuals filing separately and living apart at all times are not
considered married for purposes of this deductible contribution calculation.
Generally, the active participation in an employer-sponsored retirement plan of
an individual is determined
Tax information 51
independently for each spouse. Where spouses have "married filing jointly"
status, however, the maximum deductible traditional IRA contribution for an
individual who is not an active participant (but whose spouse is an active
participant) is phased out for taxpayers with an AGI between $150,000 and
$160,000.
To determine the deductible amount of the contribution for 2005 for example,
you determine AGI and subtract $50,000 if you are single, or $70,000 if you are
married and file a joint return with your spouse. The resulting amount is your
excess AGI. You then determine the limit on the deduction for traditional IRA
contributions using the following formula:
($10,000-excess AGI) times the maximum Equals the adjusted
- --------------------- x regular = deductible
divided by $10,000 contribution contribution
for the year limit
Additional "Saver's Credit" for contributions to a traditional IRA or Roth IRA
You may be eligible for a nonrefundable income tax credit for contributions you
make to a traditional IRA or Roth IRA. The final year this credit is available
is 2006. If you qualify, you may take this credit even though your traditional
IRA contribution is already fully or partially deductible. To take advantage of
this "saver's credit" you must be 18 or over before the end of the taxable year
for which the contribution is made. You cannot be a full-time student or
claimed as a dependent on another's tax return and your adjusted gross income
cannot exceed $50,000. The amount of the tax credit you can get varies from 10%
of your contribution to 50% of your contribution and depends on your income tax
filing status and your adjusted gross income. The maximum annual contribution
eligible for the saver's credit is $2,000. If you and your spouse file a joint
return, and each of you qualifies, each is eligible for a maximum annual
contribution of $2,000. Your saver's credit may also be reduced if you take or
have taken a taxable distribution from any plan eligible for a saver's credit
contribution -- even if you make a contribution to one plan and take the
distribution from another plan -- during the "testing period." The "testing
period" begins two years before the year for which you make the contribution
and ends when your tax return is due for the year for which you make the
contribution. Saver's-credit-eligible contributions may be made to a 401(k)
plan, 403(b) TSA, governmental employer 457(b) plan, SIMPLE IRA, or SARSEP IRA,
as well as a traditional IRA or Roth IRA.
Nondeductible regular contributions. If you are not eligible to deduct part or
all of the traditional IRA contribution, you may still make nondeductible
contributions on which earnings will accumulate on a tax-deferred basis. The
combined deductible and nondeductible contributions to your traditional IRA (or
the nonworking spouse's traditional IRA) may not, however, exceed the maximum
dollar per person limit for the applicable taxable year ($4,000 for 2005 and
2006). The dollar limit is $4,500 in 2005 and $5,000 in 2006 for people
eligible to make ages 50 - 70-1/2 catch-up contributions. See "Excess
contributions" later in this section. You must keep your own records of
deductible and nondeductible contributions in order to prevent double taxation
on the distribution of previously taxed amounts. See "Withdrawals, payments and
transfers of funds out of traditional IRAs" later in this section.
If you are making nondeductible contributions in any taxable year, or you have
made nondeductible contributions to a traditional IRA in prior years and are
receiving distributions from any traditional IRA, you must file the required
information with the IRS. Moreover, if you are making nondeductible traditional
IRA contributions, you must retain all income tax returns and records
pertaining to such contributions until interests in all traditional IRAs are
fully distributed.
When you can make regular contributions. If you file your tax returns on a
calendar year basis like most taxpayers, you have until the April 15 return
filing deadline (without extensions) of the following calendar year to make
your regular traditional IRA contributions for a tax year.
Rollover and transfer contributions to traditional IRAs
Rollover contributions may be made to a traditional IRA from these "eligible
retirement plans":
o qualified plans;
o governmental employer 457(b) plans;
o TSAs (including Internal Revenue Code Section 403(b)(7) custodial
accounts); and
o other traditional IRAs.
Direct transfer contributions may only be made directly from one traditional
IRA to another. Any amount contributed to a traditional IRA after you reach age
70-1/2 must be net of your required minimum distribution for the year in which
the rollover or direct transfer contribution is made.
Rollovers from "eligible retirement plans" other than traditional IRAs
Your plan administrator will tell you whether or not your distribution is
eligible to be rolled over. Spousal beneficiaries and spousal alternate payees
under qualified domestic relations orders may roll over funds on the same basis
as the plan participant.
There are two ways to do rollovers:
o Do it yourself:
You actually receive a distribution that can be rolled over and you roll it
over to a traditional IRA within 60 days after the date you receive the
funds. The distribution from your eligible retirement plan will be net of
20% mandatory federal income tax withholding. If you want, you can replace
the withheld funds yourself and roll over the full amount.
o Direct rollover:
You tell the trustee or custodian of the eligible retirement plan to send
the distribution directly to your traditional IRA issuer. Direct rollovers
are not subject to mandatory federal income tax withholding.
52 Tax information
All distributions from a TSA, qualified plan or governmental employer 457(b)
plan are eligible rollover distributions, unless the distributions are:
o "required minimum distributions" after age 70-1/2 or retirement from
service with the employer; or
o substantially equal periodic payments made at least annually for your life
(or life expectancy) or the joint lives (or joint life expectancies) of you
and your designated beneficiary; or
o substantially equal periodic payments made for a specified period of 10
years or more; or
o hardship withdrawals; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o death benefit payments to a beneficiary who is not your surviving spouse;
or
o qualified domestic relations order distributions to a beneficiary who is
not your current spouse or former spouse.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental employer 457(b) plan are not subject to the
additional 10% federal income tax penalty for premature distributions, but they
may become subject to this penalty if you roll the funds to a different type of
eligible retirement plan such as a traditional IRA and subsequently take a
premature distribution.
Rollovers of after-tax contributions from eligible retirement plans other than
traditional IRAs
Any after-tax contributions you have made to a qualified plan or TSA (but not a
governmental employer 457(b) plan) may be rolled over to a traditional IRA
(either in a direct rollover or a rollover you do yourself). When the recipient
plan is a traditional IRA, you are responsible for recordkeeping and
calculating the taxable amount of any distributions you take from that
traditional IRA. See "Taxation of Payments" later in this section under
"Withdrawals, payments and transfers of funds out of traditional IRAs."
After-tax contributions in a traditional IRA cannot be rolled over from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan.
Rollovers from traditional IRAs to traditional IRAs
You may roll over amounts from one traditional IRA to one or more of your other
traditional IRAs if you complete the transaction within 60 days after you
receive the funds. You may make such a rollover only once in every 12-month
period for the same funds. Trustee-to-trustee or custodian-to-custodian direct
transfers are not rollover transactions. You can make these more frequently
than once in every 12-month period.
SPOUSAL ROLLOVERS AND DIVORCE-RELATED DIRECT TRANSFERS
The surviving spouse beneficiary of a deceased individual can roll over funds
from, or directly transfer funds from, an inherited traditional IRA to one or
more other traditional IRAs. Also, in some cases, traditional IRAs can be
transferred on a tax-free basis between spouses or former spouses as a result
of a court ordered divorce or separation decree.
Excess contributions
Excess contributions to IRAs are subject to a 6% excise tax for the year in
which made and for each year after until withdrawn. The following are excess
contributions to IRAs:
o contributions of more than the maximum regular contribution amount for the
applicable taxable year); or
o regular contributions to a traditional IRA made after you reach age 70-1/2;
or
o rollover contributions of amounts which are not eligible to be rolled over,
for example, minimum distributions required to be made after age 70-1/2.
You can avoid the excise tax by withdrawing an excess contribution (rollover or
regular) before the due date (including extensions) for filing your federal
income tax return for the year. If it is an excess regular traditional IRA
contribution, you cannot take a tax deduction for the amount withdrawn. You do
not have to include the excess contribution withdrawn as part of your income.
It is also not subject to the 10% additional penalty tax on early
distributions, discussed later in this section under "Early distribution
penalty tax." You do have to withdraw any earnings that are attributed to the
excess contribution. The withdrawn earnings would be included in your gross
income and could be subject to the 10% penalty tax.
Even after the due date for filing your return, you may withdraw an excess
rollover contribution, without income inclusion or 10% penalty, if:
(1) the rollover was from an eligible retirement plan to a traditional IRA;
(2) the excess contribution was due to incorrect information that the plan
provided; and
(3) you took no tax deduction for the excess contribution.
Recharacterizations
Amounts that have been contributed as traditional IRA funds may subsequently be
treated as Roth IRA funds. Special federal income tax rules allow you to change
your mind again and have amounts that are subsequently treated as Roth IRA
funds, once again treated as traditional IRA funds. You do this by using the
forms we prescribe. This is referred to as having "recharacterized" your
contribution.
Withdrawals, payments and transfers of funds out of traditional IRAs
No federal income tax law restrictions on withdrawals. You can withdraw any or
all of your funds from a traditional IRA at any time. You do not need to wait
for a special event like retirement.
Taxation of payments. Earnings in traditional IRAs are not subject to federal
income tax until you or your beneficiary receive them. Tax-
Tax information 53
able payments or distributions include withdrawals from your contract,
surrender of your contract and annuity payments from your contract. Death
benefits are also taxable.
Except as discussed below, the total amount of any distribution from a
traditional IRA must be included in your gross income as ordinary income. We
report all payments from traditional IRA contracts on IRS Form 1099R as fully
taxable.
If you have ever made nondeductible IRA contributions to any traditional IRA
(it does not have to be to this particular traditional IRA contract), those
contributions are recovered tax free when you get distributions from any
traditional IRA. It is your responsibility to keep permanent tax records of all
of your nondeductible contributions to traditional IRAs so that you can
correctly report the taxable amount of any distribution on your own tax return.
At the end of any year in which you have received a distribution from any
traditional IRA, you calculate the ratio of your total nondeductible
traditional IRA contributions (less any amounts previously withdrawn tax free)
to the total account balances of all traditional IRAs you own at the end of the
year plus all traditional IRA distributions made during the year. Multiply this
by all distributions from the traditional IRA during the year to determine the
nontaxable portion of each distribution.
A distribution from a traditional IRA is not taxable if:
o the amount received is a withdrawal of excess contributions, as described
under "Excess contributions" earlier in this section; or
o the entire amount received is rolled over to another traditional IRA or
other eligible retirement plan which agrees to accept the funds. (See
"Rollovers from eligible retirement plans other than traditional IRAs"
under "Rollover and transfer contributions to traditional IRAs" earlier in
this section.)
The following are eligible to receive rollovers of distributions from a
traditional IRA: a qualified plan, a TSA or a governmental employer 457(b)
plan. After-tax contributions in a traditional IRA cannot be rolled from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan. Before you decide to roll over a distribution from a
traditional IRA to another eligible retirement plan, you should check with the
administrator of that plan about whether the plan accepts rollovers and, if so,
the types it accepts. You should also check with the administrator of the
receiving plan about any documents required to be completed before it will
accept a rollover.
Distributions from a traditional IRA are not eligible for favorable ten-year
averaging and long-term capital gain treatment available under limited
circumstances for certain distributions from qualified plans. If you might be
eligible for such tax treatment from your qualified plan, you may be able to
preserve such tax treatment even though an eligible rollover from a qualified
plan is temporarily rolled into a "conduit IRA" before being rolled back into a
qualified plan. See your tax adviser.
Required minimum distributions
Background on Regulations -- Required Minimum Distributions. Distributions must
be made from traditional IRAs according to the rules contained in the Code and
Treasury Regulations. Certain provisions of the Treasury Regulations will
require, beginning in 2006, that the actuarial present value of additional
annuity contract benefits be added to the dollar amount credited for purposes
of calculating certain types of required minimum distributions from individual
retirement annuity contracts. This could increase the amount required to be
distributed from these contracts if you take annual withdrawals instead of
annuitizing. Please consult your tax adviser concerning applicability of these
complex rules to your situation.
Lifetime required minimum distributions. You must start taking annual
distributions from your traditional IRAs for the year in which you turn age
70-1/2.
When you have to take the first lifetime required minimum distribution. The
first required minimum distribution is for the calendar year in which you turn
age 70-1/2. You have the choice to take this first required minimum
distribution during the calendar year you actually reach age 70-1/2, or to
delay taking it until the first three-month period in the next calendar year
(January 1 - April 1). Distributions must start no later than your "Required
Beginning Date," which is April 1st of the calendar year after the calendar
year in which you turn age 70-1/2. If you choose to delay taking the first
annual minimum distribution, then you will have to take two minimum
distributions in that year -- the delayed one for the first year and the one
actually for that year. Once minimum distributions begin, they must be made at
some time each year.
How you can calculate required minimum distributions.
There are two approaches to taking required minimum distributions --
"account-based" or "annuity-based."
ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the
value of your traditional IRA as of December 31st of the past calendar year by
a number corresponding to your age from an IRS table. This gives you the
required minimum distribution amount for that particular IRA for that year. If
your spouse is your sole beneficiary and more than 10 years younger than you,
the dividing number you use may be from another IRS table and may produce a
smaller lifetime required minimum distribution amount. Regardless of the table
used, the required minimum distribution amount will vary each year as the
account value and the divisor change. If you initially choose an account-based
method, you may later apply your traditional IRA funds to a life annuity-based
payout with any certain period not exceeding remaining life expectancy,
determined in accordance with IRS tables.
ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to
do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a designated beneficiary or for a
period certain not extending beyond applicable life expectancies, determined in
accordance with IRS tables.
Do you have to pick the same method to calculate your required minimum
distributions for all of your traditional IRAs and other retirement plans? No.
If you want, you can choose a different method for each of your traditional
IRAs and other retirement plans. For example, you can choose an annuity payout
from one IRA, a different annuity payout from a qualified plan and an
account-based annual withdrawal from another IRA.
54 Tax information
Will we pay you the annual amount every year from your traditional IRA based on
the method you choose? We will only pay you automatically if you affirmatively
select an annuity payout option or an account-based withdrawal option such as
our "automatic required minimum distribution (RMD) service." Even if you do not
enroll in our service, we will calculate the amount of the required minimum
distribution withdrawal for you, if you so request in writing. However, in that
case you will be responsible for asking us to pay the required minimum
distribution withdrawals to you.
Also, the IRS will let you calculate the required minimum distribution for each
traditional IRA that you maintain, using the method that you picked for that
particular IRA. You can add these required minimum distribution amount
calculations together. As long as the total amount you take out every year
satisfies your overall traditional IRA required minimum distribution amount,
you may choose to take your annual required minimum distribution from any one
or more traditional IRAs that you own.
What if you take more than you need to for any year? The required minimum
distribution amount for your traditional IRAs is calculated on a year-by-year
basis. There are no carry-back or carry-forward provisions. Also, you cannot
apply required minimum distribution amounts you take from your qualified plans
to the amounts you have to take from your traditional IRAs and vice versa.
What if you take less than you need to for any year? Your IRA could be
disqualified, and you could have to pay tax on the entire value. Even if your
IRA is not disqualified, you could have to pay a 50% penalty tax on the
shortfall (required amount for traditional IRAs less amount actually taken). It
is your responsibility to meet the required minimum distribution rules. We will
remind you when our records show that you are within the age group which must
take lifetime required minimum distributions. If you do not select a method
with us, we will assume you are taking your required minimum distribution from
another traditional IRA that you own.
What are the required minimum distribution payments after you die? These could
vary depending on whether you die before or after your Required Beginning Date
for lifetime required minimum distribution payments, and the status of your
beneficiary. The following assumes that you have not yet elected an
annuity-based payout at the time of your death. If you elect an annuity-based
payout, payments (if any) after your death must be made at least as rapidly as
when you were alive.
Individual beneficiary. Regardless of whether your death occurs before or
after your Required Beginning Date, an individual death beneficiary calculates
annual post-death required minimum distribution payments based on the
beneficiary's life expectancy using the "term certain method." That is, he or
she determines his or her life expectancy using the IRS-provided life
expectancy tables as of the calendar year after the owner's death and reduces
that number by one each subsequent year.
If you die before your Required Beginning Date, the rules permit any individual
beneficiary, including a spousal beneficiary, to elect instead to apply the
"5-year rule." Under this rule, instead of annual payments having to be made
beginning with the first in the year following the owner's death, the entire
account must be distributed by the end of the calendar year which contains the
fifth anniversary of the owner's death. No distribution is required before that
fifth year.
Spousal beneficiary. If you die after your Required Beginning Date, and your
death beneficiary is your surviving spouse, your spouse has a number of
choices. Post-death distributions may be made over your spouse's single life
expectancy. Any amounts distributed after that surviving spouse's death are
made over the spouse's life expectancy calculated in the year of his/her death,
reduced by one for each subsequent year. In some circumstances, your surviving
spouse may elect to become the owner of the traditional IRA and halt
distributions until he or she reaches age 70-1/2, or roll over amounts from
your traditional IRA into his/her own traditional IRA or other eligible
retirement plan.
If you die before your Required Beginning Date, and the death beneficiary is
your surviving spouse, the rules permit the spouse to delay starting payments
over his/her life expectancy until the year in which you would have attained
age 70-1/2.
Non-individual beneficiary. If you die after your Required Beginning Date, and
your death beneficiary is a non-individual, such as the estate, the rules
permit the beneficiary to calculate post-death required minimum distribution
amounts based on the owner's life expectancy in the year of death. However,
note that we need an individual annuitant to keep an annuity contract in force.
If the beneficiary is not an individual, we must distribute amounts remaining
in the annuity contract after the death of the annuitant.
If you die before your Required Beginning Date for lifetime required minimum
distribution payments, and the death beneficiary is a non-individual such as
the estate, the rules continue to apply the 5-year rule discussed earlier under
"Individual beneficiary." Please note that we need an individual annuitant to
keep an annuity contract in force. If the beneficiary is not an individual, we
must distribute amounts remaining in the annuity contract after the death of
the annuitant.
Successor owner and annuitant
If your spouse is the sole primary beneficiary and elects to become the
successor owner and annuitant, no death benefit is payable until your surviving
spouse's death.
Payments to a beneficiary after your death
IRA death benefits are taxed the same as IRA distributions.
Borrowing and loans are prohibited transactions
You cannot get loans from a traditional IRA. You cannot use a traditional IRA
as collateral for a loan or other obligation. If you borrow against your IRA or
use it as collateral, its tax-favored status will be lost as of the first day
of the tax year in which this prohibited event occurs. If this happens, you
must include the value of the traditional
Tax information 55
IRA in your federal gross income. Also, the early distribution penalty tax of
10% may apply if you have not reached age 59-1/2 before the first day of that
tax year.
Early distribution penalty tax
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a traditional IRA made before you reach age 59-1/2. Some of
the available exceptions to the pre-age 59-1/2 penalty tax include
distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o used to pay certain extraordinary medical expenses (special federal income
tax definition); or
o used to pay medical insurance premiums for unemployed individuals (special
federal income tax definition); or
o used to pay certain first-time home buyer expenses (special federal income
tax definition; $10,000 lifetime total limit for these distributions from
all your traditional and Roth IRAs); or
o used to pay certain higher education expenses (special federal income tax
definition); or
o in the form of substantially equal periodic payments made at least annually
over your life (or your life expectancy) or over the joint lives of you and
your beneficiary (or your joint life expectancies) using an IRS-approved
distribution method.
To meet this last exception, you could elect to apply your contract value to an
Income Manager(R) (life annuity with a period certain) payout annuity contract
(level payments version). You could also elect the substantially equal
withdrawals option. We will calculate the substantially equal annual payments
using your choice of IRS-approved methods we offer. Although substantially
equal withdrawals and Income Manager(R) payments are not subject to the 10%
penalty tax, they are taxable as discussed in "Withdrawals, payments and
transfers of funds out of traditional IRAs" earlier in this section. Once
substantially equal withdrawals or Income Manager(R) annuity payments begin,
the distributions should not be stopped or changed until after the later of
your reaching age 59-1/2 or five years after the date of the first
distribution, or the penalty tax, including an interest charge for the prior
penalty avoidance, may apply to all prior distributions under this option.
Also, it is possible that the IRS could view any additional withdrawal or
payment you take from your contract as changing your pattern of substantially
equal withdrawals or Income Manager(R) payments for purposes of determining
whether the penalty applies.
Roth individual retirement annuities (Roth IRAs)
This section of the Prospectus covers some of the special tax rules that apply
to Roth IRAs. If the rules are the same as those that apply to the traditional
IRA, we will refer you to the same topic under "traditional IRAs."
The Accumulator(R) Select(SM) Roth Conversion IRA contract is designed to
qualify as a Roth individual retirement annuity under Sections 408A(b) and
408(b) of the Internal Revenue Code.
Contributions to Roth IRAs
Individuals may make four different types of contributions to a Roth IRA:
o regular after-tax contributions out of earnings; or
o taxable rollover contributions from traditional IRAs ("conversion"
contributions); or
o tax-free rollover contributions from other Roth IRAs; or
o tax-free direct custodian-to-custodian transfers from other Roth IRAs
("direct transfers").
Regular after-tax, direct transfer and rollover contributions may be made to a
Roth Conversion contract. See "Rollovers and direct transfers" later in this
section. If you use the forms we require, we will also accept traditional IRA
funds which are subsequently recharacterized as Roth IRA funds following
special federal income tax rules.
Regular contributions to Roth IRAs
Limits on regular contributions. The "maximum regular contribution amount" for
any taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $4,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for each of the taxable years 2005
and 2006. This limit does not apply to rollover contributions or direct
custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth
IRAs reduce your ability to contribute to traditional IRAs and vice versa. When
your earnings are below $4,000, your earned income or compensation for the year
is the most you can contribute. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to Roth IRAs and
traditional IRAs. See the discussion earlier in this section under traditional
IRAs. If you or your spouse are at least age 50 at any time during the taxable
year for which you are making a regular contribution, additional catch-up
contributions totaling up to $500 can be made for the taxable year 2005. This
amount increases to $1,000 for the taxable year 2006.
With a Roth IRA, you can make regular contributions when you reach age 70-1/2,
as long as you have sufficient earnings. But, you cannot make contributions,
regardless of your age, for any year that:
o your federal income tax filing status is "married filing jointly" and your
modified adjusted gross income is over $160,000; or
o your federal income tax filing status is "single" and your modified
adjusted gross income is over $110,000.
However, you can make regular Roth IRA contributions in reduced amounts when:
o your federal income tax filing status is "married filing jointly" and your
modified adjusted gross income is between $150,000 and $160,000; or
56 Tax information
o your federal income tax filing status is "single" and your modified
adjusted gross income is between $95,000 and $110,000.
If you are married and filing separately and your modified adjusted gross
income is between $0 and $10,000 the amount of regular contributions you are
permitted to make is phased out. If your modified adjusted gross income is more
than $10,000 you cannot make regular Roth IRA contributions.
When you can make contributions. Same as traditional IRAs.
Deductibility of contributions. Roth IRA contributions are not tax deductible.
Rollovers and direct transfers
What is the difference between rollover and direct transfer transactions? You
may make rollover contributions to a Roth IRA from only two sources:
o another Roth IRA ("tax-free rollover contribution"); or
o another traditional IRA, including a SEP-IRA or SIMPLE IRA (after a
two-year rollover limitation period for SIMPLE IRA funds), in a taxable
conversion rollover ("conversion contribution").
You may not make contributions to a Roth IRA from a qualified plan under
Section 401(a) of the Internal Revenue Code, a TSA under Section 403(b) of the
Internal Revenue Code or any other eligible retirement plan. You may make
direct transfer contributions to a Roth IRA only from another Roth IRA.
The difference between a rollover transaction and a direct transfer transaction
is the following: in a rollover transaction you actually take possession of the
funds rolled over or are considered to have received them under tax law in the
case of a change from one type of plan to another. In a direct transfer
transaction, you never take possession of the funds, but direct the first Roth
IRA custodian, trustee or issuer to transfer the first Roth IRA funds directly
to the recipient Roth IRA custodian, trustee or issuer. You can make direct
transfer transactions only between identical plan types (for example, Roth IRA
to Roth IRA). You can also make rollover transactions between identical plan
types. However, you can only use rollover transactions between different plan
types (for example, traditional IRA to Roth IRA).
You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to
Roth IRA direct transfer transactions. This can be accomplished on a completely
tax-free basis. However, you may make Roth IRA to Roth IRA rollover
transactions only once in any 12-month period for the same funds.
Trustee-to-trustee or custodian-to-custodian direct transfers can be made more
frequently than once a year. Also, if you send us the rollover contribution to
apply it to a Roth IRA, you must do so within 60 days after you receive the
proceeds from the original IRA to get rollover treatment.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some
cases, Roth IRAs can be transferred on a tax-free basis between spouses or
former spouses as a result of a court-ordered divorce or separation decree.
Conversion contributions to Roth IRAs
In a conversion rollover transaction, you withdraw (or are considered to have
withdrawn) all or a portion of funds from a traditional IRA you maintain and
convert it to a Roth IRA within 60 days after you receive (or are considered to
have received) the traditional IRA proceeds. Unlike a rollover from a
traditional IRA to another traditional IRA, the conversion rollover transaction
is not tax-free. Instead, the distribution from the traditional IRA is
generally fully taxable. For this reason, we are required to withhold 10%
federal income tax from the amount converted unless you elect out of such
withholding. If you have ever made nondeductible regular contributions to any
traditional IRA -- whether or not it is the traditional IRA you are converting
- -- a pro rata portion of the distribution is tax free.
There is, however, no early distribution penalty tax on the traditional IRA
withdrawal that you are converting to a Roth IRA, even if you are under age
59-1/2.
You cannot make conversion contributions to a Roth IRA for any taxable year in
which your modified adjusted gross income exceeds $100,000. (For this purpose,
your modified adjusted gross income is calculated without the gross income
stemming from the traditional IRA conversion. Beginning in 2005, modified
adjusted gross income for this purpose will also exclude any lifetime required
minimum distribution from a traditional IRA.) You also cannot make conversion
contributions to a Roth IRA for any taxable year in which your federal income
tax filing status is "married filing separately."
You cannot make conversion contributions to a Roth IRA to the extent that the
funds in your traditional IRA are subject to the annual required minimum
distribution rule applicable to traditional IRAs beginning at age 70-1/2.
You cannot convert and reconvert an amount during the same taxable year, or if
later, during the 30-day period following a recharacterization. If you
reconvert during either of these periods, it will be a failed Roth IRA
conversion.
Recharacterizations
You may be able to treat a contribution made to one type of IRA as having been
made to a different type of IRA. This is called recharacterizing the
contribution.
How to recharacterize. To recharacterize a contribution, you generally must
have the contribution transferred from the first IRA (the one to which it was
made) to the second IRA in a deemed trustee-to-trustee transfer. If the
transfer is made by the due date (including extensions) for your tax return for
the year during which the contribution was made, you can elect to treat the
contribution as having been originally made to the second IRA instead of to the
first IRA. It will be treated as having been made to the second IRA on the same
date that it was actually made to the first IRA. You must report the
recharacterization and must treat the contribution as having been made to the
second IRA, instead of the first IRA, on your tax return for the year during
which the contribution was made.
Tax information 57
The contribution will not be treated as having been made to the second IRA
unless the transfer includes any net income allocable to the contribution. You
can take into account any loss on the contribution while it was in the IRA when
calculating the amount that must be transferred. If there was a loss, the net
income you must transfer may be a negative amount.
No deduction is allowed for the contribution to the first IRA and any net
income transferred with the recharacterized contribution is treated as earned
in the second IRA. The contribution will not be treated as having been made to
the second IRA to the extent any deduction was allowed with respect to the
contribution to the first IRA.
For recharacterization purposes, a distribution from a traditional IRA that is
received in one tax year and rolled over into a Roth IRA in the next year, but
still within 60 days of the distribution from the traditional IRA, is treated
as a contribution to the Roth IRA in the year of the distribution from the
traditional IRA.
Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be
recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or
SIMPLE IRA).
To recharacterize a contribution, you must use our forms.
The recharacterization of a contribution is not treated as a rollover for
purposes of the 12-month limitation period described above. This rule applies
even if the contribution would have been treated as a rollover contribution by
the second IRA if it had been made directly to the second IRA rather than as a
result of a recharacterization of a contribution to the first IRA.
Withdrawals, payments and transfers of funds out of Roth IRAs
No federal income tax law restrictions on withdrawals. You can withdraw any or
all of your funds from a Roth IRA at any time; you do not need to wait for a
special event like retirement.
Distributions from Roth IRAs
Distributions include withdrawals from your contract, surrender of your
contract and annuity payments from your contract. Death benefits are also
distributions.
You must keep your own records of regular and conversion contributions to all
Roth IRAs to assure appropriate taxation. You may have to file information on
your contributions to and distributions from any Roth IRA on your tax return.
You may have to retain all income tax returns and records pertaining to such
contributions and distributions until your interests in all Roth IRAs are
distributed.
Like traditional IRAs, taxable distributions from a Roth IRA are not entitled
to the special favorable ten-year averaging and long-term capital gain
treatment available in limited cases to certain distributions from qualified
plans.
The following distributions from Roth IRAs are free of income tax:
o rollovers from a Roth IRA to another Roth IRA;
o direct transfers from a Roth IRA to another Roth IRA;
o qualified distributions from a Roth IRA; and
o return of excess contributions or amounts recharacterized to a traditional
IRA.
Qualified distributions from Roth IRAs. Qualified distributions from Roth IRAs
made because of one of the following four qualifying events or reasons are not
includable in income:
o you are age 59-1/2 or older; or
o you die; or
o you become disabled (special federal income tax definition); or
o your distribution is a "qualified first-time homebuyer distribution"
(special federal income tax definition; $10,000 lifetime total limit for
these distributions from all of your traditional and Roth IRAs).
You also have to meet a five-year aging period. A qualified distribution is any
distribution made after the five-taxable- year period beginning with the first
taxable year for which you made any contribution to any Roth IRA (whether or
not the one from which the distribution is being made).
Nonqualified distributions from Roth IRAs. Nonqualified distributions from
Roth IRAs are distributions that do not meet both the qualifying event and
five-year aging period tests described above. If you receive such a
distribution, part of it may be taxable. For purposes of determining the
correct tax treatment of distributions (other than the withdrawal of excess
contributions and the earnings on them), there is a set order in which
contributions (including conversion contributions) and earnings are considered
to be distributed from your Roth IRA. The order of distributions is as follows:
(1) Regular contributions.
(2) Conversion contributions, on a first-in-first-out basis (generally, total
conversions from the earliest year first). These conversion contributions
are taken into account as follows:
(a) Taxable portion (the amount required to be included in gross income
because of conversion) first, and then the
(b) Nontaxable portion.
(3) Earnings on contributions.
Rollover contributions from other Roth IRAs are disregarded for this purpose.
To determine the taxable amount distributed, distributions and contributions
are aggregated or grouped together as follows:
(1) All distributions made during the year from all Roth IRAs you maintain --
with any custodian or issuer -- are added together.
(2) All regular contributions made during and for the year (contributions made
after the close of the year, but before the due date of your return) are
added together. This total is added to the total undistributed regular
contributions made in prior years.
(3) All conversion contributions made during the year are added together. For
purposes of the ordering rules, in the case of any conversion in which the
conversion distribution is made in 2005
58 Tax information
and the conversion contribution is made in 2006, the conversion
contribution is treated as contributed prior to other conversion
contributions made in 2006.
Any recharacterized contributions that end up in a Roth IRA are added to the
appropriate contribution group for the year that the original contribution
would have been taken into account if it had been made directly to the Roth
IRA.
Any recharacterized contribution that ends up in an IRA other than a Roth IRA
is disregarded for the purpose of grouping both contributions and
distributions. Any amount withdrawn to correct an excess contribution
(including the earnings withdrawn) is also disregarded for this purpose.
Required minimum distributions during life
Lifetime required minimum distributions do not apply.
Required minimum distributions at death
Same as traditional IRA under "What are the required minimum distribution
payments after you die?"
Payments to a beneficiary after your death
Distributions to a beneficiary generally receive the same tax treatment as if
the distribution had been made to you.
Borrowing and loans are prohibited transactions
Same as traditional IRA.
Excess contributions
Generally the same as traditional IRA, except that regular contributions made
after age 70-1/2 are not excess contributions.
Excess rollover contributions to Roth IRAs are contributions not eligible to be
rolled over (for example, conversion contributions from a traditional IRA if
your modified adjusted gross income is in excess of $100,000 in the conversion
year).
You can withdraw or recharacterize any contribution to a Roth IRA before the
due date (including extensions) for filing your federal income tax return for
the tax year. If you do this, you must also withdraw or recharacterize any
earnings attributable to the contribution.
Early distribution penalty tax
Same as traditional IRA.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
General
This section of the Prospectus covers some of the special tax rules that apply
to TSA contracts under Section 403(b) of the Internal Revenue Code (TSAs). If
the rules are the same as those that apply to another kind of contract, for
example, traditional IRAs, we will refer you to the same topic under
"traditional IRAs."
PLEASE NOTE: The following discussion reflects our understanding of some of the
current federal income tax rules applicable to Section 403(b) of the Code. The
IRS and Treasury have recently issued Proposed Regulations on Section 403(b) of
the Code. If finalized in their current form, these Proposed Regulations would
affect the establishment and operation of plans and arrangements under Section
403(b) of the Code, and the contracts issued to fund such plans. Please consult
your tax adviser concerning how these Proposed Regulations could affect you.
Generally there are two types of funding vehicles available for 403(b)
arrangements -- an annuity contract under Section 403(b)(1) of the Code or a
custodial account which invests only in mutual funds and which is treated as an
annuity contract under Section 403(b)(7) of the Code. Both types of 403(b)
arrangements qualify for tax deferral.
Protection Plus(SM) feature
The Protection Plus(SM) feature was offered for Rollover TSA contracts, subject
to state and contract availability. There is no assurance that the contract with
the Protection Plus(SM) feature meets the qualification requirements for TSAs.
There is a limit to the amount of life insurance benefits that TSAs may offer.
Although we view the optional Protection Plus(SM) benefit as an investment
protection feature which should have no adverse tax effect and not as a life
insurance benefit, it is possible that the IRS could take a contrary position
regarding tax qualification or assert that the Protection Plus(SM) rider is not
a permissible part of a TSA contract. If the IRS were to take the position that
the optional Protection Plus(SM) benefit is not part of the contract, in such a
case, the charges for the Protection Plus(SM) rider could be treated for federal
income tax purposes as a partial withdrawal from the contract. If this were so,
such a deemed withdrawal could affect the tax qualification of the TSA and could
be taxable. Were the IRS to take any adverse position, AXA Equitable would take
all reasonable steps to attempt to avoid any adverse result, which would include
amending the contract (with appropriate notice to you). You should consult with
your tax adviser for further information.
Contributions to TSAs
There were two ways you might have contributed to establish this Accumulator(R)
Select(SM) Rollover TSA contract:
o a full or partial direct transfer of assets ("direct transfer") from
another contract or arrangement that met the requirements of Section 403(b)
of the Internal Revenue Code by means of IRS Revenue Ruling 90-24; or
o a rollover from another 403(b) arrangement.
If you made a direct transfer, you filled out our transfer form.
We do not accept after-tax contribution rollovers to the Accumulator(R)
Select(SM) TSA.
Employer-remitted contributions. The Accumulator(R) Select(SM) Rollover TSA
contract does not accept employer-remitted contributions. However, we provide
the following discussion as part of our description of restrictions on the
distribution of funds directly transferred, which include employer-remitted
contributions to other TSAs.
Employer-remitted contributions to TSAs made through the employer's payroll are
subject to annual limits. (Tax-free direct transfer contributions from another
403(b) arrangement and rollover contributions from another eligible retirement
plan are not subject to these annual contribution limits.) Commonly, some or
all of the contributions made to a TSA are made under a salary reduction
agreement between the
Tax information 59
employee and the employer. These contributions are called "salary reduction" or
"elective deferral" contributions. However, a TSA can also be wholly or
partially funded through nonelective employer contributions or after-tax
employee contributions. Amounts attributable to salary reduction contributions
to TSAs are generally subject to withdrawal restrictions. Also, all amounts
attributable to investments in a 403(b)(7) custodial account are subject to
withdrawal restrictions discussed below.
Rollover or direct transfer contributions. Once you establish your Rollover
TSA contract with 403(b)-source funds, you may make rollover contributions to
your Rollover TSA contract from these sources: qualified plans, governmental
employer 457(b) plans, other TSAs and 403(b) arrangements and traditional IRAs.
All rollover contributions must be pre-tax funds only with appropriate
documentation satisfactory to us.
Generally, you may make a rollover contribution to your TSA when you have a
distributable event from an existing TSA or other eligible retirement plan as a
result of your:
o termination of employment with the employer who provided the funds for the
plan; or
o reaching age 59-1/2 even if you are still employed; or
o disability (special federal income tax definition).
You can roll over pre-tax funds from a traditional IRA to a TSA at any time.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental employer 457(b) plan are not subject to the
additional 10% federal income tax penalty for premature distributions, but they
may become subject to this penalty if you roll the funds to a different type of
eligible retirement plan and subsequently take a premature distribution.
If the recipient plan separately accounts for funds rolled over from another
eligible retirement plan, the IRS has ruled that an exception is available in
certain situations to withdrawal restrictions that would otherwise apply to the
rollover contribution funds in the recipient plan. We do not currently
separately account for rollover contributions from other eligible retirement
plans.
A transfer occurs when changing the funding vehicle, even if there is no
distributable event. Under a direct transfer, you do not receive a
distribution. We accept direct transfers of TSA funds under Revenue Ruling
90-24 only if:
o you give us acceptable written documentation as to the source of the funds,
and
o the Accumulator(R) Select(SM) contract receiving the funds has provisions
at least as restrictive as the source contract.
Before you transfer funds to an Accumulator(R) Select(SM) Rollover TSA contract,
you may have to obtain your employer's authorization or demonstrate that you do
not need employer authorization. For example, the transferring TSA may be
subject to Title I of ERISA, if the employer makes matching contributions to
salary reduction contributions made by employees. In that case, the employer
must continue to approve distributions from the plan or contract.
Your contribution to the Accumulator(R) Select(SM) TSA must be net of the
required minimum distribution for the tax year in which we issue the contract
if:
o you are or will be at least age 70-1/2 in the current calendar year, and
o you have retired from service with the employer who provided the funds to
purchase the TSA you are transferring or rolling over to the Accumulator(R)
Select(SM) Rollover TSA.
This rule applies regardless of whether the source of funds is a:
o rollover by check of the proceeds from another TSA or eligible retirement
plan; or
o direct rollover from another TSA or eligible retirement plan; or
o direct transfer under Revenue Ruling 90-24 from another TSA.
Distributions from TSAs
General. Depending on the terms of the employer plan and your employment
status, you may have to get your employer's consent to take a loan or
withdrawal. Your employer will tell us this when you establish the TSA through
a direct transfer.
Withdrawal restrictions. If this is a Revenue Ruling 90-24 direct transfer, we
will treat all amounts transferred to this contract and any future earnings on
the amount transferred as not eligible for withdrawal until one of the
following events happens:
o you are severed from employment with the employer who provided the funds
to purchase the TSA you are transferring to the Accumulator(R) Select(SM)
Rollover TSA; or
o you reach age 59-1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o you take a hardship withdrawal (special federal income tax definition).
If any portion of the funds directly transferred to your TSA contract is
attributable to amounts that you invested in a 403(b)(7) custodial account,
such amounts, including earnings, are subject to withdrawal restrictions. With
respect to the portion of the funds that were never invested in a 403(b)(7)
custodial account, these restrictions apply to the salary reduction (elective
deferral) contributions to a TSA annuity contract you made and any earnings on
them. These restrictions do not apply to the amount directly transferred to
your TSA contract that represents your December 31, 1988, account balance
attributable to salary reduction contributions to a TSA annuity contract and
earnings. To take advantage of this grandfathering you must properly notify us
in writing at our processing office of your December 31, 1988, account balance
if you have qualifying amounts transferred to your TSA contract.
60 Tax information
This paragraph applies only to participants in a Texas Optional Retirement
Program. Texas Law permits withdrawals only after one of the following
distributable events occur:
(1) the requirements for minimum distribution (discussed under "Required
minimum distributions" later in this section) are met; or
(2) death; or
(3) retirement; or
(4) termination of employment in all Texas public institutions of higher
education.
For you to make a withdrawal, we must receive a properly completed written
acknowledgment from the employer. If a distributable event occurs before you
are vested, we will refund to the employer any amounts provided by an
employer's first-year matching contribution. We reserve the right to change
these provisions without your consent but only to the extent necessary to
maintain compliance with applicable law. Loans are not permitted under Texas
Optional Retirement Programs.
Tax treatment of distributions. Amounts held under TSAs are generally not
subject to federal income tax until benefits are distributed. Distributions
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSAs are includable in
gross income as ordinary income. Distributions from TSAs may be subject to 20%
federal income tax withholding. See "Federal and state income tax withholding
and information reporting" later in this section. In addition, TSA
distributions may be subject to additional tax penalties.
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since we currently do not accept
after-tax funds, we do not track your after-tax investment in the contract, if
any. We will report all distributions from this Rollover TSA as fully taxable.
It is your responsibility to determine how much of the distribution is taxable.
Distributions before annuity payments begin. On a total surrender, the amount
received in excess of the investment in the contract is taxable. The amount of
any partial distribution from a TSA prior to the annuity starting date is
generally taxable, except to the extent that the distribution is treated as a
withdrawal of after-tax contributions. Distributions are normally treated as
pro rata withdrawals of any contributions and earnings on those contributions.
Annuity payments. If you elect an annuity payout option, you will recover any
investment in the contract as each payment is received by dividing the
investment in the contract by an expected return determined under an IRS table
prescribed for qualified annuities. The amount of each payment not excluded
from income under this exclusion ratio is fully taxable. The full amount of the
payments received after your investment in the contract is recovered is fully
taxable. If you (and your beneficiary under a joint and survivor annuity) die
before recovering the full investment in the contract, a deduction is allowed
on your (or your beneficiary's) final tax return.
Payments to a beneficiary after your death. Death benefit distributions from a
TSA generally receive the same tax treatment as distributions during your
lifetime. In some instances, distributions from a TSA made to your surviving
spouse may be rolled over to a traditional IRA or other eligible retirement
plan.
Loans from TSAs. You may take loans from a TSA unless restricted by the
employer (for example, under an employer plan subject to ERISA). If you cannot
take a loan, or cannot take a loan without approval from the employer who
provided the funds, we will have this information in our records based on what
you and the employer who provided the TSA funds told us when you purchased your
contract.
Loans are generally not treated as a taxable distribution. If the amount of the
loan exceeds permissible limits under federal income tax rules when made, the
amount of the excess is treated (solely for tax purposes) as a taxable
distribution. Additionally, if the loan is not repaid at least quarterly,
amortizing (paying down) interest and principal, the amount not repaid when due
will be treated as a taxable distribution. The entire unpaid balance of the
loan is includable in income in the year of the default.
TSA loans are subject to federal income tax limits and may also be subject to
the limits of the plan from which the funds came. Federal income tax rule
requirements apply even if the plan is not subject to ERISA. For example, loans
offered by TSAs are subject to the following conditions:
o The amount of a loan to a participant, when combined with all other loans
to the participant from all qualified plans of the employer, cannot exceed
the lesser of:
(1) the greater of $10,000 or 50% of the participant's nonforfeitable
accrued benefits; and
(2) $50,000 reduced by the excess (if any) of the highest outstanding
loan balance over the previous twelve months over the outstanding loan
balance of plan loans on the date the loan was made.
o In general, the term of the loan cannot exceed five years unless the loan
is used to acquire the participant's primary residence. Accumulator(R)
Select(SM) Rollover TSA contracts have a term limit of 10 years for loans
used to acquire the participant's primary residence.
o All principal and interest must be amortized in substantially level
payments over the term of the loan, with payments being made at least
quarterly. In very limited circumstances, the repayment obligation may be
temporarily suspended during a leave of absence.
The amount borrowed and not repaid may be treated as a distribution if:
o the loan does not qualify under the conditions above;
Tax information 61
o the participant fails to repay the interest or principal when due; or
o in some instances, the participant separates from service with the employer
who provided the funds or the plan is terminated.
In this case, the participant may have to include the unpaid amount due as
ordinary income. In addition, the 10% early distribution penalty tax may apply.
The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as
a distribution.
Tax-deferred rollovers and direct transfers. You may roll over any "eligible
rollover distribution" from a TSA into another eligible retirement plan which
agrees to accept the rollover. The rollover may be a direct rollover or one you
do yourself within 60 days after you receive the distribution. To the extent
rolled over, a distribution remains tax-deferred.
You may roll over a distribution from a TSA to any of the following: a
qualified plan, a governmental employer 457(b) plan (separate accounting
required) or a traditional IRA. A spousal beneficiary may also roll over death
benefits as above.
The taxable portion of most distributions will be eligible for rollover, except
as specifically excluded under federal income tax rules. Distributions that you
cannot roll over generally include periodic payments for life or for a period
of 10 years or more, hardship withdrawals and required minimum distributions
under federal income tax rules.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling
90-24 are not distributions.
Required minimum distributions
Generally the same as traditional IRA with these differences:
When you have to take the first required minimum distribution. The minimum
distribution rules force TSA participants to start calculating and taking
annual distributions from their TSAs by a required date. Generally, you must
take the first required minimum distribution for the calendar year in which you
turn age 70-1/2. You may be able to delay the start of required minimum
distributions for all or part of your account balance until after age 70-1/2,
as follows:
o For TSA participants who have not retired from service with the employer
who provided the funds for the TSA by the calendar year the participant
turns age 70-1/2, the required beginning date for minimum distributions is
extended to April 1 following the calendar year of retirement.
o TSA plan participants may also delay the start of required minimum
distributions to age 75 of the portion of their account value attributable
to their December 31, 1986, TSA account balance, even if retired at age
70-1/2. We will know whether or not you qualify for this exception because
it will only apply to people who establish their Accumulator(R) Select(SM)
Rollover TSA by direct Revenue Ruling 90-24 transfers. If you do not give
us the amount of your December 31, 1986, account balance that is being
transferred to the Accumulator(R) Select(SM) Rollover TSA on the form used
to establish the TSA, you do not qualify.
Spousal consent rules
This only applies to you if you established your Accumulator(R) Select(SM)
Rollover TSA by direct Revenue Ruling 90-24 transfer. Your employer will tell
us on the form used to establish the TSA whether or not you need to get spousal
consent for loans, withdrawals or other distributions. If you do, you will need
such consent if you are married when you request a withdrawal under the TSA
contract. In addition, unless you elect otherwise with the written consent of
your spouse, the retirement benefits payable under the plan must be paid in the
form of a qualified joint and survivor annuity. A qualified joint and survivor
annuity is payable for the life of the annuitant with a survivor annuity for
the life of the spouse in an amount not less than one-half of the amount
payable to the annuitant during his or her lifetime. In addition, if you are
married, the beneficiary must be your spouse, unless your spouse consents in
writing to the designation of another beneficiary.
If you are married and you die before annuity payments have begun, payments
will be made to your surviving spouse in the form of a life annuity unless at
the time of your death a contrary election was in effect. However, your
surviving spouse may elect, before payments begin, to receive payments in any
form permitted under the terms of the TSA contract and the plan of the employer
who provided the funds for the TSA.
Early distribution penalty tax
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a TSA before you reach age 59-1/2. This is in addition to
any income tax. There are exceptions to the extra penalty tax. Some of the
available exceptions to the pre-age 59-1/2 penalty tax include distributions
made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o to pay for certain extraordinary medical expenses (special federal income
tax definition); or
o in any form of payout after you have separated from service (only if the
separation occurs during or after the calendar year you reach age 55); or
o in a payout in the form of substantially equal periodic payments made at
least annually over your life (or your life expectancy), or
62 Tax information
over the joint lives of you and your beneficiary (or your joint life
expectancies) using an IRS-approved distribution method (only after you
have separated from service at any age).
FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING
We must withhold federal income tax from distributions from annuity contracts.
You may be able to elect out of this income tax withholding in some cases.
Generally, we do not have to withhold if your distributions are not taxable.
The rate of withholding will depend on the type of distribution and, in certain
cases, the amount of your distribution. Any income tax withheld is a credit
against your income tax liability. If you do not have sufficient income tax
withheld or do not make sufficient estimated income tax payments, you may incur
penalties under the estimated income tax rules.
You must file your request not to withhold in writing before the payment or
distribution is made. Our processing office will provide forms for this
purpose. You cannot elect out of withholding unless you provide us with your
correct Taxpayer Identification Number and a United States residence address.
You cannot elect out of withholding if we are sending the payment out of the
United States.
You should note the following special situations:
o We might have to withhold and/or report on amounts we pay under a free look
or cancellation.
o We are generally required to withhold on conversion rollovers of
traditional IRAs to Roth IRAs, as it is considered a withdrawal from the
traditional IRA and is taxable.
o We are required to withhold on the gross amount of a distribution from a
Roth IRA to the extent it is reasonable for us to believe that a
distribution is includable in your gross income. This may result in tax
being withheld even though the Roth IRA distribution is ultimately not
taxable. You can elect out of withholding as described below.
Special withholding rules apply to foreign recipients and United States
citizens residing outside the United States. We do not discuss these rules here
in detail. However we may require additional documentation in the case of
payments made to non United States persons and United States persons living
abroad prior to processing any requested transaction.
Certain states have indicated that state income tax withholding will also apply
to payments from the contracts made to residents. In some states, you may elect
out of state withholding, even if federal withholding applies. Generally, an
election out of federal withholding will also be considered an election out of
state withholding. If you need more information concerning a particular state
or any required forms, call our processing office at the toll-free number.
Federal income tax withholding on periodic annuity payments
We withhold differently on "periodic" and "non-periodic" payments. For a
periodic annuity payment, for example, unless you specify a different number of
withholding exemptions, we withhold assuming that you are married and claiming
three withholding exemptions. If you do not give us your correct Taxpayer
Identification Number, we withhold as if you are single with no exemptions.
Based on the assumption that you are married and claiming three withholding
exemptions, if you receive less than $17,760 in periodic annuity payments in
2005, your payments will generally be exempt from federal income tax
withholding. You could specify a different choice of withholding exemption or
request that tax be withheld. Your withholding election remains effective
unless and until you revoke it. You may revoke or change your withholding
election at any time.
Federal income tax withholding on non-periodic annuity payments (withdrawals)
For a non-periodic distribution (total surrender or partial withdrawal), we
generally withhold at a flat 10% rate. We apply that rate to the taxable amount
in the case of nonqualified contracts and to the payment amount in the case of
traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is
includable in gross income.
You cannot elect out of withholding if the payment is an eligible rollover
distribution from a TSA. If a non-periodic distribution from a TSA is not an
eligible rollover distribution then the 10% withholding rate applies.
Mandatory withholding from TSA distributions
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans and TSAs are subject to mandatory 20%
withholding. An eligible rollover distribution from a TSA can be rolled over to
another eligible retirement plan. All distributions from a TSA are eligible
rollover distributions unless they are on the following list of exceptions:
o any distributions which are required minimum distributions after age 70-1/2
or retirement from service with the employer; or
o substantially equal periodic payments made at least annually for
your life (or life expectancy) or the joint lives (or joint life
expectancies) of you and your designated beneficiary; or
o substantially equal periodic payments made for a specified period
of 10 years or more; or
o hardship withdrawals; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviving spouse;
or
o a qualified domestic relations order distribution to a beneficiary
who is not your current spouse or former spouse.
A death benefit payment to your surviving spouse, or a qualified domestic
relations order distribution to your current or former spouse, may be a
distribution subject to mandatory 20% withholding.
IMPACT OF TAXES TO AXA EQUITABLE
The contracts provide that we may charge Separate Account No. 49 for taxes. We
do not now, but may in the future set up reserves for such taxes.
Tax information 63
8. More information
- --------------------------------------------------------------------------------
ABOUT OUR SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 49. We
established Separate Account No. 49 in 1996 under special provisions of the New
York Insurance Law. These provisions prevent creditors from any other business
we conduct from reaching the assets we hold in our variable investment options
for owners of our variable annuity contracts. We are the legal owner of all of
the assets in Separate Account No. 49 and may withdraw any amounts that exceed
our reserves and other liabilities with respect to variable investment options
under our contracts. The results of Separate Account's operations are accounted
for without regard to AXA Equitable's other operations.
The Separate Account is registered under the Investment Company Act of 1940 and
is classified by that act as a "unit investment trust." The SEC, however, does
not manage or supervise AXA Equitable or the Separate Account.
Each subaccount (variable investment option) within Separate Account No. 49
invests solely in Class IB/B shares issued by the corresponding portfolio of
its Trusts.
We reserve the right subject to compliance with laws that apply:
(1) to add variable investment options to, or to remove variable investment
options from the Separate Account or to add other separate accounts;
(2) to combine any two or more variable investment options;
(3) to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment option
to another variable investment option;
(4) to operate the Separate Account or any variable investment option as a
management investment company under the Investment Company Act of 1940 (in
which case, charges and expenses that otherwise would be assessed against
an underlying mutual fund would be assessed against the Separate Account or
a variable investment option directly);
(5) to deregister the Separate Account under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to the Separate Account; and
(7) to cause one or more variable investment options to invest some or all of
their assets in one or more other trusts or investment companies.
ABOUT THE TRUSTS
EQ Advisors Trust and AXA Premier VIP Trust are registered under the Investment
Company Act of 1940. They are classified as "open-end management investment
companies," more commonly called mutual funds. Each Trust issues different
shares relating to each portfolio.
The Trusts do not impose sales charges or "loads" for buying and selling its
shares. All dividends and other distributions on Trust shares are reinvested in
full. The Board of Trustees of the Trusts may establish additional portfolios
or eliminate existing portfolios at any time. More detailed information about
each Trust, its portfolio investment objectives, policies, restrictions, risks,
expenses, its Rule 12b-1 Plan, and other aspects of its operations, appears in
the prospectuses for each Trust, or in their respective SAIs which generally
are available upon request.
ABOUT OUR FIXED MATURITY OPTIONS
RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE
We can determine the amount required to be allocated to one or more fixed
maturity options in order to produce specified maturity values. For example, we
can tell you how much you need to allocate per $100 of maturity value.
FMO rates are determined daily. The rates in the table below are illustrative
only and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
The rates to maturity for new allocations as of February 15, 2005 and the
related price per $100 of maturity value were as shown below.
- --------------------------------------------------------------------------------
Fixed Maturity Options
with February 15th
Maturity Date of Rate to Maturity as of Price Per $100 of
Maturity Year February 15, 2005 Maturity Value
- --------------------------------------------------------------------------------
2006 3.00%* $ 97.09
2007 3.00%* $ 94.26
2008 3.00%* $ 91.51
2009 3.00%* $ 88.84
2010 3.00%* $ 86.25
2011 3.00%* $ 83.74
2012 3.00%* $ 81.30
2013 3.08% $ 78.44
2014 3.22% $ 75.17
2015 3.32% $ 72.12
- --------------------------------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated
to these options.
HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT
We use the following procedure to calculate the market value adjustment (up or
down) we make if you withdraw all of your value from a fixed maturity option
before its maturity date.
(1) We determine the market adjusted amount on the date of the withdrawal as
follows:
(a) We determine the fixed maturity amount that would be payable on the
maturity date, using the rate to maturity for the fixed maturity
option.
64 More information
(b) We determine the period remaining in your fixed maturity option (based
on the withdrawal date) and convert it to fractional years based on a
365-day year. For example, three years and 12 days becomes 3.0329.
(c) We determine the current rate to maturity for your FMO based on the
rate for a new FMO issued on the same date and having the same
maturity date as your FMO; if the same maturity date is not available
for new FMOs, we determine a rate that is between the rates for new
FMO maturities that immediately precede and immediately follow your
FMOs maturity date.
(d) We determine the present value of the fixed maturity amount payable at
the maturity date, using the period determined in (b) and the rate
determined in (c).
(2) We determine the fixed maturity amount as of the current date.
(3) We subtract (2) from the result in (1)(d). The result is the market value
adjustment applicable to such fixed maturity option, which may be positive
or negative.
If you withdraw only a portion of the amount in a fixed maturity option, the
market value adjustment will be a percentage of the market value adjustment
that would have applied if you had withdrawn the entire value in that fixed
maturity option. This percentage is equal to the percentage of the value in the
fixed maturity option that you are withdrawing. See Appendix II at the end of
this Prospectus for an example.
For purposes of calculating the rate to maturity for new allocations to a fixed
maturity option (see (1)(c) above), we use the rate we have in effect for new
allocations to that fixed maturity option. We use this rate even if new
allocations to that option would not be accepted at that time. This rate will
not be less than 3%. If we do not have a rate to maturity in effect for a fixed
maturity option to which the "current rate to maturity" in (1)(c) above would
apply, we will use the rate at the next closest maturity date. If we are no
longer offering new fixed maturity option, the "current rate to maturity" will
be determined by using a widely-published Index. We reserve the right to add up
to 0.25% to the current rate in (1)(c) above for purposes of calculating the
market value adjustment only.
INVESTMENTS UNDER THE FIXED MATURITY OPTIONS
Amounts allocated to the fixed maturity options are held in a "nonunitized"
separate account we have established under the New York Insurance Law. This
separate account provides an additional measure of assurance that we will make
full payment of amounts due under the fixed maturity options. Under New York
Insurance Law, the portion of the separate account's assets equal to the
reserves and other contract liabilities relating to the contracts are not
chargeable with liabilities from any other business we may conduct. We own the
assets of the separate account, as well as any favorable investment performance
on those assets. You do not participate in the performance of the assets held
in this separate account. We may, subject to state law that applies, transfer
all assets allocated to the separate account to our general account. We
guarantee all benefits relating to your value in the fixed maturity options,
regardless of whether assets supporting fixed maturity options are held in a
separate account or our general account.
We expect the rates to maturity for the fixed maturity options to be influenced
by, but not necessarily correspond to, among other things, the yields that we
can expect to realize on the separate account's investments from time to time.
Our current plans are to invest in fixed-income obligations, including
corporate bonds, mortgage-backed and asset-backed securities, and government
and agency issues having durations in the aggregate consistent with those of
the fixed maturity options.
Although the above generally describes our plans for investing the assets
supporting our obligations under the fixed maturity options under the
contracts, we are not obligated to invest those assets according to any
particular plan except as we may be required to by state insurance laws. We
will not determine the rates to maturity we establish by the performance of the
nonunitized separate account.
ABOUT THE GENERAL ACCOUNT
Our general account supports all of our policy and contract guarantees,
including those that apply to the guaranteed interest option and fixed maturity
options, as well as our general obligations.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations
of all jurisdictions where we are authorized to do business. Because of
exemptions and exclusionary provisions that apply, interests in the general
account have not been registered under the Securities Act of 1933, nor is the
general account an investment company under the Investment Company Act of 1940.
However, the market value adjustment interests under the contracts are
registered under the Securities Act of 1933.
We have been advised that the staff of the SEC has not reviewed the portions of
this Prospectus that relate to the general account (other than market value
adjustment interests). The disclosure with regard to the general account,
however, may be subject to certain provisions of the federal securities laws
relating to the accuracy and completeness of statements made in prospectuses.
ABOUT OTHER METHODS OF PAYMENT
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept subsequent contributions sent by wire to our processing office by
agreement with certain broker-dealers. Such transmittals must be accompanied by
information we require to allocate your contribution. Wire orders not
accompanied by complete information may be retained as described under "How you
can make your contributions" in "Contract features and benefits" earlier in
this Prospectus.
Even if we accepted the wire order and essential information, a contract
generally was not issued until we received and accepted a properly completed
application. In certain cases, we may have issued a contract based on
information provided through certain broker-dealers with whom we have
established electronic facilities. In any such case, you must have signed our
Acknowledgement of Receipt form.
More information 65
Where we required a signed application, the above procedures did not apply and
no financial transactions were permitted until we received the signed
application and issued the contract. Where we issued a contract based on
information provided though electronic facilities, we required an
Acknowledgement of Receipt form. Financial transactions were only permitted if
you requested them in writing, signed the request and had it signature granted,
until we received the signed Acknowledgement of Receipt form. After a contract
is issued, additional contributions are allowed by wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY
You may use our automatic investment program, or "AIP," to have a specified
amount automatically deducted from a checking account, money market account, or
credit union checking account and contributed as an additional contribution
into an NQ contract on a monthly or quarterly basis. AIP is not available for
Rollover IRA, Roth Conversion IRA or Rollover TSA contracts.
The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP
additional contributions may be allocated to any of the variable investment
options and available fixed maturity options. You choose the day of the month
you wish to have your account debited. However, you may not choose a date later
than the 28th day of the month.
You may cancel AIP at any time by notifying our processing office. We are not
responsible for any debits made to your account before the time written notice
of cancellation is received at our processing office.
DATES AND PRICES AT WHICH CONTRACT
EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this Prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our business day, generally, is any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions. Our business day generally ends at 4:00 p.m. Eastern Time for
purposes of determining the date when contributions are applied and any other
transaction requests are processed. Contributions will be applied and any other
transaction requests will be processed when they are received along with all
the required information unless another date applies as indicated below.
o If your contribution, transfer or any other transaction request, containing
all the required information, reaches us on a non-business day or after
4:00 p.m. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then
the transaction will occur on the 1st day of the next month.
o When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
o If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your
contribution will be considered received at the time your broker-dealer
receives your contribution and all information needed to process your
application, along with any required documents, and transmits your order to
us in accordance with our processing procedures. Such arrangements may
apply to initial contributions, subsequent contributions, or both, and may
be commenced or terminated at any time without prior notice. If required by
law, the "closing time" for such orders will be earlier than 4 p.m.,
Eastern Time.
CONTRIBUTIONS AND TRANSFERS
o Contributions allocated to the variable investment options are invested at
the value next determined after the close of the business day.
o Contributions allocated to the guaranteed interest option will receive the
crediting rate in effect on that business day for the specified time
period.
o Contributions allocated to a fixed maturity option will receive the rate to
maturity in effect for that fixed maturity option on that business day
(unless a rate lock-in is applicable).
o Transfers to or from variable investment options will be made at the value
next determined after the close of the business day.
o Transfers to a fixed maturity option will be based on the rate to maturity
in effect for that fixed maturity option on the business day of the
transfer.
o Transfers to the guaranteed interest option will receive the crediting rate
in effect on that business day for the specified time period.
o For the interest sweep option, the first monthly transfer will occur on the
last business day of the month following the month that we receive your
election form at our processing office.
ABOUT YOUR VOTING RIGHTS
As the owner of the shares of the Trusts we have the right to vote on certain
matters involving the portfolios, such as:
o the election of trustees; or
66 More information
o the formal approval of independent public accounting firms selected for
each Trust; or
o any other matters described in each prospectus for the Trusts or requiring
a shareholders' vote under the Investment Company Act of 1940.
We will give contract owners the opportunity to instruct us how to vote the
number of shares attributable to their contracts if a shareholder vote is
taken. If we do not receive instructions in time from all contract owners, we
will vote the shares of a portfolio for which no instructions have been
received in the same proportion as we vote shares of that portfolio for which
we have received instructions. We will also vote any shares that we are
entitled to vote directly because of amounts we have in a portfolio in the same
proportions that contract owners vote.
VOTING RIGHTS OF OTHERS
Currently, we control the Trusts. Their shares are sold to our separate
accounts and an affiliated qualified plan trust. In addition, shares of the
Trusts are held by separate accounts of insurance companies both affiliated and
unaffiliated with us. Shares held by these separate accounts will probably be
voted according to the instructions of the owners of insurance policies and
contracts issued by those insurance companies. While this will dilute the
effect of the voting instructions of the contract owners, we currently do not
foresee any disadvantages because of this. The Board of Trustees of each Trust
intends to monitor events in order to identify any material irreconcilable
conflicts that may arise and to determine what action, if any, should be taken
in response. If we believe that a response to any of those events
insufficiently protects our contract owners, we will see to it that appropriate
action is taken.
SEPARATE ACCOUNT NO. 49 VOTING RIGHTS
If actions relating to the Separate Account require contract owner approval,
contract owners will be entitled to one vote for each unit they have in the
variable investment options. Each contract owner who has elected a variable
annuity payout option may cast the number of votes equal to the dollar amount
of reserves we are holding for that annuity in a variable investment option
divided by the annuity unit value for that option. We will cast votes
attributable to any amounts we have in the variable investment options in the
same proportion as votes cast by contract owners.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this Prospectus are created under applicable
federal securities laws. To the extent that those laws or the regulations
published under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
ABOUT LEGAL PROCEEDINGS
AXA Equitable and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings would be considered material with respect
to a contract owner's interest in Separate Account No. 49, nor would any of
these proceedings be likely to have a material adverse effect upon the Separate
Account, our ability to meet our obligations under the contracts, or the
distribution of the contracts.
ABOUT OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The consolidated financial statements of AXA Equitable at December 31, 2004 and
2003, and for the three years ended December 31, 2004 incorporated in this
Prospectus by reference to the 2004 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, the independent
registered public accounting firm, given on the authority of said firm as
experts in auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 49, as well as the
consolidated financial statements of AXA Equitable, are in the SAI. The SAI is
available free of charge. You may request one by writing to our processing
office or calling 1-800-789-7771.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING
You can transfer ownership of an NQ contract at any time before annuity
payments begin. We will continue to treat you as the owner until we receive
written notification of any change at our processing office. You cannot assign
your NQ contract as collateral or security for a loan. Loans are also not
available under your NQ contract. In some cases, an assignment or change of
ownership may have adverse tax consequences. See "Tax information" earlier in
this Prospectus.
You cannot assign or transfer ownership of Rollover IRA, Roth Conversion IRA or
Rollover TSA contract except by surrender to us. If your individual retirement
annuity contract is held in your custodial individual retirement account, you
may only assign or transfer ownership of such an IRA contract to yourself.
Loans are not available and you cannot assign Rollover IRA, Roth Conversion IRA
or Rollover TSA contracts as security for a loan or other obligation. If the
employer that provided the funds does not restrict them, loans are available
under a Rollover TSA contract.
For limited transfers of ownership after the owner's death see "Beneficiary
continuation option" in "Payment of death benefit" earlier in this Prospectus.
You may direct the transfer of the values under your Rollover IRA, Roth
Conversion IRA or Rollover TSA contract to another similar arrangement under
federal income tax rules. In the case of such a transfer which involves a
surrender of your contract, we will impose a withdrawal charge, if one applies.
DISTRIBUTION OF THE CONTRACTS
The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and
AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The
Distributors serve as principal underwriters of Separate Account No. 49. The
offering of the contracts is intended to be continuous.
More information 67
AXA Advisors (the successor to EQ Financial Consultants, Inc.), an affiliate of
AXA Equitable, and AXA Distributors, an indirect wholly owned subsidiary of AXA
Equitable, are registered with the SEC as broker-dealers and are members of the
National Association of Securities Dealers, Inc. ("NASD"). Their principal
business address is 1290 Avenue of the Americas, New York, NY 10104. Both
broker-dealers also act as distributors for other AXA Equitable annuity
products. AXA Distributors is a successor by merger to all of the functions,
rights and obligations of Equitable Distributors, Inc. ("EDI"). Like AXA
Distributors, EDI was owned by Equitable Holdings, LLC.
The contracts are sold by financial professionals of AXA Advisors and its
affiliates and by financial professionals of both affiliated and unaffiliated
broker-dealers that have entered into selling agreements with the Distributors
("Selling broker-dealers"). Affiliated broker-dealers include MONY Securities
Corporation ("MSC")* and Advest, Inc. The Distributors, MSC and Advest are all
under the common control of AXA Financial, Inc.
AXA Equitable pays sales compensation to both Distributors. In general,
broker-dealers receiving sales compensation will pay all or a portion of it to
its individual financial representatives (or to its Selling broker-dealers) as
commissions related to the sale of contracts.
Sales compensation paid to AXA Advisors will generally not exceed 8.5% of the
total contributions made under the contracts. AXA Advisors, in turn, may pay
its financial professionals (or Selling broker-dealers) either a portion of the
contribution-based compensation or a reduced portion of the contribution-based
compensation in combination with ongoing annual compensation ("asset-based
compensation") up to 1.00% of the account value of the contract sold, based on
the financial professional's choice. Contribution-based compensation, when
combined with asset-based compensation, could exceed 8.5% of the total
contributions made under the contracts.
Sales compensation paid to AXA Distributors will generally not exceed 2.00% of
the total contributions made under the contracts. AXA Distributors passes all
sales compensation it receives through to the Selling broker-dealer. The
Selling broker-dealer may elect to receive reduced contribution-based
compensation in combination with asset-based compensation of up to 1.25% of the
account value of all or a portion of the contracts sold through the
broker-dealer. Contribution-based compensation, when combined with asset-based
compensation, could exceed 2.00% of the total contributions made under the
contracts. The sales compensation we pay varies among broker-dealers. AXA
Distributors may also receive compensation and reimbursement for its marketing
services under the terms of its distribution agreement with AXA Equitable.
The Distributors may also pay certain affiliated and/or unaffiliated
broker-dealers and other financial intermediaries additional compensation for
certain services and/or in recognition of certain expenses that may be incurred
by them or on their behalf (commonly referred to as "marketing allowances").
Services for which such payments are made may include, but are not limited to,
the preferred placement of AXA Equitable and/or Accumulator(R) Select(SM) on a
company and/or product list; sales personnel training; due diligence and related
costs; marketing and related services; conferences; and/or other support
services, including some that may benefit the contract owner. Payments may be
based on the amount of assets or purchase payments attributable to contracts
sold through a broker-dealer. We may also make fixed payments to broker-dealers
in connection with the initiation of a new relationship or the introduction of a
new product. These payments may serve as an incentive for Selling broker-dealers
to promote the sale of our products. Additionally, as an incentive for financial
professionals of Selling broker-dealers to promote the sale of our products, we
may increase the sales compensation paid to the Selling broker-dealer for a
period of time (commonly referred to as "compensation enhancements"). These
types of payments are made out of the Distributors' assets. Not all Selling
broker-dealers receive additional compensation. For more information about any
such arrangements, ask your financial professional.
The Distributors will receive 12b-1 fees from certain portfolios for providing
certain distribution and/or shareholder support services. In connection with
portfolios offered through unaffiliated insurance trusts, the Distributors may
also receive other payments from the portfolio advisers and/or their affiliates
for administrative costs, as well as payments for sales meetings and/or seminar
sponsorships.
In an effort to promote the sale of our products, AXA Advisors may provide its
financial professionals and managerial personnel with a higher percentage of
sales commissions and/or compensation for the sale of an affiliated variable
product than it would the sale of an unaffiliated product. Such practice is
known as providing "differential compensation." Other forms of compensation
financial professionals may receive include health and retirement benefits. In
addition, managerial personnel may receive expense reimbursements, marketing
allowances and commission-based payments known as "overrides." For tax reasons,
AXA Advisors financial professionals qualify for health and retirement benefits
based solely on their sales of our affiliated products.
These payments and differential compensation (together, the "payments") can
vary in amount based on the applicable product and/or entity or individual
involved. As with any incentive, such payments may cause the financial
professional to show preference in recommending the purchase or sale of our
products. However, under applicable rules of the NASD, AXA Advisors may only
recommend to you products that they reasonably believe are suitable for you
based on facts that you have disclosed as to your other security holdings,
financial situation and needs. In making any recommendation, financial
professionals may nonetheless face conflicts of interest because of the
differences in compensation from one product category to another, and because
of differences in compensation between products in the same category.
In addition, AXA Advisors financial professionals who meet specified production
levels for the sale of both affiliated and unaffiliated products may qualify,
under sales incentive programs, to receive non-cash compensation such as stock
options awards and/or stock appreciation rights, expense-paid trips,
expense-paid educational seminars and merchandise.
- ----------
* On or about June 6, 2005, MSC financial professionals are expected to
become financial professionals of AXA Advisors. From that date forward,
former MSC financial professionals will be compensated by AXA Advisors, and
the Distributors will replace MSC as the principal underwriters of its
affiliated products.
68 More information
Although AXA Equitable takes all of its costs into account in establishing the
level of fees and expenses in our products, any compensation paid will not
result in any separate charge to you under your contract. All payments made
will be in compliance with all applicable NASD rules and other laws and
regulations.
More information 69
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
AXA Equitable's annual report on Form 10-K for the year ended December 31,
2004, is considered to be a part of this Prospectus because it is incorporated
by reference.
After the date of this Prospectus and before we terminate the offering of the
securities under this Prospectus, all documents or reports we file with the SEC
under the Securities Exchange Act of 1934 ("Exchange Act"), will be considered
to become part of this Prospectus because they are incorporated by reference.
Any statement contained in a document that is or becomes part of this
Prospectus, will be considered changed or replaced for purposes of this
Prospectus if a statement contained in this Prospectus changes or is replaced.
Any statement that is considered to be a part of this Prospectus because of its
incorporation will be considered changed or replaced for the purpose of this
Prospectus if a statement contained in any other subsequently filed document
that is considered to be part of this Prospectus changes or replaces that
statement. After that, only the statement that is changed or replaced will be
considered to be part of this Prospectus.
We file our Exchange Act documents and reports, including our Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR
under CIK No. 0000727920. The SEC maintains a website that contains reports,
proxy and information statements, and other information regarding registrants
that file electronically with the SEC. The address of the website is
www.sec.gov.
Upon written or oral request, we will provide, free of charge, to each person
to whom this Prospectus is delivered, a copy of any or all of the documents
considered to be part of this Prospectus because they are incorporated herein.
This does not include exhibits not specifically incorporated by reference into
the text of such documents. Requests for documents should be directed to AXA
Equitable Life Insurance Company of the United States, 1290 Avenue of the
Americas, New York, New York 10104. Attention: Corporate Secretary (telephone:
(212) 554-1234).
70 Incorporation of certain documents by reference
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account 49 with the same daily asset charges of 1.70%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004
- ------------------------------------------------------------------------------------------------
For the years ending
December 31,
-------------------------------
2004 2003 2002
- ------------------------------------------------------------------------------------------------
AXA Aggressive Allocation
- ------------------------------------------------------------------------------------------------
Unit value $ 11.72 $ 10.66 --
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 656 32 --
- ------------------------------------------------------------------------------------------------
AXA Conservative Allocation
- ------------------------------------------------------------------------------------------------
Unit value $ 10.74 $ 10.30 --
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 281 1 --
- ------------------------------------------------------------------------------------------------
AXA Conservative-Plus Allocation
- ------------------------------------------------------------------------------------------------
Unit value $ 11.02 $ 10.41 --
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 414 84 --
- ------------------------------------------------------------------------------------------------
AXA Moderate Allocation
- ------------------------------------------------------------------------------------------------
Unit value $ 41.36 $ 38.70 $ 33.05
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 893 383 86
- ------------------------------------------------------------------------------------------------
AXA Moderate-Plus Allocation
- ------------------------------------------------------------------------------------------------
Unit value $ 11.71 $ 10.66 --
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,788 46 --
- ------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ------------------------------------------------------------------------------------------------
Unit value $ 50.38 $ 45.72 $ 33.82
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 28 10 4
- ------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ------------------------------------------------------------------------------------------------
Unit value $ 11.07 $ 10.84 $ 10.63
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,424 1,202 628
- ------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ------------------------------------------------------------------------------------------------
Unit value $ 10.93 $ 9.91 $ 7.87
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 284 143 57
- ------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ------------------------------------------------------------------------------------------------
Unit value $ 27.64 $ 25.87 $ 21.48
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 771 557 125
- ------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ------------------------------------------------------------------------------------------------
Unit value $ 11.90 $ 10.27 $ 7.78
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 806 360 135
- ------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ------------------------------------------------------------------------------------------------
Unit value $ 10.34 $ 9.59 $ 7.61
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 272 238 104
- ------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- ------------------------------------------------------------------------------------------------
Unit value $ 9.10 $ 8.68 $ 6.76
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 876 792 408
- ------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ------------------------------------------------------------------------------------------------
Unit value $ 11.42 $ 10.15 $ 7.88
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,242 726 316
- ------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- ------------------------------------------------------------------------------------------------
Unit value $ 9.35 $ 8.52 $ 6.18
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,055 731 292
- ------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- ------------------------------------------------------------------------------------------------
For the years ending
December 31,
-------------------------------
2004 2003 2002
- ------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------
Unit value $ 11.49 $ 10.15 $ 7.34
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,011 560 206
- ------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ------------------------------------------------------------------------------------------------
Unit value $ 9.02 $ 8.74 $ 5.64
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 306 98 14
- ------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ------------------------------------------------------------------------------------------------
Unit value $ 214.55 $ 191.26 $ 130.09
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 64 29 9
- ------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ------------------------------------------------------------------------------------------------
Unit value $ 27.18 $ 24.60 $ 19.19
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 549 371 133
- ------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- ------------------------------------------------------------------------------------------------
Unit value $ 17.76 $ 17.72 $ 17.65
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 416 458 259
- ------------------------------------------------------------------------------------------------
EQ/Alliance International
- ------------------------------------------------------------------------------------------------
Unit value $ 12.84 $ 11.05 $ 8.32
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 649 530 142
- ------------------------------------------------------------------------------------------------
EQ/Alliance Large Cap Growth
- ------------------------------------------------------------------------------------------------
Unit value $ 6.16 $ 5.78 $ 4.77
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 981 856 341
- ------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- ------------------------------------------------------------------------------------------------
Unit value $ 15.27 $ 14.97 $ 14.71
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 555 512 198
- ------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ------------------------------------------------------------------------------------------------
Unit value $ 14.95 $ 13.34 $ 9.63
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 312 478 121
- ------------------------------------------------------------------------------------------------
EQ/Bear Stearns Small Company Growth
- ------------------------------------------------------------------------------------------------
Unit value $ 7.46 -- --
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 59 -- --
- ------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ------------------------------------------------------------------------------------------------
Unit value $ 14.06 $ 12.60 $ 9.96
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,169 1,481 530
- ------------------------------------------------------------------------------------------------
EQ/Boston Advisors Equity Income
- ------------------------------------------------------------------------------------------------
Unit value $ 5.54 -- --
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 15 -- --
- ------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ------------------------------------------------------------------------------------------------
Unit value $ 7.96 $ 7.82 $ 6.22
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 204 249 42
- ------------------------------------------------------------------------------------------------
EQ/Capital Guardian Growth
- ------------------------------------------------------------------------------------------------
Unit value $ 11.62 $ 11.20 $ 9.19
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 160 164 40
- ------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ------------------------------------------------------------------------------------------------
Unit value $ 10.47 $ 9.38 $ 7.19
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,926 1,026 282
- ------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ------------------------------------------------------------------------------------------------
Unit value $ 11.08 $ 10.16 $ 7.86
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,200 776 200
- ------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ------------------------------------------------------------------------------------------------
Unit value $ 10.87 $ 10.12 $ 7.55
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,037 1,222 345
- ------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- ------------------------------------------------------------------------------------------------
For the years ending
December 31,
-------------------------------
2004 2003 2002
- ------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ------------------------------------------------------------------------------------------------
Unit value $ 24.66 $ 22.76 $ 18.11
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,386 1,074 399
- ------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ------------------------------------------------------------------------------------------------
Unit value $ 8.15 $ 7.75 $ 5.70
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 377 218 32
- ------------------------------------------------------------------------------------------------
EQ/FI Mid Cap
- ------------------------------------------------------------------------------------------------
Unit value $ 10.97 $ 9.62 $ 6.81
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,391 883 285
- ------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------
Unit value $ 14.02 $ 12.10 $ 9.24
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,007 636 237
- ------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ------------------------------------------------------------------------------------------------
Unit value $ 13.50 $ 13.20 $ 12.99
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,343 1,175 441
- ------------------------------------------------------------------------------------------------
EQ/JP Morgan Value Opportunities
- ------------------------------------------------------------------------------------------------
Unit value $ 12.84 $ 11.78 $ 9.45
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 370 307 128
- ------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ------------------------------------------------------------------------------------------------
Unit value $ 5.93 $ 5.38 $ 4.35
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 700 561 192
- ------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ------------------------------------------------------------------------------------------------
Unit value $ 16.22 $ 14.09 $ 10.43
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 884 641 270
- ------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- ------------------------------------------------------------------------------------------------
Unit value $ 13.79 $ 12.69 $ 9.85
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,938 1,510 386
- ------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ------------------------------------------------------------------------------------------------
Unit value $ 19.43 $ 17.87 $ 13.86
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 802 502 184
- ------------------------------------------------------------------------------------------------
EQ/Mercury International Value
- ------------------------------------------------------------------------------------------------
Unit value $ 16.44 $ 13.75 $ 10.92
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 522 441 161
- ------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ------------------------------------------------------------------------------------------------
Unit value $ 12.84 $ 11.60 $ 9.12
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 149 93 38
- ------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ------------------------------------------------------------------------------------------------
Unit value $ 8.79 $ 8.03 $ 6.69
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 610 598 229
- ------------------------------------------------------------------------------------------------
EQ/Money Market
- ------------------------------------------------------------------------------------------------
Unit value $ 25.92 $ 26.17 $ 26.47
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 349 434 630
- ------------------------------------------------------------------------------------------------
EQ/Montag & Caldwell Growth
- ------------------------------------------------------------------------------------------------
Unit value $ 4.34 -- --
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 22 -- --
- ------------------------------------------------------------------------------------------------
EQ/Small Company Index
- ------------------------------------------------------------------------------------------------
Unit value $ 14.00 $ 12.10 $ 8.44
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 575 449 122
- ------------------------------------------------------------------------------------------------
EQ/Small Company Value
- ------------------------------------------------------------------------------------------------
Unit value $ 21.50 -- --
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 9 -- --
- ------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- ------------------------------------------------------------------------------------------------
For the years ending
December 31,
-------------------------------
2004 2003 2002
- ------------------------------------------------------------------------------------------------
EQ/TCW Equity
- ------------------------------------------------------------------------------------------------
Unit value $ 16.03 -- --
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 6 -- --
- ------------------------------------------------------------------------------------------------
EQ/UBS Growth and Income
- ------------------------------------------------------------------------------------------------
Unit value $ 5.05 -- --
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------
EQ/Van Kampen Emerging Markets Equity
- ------------------------------------------------------------------------------------------------
Unit value $ 10.37 $ 8.53 $ 5.56
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 609 457 69
- ------------------------------------------------------------------------------------------------
EQ/Wells Fargo Montgomery Small Cap
- ------------------------------------------------------------------------------------------------
Unit value $ 11.36 -- --
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1 -- --
- ------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity
- ------------------------------------------------------------------------------------------------
Unit value $ 10.35 $ 10.16 --
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 143 1 --
- ------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II
- ------------------------------------------------------------------------------------------------
Unit value $ 14.70 $ 10.99 --
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 334 1 --
- ------------------------------------------------------------------------------------------------
A-4 Appendix I: Condensed financial information
Appendix II: Market value adjustment example
- --------------------------------------------------------------------------------
The example below shows how the market value adjustment would be determined and
how it would be applied to a withdrawal, assuming that $100,000 was allocated
on February 15, 2005 to a fixed maturity option with a maturity date of
February 15, 2014 (nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value of $183,914 on the maturity date. We
further assume that a withdrawal of $50,000 is made four years later on
February 15, 2009.
- --------------------------------------------------------------------------------
Hypothetical assumed
rate to maturity on
February 15, 2009
----------------------
5.00% 9.00%
- --------------------------------------------------------------------------------
As of February 15, 2009 (before withdrawal)
- --------------------------------------------------------------------------------
(1) Market adjusted amount $144,082 $ 119,503
- --------------------------------------------------------------------------------
(2) Fixed maturity amount $131,104 $ 131,104
- --------------------------------------------------------------------------------
(3) Market value adjustment:
(1) - (2) $ 12,978 $ (11,601)
- --------------------------------------------------------------------------------
On February 15, 2009 (after withdrawal)
- --------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with
withdrawal: (3) x [$50,000/(1)] $ 4,504 $ (4,854)
- --------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount: [$50,000 - (4)] $ 45,496 $ 54,854
- --------------------------------------------------------------------------------
(6) Fixed maturity amount: (2) - (5) $ 85,608 $ 76,250
- --------------------------------------------------------------------------------
(7) Maturity value $120,091 $ 106,965
- --------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,082 $ 69,503
- --------------------------------------------------------------------------------
You should note that under this example if a withdrawal is made when rates have
increased from 7.00% to 9.00% (right column), a portion of a negative market
value adjustment is realized. On the other hand, if a withdrawal is made when
rates have decreased from 7.00% to 5.00% (left column), a portion of a positive
market value adjustment is realized. The market value is computed differently
if you withdraw amounts on a date other than the anniversary of the
establishment of the fixed maturity option.
Appendix II: Market value adjustment example B-1
Appendix III: Enhanced death benefit example
- --------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the enhanced death benefit if elected.
The following illustrates the enhanced death benefit calculation. Assuming
$100,000 is allocated to the variable investment options (with no allocation to
the EQ/Alliance Intermediate Government Securities, EQ/Money Market, EQ/PIMCO
Real Return, EQ/Short Duration Bond, the guaranteed interest option or the
fixed maturity options), no additional contributions, no transfers, no
withdrawals and no loans under a Rollover TSA contract, the enhanced death
benefit for an annuitant age 45 would be calculated as follows:
- ------------------------------------------------------------------------------------
End of
contract 6% roll up to age 85 Annual ratchet to age 85
year Account value enhanced death benefit(1) enhanced death benefit
- ------------------------------------------------------------------------------------
1 $105,000 $ 106,000(1) $ 105,000(3)
- ------------------------------------------------------------------------------------
2 $115,500 $ 112,360(2) $ 115,500(3)
- ------------------------------------------------------------------------------------
3 $129,360 $ 119,102(2) $ 129,360(3)
- ------------------------------------------------------------------------------------
4 $103,488 $ 126,248(1) $ 129,360(4)
- ------------------------------------------------------------------------------------
5 $113,837 $ 133,823(1) $ 129,360(4)
- ------------------------------------------------------------------------------------
6 $127,497 $ 141,852(1) $ 129,360(4)
- ------------------------------------------------------------------------------------
7 $127,497 $ 150,363(1) $ 129,360(4)
- ------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%.
We are using these rates solely to illustrate how the benefit is determined.
The return rates bear no relationship to past or future investment results.
6% ROLL-UP TO AGE 85
(1) At the end of contract year 1, and again at the end of contract years 4
through 7, the death benefit will be the enhanced death benefit.
(2) At the end of contract years 2 and 3, the death benefit will be the current
account value since it is higher than the current enhanced death benefit.
ANNUAL RATCHET TO AGE 85
(3) At the end of contract years 1 through 3, the enhanced death benefit is the
current account value.
(4) At the end of contract years 4 through 7, the enhanced death benefit is the
enhanced death benefit at the end of the prior year since it is equal to or
higher than the current account value.
GREATER OF 6% ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85
The enhanced death benefit under this option for each year shown would be the
greater of the amounts shown under the 6% roll-up to age 85 or the Annual
ratchet to age 85.
C-1 Appendix III: Enhanced death benefit example
Appendix IV: Hypothetical illustrations
- --------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM
BENEFITS
The following tables illustrate the changes in account value, cash value and the
values of the `greater of 6% Roll up to Age 85 or the Annual Ratchet to Age 85"
guaranteed minimum death benefit, the Protection Plus(SM) benefit and the
Guaranteed minimum income benefit under certain hypothetical circumstances for
an Accumulator(R) Select(SM) contract. The table illustrates the operation of a
contract based on a male, issue age 60, who makes a single$10,00 contribution
and takes no withdrawals. The amounts shown are for the beginning of each
contract year and assume that all of the account value is invested in portfolios
that achieve investment returns at constant gross annual rates of 0% and 6%
(i.e., before any investment management fees, 12b-1 fees or other expenses are
deducted from the underlying portfolio assets). After the deduction of the
arithmetic average of the investment management fees, 12b-1 fees and other
expenses of all of the underlying Portfolios (as described below), the
corresponding net annual rates of return would be (3.03)%, 2.97% for the
Accumulator(R) Select(SM) Contract, at the 0% and 6% gross annual rates,
respectively. These net annual rates of return reflect the trust and separate
account level charges but they do not reflect the charges we deduct from your
account value annually for the Guaranteed minimum death benefit, Protection
Plus(SM) benefit and the guaranteed minimum income benefit, as well as the
annual administrative charge. If the net annual rates of return did reflect
these charges, the net annual rates of return would be lower; however, the
values shown in the following tables reflect all contract charges. The values
shown under "Lifetime Annual Living Benefit" reflect the lifetime income that
would be guaranteed if the guaranteed minimum income benefit is selected at that
contract anniversary. An "N/A" in these columns indicates that the benefit is
not exercisable in that year. A "0" under any of the Death Benefit and/or
"Lifetime Annual Guaranteed Minimum Income Benefit" columns indicates that the
contract has terminated due to insufficient account value and, consequently, the
guaranteed benefit has no value.
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in all tables reflect (1) investment management
fees equivalent to an effective annual rate of 0.69%, and (2) an assumed
average asset charge for all other expenses of the underlying portfolios
equivalent to an effective annual rate of 0.39% and (3) 12b-1 fees equivalent
to an effective annual rate of 0.25%. These rates are the arithmetic average
for all portfolios that are available as investment options. In other words,
they are based on the hypothetical assumption that account values are allocated
equally among the variable investment options. The actual rates associated with
any contract will vary depending upon the actual allocation of contract values
among the investment options. These rates do not reflect expense limitation
arrangements in effect with respect to certain of the underlying portfolios as
described in the footnotes to the fee table for the underlying portfolios in
"Fee Table" earlier in this Prospectus. With these arrangements, the charges
shown above would be lower. This would result in higher values than those shown
in the following tables.
Because your circumstances will no doubt differ from those in the illustrations
that follow, values under your contract will differ, in most cases
substantially. Upon request, we will furnish you with a personalized
illustration.
Appendix IV: Hypothetical illustrations D-1
Variable deferred annuity
Accumulator(R) Select(SM)
$100,000 Single contribution and no withdrawals
Male, issue age 60
Benefits:
Greater of 6% Roll up to age 85 or the Annual Ratchet to age 85 Guaranteed
minimum death benefit
Protection Plus(SM)
Guaranteed minimum income benefit
Greater of 6% Roll
up to age 85 or the
Annual Ratchet to
age 85
Minimum Death
Account Value Cash Value Benefit
------------------- ------------------- -------------------
Age Contract Year 0% 6% 0% 6% 0% 6%
- ----- -------------- --------- --------- --------- --------- --------- ---------
60 1 100,000 100,000 100,000 100,000 100,000 100,000
61 2 95,359 101,338 95,359 101,338 106,000 106,000
62 3 90,797 102,634 90,797 102,634 112,360 112,360
63 4 86,309 103,883 86,309 103,883 119,102 119,102
64 5 81,886 105,079 81,886 105,079 126,248 126,248
65 6 77,521 106,215 77,521 106,215 133,823 133,823
66 7 73,207 107,285 73,207 107,285 141,852 141,852
67 8 68,936 108,280 68,936 108,280 150,363 150,363
68 9 64,700 109,193 64,700 109,193 159,385 159,385
69 10 60,493 110,015 60,493 110,015 168,948 168,948
74 15 39,537 112,414 39,537 112,414 226,090 226,090
79 20 17,954 110,839 17,954 110,839 302,560 302,560
84 25 0 103,287 0 103,287 0 404,893
89 30 0 101,066 0 101,066 0 429,187
94 35 0 101,395 0 101,395 0 429,187
95 36 0 101,466 0 101,466 0 429,187
Lifetime Annual
Guaranteed Minimum Income Benefit
------------------------------------
Total Death Benefit
with Protection Guaranteed Hypothetical
Plus(SM) Income Income
------------------- ------------------ -----------------
Age 0% 6% 0% 6% 0% 6%
- ----- --------- --------- --------- -------- --------- -------
60 100,000 100,000 N/A N/A N/A N/A
61 108,400 108,400 N/A N/A N/A N/A
62 117,304 117,304 N/A N/A N/A N/A
63 126,742 126,742 N/A N/A N/A N/A
64 136,747 136,747 N/A N/A N/A N/A
65 147,352 147,352 N/A N/A N/A N/A
66 158,593 158,593 N/A N/A N/A N/A
67 170,508 170,508 N/A N/A N/A N/A
68 183,139 183,139 N/A N/A N/A N/A
69 196,527 196,527 N/A N/A N/A N/A
74 276,527 276,527 14,266 14,266 14,266 14,266
79 383,584 383,584 20,393 20,393 20,393 20,393
84 0 493,179 0 34,821 0 34,821
89 0 517,472 N/A N/A N/A N/A
94 0 517,472 N/A N/A N/A N/A
95 0 517,472 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for
individual contract years. We can make no representation that these
hypothetical investment results can be achieved for any one year or continued
over any period of time. In fact, for any given period of time, the investment
results could be negative.
D-2 Appendix IV: Hypothetical illustrations
Appendix V: Contract variations
- --------------------------------------------------------------------------------
The contract described in this Prospectus is no longer sold. You should note
that your contract features and charges may vary from what is described in this
Prospectus depending on the date on which you purchased your contract. You may
not change your contract or its features after issue. This Appendix reflects
contract variations that differ from what is described in this Prospectus but
may have been in effect at the time your purchased your contract.
In addition, options and/or features may vary among states in light of
applicable regulations or state approvals. Any such state variations are
generally not included here. For more information about state variations
applicable to you, as well as particular features, charges and options available
under your contract based upon when you purchased it, please contact your
financial professional and/or refer to your contract.
- -------------------------------------------------------------------------------------------------------------------------
Approximate Time Period Feature/Benefit Variation
- -------------------------------------------------------------------------------------------------------------------------
April 2002 - June 2003 Guaranteed interest option No limitations regarding allocations or transfers
into the guaranteed interest account.
- -------------------------------------------------------------------------------------------------------------------------
April 2002 - November 2002 Inherited IRA beneficiary Unavailable.
continuation contract
- -------------------------------------------------------------------------------------------------------------------------
April 2002 - February 2003 Fee table Guaranteed minimum death benefit charge:
Annual Ratchet to age 85: 0.20%
6% Roll up to age 85: 0.35%
The Greater of the 6% Roll up to age
85 or the Annual Ratchet to age 85: 0.45%
Guaranteed minimum income benefit: 0.45%
- -------------------------------------------------------------------------------------------------------------------------
April 2002 - May 2002 Annuity maturity date For New York contract owners only, the
maturity date is annuitant age 90.
- -------------------------------------------------------------------------------------------------------------------------
April 1, 2002 - April 4, 2002 Types of contracts QP defined contribution contracts were
available.
- -------------------------------------------------------------------------------------------------------------------------
April 4, 2002 - June 2002 Owner and annuitant requirements Non-natural owners are not permitted.
- -------------------------------------------------------------------------------------------------------------------------
June 2002 - present Non-natural owners (excluding partnerships
and limited liability corporations) may be
permitted.
- -------------------------------------------------------------------------------------------------------------------------
Appendix V: Contract variations E-1
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Unit Values 2
Custodian and Independent Registered Public Accounting Firm 2
Distribution of the Contracts 2
Financial Statements 2
How to obtain an Accumulator(R) Select(SM) Statement of Additional Information
for Separate Account No. 49
Send this request form to:
Accumulator(R) Select(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
Please send me an Accumulator(R) Select(SM) SAI for Separate Account No. 49
dated May 1, 2005.
- --------------------------------------------------------------------------------
Name:
- --------------------------------------------------------------------------------
Address:
- --------------------------------------------------------------------------------
City State Zip
(SAI 4ACS(5/05))
X00998/Select '02, OR and '04 Series
Accumulator(R) Select(SM)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2005
Please read and keep this Prospectus for future reference. It contains
important information that you should know before purchasing, or taking any
other action under your contract. You should read the prospectuses for each
Trust which contain important information about the portfolios.
- --------------------------------------------------------------------------------
WHAT IS THE ACCUMULATOR(R) SELECT(SM)
Accumulator(R) Select(SM) is a deferred annuity contract issued by AXA Equitable
Life Insurance Company. It provides for the accumulation of retirement savings
and for income. The contract offers income and death benefit protection. It
also offers a number of payout options. You invest to accumulate value on a
tax-deferred basis in one or more of our variable investment options, the
guaranteed interest option or fixed maturity options ("investment options").
There is no withdrawal charge under the contract. Certain features and benefits
described in this Prospectus may vary in your state; all features and benefits
may not be available in all contracts or in all states. Please see Appendix VII
later in this Prospectus for more information on state availability and/or
variations of certain features and benefits.
- --------------------------------------------------------------------------------
Variable investment options
- --------------------------------------------------------------------------------
o AXA Aggressive Allocation(1) o EQ/Equity 500 Index
o AXA Conservative Allocation(1) o EQ/Evergreen Omega
o AXA Conservative-Plus Allocation(1) o EQ/FI Mid Cap
o AXA Moderate Allocation(1) o EQ/FI Small/Mid Cap Value
o AXA Moderate-Plus Allocation(1) o EQ/International Growth(3)
o AXA Premier VIP Aggressive Equity o EQ/J.P. Morgan Core Bond
o AXA Premier VIP Core Bond o EQ/JP Morgan Value Opportunities
o AXA Premier VIP Health Care o EQ/Janus Large Cap Growth
o AXA Premier VIP High Yield o EQ/Lazard Small Cap Value
o AXA Premier VIP International Equity o EQ/Long Term Bond(3)
o AXA Premier VIP Large Cap Core o EQ/Lord Abbett Growth and Income(3)
Equity o EQ/Lord Abbett Large Cap Core(3)
o AXA Premier VIP Large Cap Growth o EQ/Lord Abbett Mid Cap Value(3)
o AXA Premier VIP Large Cap Value o EQ/Marsico Focus
o AXA Premier VIP Small/Mid Cap o EQ/Mercury Basic Value Equity
Growth o EQ/Mercury International Value
o AXA Premier VIP Small/Mid Cap Value o EQ/Mergers and Acquisitions(3)
o AXA Premier VIP Technology o EQ/MFS Emerging Growth Companies
o EQ/Alliance Common Stock o EQ/MFS Investors Trust
o EQ/Alliance Growth and Income o EQ/Money Market
o EQ/Alliance Intermediate Government o EQ/Montag & Caldwell Growth(2)
Securities o EQ/PIMCO Real Return(3)
o EQ/Alliance International o EQ/Short Duration Bond(3)
o EQ/Alliance Large Cap Growth(2) o EQ/Small Company Index
o EQ/Alliance Quality Bond o EQ/Small Company Value(2)
o EQ/Alliance Small Cap Growth o EQ/TCW Equity(2)
o EQ/Bear Stearns Small Company o EQ/UBS Growth and Income(2)
Growth(2) o EQ/Van Kampen Comstock(3)
o EQ/Bernstein Diversified Value o EQ/Van Kampen Emerging Markets
o EQ/Boston Advisors Equity Income(2) Equity(2)
o EQ/Calvert Socially Responsible o EQ/Van Kampen Mid Cap Growth(3)
o EQ/Capital Guardian Growth o EQ/Wells Fargo Montgomery Small Cap
o EQ/Capital Guardian International o Laudus Rosenberg VIT Value Long/
o EQ/Capital Guardian Research Short Equity
o EQ/Capital Guardian U.S. Equity o U.S. Real Estate -- Class II
o EQ/Caywood-Scholl High Yield Bond(3)
- --------------------------------------------------------------------------------
(1) The "AXA Allocation" portfolios.
(2) This is the option's new name, effective on or about May 9, 2005, subject
to regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former
name.
(3) Available on or about May 9, 2005, subject to regulatory approval. Please
see "Portfolios of the Trusts" in "Contract features and benefits" later in
this Prospectus for more information on the new investment option.
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of Separate Account No. 49. Each
variable investment option, in turn, invests in a corresponding securities
portfolio of EQ Advisors Trust, AXA Premier VIP Trust, The Universal
Institutional Funds, Inc. or Laudus Variable Insurance Trust (the "Trusts").
Your investment results in a variable investment option will depend on the
investment performance of the related portfolio.
You may also allocate amounts to the guaranteed interest option and the fixed
maturity options, which are discussed later in this Prospectus.
TYPES OF CONTRACTS. We offer the contracts for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only.
o An individual retirement annuity ("IRA"), either traditional IRA ("Rollover
IRA") or Roth IRA ("Roth Conversion IRA").
o Traditional and Roth Inherited IRA beneficiary continuation contract
("Inherited IRA").
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") --
("Rollover TSA").
A contribution of at least $25,000 is required to purchase a contract.
Registration statements relating to this offering have been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2005, is part of the registration statement.
The SAI is available free of charge. You may request one by writing to our
processing office or calling 1-800-789-7771. The SAI has been incorporated by
reference into this Prospectus. This Prospectus and the SAI can also be
obtained from the SEC's website at www.sec.gov. The table of contents for the
SAI appears at the back of this Prospectus.
The SEC has not approved or disapproved these securities or determined if this
Prospectus is accurate or complete. Any representation to the contrary is a
criminal offense. The contracts are not insured by the FDIC or any other
agency. They are not deposits or other obligations of any bank and are not bank
guaranteed. They are subject to investment risks and possible loss of
principal.
Although this Prospectus is primarily designed for potential purchasers of the
contract, you may have previously purchased a contract and be receiving this
Prospectus as a current contract owner. If you are a current contract owner,
you should note that the options, features and charges of the contract may have
varied over time (and, as noted above, may vary depending on your state) and
you may not change your contract or its features as issued. For more
information about the particular options, features and charges applicable to
you, please contact your financial professional and/or refer to your contract
and/or see Appendix VIII for contract variations later in this Prospectus.
X00997/Select '04 Series
(R-4/15)
Contents of this Prospectus
- --------------------------------------------------------------------------------
ACCUMULATOR(R) SELECT(SM)
- --------------------------------------------------------------------------------
Index of key words and phrases 4
Who is AXA Equitable? 6
How to reach us 7
Accumulator(R) Select(SM) at a glance -- key features 9
- --------------------------------------------------------------------------------
FEE TABLE 12
- --------------------------------------------------------------------------------
Example 15
Condensed financial information 19
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 20
- --------------------------------------------------------------------------------
How you can purchase and contribute to your contract 20
Owner and annuitant requirements 22
How you can make your contributions 22
What are your investment options under the contract? 22
Portfolios of the Trusts 23
Allocating your contributions 28
Your Guaranteed minimum death benefit and
Guaranteed minimum income benefit base 30
Annuity purchase factors 31
Our Guaranteed minimum income benefit option 31
Guaranteed minimum death benefit 33
Principal Protector(SM) 35
Inherited IRA beneficiary continuation contract 37
Your right to cancel within a certain number of days 38
- --------------------------------------------------------------------------------
2. DETERMINING YOUR CONTRACT'S VALUE 39
- --------------------------------------------------------------------------------
Your account value and cash value 39
Your contract's value in the variable investment options 39
Your contract's value in the guaranteed interest option 39
Your contract's value in the fixed maturity options 39
Termination of your contract 39
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG
INVESTMENT OPTIONS 41
- --------------------------------------------------------------------------------
Transferring your account value 41
Disruptive transfer activity 41
Rebalancing your account value 42
- ----------------------
"We," "our," and "us" refer to AXA Equitable.
When we address the reader of this Prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the contract owner.
When we use the word "contract" it also includes certificates that are issued
under group contracts in some states.
2 Contents of this Prospectus
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 44
- --------------------------------------------------------------------------------
Withdrawing your account value 44
How withdrawals are taken from your account value 45
How withdrawals (and transfers out of the Special 10 year fixed
maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death benefit and
Guaranteed principal benefit option 2 45
How withdrawals affect Principal Protector(SM) 46
Withdrawals treated as surrenders 46
Loans under Rollover TSA contracts 46
Surrendering your contract to receive its cash value 47
When to expect payments 47
Your annuity payout options 47
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 49
- --------------------------------------------------------------------------------
Charges that AXA Equitable deducts 49
Charges that the Trusts deduct 51
Group or sponsored arrangements 51
Other distribution arrangements 51
- --------------------------------------------------------------------------------
6. PAYMENT OF DEATH BENEFIT 53
- --------------------------------------------------------------------------------
Your beneficiary and payment of benefit 53
How death benefit payment is made 54
Spousal protection 54
Beneficiary continuation option 55
- --------------------------------------------------------------------------------
7. TAX INFORMATION 59
- --------------------------------------------------------------------------------
Overview 59
Buying a contract to fund a retirement arrangement 59
Transfers among investment options 59
Taxation of nonqualified annuities 59
Individual retirement arrangements (IRAs) 61
Federal and state income tax withholding and
information reporting 74
Impact of taxes to AXA Equitable 75
- --------------------------------------------------------------------------------
8. MORE INFORMATION 76
- --------------------------------------------------------------------------------
About our Separate Account No. 49 76
About the Trusts 76
About our fixed maturity options 76
About the general account 77
About other methods of payment 77
Dates and prices at which contract events occur 78
About your voting rights 79
About legal proceedings 79
About our independent registered public accounting firm 79
Financial statements 79
Transfers of ownership, collateral assignments, loans
and borrowing 79
Distribution of the contracts 80
- --------------------------------------------------------------------------------
9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 82
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed financial information A-1
II -- Market value adjustment example B-1
III -- Enhanced death benefit example C-1
IV -- Hypothetical illustrations D-1
V -- Guaranteed principal benefit example E-1
VI -- Protection Plus(SM) example F-1
VII -- State contract availability and/or variations of certain
features and benefits G-1
VIII -- Contract variations H-1
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Contents of this Prospectus 3
Index of key words and phrases
- --------------------------------------------------------------------------------
This index should help you locate more information on the terms used in this
Prospectus.
Page in
Term Prospectus
6% Roll up to age 85 31
12 month dollar cost averaging 29
account value 39
administrative charge 49
annual administrative charge 49
Annual Ratchet to age 85 enhanced death benefit 31
annuitant 20
annuity maturity date 48
annuity payout options 47
annuity purchase factors 31
automatic investment program 78
beneficiary 53
Beneficiary continuation option ("BCO") 55
benefit base 30
business day 78
cash value 39
charges for state premium and other applicable taxes 51
contract date 10
contract date anniversary 10
contract year 10
contributions to Roth IRAs 67
regular contributions 67
rollovers and transfers 68
conversion contributions 68
contributions to traditional IRAs 62
regular contributions 62
rollovers and transfers 63
disruptive transfer activity 41
distribution charge 49
EQAccess 7
ERISA 46
Fixed-dollar option 30
fixed maturity options 27
free look 38
general account 77
general dollar cost averaging 30
guaranteed interest option 27
Guaranteed minimum death benefit 33
Guaranteed minimum income benefit 31
Guaranteed minimum income benefit charge 50
Guaranteed principal benefits 28
IRA cover
Page in
Term Prospectus
IRS 59
Inherited IRA cover
investment options cover
Investment Simplifier 30
Lifetime minimum distribution withdrawals 45
loan reserve account 46
loans under Rollover TSA 46
lump sum withdrawals 44
market adjusted amount 27
market timing 41
maturity dates 27
market value adjustment 27
maturity value 27
Mortality and expense risks charge 49
NQ cover
Optional step up charge 51
portfolio cover
processing office 7
Principal Protector(SM) 35
Principal Protector(SM) charge 50
Protection Plus(SM) 34
Protection Plus(SM) charge 50
rate to maturity 27
Rebalancing 42
Rollover IRA cover
Roth IRA cover
SAI cover
SEC cover
self-directed allocation 28
Separate Account No. 49 76
Spousal protection 54
Standard death benefit 30
substantially equal withdrawals 44
Successor owner and annuitant 54
Systematic withdrawals 44
TOPS 7
Trusts 76
traditional IRA cover
TSA cover
unit 39
variable investment options 22
wire transmittals and electronic applications 77
To make this Prospectus easier to read, we sometimes use different words than
in the contract or supplemental materials. This is illustrated below. Although
we use different words, they have the same meaning in this Prospectus as in the
contract. Your financial professional can provide further explanation about
your contract or supplemental materials.
- ---------------------------------------------------------------------------------------------------------------------------
Prospectus Contract or Supplemental Materials
- ---------------------------------------------------------------------------------------------------------------------------
fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
Guaranteed minimum death benefit Guaranteed death benefit
Guaranteed minimum income benefit Guaranteed Income Benefit
- ---------------------------------------------------------------------------------------------------------------------------
4 Index of key words and phrases
- ---------------------------------------------------------------------------------------------------------------------------
Prospectus Contract or Supplemental Materials
- ---------------------------------------------------------------------------------------------------------------------------
guaranteed interest option Guaranteed Interest Account
Principal Protector(SM) Guaranteed withdrawal benefit
GWB benefit base Principal Protector(SM) benefit base
GWB Annual withdrawal amount Principal Protector(SM) Annual withdrawal amount
GWB Annual withdrawal option Principal Protector(SM) Annual withdrawal option
GWB Excess withdrawal Principal Protector(SM) Excess withdrawal
- ---------------------------------------------------------------------------------------------------------------------------
Index of key words and phrases 5
Who is AXA Equitable?
- --------------------------------------------------------------------------------
We are AXA Equitable Life Insurance Company ("AXA Equitable") (previously, The
Equitable Life Assurance Society of the United States), a New York stock life
insurance corporation. We have been doing business since 1859. AXA Equitable is
a subsidiary of AXA Financial, Inc. AXA, a French holding company for an
international group of insurance and related financial services companies, is
the sole shareholder of AXA Financial, Inc. As the sole shareholder, and under
its other arrangements with AXA Equitable and AXA Equitable's parent, AXA
exercises significant influence over the operations and capital structure of
AXA Equitable and its parent. No company other than AXA Equitable, however, has
any legal responsibility to pay amounts that AXA Equitable owes under the
contracts.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$598 billion in assets as of December 31, 2004. For over 100 years AXA
Equitable has been among the largest insurance companies in the United States.
We are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office
is located at 1290 Avenue of the Americas, New York, N.Y. 10104.
6 Who is AXA Equitable?
HOW TO REACH US
You may communicate with our processing office as listed below for the purposes
described. Certain methods of contacting us, such as by telephone or
electronically, may be unavailable or delayed (for example our facsimile
service may not be available at all times and/or we may be unavailable due to
emergency closing). In addition, the level and type of service available may be
restricted based on criteria established by us.
- ------------------------------------------------
FOR CONTRIBUTIONS SENT BY REGULAR MAIL
- ------------------------------------------------
Accumulator(R) Select(SM)
P.O. Box 13014
Newark, NJ 07188-0014
- ------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY
- ------------------------------------------------
Accumulator(R) Select(SM)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- ------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANS-
FERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR
MAIL
- ------------------------------------------------
Accumulator(R) Select(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- ------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANS-
FERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS
DELIVERY
- ------------------------------------------------
Accumulator(R) Select(SM)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- ------------------------------------------------
REPORTS WE PROVIDE:
- ------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year, and any
calendar quarter in which there was a transaction; and
o annual statement of your contract values as of the close of the contract
year, including notification of eligibility to exercise the guaranteed
minimum income benefit, if applicable.
- ------------------------------------------------
TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND
EQACCESS SYSTEMS:
- ------------------------------------------------
TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQAccess is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for the fixed maturity options (not available through
EQAccess);
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
available through TOPS).
You can also:
o change your allocation percentages and/or transfer among the investment
options;
o elect to receive certain contract statements electronically;
o change your address (not available through TOPS);
o change your TOPS personal identification number ("PIN") (through TOPS only)
and your EQAccess password (through EQAccess only); and
o access Frequently Asked Questions and Service Forms (not available through
TOPS).
TOPS and EQAccess are normally available seven days a week, 24 hours a day. You
may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA
Advisors, you may use EQAccess by visiting our website at www.axaonline.com and
logging in to access your account. All other clients may access EQAccess by
visiting our website at www.axa-equitable.com. Of course, for reasons beyond
our control, these services may sometimes be unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or the Internet are genuine. For example, we will
require certain personal identification information before we will act on
telephone or Internet instructions and we will provide written confirmation of
your transfers. If we do not employ reasonable procedures to confirm the
genuineness of telephone or Internet instructions, we may be liable for any
losses arising out of any act or omission that constitutes negligence, lack of
good faith, or willful misconduct. In light of our procedures, we will not be
liable for following telephone or Internet instructions we reasonably believe
to be genuine.
We reserve the right to limit access to these services if we determine that you
engaged in a disruptive transfer activity, such as "market timing" (see
"Disruptive transfer activity" in "Transferring your money among investment
options" later in this Prospectus).
- --------------------------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVE:
- --------------------------------------------------------------------------------
You may also use our toll-free number (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
Who is AXA Equitable? 7
(2) conversion of a traditional IRA to a Roth Conversion IRA contract;
(3) election of the automatic investment program;
(4) election of the rebalancing program;
(5) requests for loans under Rollover TSA contracts;
(6) spousal consent for loans under Rollover TSA contracts;
(7) requests for withdrawals or surrenders from Rollover TSA contracts;
(8) tax withholding elections;
(9) election of the beneficiary continuation option;
(10) IRA contribution recharacterizations;
(11) certain Section 1035 exchanges;
(12) direct transfers;
(13) exercise of the Guaranteed minimum income benefit.
(14) requests to step up your Guaranteed withdrawal benefit ("GWB") benefit base
under the Optional step up provision; and
(15) requests to terminate or reinstate your Guaranteed withdrawal benefit under
the Beneficiary continuation option, if applicable;
(16) death claims; and
(17) change in ownership (NQ only).
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between investment options;
(4) contract surrender and withdrawal requests;
(5) general dollar cost averaging (including the fixed dollar and interest
sweep options); and
(6) 12 month dollar cost averaging.
TO CANCEL OR CHANGE ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) automatic investment program;
(2) general dollar cost averaging (including the fixed dollar and interest
sweep options);
(3) rebalancing;
(4) 12 month dollar cost averaging;
(5) substantially equal withdrawals;
(6) systematic withdrawals; and
(7) the date annuity payments are to begin.
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us to
take.
SIGNATURES:
The proper person to sign forms, notices and requests would normally be the
owner. If there are joint owners all must sign.
8 Who is AXA Equitable?
Accumulator(R) Select(SM) at a glance -- key features
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Professional investment Accumulator(R) Select(SM)'s variable investment options invest in different portfolios managed by
management professional investment advisers.
- ------------------------------------------------------------------------------------------------------------------------------------
Fixed maturity options o Fixed maturity options with maturities ranging from approximately 1 to 10 years (subject to
availability).
o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to
maturity.
o Special 10 year fixed maturity option (available under Guaranteed principal benefit option 2
only).
----------------------------------------------------------------------------------------------------------
If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a
market value adjustment due to differences in interest rates. If you withdraw or transfer only a
portion of a fixed maturity amount, this may increase or decrease any value that you have left in
that fixed maturity option. If you surrender your contract, a market value adjustment also applies.
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed interest o Principal and interest guarantees.
option o Interest rates set periodically.
- ------------------------------------------------------------------------------------------------------------------------------------
Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or receive
annuity payments.
o No tax on transfers among investment options inside the contract.
----------------------------------------------------------------------------------------------------------
If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA), or tax
sheltered annuity (TSA) you should be aware that such annuities do not provide tax deferral benefits
beyond those already provided by the Internal Revenue Code. Before purchasing one of these
annuities, you should consider whether its features and benefits beyond tax deferral meet your needs
and goals. You may also want to consider the relative features, benefits and costs of these
annuities compared with any other investment that you may use in connection with your retirement
plan or arrangement. Depending on your personal situation, the contract's guaranteed benefits may
have limited usefulness because of required minimum distributions ("RMDs").
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum The Guaranteed minimum income benefit provides income protection for you during the annuitant's life
income benefit once you elect to annuitize the contract.
- ------------------------------------------------------------------------------------------------------------------------------------
Principal Protector(SM) Principal Protector(SM) is our optional Guaranteed withdrawal benefit ("GWB"), which provides for
recovery of your total contributions through withdrawals, even if your account value falls to zero,
provided that during each contract year, your total withdrawals do not exceed a specified amount.
- ------------------------------------------------------------------------------------------------------------------------------------
Contribution amounts o Initial minimum: $25,000
o Additional minimum: $500 (NQ and Rollover TSA)
$100 monthly and $300 quarterly under our automatic investment program
(NQ contracts)
$1,000 (Inherited IRA contracts)
$50 (IRA contracts)
Maximum contribution limitations may apply. In general, contributions are limited to $1.5
million ($500,000 for owners or annuitants who are age 81 and older at contract issue).
- ------------------------------------------------------------------------------------------------------------------------------------
Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Loans under Rollover TSA contracts
o Contract surrender
You may incur income tax and a tax penalty.
- ------------------------------------------------------------------------------------------------------------------------------------
Payout options o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout options
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) Select(SM) at a glance -- key features 9
Additional features o Guaranteed minimum death benefit options
o Guaranteed principal benefit options
o Dollar cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually and annually)
o Free transfers
o Protection Plus(SM), an optional death benefit available under certain contracts
o Spousal protection
o Successor owner/annuitant
o Beneficiary continuation option
- ------------------------------------------------------------------------------------------------------------------------------------
Fees and charges o Daily charges on amounts invested in the variable investment options for mortality and expense
risks, administrative charges and distribution charges at an annual rate of 1.70%.
o The charges for the Guaranteed minimum death benefits range from 0.0% to 0.60%, annually, of the
applicable benefit base. The benefit base is described under "Your Guaranteed minimum death
benefit and Guaranteed minimum income benefit base" in "Contract features and benefits" later in
this Prospectus.
o Annual 0.65% of the applicable benefit base charge for the optional Guaranteed minimum income
benefit until you exercise the benefit, elect another annuity payout option or the contract date
anniversary after the annuitant reaches age 85, whichever occurs first. The benefit base is
described under "Your Guaranteed minimum death benefit and Guaranteed minimum income benefit
base" in "Contract features and benefits" later in this Prospectus.
o An annual charge for the optional Guaranteed principal benefit option 2 deducted the first 10
contract date anniversaries equal to 0.50% of account value.
o If your account value at the end of the contract year is less than $50,000, we deduct an annual
administrative charge equal to $30, or during the first two contract years, 2% of your account
value, if less. If your account value, on the contract date anniversary, is $50,000 or more, we
will not deduct the charge.
o An annual charge of 0.35% of account value for the 5% GWB Annual withdrawal option or 0.50% of
account value for the 7% GWB Annual withdrawal option for the Principal Protector(SM) benefit. If
you "step up" your GWB benefit base, we reserve the right to raise the charge up to 0.60% and
0.80%, respectively. See "Principal Protector(SM)" in "Contract features and benefits" later in
this Prospectus.
o An annual charge of 0.35% of the account value for the Protection Plus(SM) optional death
benefit.
o No sales charge deducted at the time you make contributions and no withdrawal charge.
----------------------------------------------------------------------------------------------------------
The "contract date" is the effective date of a contract. This usually is the business day we
receive the properly completed and signed application, along with any other required documents,
and your initial contribution. Your contract date will be shown in your contract. The 12-month
period beginning on your contract date and each 12-month period after that date is a "contract
year." The end of each 12-month period is your "contract date anniversary." For example, if your
contract date is May 1, your contract date anniversary is April 30.
----------------------------------------------------------------------------------------------------------
o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as
premium taxes in your state. This charge is generally deducted from the amount applied to an
annuity payout option.
o We deduct a $350 annuity administrative fee from amounts applied to the Variable Immediate
Annuity payout options.
o Annual expenses of the Trusts' portfolios are calculated as a percentage of the average daily net
assets invested in each portfolio. These expenses include management fees ranging from 0.10% to
1.50% annually, 12b-1 fees of either 0.25% or 0.35% annually and other expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant issue ages NQ: 0-85
Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-85
Inherited IRA: 0-70
- ------------------------------------------------------------------------------------------------------------------------------------
10 Accumulator(R) Select(SM) at a glance -- key features
The above is not a complete description of all material provisions of the
contract. In some cases, restrictions or exceptions apply. Also, all features
of the contract are not necessarily available in your state or at certain ages.
Please see Appendix VII later in this Prospectus for more information on state
availability and/or variations of certain features and benefits.
For more detailed information, we urge you to read the contents of this
Prospectus, as well as your contract. Please feel free to speak with your
financial professional or call us, if you have questions.
Other contracts
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, credits, fees and/or charges that are
different from those in the contracts offered by this Prospectus. Not every
contract is offered through the same distributor. At their sole discretion,
some distributors may eliminate and/or limit the availability of certain
features or options, as well as limit the availablity of the contracts, based
on annuitant issue age or other criteria. Upon request, your financial
professional can show you information regarding other AXA Equitable annuity
contracts that he or she distributes. You can also contact us to find out more
about any of the AXA Equitable annuity contracts.
Accumulator(R) Select(SM) at a glance -- key features 11
Fee table
- --------------------------------------------------------------------------------
The following tables describe the fees and expenses that you will pay when
buying and owning the contract. Each of the charges and expenses is more fully
described in "Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay if you purchase a
Variable Immediate Annuity payout option. Charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your state,
may also apply. Charges for certain features shown in the fee table are
mutually exclusive.
- ----------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value at the time you request certain transactions
- ----------------------------------------------------------------------------------------------------------------------------------
Charge if you elect a Variable Immediate Annuity payout option $350
- ----------------------------------------------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically during the
time that you own the contract, not including the underlying trust portfolio fees and expenses.
- ----------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets
- ----------------------------------------------------------------------------------------------------------------------------------
Mortality and expense risks 1.10%
Administrative 0.25%
Distribution 0.35%
----
Total annual expenses 1.70%
- ----------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value on each contract date anniversary
- ----------------------------------------------------------------------------------------------------------------------------------
Maximum annual administrative charge
If your account value on a contract date anniversary is less than
$50,000(1) $ 30
If your account value on a contract date anniversary is $50,000
or more $ 0
- ----------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value each year if you elect the optional benefit
- ----------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum death benefit charge (calculated as a
percentage of the applicable benefit base. Deducted annually(2) on each
contract date anniversary for which the benefit is in effect.)
Standard death benefit 0.00%
Annual Ratchet to age 85 0.25% of the Annual Ratchet to age 85 benefit base
Greater of 6% Roll up to age 85 or Annual Ratchet to age 85 0.60% of the greater of 6% Roll up to age 85 benefit
base or the Annual Ratchet to age 85 benefit base, as
applicable
- ----------------------------------------------------------------------------------------------------------------------------------
Guaranteed principal benefit charge for option 2 (calculated as
a percentage of the account value. Deducted annually(2) on the first 10
contract date anniversaries.) 0.50%
- ----------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum income benefit charge (calculated as a
percentage of the applicable benefit base. Deducted annually(2) on each
contract date anniversary for which the benefit is in effect.) 0.65%
- ----------------------------------------------------------------------------------------------------------------------------------
Protection Plus(SM) benefit charge (calculated as a percentage of
the account value. Deducted annually(2) on each contract date anniver-
sary for which the benefit is in effect.) 0.35%
- ----------------------------------------------------------------------------------------------------------------------------------
12 Fee table
- ----------------------------------------------------------------------------------------------------------------------------------
Principal Protector(SM) benefit charge(2) (calculated as a percentage 0.35% for the 5% GWB Annual withdrawal option
of the account value. Deducted annually on each contract date anniver- 0.50% for the 7% GWB Annual withdrawal option
sary, provided your GWB benefit base is greater than zero.)
If you "step up" your GWB benefit base, we reserve the right to 0.60% for the 5% GWB Annual withdrawal option
increase your charge up to:
0.80% for the 7% GWB Annual withdrawal option
Please see "Principal Protector(SM)" in "Contract features and benefits" for more information about this feature, including its
benefit base and the Optional step up provision, and "Principal Protector(SM) charge" in "Charges and expenses," both later in
this Prospectus, for more information about when the charge applies.
- ----------------------------------------------------------------------------------------------------------------------------------
Net loan interest charge -- Rollover TSA contracts only 2.00%(3)
(calculated and deducted daily as a percentage of the outstanding loan
amount)
- ----------------------------------------------------------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net
asset value each day. Therefore, they reduce the investment return of the
Portfolio and the related variable investment option. Actual fees and expenses
are likely to fluctuate from year to year. More detail concerning each
Portfolio's fees and expenses is contained in the Trust prospectus for the
Portfolio.
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets
- ----------------------------------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2004 (expenses that are deducted Lowest Highest
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ------ -------
other expenses)(4) 0.55% 7.61%
This table shows the fees and expenses for 2004 as an annual percentage of each
Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Manage- Portfolio (Before Expense After
ment 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name Fees(5) Fees(6) Expenses(7) Expenses(8) Limitation) ments(9) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 0.29% 0.99% 1.63% (0.29)% 1.34%
AXA Conservative Allocation 0.10% 0.25% 0.41% 0.75% 1.51% (0.41)% 1.10%
AXA Conservative-Plus Allocation 0.10% 0.25% 0.30% 0.80% 1.45% (0.30)% 1.15%
AXA Moderate Allocation 0.10% 0.25% 0.16% 0.83% 1.34% (0.16)% 1.18%
AXA Moderate-Plus Allocation 0.10% 0.25% 0.20% 1.02% 1.57% (0.20)% 1.37%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.18% -- 1.05% -- 1.05%
AXA Premier VIP Core Bond 0.60% 0.25% 0.20% -- 1.05% (0.10)% 0.95%
AXA Premier VIP Health Care 1.20% 0.25% 0.40% -- 1.85% 0.00% 1.85%
AXA Premier VIP High Yield 0.58% 0.25% 0.18% -- 1.01% -- 1.01%
AXA Premier VIP International Equity 1.05% 0.25% 0.50% -- 1.80% 0.00% 1.80%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.32% -- 1.47% (0.12)% 1.35%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.26% -- 1.41% (0.06)% 1.35%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.25% -- 1.40% (0.05)% 1.35%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.25% -- 1.60% 0.00% 1.60%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.25% -- 1.60% 0.00% 1.60%
AXA Premier VIP Technology 1.20% 0.25% 0.40% -- 1.85% 0.00% 1.85%
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.47% 0.25% 0.05% -- 0.77% -- 0.77%
EQ/Alliance Growth and Income 0.56% 0.25% 0.05% -- 0.86% -- 0.86%
EQ/Alliance Intermediate Government Securities 0.50% 0.25% 0.06% -- 0.81% -- 0.81%
EQ/Alliance International 0.73% 0.25% 0.12% -- 1.10% 0.00% 1.10%
EQ/Alliance Large Cap Growth* 0.90% 0.25% 0.05% -- 1.20% (0.10)% 1.10%
EQ/Alliance Quality Bond 0.50% 0.25% 0.06% -- 0.81% -- 0.81%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.06% -- 1.06% -- 1.06%
EQ/Bear Stearns Small Company Growth* 1.00% 0.25% 0.18% -- 1.43% (0.13)% 1.30%
EQ/Bernstein Diversified Value 0.63% 0.25% 0.07% -- 0.95% 0.00% 0.95%
- ------------------------------------------------------------------------------------------------------------------------------------
Fee table 13
This table shows the fees and expenses for 2004 as an annual percentage of each
Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Manage- Portfolio (Before Expense After
ment 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name Fees(5) Fees(6) Expenses(7) Expenses(8) Limitation) ments(9) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Boston Advisors Equity Income* 0.75% 0.25% 0.21% -- 1.21% (0.16)% 1.05%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.29% -- 1.19% (0.14)% 1.05%
EQ/Capital Guardian Growth 0.65% 0.25% 0.09% -- 0.99% (0.04)% 0.95%
EQ/Capital Guardian International 0.85% 0.25% 0.17% -- 1.27% (0.07)% 1.20%
EQ/Capital Guardian Research 0.65% 0.25% 0.05% -- 0.95% 0.00% 0.95%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.05% -- 0.95% 0.00% 0.95%
EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.12% -- 0.97% (0.12)% 0.85%
EQ/Equity 500 Index 0.25% 0.25% 0.05% -- 0.55% -- 0.55%
EQ/Evergreen Omega 0.65% 0.25% 0.11% -- 1.01% (0.06)% 0.95%
EQ/FI Mid Cap 0.70% 0.25% 0.06% -- 1.01% (0.01)% 1.00%
EQ/FI Small/Mid Cap Value 0.74% 0.25% 0.08% -- 1.07% 0.00% 1.07%
EQ/International Growth 0.85% 0.25% 0.22% -- 1.32% 0.00% 1.32%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.06% -- 0.75% 0.00% 0.75%
EQ/JP Morgan Value Opportunities 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.08% -- 1.23% (0.08)% 1.15%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.05% -- 1.05% 0.00% 1.05%
EQ/Long Term Bond 0.50% 0.25% 0.25% -- 1.00% 0.00% 1.00%
EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.19% -- 1.14% (0.09)% 1.05%
EQ/Marsico Focus 0.88% 0.25% 0.06% -- 1.19% (0.04)% 1.15%
EQ/Mercury Basic Value Equity 0.58% 0.25% 0.05% -- 0.88% 0.00% 0.88%
EQ/Mercury International Value 0.85% 0.25% 0.15% -- 1.25% 0.00% 1.25%
EQ/Mergers and Acquisitions 0.90% 0.25% 1.21% -- 2.36% (0.91)% 1.45%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.06% -- 0.96% -- 0.96%
EQ/MFS Investors Trust 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Money Market 0.34% 0.25% 0.05% -- 0.64% -- 0.64%
EQ/Montag & Caldwell Growth* 0.75% 0.25% 0.12% -- 1.12% 0.00% 1.12%
EQ/PIMCO Real Return 0.55% 0.25% 0.20% -- 1.00% (0.35)% 0.65%
EQ/Short Duration Bond 0.45% 0.25% 0.52% -- 1.22% (0.57)% 0.65%
EQ/Small Company Index 0.25% 0.25% 0.13% -- 0.63% 0.00% 0.63%
EQ/Small Company Value* 0.80% 0.25% 0.12% -- 1.17% 0.00% 1.17%
EQ/TCW Equity* 0.80% 0.25% 0.12% -- 1.17% (0.02)% 1.15%
EQ/UBS Growth and Income* 0.75% 0.25% 0.16% -- 1.16% (0.11)% 1.05%
EQ/Van Kampen Comstock 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Van Kampen Emerging Markets Equity* 1.15% 0.25% 0.40% -- 1.80% 0.00% 1.80%
EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.19% -- 1.14% (0.09)% 1.05%
EQ/Wells Fargo Montgomery Small Cap 0.85% 0.25% 6.51% -- 7.61% (6.33)% 1.28%
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity 1.50% 0.25% 2.35% -- 4.10% (0.96)% 3.14%
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II** 0.76% 0.35% 0.26% -- 1.37% (0.10)% 1.27%
- ------------------------------------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject to
regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former name.
** Expense information has been restored to reflect current fees in effect as of
November 1, 2004.
Notes:
(1) During the first two contract years this charge, if applicable, is equal to
the lesser of $30 or 2% of your account value. Thereafter, if applicable,
the charge is $30 for each contract year.
(2) If the contract is surrendered or annuitized or a death benefit is paid on
any date other than the contract date anniversary, we will deduct a pro
rata portion of the charge for that year. For Principal Protector(SM) only,
if the contract and benefit is continued under the Beneficiary continuation
option with Principal Protector(SM), the pro rata deduction for the Prin
cipal Protector(SM) charge is waived.
(3) We charge interest on loans under Rollover TSA contracts but also credit
you interest on your loan reserve account. Our net loan interest charge is
determined by the excess between the interest rate we charge over the
interest rate we credit. See "Loans under Rollover TSA contracts" later in
this Prospectus for more information on how the loan inter est is
calculated and for restrictions that may apply.
(4) "Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2004 and for the
underlying portfolios.
14 Fee table
(5) The management fees for each Portfolio cannot be increased without a vote
of that Portfolio's Shareholders. See footnote (9) for any expense
limitation agreement information.
(6) Portfolio shares are all subject to fees imposed under the distribution
plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1
under the Investment Company Act of 1940. The 12b-1 fee will not be
increased for the life of the contracts.
(7) Other expenses shown are those incurred in 2004. The amounts shown as
"Other Expenses" will fluctuate from year to year depending on actual
expenses. See footnote (9) for any expense limitation agreement
information.
(8) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and AXA
Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolio's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocations
as of 12/31/04. A"--" indicates that the listed portfolio does not invest
in underlying portfolios, i.e., it is not an allocation portfolio.
(9) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A "--" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver or reimbursement. AXA Equitable,
the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has
entered into Expense Limitation Agreements with respect to certain
Portfolios, which are effective through April 30, 2006. Under these
agreements AXA Equitable has agreed to waive or limit its fees and assume
other expenses of certain Portfolios, if necessary, in an amount that
limits each affected Portfolio's total Annual Expenses (exclusive of
interest, taxes, brokerage commissions, capitalized expenditures and
extraordinary expenses) to not more than specified amounts. Therefore, each
Portfolio may at a later date make a reimbursement to AXA Equitable for any
of the management fees waived or limited and other expenses assumed and
paid by AXA Equitable pursuant to the expense limitation agreement provided
that the Portfolio's current annual operating expenses do not exceed the
operating expense limit determined for such Portfolio. Morgan Stanley
Investment Management Inc., which does business in certain instances as
"Van Kampen," is the manager of the Universal Institutional Funds, Inc. --
U.S. Real Estate Portfolio -- Class II and has voluntarily agreed to reduce
its management fee and/or reimburse the Portfolio so that total annual
operating expenses of the Portfolio (exclusive of investment related
expenses, such as foreign country tax expense and interest expense on
amounts borrowed) are not more than specified amounts. Additionally, the
distributor of The Universal Institutional Funds, Inc. has agreed to waive
a portion of the 12b-1 fee for Class II shares. Van Kampen and/or the
fund's distributor reserves the right to terminate any waiver and/or
reimbursement at any time without notice. Charles Schwab Investment
Management, Inc. the manager of the Laudus Variable Insurance Trust --
Laudus Rosenberg VIT Value Long/Short Equity Portfolio, has voluntarily
agreed to reimburse expenses in excess of specified amounts. See the
Prospectuses for each applicable underlying Trust for more information
about the arrangements. In addition, a portion of the brokerage commissions
of certain Portfolios of EQ Advisors Trust Portfolio and AXA Premier VIP
Trust Portfolio is used to reduce the applicable Portfolio's expenses. If
the above table reflected both the expense limitation arrangements plus the
portion of the brokerage commissions used to reduce portfolio expenses, the
net expenses would be as shown in the table below:
- ------------------------------------------------------
Portfolio Name
- ------------------------------------------------------
AXA Moderate Allocation 1.17%
AXA Premier VIP Aggressive Equity 0.93%
AXA Premier VIP Health Care 1.81%
AXA Premier VIP International Equity 1.75%
AXA Premier VIP Large Cap Core Equity 1.32%
AXA Premier VIP Large Cap Growth 1.30%
AXA Premier VIP Large Cap Value 1.21%
AXA Premier VIP Small/Mid Cap Growth 1.50%
AXA Premier VIP Small/Mid Cap Value 1.54%
AXA Premier VIP Technology 1.75%
EQ/Alliance Common Stock 0.68%
EQ/Alliance Growth and Income 0.80%
EQ/Alliance International 1.08%
EQ/Alliance Large Cap Growth 1.04%
EQ/Alliance Small Cap Growth 0.98%
EQ/Calvert Socially Responsible 1.00%
EQ/Capital Guardian Growth 0.67%
EQ/Capital Guardian International 1.17%
EQ/Capital Guardian Research 0.90%
EQ/Capital Guardian U.S. Equity 0.93%
EQ/Evergreen Omega 0.57%
EQ/FI Mid Cap 0.96%
EQ/FI Small/Mid Cap Value 1.05%
EQ/JP Morgan Value Opportunities 0.76%
EQ/Lazard Small Cap Value 0.86%
EQ/Marsico Focus 1.12%
EQ/Mercury Basic Value Equity 0.86%
EQ/Mercury International Value 1.18%
EQ/MFS Emerging Growth Companies 0.91%
EQ/MFS Investors Trust 0.91%
EQ/Small Company Value 1.16%
EQ/TCW Equity 1.14%
EQ/Van Kampen Emerging Markets Equity 1.75%
EQ/Wells Fargo Montgomery Small Cap 1.26%
- ------------------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses).
The example below shows the expenses that a hypothetical contract owner (who
has elected the Guaranteed minimum income benefit with the enhanced death
benefit that provides for the greater of the 6% Roll up to age 85 or the Annual
Ratchet to age 85 and Protection Plus(SM)) would pay
Fee table 15
in the situations illustrated. The annual administrative charge is based on the
charges that apply to a mix of estimated contract sizes, resulting in an
estimated administrative charge for the purpose of these examples of $0.70 per
$10,000.
The fixed maturity options, guaranteed interest option and the 12 month dollar
cost averaging program are not covered by the examples. However, the annual
administrative charge, the charge for any optional benefits and the charge if
you elect a Variable Immediate Annuity payout option do apply to the fixed
maturity options, guaranteed interest option and the 12 month dollar cost
averaging program. A market value adjustment (up or down) may apply as a result
of a withdrawal, transfer, or surrender of amounts from a fixed maturity
option.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes that your investment has a 5%
return each year. This example should not be considered a representation of
past or future expenses for each option. Actual expenses may be greater or less
than those shown. Similarly, the annual rate of return assumed in the example
is not an estimate or guarantee of future investment performance. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
16 Fee table
- ---------------------------------------------------------------------------------------------------------
If you surrender your contract at the end of the
applicable time period
1 year 3 years 5 years 10 years
- ---------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ---------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 519.61 $ 1,580.56 $ 2,671.59 $ 5,540.43
AXA Conservative Allocation $ 507.01 $ 1,544.27 $ 2,613.71 $ 5,438.71
AXA Conservative-Plus Allocation $ 500.71 $ 1,526.08 $ 2,584.66 $ 5,387.35
AXA Moderate Allocation $ 488.95 $ 1,492.08 $ 2,530.22 $ 5,290.60
AXA Moderate-Plus Allocation $ 513.31 $ 1,562.42 $ 2,642.69 $ 5,489.73
AXA Premier VIP Aggressive Equity $ 458.71 $ 1,404.27 $ 2,388.99 $ 5,036.41
AXA Premier VIP Core Bond $ 458.71 $ 1,404.27 $ 2,388.99 $ 5,036.41
AXA Premier VIP Health Care $ 542.71 $ 1,646.85 $ 2,776.90 $ 5,723.55
AXA Premier VIP High Yield $ 454.51 $ 1,392.03 $ 2,369.23 $ 5,000.48
AXA Premier VIP International Equity $ 537.46 $ 1,631.81 $ 2,753.05 $ 5,682.31
AXA Premier VIP Large Cap Core Equity $ 502.81 $ 1,532.15 $ 2,594.35 $ 5,404.51
AXA Premier VIP Large Cap Growth $ 496.51 $ 1,513.95 $ 2,565.25 $ 5,352.93
AXA Premier VIP Large Cap Value $ 495.46 $ 1,510.91 $ 2,560.39 $ 5,344.30
AXA Premier VIP Small/Mid Cap Growth $ 516.46 $ 1,571.49 $ 2,657.15 $ 5,515.12
AXA Premier VIP Small/Mid Cap Value $ 516.46 $ 1,571.49 $ 2,657.15 $ 5,515.12
AXA Premier VIP Technology $ 542.71 $ 1,646.85 $ 2,776.90 $ 5,723.55
- ---------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ---------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 429.31 $ 1,318.37 $ 2,249.94 $ 4,781.69
EQ/Alliance Growth and Income $ 438.76 $ 1,346.04 $ 2,294.82 $ 4,864.39
EQ/Alliance Intermediate Government Securities $ 433.51 $ 1,330.67 $ 2,269.91 $ 4,818.54
EQ/Alliance International $ 463.96 $ 1,419.55 $ 2,413.63 $ 5,081.10
EQ/Alliance Large Cap Growth* $ 474.46 $ 1,450.07 $ 2,462.77 $ 5,169.77
EQ/Alliance Quality Bond $ 433.51 $ 1,330.67 $ 2,269.91 $ 4,818.54
EQ/Alliance Small Cap Growth $ 459.76 $ 1,407.33 $ 2,393.92 $ 5,045.36
EQ/Bear Stearns Small Company Growth* $ 498.61 $ 1,520.02 $ 2,574.96 $ 5,370.16
EQ/Bernstein Diversified Value $ 448.21 $ 1,373.65 $ 2,339.52 $ 4,946.31
EQ/Boston Advisors Equity Income* $ 475.51 $ 1,453.12 $ 2,467.67 $ 5,178.59
EQ/Calvert Socially Responsible $ 473.41 $ 1,447.02 $ 2,457.87 $ 5,160.95
EQ/Capital Guardian Growth $ 452.41 $ 1,385.91 $ 2,359.33 $ 4,982.46
EQ/Capital Guardian International $ 481.81 $ 1,471.40 $ 2,497.04 $ 5,231.28
EQ/Capital Guardian Research $ 448.21 $ 1,373.65 $ 2,339.52 $ 4,946.31
EQ/Capital Guardian U.S. Equity $ 448.21 $ 1,373.65 $ 2,339.52 $ 4,946.31
EQ/Caywood-Scholl High Yield Bond $ 450.31 $ 1,379.78 $ 2,349.43 $ 4,964.40
EQ/Equity 500 Index $ 406.22 $ 1,250.52 $ 2,139.48 $ 4,576.18
EQ/Evergreen Omega $ 454.51 $ 1,392.03 $ 2,369.23 $ 5,000.48
EQ/FI Mid Cap $ 454.51 $ 1,392.03 $ 2,369.23 $ 5,000.48
EQ/FI Small/Mid Cap Value $ 460.81 $ 1,410.38 $ 2,398.85 $ 5,054.31
EQ/International Growth $ 487.06 $ 1,486.61 $ 2,521.45 $ 5,274.94
EQ/J.P. Morgan Core Bond $ 427.21 $ 1,312.22 $ 2,239.94 $ 4,763.20
EQ/JP Morgan Value Opportunities $ 448.21 $ 1,373.65 $ 2,339.52 $ 4,946.31
EQ/Janus Large Cap Growth $ 477.61 $ 1,459.22 $ 2,477.47 $ 5,196.19
EQ/Lazard Small Cap Value $ 458.71 $ 1,404.27 $ 2,388.99 $ 5,036.41
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
If you annuitize at the end of the
applicable time period
1 year 3 years 5 years 10 years
- ---------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ---------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 869.61 $ 1,930.56 $ 3,021.59 $ 5,890.43
AXA Conservative Allocation $ 857.01 $ 1,894.27 $ 2,963.71 $ 5,788.71
AXA Conservative-Plus Allocation $ 850.71 $ 1,876.08 $ 2,934.66 $ 5,737.35
AXA Moderate Allocation $ 838.95 $ 1,842.08 $ 2,880.22 $ 5,640.60
AXA Moderate-Plus Allocation $ 863.31 $ 1,912.42 $ 2,992.69 $ 5,839.73
AXA Premier VIP Aggressive Equity $ 808.71 $ 1,754.27 $ 2,738.99 $ 5,386.41
AXA Premier VIP Core Bond $ 808.71 $ 1,754.27 $ 2,738.99 $ 5,386.41
AXA Premier VIP Health Care $ 892.71 $ 1,996.85 $ 3,126.90 $ 6,073.55
AXA Premier VIP High Yield $ 804.51 $ 1,742.03 $ 2,719.23 $ 5,350.48
AXA Premier VIP International Equity $ 887.46 $ 1,981.81 $ 3,103.05 $ 6,032.31
AXA Premier VIP Large Cap Core Equity $ 852.81 $ 1,882.15 $ 2,944.35 $ 5,754.51
AXA Premier VIP Large Cap Growth $ 846.51 $ 1,863.95 $ 2,915.25 $ 5,702.93
AXA Premier VIP Large Cap Value $ 845.46 $ 1,860.91 $ 2,910.39 $ 5,694.30
AXA Premier VIP Small/Mid Cap Growth $ 866.46 $ 1,921.49 $ 3,007.15 $ 5,865.12
AXA Premier VIP Small/Mid Cap Value $ 866.46 $ 1,921.49 $ 3,007.15 $ 5,865.12
AXA Premier VIP Technology $ 892.71 $ 1,996.85 $ 3,126.90 $ 6,073.55
- ---------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ---------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 779.31 $ 1,668.37 $ 2,599.94 $ 5,131.69
EQ/Alliance Growth and Income $ 788.76 $ 1,696.04 $ 2,644.82 $ 5,214.39
EQ/Alliance Intermediate Government Securities $ 783.51 $ 1,680.67 $ 2,619.91 $ 5,168.54
EQ/Alliance International $ 813.96 $ 1,769.55 $ 2,763.63 $ 5,431.10
EQ/Alliance Large Cap Growth* $ 824.46 $ 1,800.07 $ 2,812.77 $ 5,519.77
EQ/Alliance Quality Bond $ 783.51 $ 1,680.67 $ 2,619.91 $ 5,168.54
EQ/Alliance Small Cap Growth $ 809.76 $ 1,757.33 $ 2,743.92 $ 5,395.36
EQ/Bear Stearns Small Company Growth* $ 848.61 $ 1,870.02 $ 2,924.96 $ 5,720.16
EQ/Bernstein Diversified Value $ 798.21 $ 1,723.65 $ 2,689.52 $ 5,296.31
EQ/Boston Advisors Equity Income* $ 825.51 $ 1,803.12 $ 2,817.67 $ 5,528.59
EQ/Calvert Socially Responsible $ 823.41 $ 1,797.02 $ 2,807.87 $ 5,510.95
EQ/Capital Guardian Growth $ 802.41 $ 1,735.91 $ 2,709.33 $ 5,332.46
EQ/Capital Guardian International $ 831.81 $ 1,821.40 $ 2,847.04 $ 5,581.28
EQ/Capital Guardian Research $ 798.21 $ 1,723.65 $ 2,689.52 $ 5,296.31
EQ/Capital Guardian U.S. Equity $ 798.21 $ 1,723.65 $ 2,689.52 $ 5,296.31
EQ/Caywood-Scholl High Yield Bond $ 800.31 $ 1,729.78 $ 2,699.43 $ 5,314.40
EQ/Equity 500 Index $ 756.22 $ 1,600.52 $ 2,489.48 $ 4,926.18
EQ/Evergreen Omega $ 804.51 $ 1,742.03 $ 2,719.23 $ 5,350.48
EQ/FI Mid Cap $ 804.51 $ 1,742.03 $ 2,719.23 $ 5,350.48
EQ/FI Small/Mid Cap Value $ 810.81 $ 1,760.38 $ 2,748.85 $ 5,404.31
EQ/International Growth $ 837.06 $ 1,836.61 $ 2,871.45 $ 5,624.94
EQ/J.P. Morgan Core Bond $ 777.21 $ 1,662.22 $ 2,589.94 $ 5,113.20
EQ/JP Morgan Value Opportunities $ 798.21 $ 1,723.65 $ 2,689.52 $ 5,296.31
EQ/Janus Large Cap Growth $ 827.61 $ 1,809.22 $ 2,827.47 $ 5,546.19
EQ/Lazard Small Cap Value $ 808.71 $ 1,754.27 $ 2,738.99 $ 5,386.41
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end of
the applicable time period
1 year 3 years 5 years 10 years
- ---------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ---------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 519.61 $ 1,580.56 $ 2,671.59 $ 5,540.43
AXA Conservative Allocation $ 507.01 $ 1,544.27 $ 2,613.71 $ 5,438.71
AXA Conservative-Plus Allocation $ 500.71 $ 1,526.08 $ 2,584.66 $ 5,387.35
AXA Moderate Allocation $ 488.95 $ 1,492.08 $ 2,530.22 $ 5,290.60
AXA Moderate-Plus Allocation $ 513.31 $ 1,562.42 $ 2,642.69 $ 5,489.73
AXA Premier VIP Aggressive Equity $ 458.71 $ 1,404.27 $ 2,388.99 $ 5,036.41
AXA Premier VIP Core Bond $ 458.71 $ 1,404.27 $ 2,388.99 $ 5,036.41
AXA Premier VIP Health Care $ 542.71 $ 1,646.85 $ 2,776.90 $ 5,723.55
AXA Premier VIP High Yield $ 454.51 $ 1,392.03 $ 2,369.23 $ 5,000.48
AXA Premier VIP International Equity $ 537.46 $ 1,631.81 $ 2,753.05 $ 5,682.31
AXA Premier VIP Large Cap Core Equity $ 502.81 $ 1,532.15 $ 2,594.35 $ 5,404.51
AXA Premier VIP Large Cap Growth $ 496.51 $ 1,513.95 $ 2,565.25 $ 5,352.93
AXA Premier VIP Large Cap Value $ 495.46 $ 1,510.91 $ 2,560.39 $ 5,344.30
AXA Premier VIP Small/Mid Cap Growth $ 516.46 $ 1,571.49 $ 2,657.15 $ 5,515.12
AXA Premier VIP Small/Mid Cap Value $ 516.46 $ 1,571.49 $ 2,657.15 $ 5,515.12
AXA Premier VIP Technology $ 542.71 $ 1,646.85 $ 2,776.90 $ 5,723.55
- ---------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ---------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 429.31 $ 1,318.37 $ 2,249.94 $ 4,781.69
EQ/Alliance Growth and Income $ 438.76 $ 1,346.04 $ 2,294.82 $ 4,864.39
EQ/Alliance Intermediate Government Securities $ 433.51 $ 1,330.67 $ 2,269.91 $ 4,818.54
EQ/Alliance International $ 463.96 $ 1,419.55 $ 2,413.63 $ 5,081.10
EQ/Alliance Large Cap Growth* $ 474.46 $ 1,450.07 $ 2,462.77 $ 5,169.77
EQ/Alliance Quality Bond $ 433.51 $ 1,330.67 $ 2,269.91 $ 4,818.54
EQ/Alliance Small Cap Growth $ 459.76 $ 1,407.33 $ 2,393.92 $ 5,045.36
EQ/Bear Stearns Small Company Growth* $ 498.61 $ 1,520.02 $ 2,574.96 $ 5,370.16
EQ/Bernstein Diversified Value $ 448.21 $ 1,373.65 $ 2,339.52 $ 4,946.31
EQ/Boston Advisors Equity Income* $ 475.51 $ 1,453.12 $ 2,467.67 $ 5,178.59
EQ/Calvert Socially Responsible $ 473.41 $ 1,447.02 $ 2,457.87 $ 5,160.95
EQ/Capital Guardian Growth $ 452.41 $ 1,385.91 $ 2,359.33 $ 4,982.46
EQ/Capital Guardian International $ 481.81 $ 1,471.40 $ 2,497.04 $ 5,231.28
EQ/Capital Guardian Research $ 448.21 $ 1,373.65 $ 2,339.52 $ 4,946.31
EQ/Capital Guardian U.S. Equity $ 448.21 $ 1,373.65 $ 2,339.52 $ 4,946.31
EQ/Caywood-Scholl High Yield Bond $ 450.31 $ 1,379.78 $ 2,349.43 $ 4,964.40
EQ/Equity 500 Index $ 406.22 $ 1,250.52 $ 2,139.48 $ 4,576.18
EQ/Evergreen Omega $ 454.51 $ 1,392.03 $ 2,369.23 $ 5,000.48
EQ/FI Mid Cap $ 454.51 $ 1,392.03 $ 2,369.23 $ 5,000.48
EQ/FI Small/Mid Cap Value $ 460.81 $ 1,410.38 $ 2,398.85 $ 5,054.31
EQ/International Growth $ 487.06 $ 1,486.61 $ 2,521.45 $ 5,274.94
EQ/J.P. Morgan Core Bond $ 427.21 $ 1,312.22 $ 2,239.94 $ 4,763.20
EQ/JP Morgan Value Opportunities $ 448.21 $ 1,373.65 $ 2,339.52 $ 4,946.31
EQ/Janus Large Cap Growth $ 477.61 $ 1,459.22 $ 2,477.47 $ 5,196.19
EQ/Lazard Small Cap Value $ 458.71 $ 1,404.27 $ 2,388.99 $ 5,036.41
- ---------------------------------------------------------------------------------------------------------
Fee table 17
If you surrender your contract at the end of the
applicable time period
- ---------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ---------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ---------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 453.46 $ 1,388.97 $ 2,364.28 $ 4,991.48
EQ/Lord Abbett Growth and Income $ 462.91 $ 1,416.50 $ 2,408.71 $ 5,072.18
EQ/Lord Abbett Large Cap Core $ 462.91 $ 1,416.50 $ 2,408.71 $ 5,072.18
EQ/Lord Abbett Mid Cap Value $ 468.16 $ 1,431.77 $ 2,433.31 $ 5,116.68
EQ/Marsico Focus $ 473.41 $ 1,447.02 $ 2,457.87 $ 5,160.95
EQ/Mercury Basic Value Equity $ 440.86 $ 1,352.18 $ 2,304.77 $ 4,882.66
EQ/Mercury International Value $ 479.71 $ 1,465.31 $ 2,487.26 $ 5,213.76
EQ/Mergers and Acquisitions $ 596.25 $ 1,799.31 $ 3,017.07 $ 6,131.62
EQ/MFS Emerging Growth Companies $ 449.26 $ 1,376.71 $ 2,344.48 $ 4,955.36
EQ/MFS Investors Trust $ 448.21 $ 1,373.65 $ 2,339.52 $ 4,946.31
EQ/Money Market $ 415.67 $ 1,278.31 $ 2,184.80 $ 4,660.83
EQ/Montag & Caldwell Growth* $ 466.06 $ 1,425.66 $ 2,423.48 $ 5,098.91
EQ/PIMCO Real Return $ 453.46 $ 1,388.97 $ 2,364.28 $ 4,991.48
EQ/Short Duration Bond $ 476.56 $ 1,456.17 $ 2,472.57 $ 5,187.39
EQ/Small Company Index $ 414.62 $ 1,275.23 $ 2,179.77 $ 4,651.46
EQ/Small Company Value* $ 471.31 $ 1,440.92 $ 2,448.05 $ 5,143.27
EQ/TCW Equity* $ 471.31 $ 1,440.92 $ 2,448.05 $ 5,143.27
EQ/UBS Growth and Income* $ 470.26 $ 1,437.87 $ 2,443.14 $ 5,134.42
EQ/Van Kampen Comstock $ 462.91 $ 1,416.50 $ 2,408.71 $ 5,072.18
EQ/Van Kampen Emerging Markets Equity* $ 537.46 $ 1,631.81 $ 2,753.05 $ 5,682.31
EQ/Van Kampen Mid Cap Growth $ 468.16 $ 1,431.77 $ 2,433.31 $ 5,116.68
EQ/Wells Fargo Montgomery Small Cap $ 1,147.46 $ 3,272.15 $ 5,189.45 $ 9,211.65
- ---------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ---------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 778.94 $ 2,306.80 $ 3,796.16 $ 7,363.35
- ---------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ---------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 492.31 $ 1,501.80 $ 2,545.80 $ 5,318.36
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
If you annuitize at the end of the applicable time
period
- ---------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ---------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 803.46 $ 1,738.97 $ 2,714.28 $ 5,341.48
EQ/Lord Abbett Growth and Income $ 812.91 $ 1,766.50 $ 2,758.71 $ 5,422.18
EQ/Lord Abbett Large Cap Core $ 812.91 $ 1,766.50 $ 2,758.71 $ 5,422.18
EQ/Lord Abbett Mid Cap Value $ 818.16 $ 1,781.77 $ 2,783.31 $ 5,466.68
EQ/Marsico Focus $ 823.41 $ 1,797.02 $ 2,807.87 $ 5,510.95
EQ/Mercury Basic Value Equity $ 790.86 $ 1,702.18 $ 2,654.77 $ 5,232.66
EQ/Mercury International Value $ 829.71 $ 1,815.31 $ 2,837.26 $ 5,563.76
EQ/Mergers and Acquisitions $ 946.25 $ 2,149.31 $ 3,367.07 $ 6,481.62
EQ/MFS Emerging Growth Companies $ 799.26 $ 1,726.71 $ 2,694.48 $ 5,305.36
EQ/MFS Investors Trust $ 798.21 $ 1,723.65 $ 2,689.52 $ 5,296.31
EQ/Money Market $ 765.67 $ 1,628.31 $ 2,534.80 $ 5,010.83
EQ/Montag & Caldwell Growth* $ 816.06 $ 1,775.66 $ 2,773.48 $ 5,448.91
EQ/PIMCO Real Return $ 803.46 $ 1,738.97 $ 2,714.28 $ 5,341.48
EQ/Short Duration Bond $ 826.56 $ 1,806.17 $ 2,822.57 $ 5,537.39
EQ/Small Company Index $ 764.62 $ 1,625.23 $ 2,529.77 $ 5,001.46
EQ/Small Company Value* $ 821.31 $ 1,790.92 $ 2,798.05 $ 5,493.27
EQ/TCW Equity* $ 821.31 $ 1,790.92 $ 2,798.05 $ 5,493.27
EQ/UBS Growth and Income* $ 820.26 $ 1,787.87 $ 2,793.14 $ 5,484.42
EQ/Van Kampen Comstock $ 812.91 $ 1,766.50 $ 2,758.71 $ 5,422.18
EQ/Van Kampen Emerging Markets Equity* $ 887.46 $ 1,981.81 $ 3,103.05 $ 6,032.31
EQ/Van Kampen Mid Cap Growth $ 818.16 $ 1,781.77 $ 2,783.31 $ 5,466.68
EQ/Wells Fargo Montgomery Small Cap $ 1,497.46 $ 3,622.15 $ 5,539.45 $ 9,561.65
- ---------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ---------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,128.94 $ 2,656.80 $ 4,146.16 $ 7,713.35
- ---------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ---------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 842.31 $ 1,851.80 $ 2,895.80 $ 5,668.36
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end of
the applicable time period
- ---------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
EQ ADVISORS TRUST:
- ---------------------------------------------------------------------------------------------------------
EQ/Long Term Bond $ 453.46 $ 1,388.97 $ 2,364.28 $ 4,991.48
EQ/Lord Abbett Growth and Income $ 462.91 $ 1,416.50 $ 2,408.71 $ 5,072.18
EQ/Lord Abbett Large Cap Core $ 462.91 $ 1,416.50 $ 2,408.71 $ 5,072.18
EQ/Lord Abbett Mid Cap Value $ 468.16 $ 1,431.77 $ 2,433.31 $ 5,116.68
EQ/Marsico Focus $ 473.41 $ 1,447.02 $ 2,457.87 $ 5,160.95
EQ/Mercury Basic Value Equity $ 440.86 $ 1,352.18 $ 2,304.77 $ 4,882.66
EQ/Mercury International Value $ 479.71 $ 1,465.31 $ 2,487.26 $ 5,213.76
EQ/Mergers and Acquisitions $ 596.25 $ 1,799.31 $ 3,017.07 $ 6,131.62
EQ/MFS Emerging Growth Companies $ 449.26 $ 1,376.71 $ 2,344.48 $ 4,955.36
EQ/MFS Investors Trust $ 448.21 $ 1,373.65 $ 2,339.52 $ 4,946.31
EQ/Money Market $ 415.67 $ 1,278.31 $ 2,184.80 $ 4,660.83
EQ/Montag & Caldwell Growth* $ 466.06 $ 1,425.66 $ 2,423.48 $ 5,098.91
EQ/PIMCO Real Return $ 453.46 $ 1,388.97 $ 2,364.28 $ 4,991.48
EQ/Short Duration Bond $ 476.56 $ 1,456.17 $ 2,472.57 $ 5,187.39
EQ/Small Company Index $ 414.62 $ 1,275.23 $ 2,179.77 $ 4,651.46
EQ/Small Company Value* $ 471.31 $ 1,440.92 $ 2,448.05 $ 5,143.27
EQ/TCW Equity* $ 471.31 $ 1,440.92 $ 2,448.05 $ 5,143.27
EQ/UBS Growth and Income* $ 470.26 $ 1,437.87 $ 2,443.14 $ 5,134.42
EQ/Van Kampen Comstock $ 462.91 $ 1,416.50 $ 2,408.71 $ 5,072.18
EQ/Van Kampen Emerging Markets Equity* $ 537.46 $ 1,631.81 $ 2,753.05 $ 5,682.31
EQ/Van Kampen Mid Cap Growth $ 468.16 $ 1,431.77 $ 2,433.31 $ 5,116.68
EQ/Wells Fargo Montgomery Small Cap $ 1,147.46 $ 3,272.15 $ 5,189.45 $ 9,211.65
- ---------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE INSURANCE TRUST:
- ---------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 778.94 $ 2,306.80 $ 3,796.16 $ 7,363.35
- ---------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ---------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 492.31 $ 1,501.80 $ 2,545.80 $ 5,318.36
- ---------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject to
regulatory approval. Please see "Portfolios of the Trusts" in "Contract
features and benefits" later in this Prospectus for the option's former name.
18 Fee table
CONDENSED FINANCIAL INFORMATION
Please see Appendix I at the end of this Prospectus for the unit values and the
number of units outstanding as of the end of the periods shown for each of the
variable investment options available as of December 31, 2004.
Fee table 19
1. Contract features and benefits
- --------------------------------------------------------------------------------
HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT
You may purchase a contract by making payments to us that we call
"contributions." We require a minimum initial contribution of $25,000 for you
to purchase a contract. You may make additional contributions of at least $500
each for NQ and Rollover TSA contracts and $50 for Rollover IRA and Roth
Conversion contracts and $1000 for Inherited IRA contracts, subject to
limitations noted below. The following table summarizes our rules regarding
contributions to your contract. All ages in the table refer to the age of the
annuitant named in the contract.
We may refuse to accept any contribution if the sum of all contributions under
all Accumulator(R) series contracts with the same owner or annuitant would then
total more than $1,500,000 ($500,000 for owners or annuitants who are age 81
and older at contract issue). We reserve the right to limit aggregate
contributions made after the first contract year to 150% of first-year
contributions. We may also refuse to accept any contribution if the sum of all
contributions under all AXA Equitable annuity accumulation contracts with the
same owner or annuitant would then total more than $2,500,000. We may accept
less than the minimum initial contribution under a contract if an aggregate
amount of contracts purchased at the same time by an individual (including
spouse) meets the minimum.
- --------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining
contract benefits. The annuitant is not necessarily the contract owner.
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Available
Contract for annuitant Limitations on
type issue ages Source of contributions contributions+
- -----------------------------------------------------------------------------------------------------------------------------------
NQ 0 through 85 o After-tax money. o No additional contributions after attainment
of age 86 or, if later, the first contract anni-
o Paid to us by check or transfer of contract versary.*
value in a tax-deferred exchange under
Section 1035 of the Internal Revenue Code.
- -----------------------------------------------------------------------------------------------------------------------------------
Rollover IRA 20 through 85 o Eligible rollover distributions from TSA con- o No rollover or direct transfer contributions
tracts or other 403(b) arrangements, after attainment of age 86 or, if later, the
qualified plans, and governmental employer first contract anniversary.*
457(b) plans.
o Contributions after age 70-1/2 must be net of
o Rollovers from another traditional individual required minimum distributions.
retirement arrangement.
o Although we accept regular IRA
o Direct custodian-to-custodian transfers from contributions (limited to $4,000 for 2005;
another traditional individual retirement same for 2006) under the Rollover IRA con-
arrangement. tracts, we intend that this contract be used
primarily for rollover and direct transfer
o Regular IRA contributions. contributions.
o Additional "catch-up" contributions. o Additional catch-up contributions of up to
$500 can be made for the calendar year
2005 ($1,000 for 2006) where the owner is
at least age 50 but under age 70-1/2 at any
time during the calendar year for which the
contribution is made.
- -----------------------------------------------------------------------------------------------------------------------------------
20 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------
Available
Contract for annuitant Limitations on
type issue ages Source of contributions contributions+
- ------------------------------------------------------------------------------------------------------------------------------------
Roth Conversion 20 through 85 o Rollovers from another Roth IRA. o No additional rollover or direct transfer con-
IRA tributions after attainment of age 86 or, if
o Conversion rollovers from a traditional IRA. later, the first contract anniversary.*
o Direct transfers from another Roth IRA. o Conversion rollovers after age 70-1/2 must be
net of required minimum distributions for the
o Regular Roth IRA contributions. traditional IRA you are rolling over.
o Additional catch-up contributions. o You cannot roll over funds from a traditional
IRA if your adjusted gross income is
$100,000 or more.
o Although we accept regular Roth IRA contri-
butions (limited to $4,000 for 2005; same
for 2006) under the Roth IRA contracts, we
intend that this contract be used primarily for
rollover and direct transfer contributions.
o Additional catch-up contributions of up to
$500 can be made for the calendar year
2005 ($1,000 for 2006) where the owner is
at least age 50 at any time during the calen-
dar year for which the contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
Inherited IRA 0-70 o Direct custodian-to-custodian transfers of o Any additional contributions must be from
Beneficiary your interest as a death beneficiary of the same type of IRA of same deceased owner.
Continuation deceased owner's traditional individual
Contract retirement arrangement or Roth IRA to an
(traditional IRA IRA of the same type.
or Roth IRA)
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover TSA 20 through 85 o Direct transfers of pre-tax funds from o No additional rollover or direct transfer con-
another contract or arrangement under tributions after attainment of age 86 or, if
Section 403(b) of the Internal Revenue later, the first contract anniversary.*
Code, complying with IRS Revenue Ruling
90-24. o Rollover or direct transfer contributions after
age 70-1/2 must be net of any required mini-
o Eligible rollover distributions of pre-tax mum distributions.
funds from other 403(b) plans. Subsequent
contributions may also be rollovers from o We do not accept employer-remitted
qualified plans, governmental employer contributions.
457(b) plans and traditional IRAs.
- ------------------------------------------------------------------------------------------------------------------------------------
+ If you purchase Guaranteed principal benefit option 2, no contributions are
permitted after the six month period beginning on the contract date.
* For Pennsylvania contracts, please see Appendix VII later in this Prospectus
for state variations.
See "Tax information" later in this Prospectus for a more detailed discussion
of sources of contributions and certain contribution
limitations. For information on when contributions are credited under your
contract see "Dates and prices at which contract events occur" in "More
information" later in this Prospectus.
Contract features and benefits 21
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from the owner. We do not
permit partnerships or limited liability corporations to be owners. We also
reserve the right to prohibit availability of this contract to other
non-natural owners. Only natural persons can be joint owners. In general, we
will not permit a contract to be owned by a minor unless it is pursuant to the
Uniform Gift to Minors Act or the Uniform Transfers to Minors Act in your
state. If the Spousal protection feature is elected, the spouses must be joint
owners, one of the spouses must be the annuitant and both must be named as the
only primary beneficiaries.
Under all IRA and Rollover TSA contracts, the owner and annuitant must be the
same person. In some cases, an IRA contract may be held in a custodial
individual retirement account for the benefit of the individual annuitant. This
option may not be available under your contract. See Inherited IRA beneficiary
continuation contract later in this section for Inherited IRA owner and
annuitant requirements.
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be by check drawn on a U.S. bank, in
U.S. dollars, and made payable to AXA Equitable. We may also apply
contributions made pursuant to a Section 1035 tax-free exchange or a direct
transfer. We do not accept third-party checks endorsed to us except for
rollover contributions, tax-free exchanges or trustee checks that involve no
refund. All checks are subject to our ability to collect the funds. We reserve
the right to reject a payment if it is received in an unacceptable form.
For your convenience, we will accept initial and additional contributions by
wire transmittal from certain broker-dealers who have agreements with us for
this purpose, including circumstances under which such contributions are
considered received by us when your order is taken by such broker-dealers.
Additional contributions may also be made under our automatic investment
program. These methods of payment are discussed in detail in "More information"
later in this Prospectus.
Your initial contribution must generally be accompanied by an application and
any other form we need to process the payments. If any information is missing
or unclear, we will try to obtain that information. If we are unable to obtain
all of the information we require within five business days after we receive an
incomplete application or form, we will inform the financial professional
submitting the application on your behalf. We will then return the contribution
to you unless you specifically direct us to keep your contribution until we
receive the required information.
- --------------------------------------------------------------------------------
Our "business day" is generally any day the New York Stock Exchange is open for
trading and generally ends at 4:00 p.m. Eastern Time. A business day does not
include a day we choose not to open due to emergency conditions. We may also
close early due to emergency conditions.
- --------------------------------------------------------------------------------
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
Your investment options are the variable investment options, the guaranteed
interest option and the fixed maturity options.
VARIABLE INVESTMENT OPTIONS
Your investment results in any one of the variable investment options will
depend on the investment performance of the underlying portfolios. You can lose
your principal when investing in the variable investment options. In periods of
poor market performance, the net return, after charges and expenses, may result
in negative yields, including for the EQ/Money Market variable investment
option. Listed below are the currently available portfolios, their investment
objectives and their advisers.
- --------------------------------------------------------------------------------
You can choose from among the variable investment options, the guaranteed
interest option and the fixed maturity options.
- --------------------------------------------------------------------------------
22 Contract features and benefits
PORTFOLIOS OF THE TRUSTS
You should note that some portfolios have objectives and strategies that are
substantially similar to those of certain funds that are purchased directly
rather than under a variable insurance product such as the Accumulator(R)
Select(SM) contract. These portfolios may even have the same manager(s) and/or a
similar name. However, there are numerous factors that can contribute to
differences in performance between two investments, particularly over short
periods of time. Such factors include the timing of stock purchases and sales;
differences in fund cash flows; and specific strategies employed by the
portfolio manager.
AXA Equitable serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. As such, AXA Equitable oversees
the activities of the investment advisers with respect to the Trusts and is
responsible for retaining or discontinuing the services of those advisers. The
advisers for these Portfolios, listed in the chart below, are those who make the
investment decisions for each Portfolio. The chart also indicates the investment
manager for each of the other Portfolios.
- -----------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o AXA Equitable
ALLOCATION greater emphasis on current income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o AXA Equitable
ALLOCATION with a greater emphasis on capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
EQUITY o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of risk. o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o AIM Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of current o Alliance Capital Management L.P.
income and capital appreciation. o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P., through
INTERNATIONAL EQUITY its Bernstein Investment Research and
Management Unit
o J.P. Morgan Investment Management Inc.
o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P., through
CORE EQUITY its Bernstein Investment Research and
Management Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH o RCM Capital Management LLC
o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 23
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE o Institutional Capital Corporation
o MFS Investment Management
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management LLC
CAP VALUE o TCW Investment Management Company
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
GOVERNMENT SECURITIES relative stability of principal.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE LARGE CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH(1)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
moderate risk to capital.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BEAR STEARNS Seeks to achieve capital appreciation. o Bear Stearns Asset Management Inc.
SMALL COMPANY GROWTH(7)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment Research
and Management Unit
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BOSTON ADVISORS EQUITY Seeks a combination of growth and income to achieve an o Boston Advisors, Inc.
INCOME(4) above-average and consistent total return.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN GROWTH Seeks long-term growth of capital. o Capital Guardian Trust Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------------
24 Contract features and benefits
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. o Caywood-Scholl Capital Management
YIELD BOND
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates o Alliance Capital Management L.P.
the total return performance of the S&P 500 Index,
including reinvestment of dividends, at a risk level
consistent with that of the S&P 500 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA Seeks long-term capital growth. o Evergreen Investment Management
Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o SSgA Funds Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent with mod- o J.P. Morgan Investment Management Inc.
erate risk to capital and maintenance of liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JP MORGAN VALUE Long-term capital appreciation. o J.P. Morgan Investment Management Inc.
OPPORTUNITIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LONG TERM BOND Seeks to maximize income and capital appreciation o Boston Advisors, Inc.
through investment in long-maturity debt obligations.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT GROWTH AND Capital appreciation and growth of income without o Lord, Abbett & Co. LLC
INCOME excessive fluctuation in market value.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT LARGE CAP Capital appreciation and growth of income with reason- o Lord, Abbett & Co. LLC
CORE able risk.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT MID CAP VALUE Capital appreciation. o Lord, Abbett & Co, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers
VALUE International Limited
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERGERS AND ACQUISITIONS Seeks to achieve capital appreciation. o GAMCO Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary objec- o MFS Investment Management
tive to seek reasonable current income.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve o Alliance Capital Management L.P.
its assets and maintain liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. o Montag & Caldwell, Inc.
GROWTH(5)
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 25
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PIMCO REAL RETURN Seeks maximum real return consistent with preservation o Pacific Investment Management Company,
of real capital and prudent investment management. LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SHORT DURATION BOND Seeks current income with reduced volatility of principal. o Boston Advisors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o Alliance Capital Management L. P.
deduction of portfolio expenses) the total return of the
Russell 2000 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY VALUE(8) Seeks to maximize capital appreciation. o GAMCO Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/TCW EQUITY(3) Seeks to achieve long-term capital appreciation. o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/UBS GROWTH AND INCOME(6) Seeks to achieve total return through capital appreciation o UBS Global Asset Management
with income as a secondary consideration. (Americas) Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN COMSTOCK Capital growth and income. o Morgan Stanley Investment
Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN EMERGING Seeks long-term capital appreciation. o Morgan Stanley Investment
MARKETS EQUITY(2) Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN MID CAP Capital growth. o Morgan Stanley Investment
GROWTH Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/WELLS FARGO MONTGOMERY Seeks long-term capital appreciation. o Wells Capital Management Inc.
SMALL CAP
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS VARIABLE
INSURANCE TRUST
PORTFOLIO NAME Objective Investment Manager/Adviser
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG VIT VALUE Seeks to increase the value of your investment in bull o Charles Schwab Investment Management,
LONG/SHORT EQUITY markets and bear markets through strategies that are Inc.
designed to have limited exposure to general equity o AXA Rosenberg Investment
market risk. Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL
FUNDS, INC.
PORTFOLIO NAME Objective Investment Manager
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. REAL ESTATE -- CLASS II Seeks to provide above average current income and long- o Van Kampen (is the name under which
term capital appreciation by investing primarily in equity Morgan Stanley Investment Management
securities of companies in the U.S. real estate industry, Inc. does business in certain
including real estate investment trusts. situations)
- ------------------------------------------------------------------------------------------------------------------------------------
* This portfolio information reflects the portfolio's name change effective on
or about May 9, 2005, subject to regulatory approval. The table below
reflects the portfolio name in effect until on or about May 9, 2005. The
number in the "FN" column corresponds with the number contained in the chart
above.
- ---------------------------------------------------
FN Portfolio Name until May 9, 2005
- ---------------------------------------------------
(1) EQ/Alliance Premier Growth
(2) EQ/Emerging Markets Equity
(3) EQ/Enterprise Equity
(4) EQ/Enterprise Equity Income
(5) EQ/Enterprise Growth
(6) EQ/Enterprise Growth and Income
(7) EQ/Enterprise Small Company Growth
(8) EQ/Enterprise Small Company Value
- ---------------------------------------------------
You should consider the investment objectives, risks and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may
call one of our customer service representatives at 1-800-789-7771.
26 Contract features and benefits
GUARANTEED INTEREST OPTION
The guaranteed interest option is part of our general account and pays interest
at guaranteed rates. We discuss our general account under "More information"
later in this Prospectus.
We assign an interest rate to each amount allocated to the guaranteed interest
option. This rate is guaranteed for a specified period. Therefore, different
interest rates may apply to different amounts in the guaranteed interest
option.
We credit interest daily to amounts in the guaranteed interest option. There
are three levels of interest in effect at the same time in the guaranteed
interest option:
(1) the minimum interest rate guaranteed over the life of the contract,
(2) the yearly guaranteed interest rate for the calendar year, and
(3) the current interest rate.
We set current interest rates periodically, according to our procedures that we
have in effect at the time. We reserve the right to change these procedures.
All interest rates are effective annual rates, but before deduction of annual
administrative charges and any optional benefit charges. See Appendix VII later
in this Prospectus for state variations.
Depending on the state where your contract is issued, your lifetime minimum
rate ranges from 1.00% to 3.00%. The data page for your contract shows the
lifetime minimum rate. The minimum yearly rate will never be less than the
lifetime minimum rate. The minimum yearly rate for 2005 is equal to 2.25%
except that for contracts issued with a lifetime minimum guaranteed interest
rate of 3.00%, the minimum yearly rate for 2005 is also 3.00%. Check with your
financial professional as to which rate applies in your state. Current interest
rates will never be less than the yearly guaranteed interest rate.
Generally, contributions and transfers into and out of the guaranteed interest
option are limited. See "Transferring your money among the investment options"
later in this Prospectus for restrictions on transfers to and from the
guaranteed interest option.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied the rate to maturity is 3%. This
means that at points in time there may be no fixed maturity options available.
You can allocate your contributions to one or more of these fixed maturity
options, however, you may not have more than 12 different maturities running
during any contract year. This limit includes any maturities that have had any
allocation or transfers even if the entire amount is withdrawn or transferred
during the contract year. These amounts become part of a non-unitized separate
account. They will accumulate interest at the "rate to maturity" for each fixed
maturity option. The total amount you allocate to and accumulate in each fixed
maturity option is called the "fixed maturity amount." The fixed maturity
options are not available in all states. Check with your financial professional
or see Appendix VII later in this Prospectus to see if fixed maturity options
are available in your state.
- --------------------------------------------------------------------------------
Fixed maturity options range from one to ten years to maturity.
- --------------------------------------------------------------------------------
Under the Special 10 year fixed maturity option (which is available only under
GPB Option 2), additional contributions will have the same maturity date as
your initial contribution (see "the Guaranteed Principal benefits" below.) The
rate to maturity you will receive for each additional contribution is the rate
to maturity in effect for new contributions allocated to that fixed maturity
option on the date we apply your contribution.
On the maturity date of a fixed maturity option your fixed maturity amount,
assuming you have not made any withdrawals or transfers, will equal your
contribution to that fixed maturity option plus interest, at the rate to
maturity for that contribution, to the date of the calculation. This is the
fixed maturity option's "maturity value." Before maturity, the current value we
will report for your fixed maturity amounts will reflect a market value
adjustment. Your current value will reflect the market value adjustment that we
would make if you were to withdraw all of your fixed maturity amounts on the
date of the report. We call this your "market adjusted amount."
FIXED MATURITY OPTIONS AND MATURITY DATES. We offer fixed maturity options with
maturity dates ranging from one to ten years. Not all of these fixed maturity
options will be available for annuitant ages 76 and older. See "Allocating your
contributions" below.
Each new contribution is applied to a new fixed maturity option. When you apply
for an Accumulator(R) Select(SM) contract, a 60-day rate lock-in will apply from
the date the application is signed. Any contributions received and designated
for a fixed maturity option during this period will receive the then current
fixed maturity option rate or the rate that was in effect on the date that the
application was signed, whichever is greater. There is no rate lock available
for subsequent contributions to the contract after 60 days, transfers from the
variable investment options or the guaranteed interest option into a fixed
maturity option or transfers from one fixed maturity option to another.
YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 45 days
before each of your fixed maturity options is scheduled to mature. At that
time, you may choose to have one of the following take place on the maturity
date, as long as none of the restrictive conditions listed in "Allocating your
contributions," below would apply:
(a) transfer the maturity value into another available fixed maturity option,
any of the variable investment options or the guaranteed interest option;
or
(b) withdraw the maturity value.
If we do not receive your choice on or before the fixed maturity option's
maturity date, we will automatically transfer your maturity value into the
shortest available maturity option beginning on that date. As of February 15,
2005, the next available maturity date was February 15, 2013. If no fixed
maturity options are available we will transfer your maturity value to the
EQ/Money Market option.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender of your contract or when we make deductions for charges) from a fixed
maturity option before it matures we will make a market value adjustment, which
will increase or decrease any fixed maturity amount you have in that fixed
maturity option. The amount of the adjustment will depend on two factors:
(a) the difference between the rate to maturity that applies to the amount
being withdrawn and the rate we have in effect at that time for new fixed
maturity options, (adjusted to reflect a similar maturity date) and
Contract features and benefits 27
(b) the length of time remaining until the maturity date.
In general, if interest rates rise from the time that you originally allocate
an amount to a fixed maturity option to the time that you take a withdrawal,
the market value adjustment will be negative. Likewise, if interest rates drop
at the end of that time, the market value adjustment will be positive. Also,
the amount of the market value adjustment, either up or down, will be greater
the longer the time remaining until the fixed maturity option's maturity date.
Therefore, it is possible that the market value adjustment could greatly reduce
your value in the fixed maturity options, particularly in the fixed maturity
options with later maturity dates.
We provide an illustration of the market adjusted amount of specified maturity
values, an explanation of how we calculate the market value adjustment, and
information concerning our general account and investments purchased with
amounts allocated to the fixed maturity options, in "More information" later in
this Prospectus. Appendix II at the end of this Prospectus provides an example
of how the market value adjustment is calculated.
ALLOCATING YOUR CONTRIBUTIONS
You may choose from among three ways to allocate your contributions under your
contract: self-directed, the guaranteed principal benefits or dollar cost
averaging. Subsequent contributions are allocated according to instructions on
file unless you provide new instructions.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options, guaranteed interest option and fixed maturity options.
Allocations must be in whole percentages and you may change your allocations at
any time. No more than 25% of any contribution may be allocated to the
guaranteed interest option. The total of your allocations into all available
investment options must equal 100%. If the annuitant is age 76-80, you may
allocate contributions to fixed maturity options with maturities of seven years
or less. If the annuitant is age 81 or older, you may allocate contributions to
fixed maturity options with maturities of five years or less. Also, you may not
allocate amounts to fixed maturity options with maturity dates that are later
than the date annuity payments are to begin.
THE GUARANTEED PRINCIPAL BENEFITS
Subject to state availability (see Appendix VII later in this Prospectus for
more information on state availability of these benefits), we offer a
guaranteed principal benefit ("GPB") with two options. You may only elect one
of the GPBs. Neither GPB is available under Inherited IRA contracts. We will
not offer either GPB when the rate to maturity for the applicable fixed
maturity option is 3%. If you elect either GPB, you may not elect the
Guaranteed minimum income benefit, Principal Protector(SM), the systematic
withdrawals option or the substantially equal withdrawals options. Both GPB
options allow you to allocate a portion of your contribution or contributions
to the variable investment options, while ensuring that your account value will
at least equal your contributions, adjusted for withdrawals and transfers, on a
specified date. GPB Option 2 generally provides you with the ability to
allocate more of your contributions to the variable investment options than
could be allocated using GPB Option 1.
You may elect GPB Option 1 only if the annuitant is age 80 or younger when the
contract is issued (after age 75, only the 7-year fixed maturity option is
available). You may elect GPB Option 2 only if the annuitant is age 75 or
younger when the contract is issued. If you are purchasing an IRA or Rollover
TSA contract, before you either purchase GPB Option 2 or elect GPB Option 1
with a maturity year that would extend beyond the year in which you will reach
age 70-1/2, you should consider whether your value in the variable investment
options, guaranteed interest option and permissible funds outside this contract
are sufficient to meet your required minimum distributions. See "Tax
information" later in this Prospectus. If you elect GPB Option 2 and change
ownership of the contract, GPB Option 2 will automatically terminate, except
under certain circumstances. See "Transfers of ownership, collateral
assignments, loans and borrowing" in "More information," later in this
Prospectus for more information.
GUARANTEED PRINCIPAL BENEFIT OPTION 1. Under GPB Option 1, you select a fixed
maturity option at the time you sign your application. We specify the portion
of your initial contribution to be allocated to that fixed maturity option in
an amount that will cause the maturity value to equal the amount of your entire
initial contribution on the fixed maturity option's maturity date. The
percentage of your contribution allocated to the fixed maturity option will be
calculated based upon the rate to maturity then in effect for the fixed
maturity option you choose. Your contract will contain information on the
amount of your contribution allocated to the fixed maturity option. If you make
any withdrawals or transfers from the fixed maturity option before the option's
maturity date, the amount in the fixed maturity option will be adjusted and may
no longer grow to equal your initial contribution under GPB Option 1. The
maturity date you select generally may not be later than 10 years, or earlier
than 7 years from your contract date. You may allocate the rest of your initial
contribution to the investment options however you choose, other than the
Investment simplifier. (If you elect the General or 12 month dollar cost
averaging program, the remainder of your initial contribution (that is, amounts
other than those allocated to the fixed maturity option under GPB Option 1)
must be allocated to that dollar cost averaging program). Upon the maturity
date of the fixed maturity option, you will be provided with the same notice
and the same choices with respect to the maturity value as described above
under "Your choices at the maturity date." There is no charge for GPB Option 1.
GUARANTEED PRINCIPAL BENEFIT OPTION 2. You may purchase GPB Option 2 at the
time you apply for your contract. IF YOU PURCHASE GPB OPTION 2, YOU MAY NOT
MAKE ADDITIONAL CONTRIBUTIONS TO YOUR CONTRACT AFTER SIX MONTHS FROM THE
CONTRACT ISSUE DATE OR AT ANY EARLIER TIME IF AT SUCH TIME THE THEN APPLICABLE
RATE TO MATURITY ON THE SPECIAL 10 YEAR FIXED MATURITY OPTION IS 3%. Therefore,
any discussion in this Prospectus that involves any additional contributions
after the first six months will be inapplicable.
We specify the portion of your initial contribution, and any additional
permitted contributions, to be allocated to a special 10 year fixed maturity
option. Your contract will contain information on the percent-
28 Contract features and benefits
age of applicable contributions allocated to the Special 10 year fixed maturity
option. You may allocate the rest of your contributions among the investment
options (other than the Special 10 year fixed maturity option) however you
choose, as permitted under your contract, and other than the Investment
simplifier. (If you elect the General or 12 month dollar cost averaging
program, the remainder of all contributions (that is, amounts other than those
allocated to the Special 10 year fixed maturity option) must be allocated to
that dollar cost averaging program). The Special 10 year fixed maturity option
will earn interest at the specified rate to maturity then in effect.
If on the 10th contract date anniversary, your annuity account value is less
than the amount that is guaranteed under GPB Option 2, we will increase your
annuity account value to be equal to the guaranteed amount under GPB Option 2.
Any such additional amounts added to your annuity account value will be
allocated to the EQ/Money Market investment option. After the maturity date of
the Special 10 year fixed maturity option, the guarantee under GPB Option 2
will terminate. Upon the maturity date of the Special 10 year fixed maturity
option, you will be provided with the same notice and the same choices with
respect to the maturity value as described above under "Your choices at the
maturity date." The guaranteed amount under GPB Option 2 is equal to your
initial contribution adjusted for any additional permitted contributions,
transfers out of the Special 10 year fixed maturity option and withdrawals from
the contract (see "How withdrawals (and transfers out of the Special 10 year
fixed maturity option) affect your Guaranteed minimum income benefit,
Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in
"Accessing your money" later in this Prospectus). Any transfers or withdrawals
from the Special 10 year fixed maturity option will also be subject to a market
value adjustment (see "Market value adjustment" under "Fixed maturity options"
above in this section).
Once you purchase the Guaranteed principal benefit option 2, you may not
voluntarily terminate this benefit. GPB Option 2 will terminate if the contract
terminates before the maturity date of the Special 10 year fixed maturity
option. If the owner and the annuitant are different people and the owner dies
before the maturity date of the Special 10 year fixed maturity option, we will
continue GPB Option 2 only if the contract can continue through the maturity
date of the Special 10 year fixed maturity option. If the contract cannot so
continue, we will terminate GPB Option 2. GPB Option 2 will continue where
there is a successor owner/annuitant. GPB Option 2 will terminate upon the
exercise of the beneficiary continuation option. See "Payment of death benefit"
later in this Prospectus for more information about the continuation of the
contract after the death of the owner and/or the annuitant.
There is a fee associated with GPB Option 2 (see "Charges and expenses" later
in this Prospectus). You should note that the purchase of GPB Option 2 is not
appropriate if you want to make additional contributions to your contract
beyond the first six months after your contract is issued. If you later decide
that you would like to make additional contributions to the Accumulator(R)
Select(SM) contract, we may permit you to purchase another contract. If we do,
however, you should note that we do not reduce or waive any of the charges on
the new contract, nor do we guarantee that the features available under this
contract will be available under the new contract. This means that you might
end up paying more with respect to certain charges than if you had simply
purchased a single contract (for example, the administrative charge).
The purchase of GPB Option2 is also not appropriate if you plan on terminating
your contract before the maturity date of the Special 10 year fixed maturity
option. In addition, because we prohibit contributions to your contract after
the first six months, certain contract benefits that are dependent upon
contributions or account value will be limited (for example the guaranteed
death benefits and Protection Plus(SM)). You should also note that if you intend
to allocate a large percentage of your contributions to the guaranteed interest
option or other fixed maturity options, the purchase of GPB Option 2 may not be
appropriate because of the guarantees already provided by these options. An
example of the effect of GPB Option 1 and GPB Option 2 on your annuity contract
is included in Appendix V later in this Prospectus.
DOLLAR COST AVERAGING
We offer a variety of dollar cost averaging programs. You may only participate
in one program at a time. Each program allows you to gradually allocate amounts
to the other variable investment options by periodically transferring
approximately the same dollar amount to the variable investment options you
select. This will cause you to purchase more units if the unit value is low and
fewer units if the unit value is high. Therefore, you may get a lower average
cost per unit over the long term. These plans of investing, however, do not
guarantee that you will earn a profit or be protected against losses. You may
not make transfers to the fixed maturity options or the guaranteed interest
option.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
12 MONTH DOLLAR COST AVERAGING PROGRAM. You may dollar cost average from the
EQ/Money Market option into any of the other variable investment options. You
may elect to participate in the 12 month dollar cost averaging program at any
time subject to the age limitation on contributions described earlier in this
Prospectus. Contributions into the account for 12 month dollar cost averaging
may not be transfers from other investment options. You must allocate your
entire initial contribution into the EQ/Money Market option if you are selecting
the 12 month dollar cost averaging program at application to purchase an
Accumulator(R) Select(SM) contract; thereafter, initial allocations to any new
12 month dollar cost averaging program time period must be at least $2,000 and
any subsequent contribution to that same time period must be at least $250. You
may only have one time period in effect at any time. We will transfer your value
in the EQ/Money Market option into the other variable investment options that
you select over the next 12 months or such other period we may offer. Once the
time period then in effect has run, you may then select to participate in the
dollar cost averaging program for an additional time period. At that time, you
may also select a different allocation for transfers to the variable investment
options, or, if you wish, we will continue to use the selection that you have
previously made.
Contract features and benefits 29
Currently, the transfer date will be the same day of the month as the contract
date, but not later than the 28th. For a 12 month dollar cost averaging program
selected after application, the first transfer date and each subsequent
transfer date for the time period selected will be one month from the date the
first contribution is made into the 12 month dollar cost averaging program, but
not later than the 28th of the month. All amounts will be transferred out by
the end of the time period then in effect. Under this program we will not
deduct the mortality and expense risks, administrative, and distribution
charges from assets in the EQ/Money Market option.
You may not transfer amounts to the EQ/Money Market option established for this
program that are not part of the 12 month dollar cost averaging program. The
only amounts that should be transferred from the EQ/Money Market option are
your regularly scheduled transfers to the other variable investment options. If
you request to transfer or withdraw any other amounts from the EQ/Money Market
option, we will transfer all of the value that you have remaining in the
account for 12 month dollar cost averaging to the investment options according
to the allocation percentages we have on file for you. You may ask us to cancel
your participation at any time.
GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market
option is at least $5,000, you may choose, at any time, to have a specified
dollar amount or percentage of your value transferred from that option to the
other variable investment options. You can select to have transfers made on a
monthly, quarterly or annual basis. The transfer date will be the same calendar
day of the month as the contract date, but not later than the 28th day of the
month. You can also specify the number of transfers or instruct us to continue
making the transfers until all amounts in the EQ/Money Market option have been
transferred out. The minimum amount that we will transfer each time is $250.
If, on any transfer date, your value in the EQ/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The general dollar cost averaging program will then end.
You may change the transfer amount once each contract year or cancel this
program at any time.
INVESTMENT SIMPLIFIER
Fixed-dollar option. Under this option you may elect to have a fixed-dollar
amount transferred out of the guaranteed interest option and into the variable
investment options of your choice. Transfers may be made on a monthly,
quarterly or annual basis. You can specify the number of transfers or instruct
us to continue to make transfers until all available amounts in the guaranteed
interest option have been transferred out.
In order to elect the fixed-dollar option, you must have a minimum of $5,000 in
the guaranteed interest option on the date we receive your election form at our
processing office. The transfer date will be the same calendar day of the month
as the contract date but not later than the 28th day of the month. The minimum
transfer amount is $50. The fixed-dollar option is subject to the guaranteed
interest option transfer limitations described under "Transferring your account
value" in "Transferring your money among investment options" later in this
Prospectus. While the program is running, any transfer that exceeds those
limitations will cause the program to end for that contract year. You will be
notified. You must send in a request form to resume the program in the next or
subsequent contract years.
If, on any transfer date your value in the guaranteed interest option is equal
to or less than the amount you have elected to have transferred, the entire
amount will be transferred, and the program will end. You may change the
transfer amount once each contract year or cancel this program at any time.
Interest sweep option. Under this option, you may elect to have monthly
transfers from amounts in the guaranteed interest option into the variable
investment options of your choice. The transfer date will be the last business
day of the month. The amount we will transfer will be the interest credited to
amounts you have in the guaranteed interest option from the last business day
of the prior month to the last business day of the current month. You must have
at least $7,500 in the guaranteed interest option on the date we receive your
election. We will automatically cancel the interest sweep program if the amount
in the guaranteed interest option is less than $7,500 on the last day of the
month for two months in a row. For the interest sweep option, the first monthly
transfer will occur on the last business day of the month following the month
that we receive your election form at our processing office.
----------------------------------
You may not participate in any dollar cost averaging program if you are
participating in the rebalancing program. If you elect a GPB, you may also
elect the 12 month or General dollar cost averaging program. If you elect
either of these programs, everything other than amounts allocated to the fixed
maturity option under the GPB must be allocated to that dollar cost averaging
program. You may still elect the Investment simplifier for amounts transferred
from investment options (other than the fixed maturity option under the GPB you
have elected), and, for GPB Option 1, you may also elect Investment simplifier
for subsequent contributions. See "Transferring your money among investment
options" later in this Prospectus.
Not all dollar cost averaging programs are available in all states (see
Appendix VII later in this Prospectus for more information on state
availability).
YOUR GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED MINIMUM INCOME BENEFIT
BASE
The Guaranteed minimum death benefit and Guaranteed minimum income benefit base
(hereinafter, in this section called your "benefit base") is used to calculate
the Guaranteed minimum income benefit and the death benefits as described in
this section. Your benefit base is not an account value or a cash value. See
also "Our Guaranteed minimum income benefit option" and "Guaranteed minimum
death benefit" below.
STANDARD DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your
30 Contract features and benefits
Guaranteed minimum income benefit, Guaranteed minimum death benefit and
Guaranteed principal benefit option 2" in "Accessing your money" later in
this Prospectus).
6% ROLL UP TO AGE 85 (USED FOR THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE
ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM
INCOME BENEFIT). Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
o daily interest; less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum income
benefit, Guaranteed minimum death benefit and Guaranteed principal benefit
option 2" in "Accessing your money" and the section entitled "Charges and
expenses" later in this Prospectus).
The effective annual interest rate credited to this benefit base is:
o 6% with respect to the variable investment options (other than EQ/Alliance
Intermediate Government Securities, EQ/Money Market, EQ/PIMCO Real Return and
EQ/Short Duration Bond) and monies allocated to the 12 month dollar cost
averaging program; the effective annual rate may be 4% in some states. Please
see Appendix VII later in this Prospectus to see what applies in your state;
and
o 3% with respect to the EQ/Alliance Intermediate Government Securities,
EQ/Money Market, EQ/PIMCO Real Return and EQ/Short Duration Bond, the fixed
maturity options, the Special 10 year fixed maturity option, the guaranteed
interest option and the loan reserve account under Rollover TSA (if
applicable).
No interest is credited to the benefit base after the contract anniversary
following the annuitant's 85th birthday.
ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH
BENEFIT, AND THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO
AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME
BENEFIT). Your benefit base is equal to the greater of either:
o your initial contribution to the contract (plus any additional
contributions),
or
o your highest account value on any contract anniversary up to the contract
anniversary following the annuitant's 85th birthday, plus any contributions
made since the most recent contract anniversary,
less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum income
benefit, Guaranteed minimum death benefit and Guaranteed principal benefit
option 2" in "Accessing your money" later in this Prospectus).
GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED
DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base
is equal to the greater of the benefit base computed for the 6% Roll up to age
85 or the benefit base computed for the Annual Ratchet to age 85, as described
immediately above, on each contract anniversary.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the Guaranteed minimum income benefit and annuity payout
options. The Guaranteed minimum income benefit is discussed in "Our Guaranteed
minimum income benefit option" below and annuity payout options are discussed
in "Accessing your money" later in this Prospectus. The guaranteed annuity
purchase factors are those factors specified in your contract. The current
annuity purchase factors are those factors that are in effect at any given
time. Annuity purchase factors are based on interest rates, mortality tables,
frequency of payments, the form of annuity benefit, and the annuitant's (and
any joint annuitant's) age and sex in certain instances.
OUR GUARANTEED MINIMUM INCOME BENEFIT OPTION
The Guaranteed minimum income benefit is available if the annuitant is age 20
through 75 at the time the contract is issued. There is an additional charge
for the Guaranteed minimum income benefit which is described under "Guaranteed
minimum income benefit charge" in "Charges and expenses" later in this
Prospectus. Once you purchase the Guaranteed minimum income benefit, you may
not voluntarily terminate this benefit.
If you are purchasing this contract as an Inherited IRA or if you elect a GPB,
or Principal Protector(SM) the Guaranteed minimum income benefit is not
available. If you are purchasing this contract to fund a Charitable Remainder
Trust, the Guaranteed minimum income benefit is not available except for
certain split-funded Charitable Remainder Trusts. If the annuitant was older
than age 60 at the time an IRA or Rollover TSA contract was issued, the
Guaranteed minimum income benefit may not be an appropriate feature because the
minimum distributions required by tax law generally must begin before the
Guaranteed minimum income benefit can be exercised.
If you elect the Guaranteed minimum income benefit option and change ownership
of the contract, this benefit will automatically terminate, except under
certain circumstances. See "Transfers of ownership, collateral assignments,
loans and borrowing" in "More information," later in this Prospectus for more
information.
The Guaranteed minimum income benefit guarantees you a minimum amount of fixed
income under your choice of a life annuity fixed payout option or a life with a
period certain payout option, subject to state availability. You choose which
of these payout options you want and whether you want the option to be paid on
a single or joint life basis at the time you exercise your Guaranteed minimum
income benefit. The maximum period certain available under the life with a
period certain payout option is 10 years. This period may be shorter, depending
on the annuitant's age as follows:
Contract features and benefits 31
- --------------------------------------
Level payments
- --------------------------------------
Period certain
years
-------------------
Annuitant's
age at exercise IRAs NQ
- --------------------------------------
75 and younger 10 10
76 9 10
77 8 10
78 7 10
79 7 10
80 7 10
81 7 9
82 7 8
83 7 7
84 6 6
85 5 5
- --------------------------------------
We may also make other forms of payout options available. For a description of
payout options, see "Your annuity payout options" in "Accessing your money"
later in this Prospectus.
- --------------------------------------------------------------------------------
The Guaranteed minimum income benefit should be regarded as a safety net only.
It provides income protection if you elect an income payout while the annuitant
is alive.
- --------------------------------------------------------------------------------
When you exercise the Guaranteed minimum income benefit, the annual lifetime
income that you will receive will be the greater of (i) your Guaranteed minimum
income benefit which is calculated by applying your Guaranteed minimum income
benefit base at guaranteed annuity purchase factors, or (ii) the income
provided by applying your account value at our then current annuity purchase
factors. For Rollover TSA only, we will subtract from the Guaranteed minimum
income benefit base or account value any outstanding loan, including interest
accrued but not paid. You may also elect to receive monthly or quarterly
payments as an alternative. The payments will be less than 1/12 or 1/4 of the
annual payments, respectively, due to the effect of interest compounding. The
benefit base is applied only to the guaranteed annuity purchase factors under
the Guaranteed minimum income benefit in your contract and not to any other
guaranteed or current annuity purchase rates. The amount of income you actually
receive will be determined when we receive your request to exercise the
benefit.
When you elect to receive annual lifetime income, your contract will terminate
and you will receive a new contract for the annuity payout option. For a
discussion of when your payments will begin and end, see "Exercise of
Guaranteed minimum income benefit" below.
Before you elect the Guaranteed minimum income benefit, you should consider the
fact that it provides a form of insurance and is based on conservative
actuarial factors. The guaranteed annuity purchase factors we use to determine
your payout annuity benefit under the Guaranteed minimum income benefit are
more conservative than the guaranteed annuity purchase factors we use for our
standard payout annuity options. This means that, assuming the same amount is
applied to purchase the benefit and that we use guaranteed annuity purchase
factors to compute the benefit, each periodic payment under the Guaranteed
minimum income benefit payout annuity will be smaller than each periodic
payment under our standard payout annuity options. Therefore, even if your
account value is less than your benefit base, you may generate more income by
applying your account value to current annuity purchase factors. We will make
this comparison for you when the need arises.
ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll up to
age 85 benefit base, the table below illustrates the Guaranteed minimum income
benefit amounts per $100,000 of initial contribution, for a male annuitant age
60 (at issue) on the contract date anniversaries indicated, who has elected the
life annuity fixed payout option, using the guaranteed annuity purchase factors
as of the date of this Prospectus, assuming no additional contributions,
withdrawals or loans under Rollover TSA contracts, and assuming there were no
allocations to the EQ/Alliance Intermediate Government Securities, EQ/Money
Market, EQ/PIMCO Real Return, EQ/Short Duration Bond, the guaranteed interest
option, the fixed maturity options (including the Special 10 year fixed
maturity option) or the loan reserve account.
- ------------------------------------------------------------------
Guaranteed minimum income
Contract date benefit -- annual income pay-
anniversary at exercise able for life
- ------------------------------------------------------------------
10 $11,891
15 $18,597
- ------------------------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date
anniversary that you are eligible to exercise the Guaranteed minimum income
benefit, we will send you an eligibility notice illustrating how much income
could be provided as of the contract date anniversary. You must notify us
within 30 days following the contract date anniversary if you want to exercise
the Guaranteed minimum income benefit. You must return your contract to us,
along with all required information, within 30 days following your contract
date anniversary in order to exercise this benefit. You will begin receiving
annual payments one year after the annuity payout contract is issued. If you
choose monthly or quarterly payments, you will receive your payment one month
or one quarter after the annuity payout contract is issued. You may choose to
take a withdrawal prior to exercising the Guaranteed minimum income benefit,
which will reduce your payments. You may not partially exercise this benefit.
See "Accessing your money" under "Withdrawing your account value" later in this
Prospectus. Payments end with the last payment before the annuitant's (or joint
annuitant's, if applicable) death or, if later, then end of the period certain
(where the payout option chosen includes a period certain).
EXERCISE RULES. You will be eligible to exercise the Guaranteed minimum income
benefit during your life and the annuitant's life, as follows:
o If the annuitant was at least age 20 and no older than age 44 when the
contract was issued, you are eligible to exercise the Guaranteed
32 Contract features and benefits
minimum income benefit within 30 days following each contract date
anniversary beginning with the 15th contract date anniversary.
o If the annuitant was at least age 45 and no older than age 49 when the
contract was issued, you are eligible to exercise the Guaranteed minimum
income benefit within 30 days following each contract date anniversary after
the annuitant is age 60.
o If the annuitant was at least age 50 and no older than age 75 when the
contract was issued, you are eligible to exercise the Guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 10th contract date anniversary.
Please note:
(i) the latest date you may exercise the Guaranteed minimum income benefit is
within 30 days following the contract date anniversary following the
annuitant's 85th birthday;
(ii) if the annuitant was age 75 when the contract was issued, the only time you
may exercise the Guaranteed minimum income benefit is within 30 days
following the first contract date anniversary that it becomes available;
(iii) for Accumulator(R) Select(SM) Rollover TSA contracts, you may exercise the
Guaranteed minimum income benefit only if you effect a rollover of the TSA
contract to an Accumulator(R) Select(SM) Rollover IRA. This may only occur
when you are eligible for a distribution from the TSA. This process must be
completed within the 30-day timeframe following the contract date
anniversary in order for you to be eligible to exercise;
(iv) a successor owner/annuitant may only continue the Guaranteed minimum income
benefit if the contract is not past the last date on which the original
annuitant could have exercised the benefit. In addition, the successor
owner/annuitant must be eligible to continue the benefit and to exercise
the benefit under the applicable exercise rule (described in the above
bullets) using the following additional rules. The successor
owner/annuitant's age on the date of the annuitant's death replaces the
annuitant's age at issue for purposes of determining the availability of
the benefit and which of the exercise rules applies. The original contract
issue date will continue to apply for purposes of the exercise rules. If
you elect Spousal Protection and the spouse who is the annuitant dies, the
above rules apply if the contract is continued by the surviving spouse as
the successor owner annuitant; and
(v) if you are the owner but not the annuitant and you die prior to exercise,
then the following applies:
o A successor owner who is not the annuitant may not be able to exercise
the guaranteed minimum income benefit without causing a tax problem.
You should consider naming the annuitant as successor owner, or if you
do not name a successor owner, as the sole primary beneficiary. You
should carefully review your successor owner and/or beneficiary
designations at least one year prior to the first contract anniversary
on which you could exercise the benefit.
o If the successor owner is the annuitant, the guaranteed minimum income
benefit continues only if the benefit could be exercised under the
rules described above on a contract anniversary that is within one
year following the owner's death. This would be the only opportunity
for the successor owner to exercise. If the guaranteed minimum income
benefit cannot be exercised within this timeframe, the benefit will
terminate and the charge for it will no longer apply as of the date we
receive proof of your death and any required information.
o If you designate your surviving spouse as successor owner, the
guaranteed minimum income benefit continues and your surviving spouse
may exercise the benefit according to the rules described above even
if your spouse is not the annuitant and even if the benefit is
exercised more than one year after your death. If your surviving
spouse dies prior to exercise, the rule described in the previous
bullet applies.
o A successor owner or beneficiary that is a trust or other non- natural
person may not exercise the benefit; in this case, the benefit will
terminate and the charge for it will no longer apply as of the date we
receive proof of your death and any required information.
See "When an NQ contract owner dies before the annuitant" under "Payment of
death benefit" later in this Prospectus for more information.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals (and transfers out of the Special 10 year fixed
maturity option) affect your Guaranteed minimum income benefit, Guaranteed
minimum death benefit and Guaranteed principal benefit option 2" in "Accessing
your money" later in this Prospectus for more information on these guaranteed
benefits.
GUARANTEED MINIMUM DEATH BENEFIT
Your contract provides a death benefit. If you do not elect one of the enhanced
death benefits described below, the death benefit is equal to your account
value (without adjustment for any otherwise applicable negative market value
adjustment) as of the date we receive satisfactory proof of death, any required
instructions for the method of payment, information and forms necessary to
effect payment, OR the standard death benefit, whichever provides the higher
amount. The standard death benefit is equal to your total contributions
adjusted for any withdrawals and any taxes that apply. The standard death
benefit is the only death benefit available for annuitants ages 76 through 85
at issue. Once your contract is issued, you may not change or voluntarily
terminate your death benefit.
If you elect one of the enhanced death benefits, the death benefit is equal to
your account value (without adjustment for any otherwise applicable negative
market value adjustment) as of the date we receive satisfactory proof of the
annuitant's death, any required instructions for the method of payment,
information and forms necessary to effect payment, OR your elected enhanced
death benefit on the date of the annuitant's death (adjusted for any subsequent
withdrawals and taxes that apply), whichever provides the higher amount. If you
elect the Spousal protection option, the Guaranteed minimum death benefit is
based on the age of the older spouse, who may or may not
Contract features and benefits 33
be the annuitant, for the life of the contract. See "Spousal protection" in
"Payment of death benefit" later in this Prospectus for more information.
If you elect one of the enhanced death benefit options described below and
change ownership of the contract, generally the benefit will automatically
terminate, except under certain circumstances. If this occurs, any enhanced
death benefit elected will be replaced with the standard death benefit. See
"Transfers of ownership, collateral assignments, loans and borrowing" in "More
information," later in this Prospectus for more information.
OPTIONAL ENHANCED DEATH BENEFITS APPLICABLE FOR ANNUITANT AGES 0 THROUGH 75 AT
ISSUE OF NQ CONTRACTS; 20 THROUGH 75 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION
IRA AND ROLLOVER TSA CONTRACTS; AND 0 THROUGH 70 AT ISSUE OF INHERITED IRA
CONTRACTS.
Subject to state availability, you may elect one of the following enhanced
death benefits (see Appendix VII later in this Prospectus for state
availability of these benefits):
o Annual Ratchet to age 85.
o The greater of the 6% Roll up to age 85 or the Annual Ratchet to age 85.
Each enhanced death benefit is equal to its corresponding benefit base
described earlier in "Your Guaranteed minimum death benefit and Guaranteed
minimum income benefit base." Once you have made your enhanced death benefit
election, you may not change it.
If you elect Principal Protector(SM), only the standard death benefit and the
Annual Ratchet to Age 85 enhanced death benefit are available.
----------------------------------
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals and (transfers out of the Special 10 year fixed
maturity option) affect your Guaranteed minimum income benefit, Guaranteed
minimum death benefit and Guaranteed principal benefit option 2" in "Accessing
your money" later in this Prospectus for more information on these guaranteed
benefits.
See Appendix III later in this Prospectus for an example of how we calculate an
enhanced death benefit.
Protection Plus(SM)
Subject to state and contract availability (see Appendix VII later in this
Prospectus for state availability of these benefits), if you are purchasing a
contract under which the Protection Plus(SM) feature is available, you may elect
the Protection Plus(SM) death benefit at the time you purchase your contract.
Protection Plus(SM) provides an additional death benefit as described below. See
the appropriate part of "Tax information" later in this Prospectus for the
potential tax consequences of electing to purchase the Protection Plus(SM)
feature in an NQ, IRA or Rollover TSA contract. Once you purchase the Protection
Plus(SM) feature, you may not voluntarily terminate this feature. If you elect
Principal Protector(SM) the Protection Plus(SM) feature is not available.
If the annuitant is 70 or younger when we issue your Contract (or if the
successor owner/annuitant is 70 or younger when he or she becomes the successor
owner/annuitant), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit less total net contributions, multiplied by 40%.
For purposes of calculating your Protection Plus(SM) benefit, the following
applies: (i) "Net contributions" are the total contributions made (or, if
applicable, the total amount that would otherwise have been paid as a death
benefit had the successor owner/annuitant election not been made plus any
subsequent contributions) adjusted for each withdrawal that exceeds your
Protection Plus(SM) earnings. "Net contributions" are reduced by the amount of
that excess. Protection Plus(SM) earnings are equal to (a) minus (b) where (a)
is the greater of the account value and the death benefit immediately prior to
the withdrawal and (b) is the net contributions as adjusted by any prior
withdrawals; and (ii) "Death benefit" is equal to the greater of the account
value as of the date we receive satisfactory proof of death or any applicable
Guaranteed minimum death benefit as of the date of death.
If you elect the Protection Plus(SM) option described below and change ownership
of the contract, generally this benefit will automatically terminate, except
under certain circumstances. See "Transfers of ownership, collateral
assignments, loans and borrowing" in "More information," later in this
Prospectus for more information.
If the annuitant is age 71 through 75 when we issue your contract (or if the
successor owner/annuitant is between the ages of 71 and 75 when he or she
becomes the successor owner/annuitant and Protection Plus(SM) had been elected
at issue), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit (as described above) less total net contributions,
multiplied by 25%.
The value of the Protection Plus(SM) death benefit is frozen on the first
contract date anniversary after the annuitant turns age 80, except that the
benefit will be reduced for withdrawals on a pro rata basis. Reduction on a pro
rata basis means that we calculate the percentage of the current account value
that is being withdrawn and we reduce the benefit by that percentage. For
example, if the account value is $30,000 and you withdraw $12,000, you have
withdrawn 40% of your account value. If the benefit is $40,000 before the
withdrawal, it would be reduced by $16,000 ($40,000 x .40) and the benefit
after the withdrawal would be $24,000 ($40,000 - $16,000).
For an example of how the Protection Plus(SM) death benefit is calculated,
please see Appendix VI.
If you elect Spousal protection, the Protection Plus(SM) benefit is based on the
age of the older spouse, who may or may not be the annuitant. Upon the death of
the non-annuitant spouse, the account value will be
34 Contract features and benefits
increased by the value of the Protection Plus(SM) benefit as of the date we
receive due proof of death. Upon the death of the annuitant, the value of the
Protection Plus(SM) benefit is either added to the death benefit payment or to
the account value if Successor owner/annuitant is elected. If the surviving
spouse elects to continue the contract, the benefit will be based on the age of
the surviving spouse as of the date of the non-surviving spouse's death for the
remainder of the contract. If the surviving spouse is age 76 or older, the
benefit will terminate and the charge will no longer be in effect. See "Spousal
protection" in "Payment of death benefit" later in this Prospectus for more
information.
Protection Plus(SM) must be elected when the contract is first issued: neither
the owner nor the successor owner/annuitant can add it subsequently. Ask your
financial professional or see Appendix VII later in this Prospectus to see if
this feature is available in your state.
PRINCIPAL PROTECTOR(SM)
As described below, Principal Protector(SM) provides for recovery of your total
contributions through withdrawals, even if your account value falls to zero,
provided that during each contract year, your total withdrawals do not exceed
your Guaranteed Annual withdrawal amount. Principal Protector(SM) is not an
automated withdrawal program. You may request a withdrawal through any of our
available withdrawal methods. See "Withdrawing your account value" in
"Accessing your money" later in this Prospectus. All withdrawals reduce your
account value and the guaranteed minimum death benefit.
Principal Protector(SM) may be elected at contract issue, for an additional
charge, if the annuitant is age 0 through 85 for NQ contracts or age 20 through
75 for all IRA contracts. Please see "Principal Protector(SM) charge" in
"Charges and expenses" later in this Prospectus for a description of the charge
and when it applies. If you elect this benefit, you cannot terminate it.
If you die, and your beneficiary elects the Beneficiary continuation option, if
available, your beneficiary may continue Principal Protector(SM) provided that
the beneficiary was 75 or younger on the original contract date. If the
beneficiary was older, Principal Protector(SM) will terminate without value even
if the GWB benefit base is greater than zero. In the case of multiple
beneficiaries, any beneficiary older than 75 may not continue Principal
Protector(SM) and that beneficiary's portion of the GWB benefit base will
terminate without value, even if it was greater than zero. The ability to
continue Principal Protector(SM) under the Beneficiary continuation option is
subject to state availability. When and if it is approved in your state, it will
be added to your contract if you had already elected Principal Protector(SM).
See "Beneficiary continuation option" under "Payment of death benefit" later in
the Prospectus for more information on continuing Principal Protector(SM) under
the Beneficiary continuation option.
If you are purchasing this contract as a TSA or Inherited IRA, Principal
Protector(SM) is not available. This benefit is also not available if you elect
the Guaranteed minimum income benefit, the Greater of 6% Roll Up to age 85 and
Annual Ratchet to Age 85 enhanced death benefit, Protection Plus(SM), GPB Option
1 or GPB Option 2.
If you elect the Principal Protector(SM) option described below and change
ownership of the contract, generally this benefit will automatically terminate,
except under certain circumstances. See "Transfers of ownership, collateral
assignments, loans and borrowing" in "More information," later in this
Prospectus for more information.
You should not purchase Principal Protector(SM) if you plan to take withdrawals
in excess of your GWB Annual withdrawal amount because those withdrawals
significantly reduce or eliminate the value of the benefit. See "Effect of GWB
Excess withdrawals" below. For traditional IRAs, the Principal Protector(SM)
makes provision for you to take lifetime required minimum distributions
("RMDs") without losing the value of the Principal Protector(SM) guarantee,
provided you comply with the conditions under "Lifetime required minimum
distribution withdrawals" in "Accessing your money" later in this Prospectus
including utilizing our Automatic RMD service. If you do not expect to comply
with these conditions, including utilization of our Automatic RMD service, this
benefit may have limited usefulness for you and you should consider whether it
is appropriate. Please consult your tax adviser.
YOUR GWB BENEFIT BASE
At issue, your GWB benefit base is equal to your initial contribution and will
increase or decrease, as follows:
o Your GWB benefit base increases by the dollar amount of any additional
contributions.
o Your GWB benefit base decreases by the dollar amount of withdrawals.
o Your GWB benefit base may be further decreased if a withdrawal is taken in
excess of your GWB Annual withdrawal amount.
o Your GWB benefit base may also be increased under the Optional step up
provision.
o Your GWB benefit base may also be increased under the one time step up
applicable with the Beneficiary continuation option.
Each of these events is described in detail below. Once your GWB benefit base
is depleted, you may continue to make withdrawals from your account value, but
they are not guaranteed under Principal Protector(SM).
YOUR GWB ANNUAL WITHDRAWAL AMOUNT
Your GWB Annual withdrawal amount is equal to either 5% or 7% ("Applicable
percentage"), as applicable, of your initial GWB benefit base, and is the
maximum amount that you can withdraw each year without making a GWB Excess
withdrawal, as described below. When you purchase your contract, you choose
between two available GWB Annual withdrawal options:
o 7% GWB Annual withdrawal option
o 5% GWB Annual withdrawal option
The GWB Annual withdrawal amount may decrease as a result of a GWB Excess
withdrawal and may increase as a result of an Automatic reset, additional
contributions or a "step up" of the GWB benefit base; each of these
transactions are discussed below in detail. Once you elect a GWB Annual
withdrawal option, it cannot be changed.
Your GWB Annual withdrawal amounts are not cumulative. If you withdraw less
than the GWB Annual withdrawal amount in any con-
Contract features and benefits 35
tract year, you may not add the remainder to your GWB Annual withdrawal amount
in any subsequent year.
EFFECT OF GWB EXCESS WITHDRAWALS
A GWB Excess withdrawal is caused when you withdraw more than your GWB Annual
withdrawal amount in any contract year. Once a withdrawal causes cumulative
withdrawals in a contract year to exceed your GWB Annual withdrawal amount, the
entire amount of the withdrawal and each subsequent withdrawal in that contract
year are GWB Excess withdrawals.
A GWB Excess withdrawal can cause a significant reduction in both your GWB
benefit base and your GWB Annual withdrawal amount. If you make a GWB Excess
withdrawal, we will recalculate your GWB benefit base and the GWB Annual
withdrawal amount. As of the date of the GWB Excess withdrawal, the GWB benefit
base is first reduced by the dollar amount of the withdrawal, and the reduced
GWB benefit base and the GWB Annual withdrawal amount are then further
adjusted, as follows:
o If the account value after the deduction of the withdrawal is less than the
GWB benefit base, then the GWB benefit base is reset equal to the account
value.
o If the account value after the deduction of the withdrawal is greater than or
equal to the GWB benefit base, then the GWB benefit base is not adjusted
further.
o The GWB Annual withdrawal amount equals the lesser of: (i) the Applicable
percentage of the adjusted GWB benefit base and (ii) the GWB Annual
withdrawal amount prior to the GWB Excess withdrawal.
You should not purchase this benefit if you plan to take withdrawals in excess
of your GWB Annual withdrawal amount, as such withdrawals significantly reduce
or eliminate the value of Principal Protector(SM). If your account value is less
than your GWB benefit base (due, for example, to negative market performance),
a GWB Excess withdrawal, even one that is only slightly more than your GWB
Annual withdrawal amount, can significantly reduce your GWB benefit base and
the GWB Annual withdrawal amount.
For example, if you contribute $100,000 at contract issue, your initial GWB
benefit base is $100,000. If you elect the 7% GWB Annual withdrawal option,
your GWB Annual withdrawal amount is equal to $7,000 (7% of $100,000). Assume
in contract year four that your account value is $80,000, you have not made any
prior withdrawals, and you request an $8,000 withdrawal. Your $100,000 benefit
base is first reduced by $8,000 to now equal $92,000. Your GWB benefit base is
then further reduced to equal the new account value: $72,000 ($80,000 minus
$8,000). In addition, your GWB Annual withdrawal amount is reduced to $5,040
(7% of $72,000), instead of the original $7,000.
You should further note that a GWB Excess withdrawal that reduces your account
value to zero eliminates any remaining value in your GWB benefit base. See
"Termination of your contract" in "Determining your contract value" later in
this Prospectus.
In general, if you purchase this contract as a traditional IRA and participate
in our Automatic RMD service, and you do not take any other withdrawals, an
automatic withdrawal under that program will not cause a GWB Excess withdrawal,
even if it exceeds your GWB Annual withdrawal amount. For more information, see
"Lifetime required minimum distribution withdrawals" in "Accessing your money"
later in this Prospectus.
If you die, and your beneficiary continues Principal Protector(SM) under the
Beneficiary continuation option and chooses scheduled payments, such payments
will not cause a GWB Excess withdrawal, provided no additional withdrawals are
taken. If your beneficiary chooses the "5-year rule" instead of scheduled
payments, this waiver does not apply and a GWB Excess withdrawal may occur if
withdrawals exceed the GWB Annual withdrawal amounts.
EFFECT OF AUTOMATIC RESET
If you take no withdrawals in the first five contract years, the Applicable
percentage to determine your GWB Annual withdrawal amount will be automatically
reset at no additional charge. The Applicable percentage under the 7% GWB
Annual withdrawal option will be increased to 10%, and the Applicable
percentage under the 5% GWB Annual withdrawal option will be increased to 7%.
The Applicable percentage is automatically reset on your fifth contract
anniversary, and your GWB Annual withdrawal amount will be recalculated.
If you die before the fifth contract anniversary, and your beneficiary
continues Principal Protector(SM) under the Beneficiary continuation option, if
available, the Automatic reset will apply on the fifth contract anniversary if
you have not taken any withdrawals and: (1) your beneficiary chooses scheduled
payments and payments have not yet started; or, (2) if your beneficiary chooses
the "5-year rule" option and has not taken withdrawals. See "Beneficiary
continuation option" in "Payment of death benefit" later in this Prospectus.
EFFECT OF ADDITIONAL CONTRIBUTIONS
Anytime you make an additional contribution, we will recalculate your GWB
benefit base and your GWB Annual withdrawal amount. Your GWB benefit base will
be increased by the amount of the contribution and your GWB Annual withdrawal
amount will be equal to the greater of (i) the Applicable percentage of the new
GWB benefit base, or (ii) the GWB Annual withdrawal amount in effect
immediately prior to the additional contribution.
If you die, and your beneficiary continues Principal Protector(SM) under the
Beneficiary continuation option, no additional contributions will be permitted.
OPTIONAL STEP UP PROVISION
Except as stated below, any time after the fifth contract anniversary, you may
request a step up in the GWB benefit base to equal your account value. If your
GWB benefit base is higher than the account value as of the date we receive
your step up request, no step up will be made. If a step up is made, we may
increase the charge for the benefit. For a description of the charge increase,
see "Principal Protector(SM) charge" in "Charges and expenses" later in this
Prospectus. Once you
36 Contract features and benefits
elect to step up the GWB benefit base, you may not do so again for five
complete contract years from the next contract date anniversary. Under both the
Spousal protection and the successor owner annuitant features, upon the first
death, the surviving spouse must wait five complete contract years from the
last step up or from contract issue, whichever is later, to be eligible for a
step up.
As of the date of your GWB benefit base step up, your GWB Annual withdrawal
amount will be equal to the greater of (i) your GWB Annual withdrawal amount
before the step up, and (ii) your GWB Applicable percentage applied to your
stepped up GWB benefit base.
It is important to note that a step up in your GWB benefit base may not
increase your GWB Annual withdrawal amount. In that situation, the effect of
the step up is only to increase your GWB benefit base and support future
withdrawals. We will process your step up request even if it does not increase
your GWB Annual withdrawal amount, and we will increase the Principal
Protector(SM) charge, if applicable. In addition, you will not be eligible to
request another step up for five complete contract years. After processing your
request, we will send you a confirmation showing the amount of your GWB benefit
base and your GWB Annual withdrawal amount.
For example, if you contribute $100,000 at contract issue, your initial GWB
benefit base is $100,000. If you elect the 7% GWB Annual withdrawal option,
your GWB Annual withdrawal amount is equal to $7,000 (7% of $100,000). Assume
you take withdrawals of $7,000 in each of the first five contract years,
reducing the GWB benefit base to $65,000. After five contract years, further
assume that your account value is $92,000, and you elect to step up the GWB
benefit base from $65,000 to $92,000. The GWB Annual withdrawal amount is
recalculated to equal the greater of 7% of the new GWB benefit base, which is
$6,440 (7% of $92,000), or the current GWB Annual withdrawal amount, $7,000.
Therefore, following the step up, even though your GWB benefit base has
increased, your GWB Annual withdrawal amount does not increase and remains
$7,000.
The Optional step up provision is not available once your beneficiary continues
Principal Protector(SM) under the Beneficiary continuation option. However, if
you die, and your beneficiary continues Principal Protector(SM) under the
Beneficiary continuation option, the GWB benefit base will be stepped up to
equal the account value, if higher, as of the transaction date that we receive
the Beneficiary continuation option election. As of the date of the GWB benefit
base step up, your beneficiary's GWB Annual withdrawal amount will be equal to
the greater of (i) your GWB Annual withdrawal amount before the step up, and
(ii) your GWB Applicable percentage applied to the stepped up GWB benefit base.
This is a one-time step up at no additional charge.
OTHER IMPORTANT CONSIDERATIONS
o Principal Protector(SM) protects your principal only through withdrawals.
Your account value may be less than your total contributions.
o You can take withdrawals under your contract without purchasing Principal
Protector(SM). In other words, you do not need this benefit to make
withdrawals.
o Withdrawals made under Principal Protector(SM) will be treated, for tax
purposes, in the same way as other withdrawals under your contract.
o All withdrawals are subject to all of the terms and conditions of the
contract. Principal Protector(SM) does not change the effect of withdrawals
on your account value or guaranteed minimum death benefit; both are reduced
by withdrawals whether or not you elect Principal Protector(SM). See "How
withdrawals are taken from your account value" and "How withdrawals (and
transfers out of the Special 10 year fixed maturity option) affect your
Guaranteed minimum income benefit, Guaranteed minimum death benefit and
Guaranteed principal benefit option 2" in "Accessing your money" later in
this Prospectus.
o If you withdraw less than the GWB Annual withdrawal amount in any contract
year, you may not add the remainder to your GWB Annual withdrawal amount in
any subsequent year.
o GWB Excess withdrawals can significantly reduce or completely eliminate the
value of this benefit. See "Effect of GWB Excess withdrawals" above in this
section and "Withdrawing your account value" in "Accessing your money" later
in this Prospectus.
o If you surrender your contract to receive its cash value, all benefits under
the contract will terminate, including Principal Protector(SM) if your cash
value is greater than your GWB Annual withdrawal amount. Therefore, when
surrendering your contract, you should seriously consider the impact on
Principal Protector(SM) when you have a GWB benefit base that is greater than
zero.
o If you die and your beneficiary elects the Beneficiary continuation option,
then your beneficiary should consult with a tax adviser before choosing to
use the "5-year rule." The "5-year rule" is described in "Payment of death
benefit" under "Beneficiary continuation option" later in this Prospectus.
The GWB benefit base may be adversely affected if the beneficiary makes any
withdrawals that cause a GWB Excess withdrawal. Also, when the contract
terminates at the end of 5 years, any remaining GWB benefit base would be
lost.
INHERITED IRA BENEFICIARY CONTINUATION CONTRACT
This contract is available to an individual beneficiary of a traditional IRA or
a Roth IRA where the deceased owner held the individual retirement account or
annuity (or Roth individual retirement account or annuity) with an insurance
company or financial institution other than AXA Equitable. The purpose of the
inherited IRA beneficiary continuation contract is to permit the beneficiary to
change the funding vehicle that the deceased owner selected ("original IRA")
while taking the required minimum distribution payments that must be made to
the beneficiary after the deceased owner's death. This contract is intended
only for beneficiaries who want to take payments at least annually over their
life expectancy. These payments generally must begin (or must have begun) no
later than December 31 of the calendar year following the year the deceased
owner died. This contract is not suitable for beneficiaries electing the
"5-year rule." See "Beneficiary continuation option for IRA and Roth IRA
contracts" under "Beneficiary continuation option" in "Payment of death
benefit" later in this Prospectus. You should discuss with your tax adviser
your own personal
Contract features and benefits 37
situation. This contract may not be available in all states. Please speak with
your financial professional for further information.
The inherited IRA beneficiary continuation contract can only be purchased by a
direct transfer of the beneficiary's interest under the deceased owner's
original IRA. The owner of the inherited IRA beneficiary continuation contract
is the individual who is the beneficiary of the original IRA. (Certain trusts
with only individual beneficiaries will be treated as individuals for this
purpose). The contract must also contain the name of the deceased owner. In
this discussion, "you" refers to the owner of the inherited IRA beneficiary
continuation contract.
The inherited IRA beneficiary continuation contract can be purchased whether or
not the deceased owner had begun taking required minimum distribution payments
during his or her life from the original IRA or whether you had already begun
taking required minimum distribution payments of your interest as a beneficiary
from the deceased owner's original IRA. You should discuss with your own tax
adviser when payments must begin or must be made.
Under the inherited IRA beneficiary continuation contract:
o You must receive payments at least annually (but can elect to receive
payments monthly or quarterly). Payments are generally made over your life
expectancy determined in the calendar year after the deceased owner's death
and determined on a term certain basis.
o The beneficiary of the original IRA will be the annuitant under the inherited
IRA beneficiary continuation contract. In the case where the beneficiary is a
"See Through Trust," the oldest beneficiary of the trust will be the
annuitant.
o An inherited IRA beneficiary continuation contract is not available for
annuitants over age 70.
o The initial contribution must be a direct transfer from the deceased owner's
original IRA and is subject to minimum contribution amounts. See "How you can
purchase and contribute to your contract" earlier in this section.
o Subsequent contributions of at least $1,000 are permitted but must be direct
transfers of your interest as a beneficiary from another IRA with a financial
institution other than AXA Equitable, where the deceased owner is the same as
under the original IRA contract.
o You may make transfers among the investment options.
o You may choose at any time to withdraw all or a portion of the account value.
Any partial withdrawal must be at least $300.
o The Guaranteed minimum income benefit, successor owner/ annuitant feature,
12-month dollar cost averaging program, automatic investment program, GPB
Options 1 and 2, Principal Protector(SM) and systematic withdrawals are not
available under the Inherited IRA beneficiary continuation contract.
o If you die, we will pay to a beneficiary that you choose the greater of the
annuity account value or the applicable death benefit.
o Upon your death, your beneficiary has the option to continue tak ing required
minimum distributions based on your remaining life expectancy or to receive
any remaining interest in the contract in a single sum. The option elected
will be processed when we receive satisfactory proof of death, any required
instructions for the method of payment and any required information and forms
necessary to effect payment. If your beneficiary elects to continue to take
distributions, we will increase the account value to equal the applicable
death benefit if such death benefit is greater than such account value as of
the date we receive satisfactory proof of death and any required
instructions, information and forms. If you had elected any enhanced death
benefits, they will no longer be in effect and charges for such benefits will
stop. The Guaranteed minimum death benefit will also no longer be in effect.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
If for any reason you are not satisfied with your contract, you may return it
to us for a refund. To exercise this cancellation right you must mail the
contract, with a signed letter of instruction electing this right, to our
processing office within 10 days after you receive it. If state law requires,
this "free look" period may be longer. Other state variations may apply. Please
contact your financial professional to find out what applies in your state.
Generally, your refund will be the same as any other surrender and you will
receive your account value (less loan reserve account) under the contract on
the day we receive notification of your decision to cancel the contract, which
will reflect (i) any investment gain or loss in the variable investment options
(less the daily charges we deduct), (ii) any guaranteed interest in the
guaranteed interest option, and (iii) any positive or negative market value
adjustments in the fixed maturity options through the date we receive your
contract. Some states, however, require that we refund the full amount of your
contribution (not reflecting (i), (ii) or (iii) above). For any IRA contract
returned to us within seven days after you receive it, we are required to
refund the full amount of your contribution.
We may require that you wait six months before you may apply for a contract
with us again if:
o you cancel your contract during the free look period; or
o you change your mind before you receive your contract whether we have
received your contribution or not.
Please see "Tax information" later in this Prospectus for possible consequences
of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA contract, you may
cancel your Roth Conversion IRA contract and return to a Rollover IRA contract.
Our processing office, or your financial professional, can provide you with the
cancellation instructions.
38 Contract features and benefits
2. Determining your contract's value
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the values you have in: (i) the variable
investment options; (ii) the guaranteed interest option; (iii) market adjusted
amounts in the fixed maturity options; and (iv) the loan reserve account
(applicable to Rollover TSA contracts only).
Your contract also has a "cash value." At any time before annuity payments
begin, your contract's cash value is equal to the account value, less: (i) the
total amount or a pro rata portion of the annual administrative charge, as well
as optional benefit charges; and (ii) the amount of any outstanding loan plus
accrued interest (applicable to Rollover TSA contracts only). Please see
"Surrendering your contract to receive its cash value" in "Accessing your
money" later in this Prospectus.
YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS
Each variable investment option invests in shares of a corresponding portfolio.
Your value in each variable investment option is measured by "units." The value
of your units will increase or decrease as though you had invested it in the
corresponding portfolio's shares directly. Your value, however, will be reduced
by the amount of the fees and charges that we deduct under the contract.
The unit value for each variable investment option depends on the investment
performance of that option, less daily charges for:
(i) mortality and expense;
(ii) administrative expenses; and
(iii) distribution charges.
On any day, your value in any variable investment option equals the number of
units credited to that option, adjusted for any units purchased for or deducted
from your contract under that option, multiplied by that day's value for one
unit. The number of your contract units in any variable investment option does
not change unless they are:
(i) increased to reflect additional contributions;
(ii) decreased to reflect a withdrawal;
(iii) increased to reflect a transfer into, or decreased to reflect a transfer
out of, a variable investment option; or
(iv) increased or decreased to reflect a transfer of your loan amount from or to
the loan reserve account under a Rollover TSA contract.
In addition, when we deduct the enhanced death benefit, Guaranteed minimum
income benefit, GPB Option 2, Principal Protector(SM) and/or the Protection
Plus(SM) benefit charges, the number of units credited to your contract will be
reduced. Your units are also reduced when we deduct the annual administrative
charge. A description of how unit values are calculated is found in the SAI.
YOUR CONTRACT'S VALUE IN THE GUARANTEED
INTEREST OPTION
Your value in the guaranteed interest option at any time will equal: your
contributions and transfers to that option, plus interest, minus withdrawals
out of the option, and charges we deduct.
YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS
Your value in each fixed maturity option at any time before the maturity date
is the market adjusted amount in each option, which reflects withdrawals out of
the option and charges we deduct. This is equivalent to your fixed maturity
amount increased or decreased by the market value adjustment. Your value,
therefore, may be higher or lower than your contributions (less withdrawals)
accumulated at the rate to maturity. At the maturity date, your value in the
fixed maturity option will equal its maturity value, provided there have been
no withdrawals or transfers.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose all your rights under your contract and any
applicable guaranteed benefits, except as discussed below.
See Appendix VII later in this Prospectus for any state variations with regard
to terminating your contract.
PRINCIPAL PROTECTOR(SM)
If you elect Principal Protector(SM) and your account value falls to zero due to
a GWB Excess withdrawal, we will terminate your contract and you will receive
no payment or annuity benefit, as discussed below, even if your GWB benefit
base is greater than zero. If, however, your account value falls to zero,
either due to a withdrawal or surrender that is not a GWB Excess withdrawal or
due to a deduction of charges, please note the following:
o If your GWB benefit base equals zero, we will terminate your contract and
make no payment.
o If your GWB benefit base is greater than zero but less than or equal to the
balance of your GWB Annual withdrawal amount, if any, for that contract year,
we will terminate your contract and pay you any remaining GWB benefit base.
o If your GWB benefit base is greater than the balance of your remaining GWB
Annual withdrawal amount, if any, for that contract year, we will pay you
your GWB Annual withdrawal amount balance and terminate your contract, and we
will pay you your remaining GWB benefit base as an annuity benefit, as
described below.
Determining your contract's value 39
o If the Beneficiary continuation option is elected, and the account value
falls to zero while there is a remaining GWB benefit base, we will make
payments to the beneficiary as follows:
o If the beneficiary had elected scheduled payments we will continue to make
scheduled payments over remaining life expectancy until the GWB benefit
base is zero, and the Principal Protector(SM) charge will no longer apply.
o If the beneficiary had elected the "5-year rule" and the GWB benefit base
is greater than the remaining GWB Annual withdrawal amount, if any, for
that contract year, we will pay the beneficiary the GWB Annual withdrawal
amount balance. We will continue to pay the beneficiary the remaining GWB
Annual withdrawal amount each year until the GWB benefit base equals zero,
or the contract terminates at the end of the fifth contract year,
whichever comes first. Any remaining GWB benefit base at the end of the
fifth contract year will terminate without value.
ANNUITY BENEFIT. If the contract terminates and the remaining GWB benefit base
is to be paid in installments, we will issue you an annuity benefit contract
and make annual payments equal to your GWB Annual withdrawal amount on the
contract anniversary beginning on the next contract anniversary, until the
cumulative amount of such payments equals the remaining GWB benefit base (as of
the date the contract terminates). The last installment payment may be smaller
than the previous installment payments in order for the total of such payments
to equal the remaining GWB benefit base.
The annuity benefit supplemental contract will carry over the same owner,
annuitant and beneficiary as under your contract. If you die before receiving
all of your payments, we will make any remaining payments to your beneficiary.
The charge for Principal Protector(SM) will no longer apply.
If at the time of your death the GWB Annual withdrawal amount was being paid to
you as an annuity benefit, your beneficiary may not elect the Beneficiary
continuation option.
40 Determining your contract's value
3. Transferring your money among investment options
- --------------------------------------------------------------------------------
TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer
some or all of your account value among the investment options, subject to the
following:
o You may not transfer to a fixed maturity option that has a rate to maturity
of 3% or less.
o You may not transfer any amount to the 12-month dollar cost averaging
program.
o If the annuitant is age 76-80, you must limit your transfers to fixed
maturity options with maturities of seven years or less. If the annuitant is
age 81 or older, you must limit your transfers to fixed maturity options of
five years or less. As of February 15, 2005 maturities of less than eight
years were not available. Also, the maturity dates may be no later than the
date annuity payments are to begin.
o If you make transfers out of a fixed maturity option other than at its
maturity date, the transfer may cause a market value adjustment and affect
your GPB.
o During the first contract year, transfers into the guaranteed interest option
are not permitted.
o After the first contract year, a transfer into the guaranteed interest option
will not be permitted if such transfer would result in more than 25% of the
annuity account value being allocated to the guaranteed interest option,
based on the annuity account value as of the previous business day.
o No transfers are permitted into the Special 10 year fixed maturity option.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency, or dollar amount of transfers.
The maximum amount that may be transferred from the guaranteed interest option
to any investment option (including amounts transferred pursuant to the
fixed-dollar option and interest sweep option dollar cost averaging programs
described under "Allocating your contributions" in "Contract features and
benefits" earlier in this Prospectus) in any contract year is the greatest of:
(a) 25% of the amount you have in the guaranteed interest option on the last
day of the prior contract year; or
(b) the total of all amounts transferred at your request from the guaranteed
interest option to any of the Investment options in the prior contract
year; or
(c) 25% of amounts transferred or allocated to the guaranteed interest option
during the current contract year.
From time to time, we may remove the restrictions regarding transferring
amounts out of the guaranteed interest option. If we do so, we will tell you.
We will also tell you at least 45 days in advance of the day that we intend to
reimpose the transfer restrictions. When we reimpose the transfer restrictions,
if any dollar cost averaging transfer out of the guaranteed interest option
causes a violation of the 25% outbound restriction, that dollar cost averaging
program will be terminated for the current contract year. A new dollar cost
averaging program can be started in the next or subsequent contract years.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value to be
transferred, and
(3) the investment options to and from which you are transferring.
We will confirm all transfers in writing.
DISRUPTIVE TRANSFER ACTIVITY
You should note that the contract is not designed for professional "market
timing" organizations, or other organizations or individuals engaging in a
market timing strategy. The contract is not designed for programmed transfers,
frequent transfers or transfers that are large in relation to the total assets
of the underlying portfolio.
Frequent transfers, including market timing and other program trading or
short-term trading strategies, may be disruptive to the underlying portfolios
in which the variable investment options invest. Disruptive transfer activity
may adversely affect performance and the interests of long-term investors by
requiring a portfolio to maintain larger amounts of cash or to liquidate
portfolio holdings at a disadvantageous time or price. For example, when market
timing occurs, a portfolio may have to sell its holdings to have the cash
necessary to redeem the market timer's investment. This can happen when it is
not advantageous to sell any securities, so the portfolio's performance may be
hurt. When large dollar amounts are involved, market timing can also make it
difficult to use long-term investment strategies because a portfolio cannot
predict how much cash it will have to invest. In addition, disruptive transfers
or purchases and redemptions of portfolio investments may impede efficient
portfolio management and impose increased transaction costs, such as brokerage
costs, by requiring the portfolio manager to effect more frequent purchases and
sales of portfolio securities. Similarly, a portfolio may bear increased
administrative costs as a result of the asset level and investment volatility
that accompanies patterns of excessive or short-term trading. Portfolios that
invest a significant portion of their assets in foreign securities or the
securities of small- and mid-capitalization companies tend to be subject to the
risks associated with market timing and short-term trading strategies to a
greater extent than portfolios that do not. Securities trading in overseas
markets present time zone arbitrage opportunities when events affecting
portfolio securities values occur after the close of the overseas market but
prior to the close of
Transferring your money among investment options 41
the U.S. markets. Securities of small- and mid-capitalization companies present
arbitrage opportunities because the market for such securities may be less
liquid than the market for securities of larger companies, which could result
in pricing inefficiencies. Please see the prospectuses for the underlying
portfolios for more information on how portfolio shares are priced.
We currently use the procedures described below to discourage disruptive
transfer activity. You should understand, however, that these procedures are
subject to the following limitations: (1) they primarily rely on the policies
and procedures implemented by the underlying portfolios; (2) they do not
eliminate the possibility that disruptive transfer activity, including market
timing, will occur or that portfolio performance will be affected by such
activity; and (3) the design of market timing procedures involves inherently
subjective judgments, which we seek to make in a fair and reasonable manner
consistent with the interests of all policy and contract owners.
The AXA Premier VIP Trust and EQ Advisors Trust (the "affiliated trusts") have
adopted policies and procedures designed to discourage disruptive transfers by
contract owners investing in the portfolios of the affiliated trusts. The
affiliated trusts discourage frequent purchases and redemptions of portfolio
shares and will not make special arrangements to accommodate such transactions.
As a general matter, the affiliated trusts reserve the right to refuse or limit
any purchase or exchange order by a particular investor (or group of related
investors) if the transaction is deemed harmful to the portfolio's other
investors or would disrupt the management of the portfolio. The affiliated
trusts monitor aggregate inflows and outflows for each portfolio on a daily
basis. On any day when a portfolio's net inflows or outflows exceed an
established monitoring threshold, the affiliated trust obtains from us contract
owner trading activity. The affiliated trusts currently consider transfers into
and out of (or vice versa) the same variable investment option within a five
business day period as potentially disruptive transfer activity. When a
contract owner is identified as having engaged in a potentially disruptive
transfer for the first time, a letter is sent to the contract owner explaining
that there is a policy against disruptive transfer activity and that if such
activity continues certain transfer privileges may be eliminated. If and when
the contract owner is identified a second time as engaged in potentially
disruptive transfer activity, we currently prohibit the use of voice, fax and
automated transaction services. We currently apply such action for the
remaining life of each affected contract. We or the affiliated trusts may
change the definition of potentially disruptive transfer activity, the
monitoring procedures and thresholds, any notification procedures, and the
procedures to restrict this activity. Any new or revised policies and
procedures will apply to all contract owners uniformly. We do not permit
exceptions to our policies restricting disruptive transfer activity.
We may also offer investment options with underlying portfolios that are not
part of the AXA Premier VIP Trust or EQ Advisors Trust (the "unaffiliated
trusts"). Each unaffiliated trust may have its own policies and procedures
regarding disruptive transfer activity, which may be different than those
applied by the affiliated trusts. In most cases, the unaffiliated trust
reserves the right to reject a transfer that it believes, in its sole
discretion, is disruptive (or potentially disruptive) to the management of one
of its portfolios. Please see the prospectus for the underlying trust for
information regarding the policies and procedures, if any, employed by that
trust and any associated risks of investing in that trust. If an unaffiliated
trust advises us that there may be disruptive transfer activity from our
contract owners, we will work with the unaffiliated trust to review contract
owner trading activity. If the underlying trust determines that the trading
activity of a particular contract owner is disruptive, we will take action to
limit the disruptive trading activity of that contract owner as discussed
above.
Contract owners should note that it is not always possible for us and the
underlying trusts to identify and prevent disruptive transfer activity. Our
ability to monitor potentially disruptive transfer activity is limited in
particular with respect to certain group contracts. Group annuity contracts may
be owned by retirement plans on whose behalf we provide transfer instructions
on an omnibus (aggregate) basis, which may mask the disruptive transfer
activity of individual plan participants, and/or interfere with our ability to
restrict communication services. In addition, because we do not monitor for all
frequent trading at the separate account level, contract owners may engage in
frequent trading which may not be detected, for example, due to low net inflows
or outflows on the particular day(s). Therefore, no assurance can be given that
we or the trusts will successfully impose restrictions on all disruptive
transfers. Because there is no guarantee that disruptive trading will be
stopped, some contract owners/ participants may be treated differently than
others, resulting in the risk that some contract owners/participants may be
able to engage in frequent transfer activity while others will bear the effect
of that frequent transfer activity. The potential affects of frequent transfer
activity are discussed above.
REBALANCING YOUR ACCOUNT VALUE
We currently offer a rebalancing program that you can use to automatically
reallocate your account value among the variable investment options. You must
tell us:
(a) the percentage you want invested in each variable investment option (whole
percentages only), and
(b) how often you want the rebalancing to occur (quarterly, semiannually, or
annually on a contract year basis).
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options so that the percentage of your account value that
you specify is invested in each option at the end of each rebalancing date.
Your entire account value in the variable investment options must be included
in the rebalancing program.
- --------------------------------------------------------------------------------
Rebalancing does not assure a profit or protect against loss. You should
periodically review your allocation percentages as your needs change. You may
want to discuss the rebalancing program with your financial professional before
electing the program.
- --------------------------------------------------------------------------------
You may elect the rebalancing program at any time. You may also change your
allocation instructions or cancel the program at any time.
42 Transferring your money among investment options
If you request a transfer while the rebalancing program is in effect, we will
process the transfer as requested; your rebalancing allocations will not be
changed, and the rebalancing program will remain in effect unless you request
that it be canceled in writing. There is no charge for the rebalancing feature.
You may not elect the rebalancing program if you are participating in any
dollar cost or 12 month dollar cost averaging program. Rebalancing is not
available for amounts you have allocated to the guaranteed interest option or
the fixed maturity options.
Transferring your money among investment options 43
4. Accessing your money
- --------------------------------------------------------------------------------
WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your account value before annuity payments
begin. The table below shows the methods available under each type of contract.
More information follows the table.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus and "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum income
benefit, Guaranteed minimum death benefit and Guaranteed principal benefit
option 2" below for more information on how withdrawals affect your guaranteed
benefits and could potentially cause your contract to terminate.
- --------------------------------------------------------------------------------
Method of withdrawal
--------------------------------------------------------------
Lifetime
required
Substantially minimum
Contract Lump sum Systematic equal distribution
- --------------------------------------------------------------------------------
NQ Yes Yes No No
- --------------------------------------------------------------------------------
Rollover IRA Yes Yes Yes Yes
- --------------------------------------------------------------------------------
Roth
Conversion IRA Yes Yes Yes No
- --------------------------------------------------------------------------------
Rollover TSA* Yes Yes No Yes
- --------------------------------------------------------------------------------
Inherited IRA Yes No No **
- --------------------------------------------------------------------------------
* For some Rollover TSA contracts, your ability to take withdrawals, loans or
surrender your contract may be limited. You must provide withdrawal
restriction information when you apply for a contract. See "Tax Sheltered
Annuity contracts (TSAs)" in "Tax information" later in this Prospectus.
** This contract pays out post-death required minimum distributions. See
"Inherited beneficiary contract" in "Contract, features and benefits"
earlier in this Prospectus.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time.
(Rollover TSA contracts may have restrictions.) The minimum amount you may
withdraw is $300.
Under Rollover TSA contracts, if a loan is outstanding, you may only take lump
sum withdrawals as long as the cash value remaining after any withdrawal equals
at least 10% of the outstanding loan plus accrued interest.
SYSTEMATIC WITHDRAWALS
(All contracts except Inherited IRAs)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value. (Rollover TSA contracts may have
restrictions).
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 0.8% monthly, 2.4% quarterly and 10.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would
be less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
We will make the withdrawals on any day of the month that you select as long as
it is not later than the 28th day of the month. If you do not select a date, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59-1/2 and 70-1/2.
You may change the payment frequency, or the amount or percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
lump sum withdrawal. You can cancel the systematic withdrawal option at any
time. This option is not available if you have elected a guaranteed principal
benefit.
SUBSTANTIALLY EQUAL WITHDRAWALS
(All Rollover IRA and Roth Conversion IRA contracts)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus. We use one of the
IRS-approved methods for doing this; this is not the exclusive method of
meeting this exception. After consultation with your tax adviser, you may
decide to use another method which would require you to compute amounts
yourself and request lump sum withdrawals. In any such case, a withdrawal
charge may apply. Once you begin to take substantially equal withdrawals, you
should not stop them or change the pattern of your withdrawals until after the
later of age 59-1/2 or five full years after the first withdrawal. If you stop
or change the withdrawals or take a lump sum withdrawal, you may be liable for
the 10% federal tax penalty that would have otherwise been due on prior
withdrawals made under this option and for any interest on the delayed payment
of the penalty.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may change, without penalty, from one of the
IRS-approved methods of calculating fixed payments to another IRS-approved
method (similar to the required minimum distribution rules) of calculating
payments which vary each year.
You may elect to take substantially equal withdrawals at any time before age
59-1/2. We will make the withdrawal on any day of the month that you select as
long as it is not later than the 28th day of the month. You may not elect to
receive the first payment in the same contract year in which you took a lump
sum withdrawal. We will calculate the amount of your substantially equal
withdrawals using the IRS-approved method we offer. The payments will be made
monthly, quarterly or annually as you select. These payments will continue
until
44 Accessing your money
we receive written notice from you to cancel this option or you take a lump sum
withdrawal. You may elect to start receiving substantially equal withdrawals
again, but the payments may not restart in the same contract year in which you
took a lump sum withdrawal. We will calculate the new withdrawal amount. This
option is not available if you have elected a guaranteed principal benefit.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA and Rollover TSA contracts only -- See "Tax information" later in
this Prospectus)
We offer our "automatic required minimum distribution (RMD) service" to help
you meet lifetime required minimum distributions under federal income tax
rules. This is not the exclusive way for you to meet these rules. After
consultation with your tax adviser, you may decide to compute required minimum
distributions yourself and request lump sum withdrawals. Before electing this
account based withdrawal option, you should consider whether annuitization
might be better in your situation. If you have elected certain additional
benefits, such as the Guaranteed minimum death benefit, amounts withdrawn from
the contract to meet RMDs will reduce the benefit base and may limit the
utility of the benefit. Also, please refer to "Tax information" later in this
Prospectus for considerations on annuity contracts funding TSAs, and IRAs.
You may elect this service in the year in which you reach age 70-1/2 or in any
later year. The minimum amount we will pay out is $250. Currently, minimum
distribution withdrawal payments will be made annually. See "Required minimum
distributions" in "Tax information" later in this Prospectus for your specific
type of retirement arrangement.
Under Rollover TSA contracts, you may not elect our automatic RMD service if a
loan is outstanding.
If you elect Principal Protector(SM), provided no other withdrawals are taken
during a contract year in which you participate in our Automatic RMD service,
an automatic withdrawal using our service will not cause a GWB Excess
withdrawal, even if it exceeds your GWB Annual withdrawal amount. If you take
any other withdrawal while you participate in the service, however, this GWB
Excess withdrawal exception terminates permanently. In order to take advantage
of this exception, you must elect and maintain participation in our Automatic
RMD service at your required beginning date, or the contract date, if your
required beginning date has occurred before the contract was purchased. See
"Principal Protector(SM)" in "Contract features and benefits" earlier in this
Prospectus for further information.
- --------------------------------------------------------------------------------
For Rollover IRA and Rollover TSA contracts, we will send a form outlining the
distribution options available in the year you reach age 70-1/2 (if you have not
begun your annuity payments before that time).
- --------------------------------------------------------------------------------
HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your value in the variable investment options and the guaranteed
interest option. If there is insufficient value or no value in the variable
investment options, and the guaranteed interest option, any additional amount
of the withdrawal required or the total amount of the withdrawal will be
withdrawn from the fixed maturity options (other than the Special 10 year fixed
maturity option) in the order of the earliest maturity date(s) first. If such
amounts are still insufficient, we will deduct any remaining portion from the
Special 10 year fixed maturity option. If the contract is surrendered or
annuitized or a death benefit is paid, we will deduct a pro rata portion of the
charge for that year. A market value adjustment will apply to withdrawals from
the fixed maturity options (including the Special 10 year fixed maturity
option).
HOW WITHDRAWALS (AND TRANSFERS OUT OF THE SPECIAL 10 YEAR FIXED MATURITY
OPTION) AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT, GUARANTEED MINIMUM DEATH
BENEFIT AND GUARANTEED PRINCIPAL BENEFIT OPTION 2
In general, withdrawals will reduce your guaranteed benefits on a pro rata
basis. Reduction on a pro rata basis means that we calculate the percentage of
your current account value that is being withdrawn and we reduce your current
benefit by the same percentage. For example, if your account value is $30,000
and you withdraw $12,000, you have withdrawn 40% of your account value. If your
benefit was $40,000 before the withdrawal, it would be reduced by $16,000
($40,000 X .40) and your new benefit after the withdrawal would be $24,000
($40,000 - $16,000).
Transfers out of the Special 10 year fixed maturity option will reduce the GPB
Option 2 amount on a pro rata basis. In addition, if you make a contract
withdrawal from the Special 10 year fixed maturity option, we will reduce your
GPB Option 2 in a similar manner; however, the reduction will reflect both a
transfer out of the Special 10 year fixed maturity option and a withdrawal from
the contract. Therefore, the reduction in the GPB Option 2 is greater when you
take a contract withdrawal from the Special 10 year fixed maturity option than
it would be if you took the withdrawal from another investment option.
Similar to the example above, if your account value is $30,000 and you withdraw
$12,000 from the Special 10 year fixed maturity option, you have withdrawn 40%
of your account value. If your GPB Option 2 benefit was $40,000 before the
withdrawal, the reduction to reflect the transfer out of the Special 10 year
fixed maturity option would equal $16,000 ($40,000 x .40). The amount used to
calculate the reduction to reflect the withdrawal from the contract is $24,000
($40,000 - $16,000). The reduction to reflect the withdrawal would equal $9,600
($24,000 x .40), and your new benefit after the withdrawal would be $14,400
($24,000 - $9,600).
With respect to the Guaranteed minimum income benefit and the greater of 6%
Roll up to age 85 or the Annual Ratchet to age 85 enhanced death benefit,
withdrawals will reduce each of the benefits' 6% Roll up to age 85 benefit base
on a dollar-for-dollar basis, as long as the sum of withdrawals in a contract
year is 6% or less of the 6% Roll up benefit base on the most recent contract
date anniversary. Additional contributions made during the contract year do not
affect the amount of withdrawals that can be taken on a dollar-for-dollar basis
in that contract year. Once a withdrawal is taken that causes the
Accessing your money 45
sum of withdrawals in a contract year to exceed 6% of the benefit base on the
most recent anniversary, that entire withdrawal and any subsequent withdrawals
in that same contract year will reduce the benefit base pro rata. Reduction on
a dollar-for-dollar basis means that your 6% Roll up to age 85 benefit base
will be reduced by the dollar amount of the withdrawal for each Guaranteed
benefit. The Annual Ratchet to age 85 benefit base will always be reduced on a
pro rata basis.
HOW WITHDRAWALS AFFECT PRINCIPAL PROTECTOR(SM)
If you elect Principal Protector(SM), any withdrawal reduces your GWB benefit
base by the amount of the withdrawal. In addition, a GWB Excess withdrawal can
significantly reduce your GWB Annual withdrawal amount and further reduce your
GWB benefit base. For more information, see "Effect of GWB Excess withdrawals"
and "Other important considerations" under "Principal Protector(SM)" in
"Contract features and benefits" earlier in this Prospectus.
WITHDRAWALS TREATED AS SURRENDERS
If you request to withdraw more than 90% of a contract's current cash value, we
will treat it as a request to surrender the contract for its cash value. In
addition, we have the right to pay the cash value and terminate this contract
if no contributions are made during the last three completed contract years,
and the account value is less than $500, or if you make a withdrawal that would
result in a cash value of less than $500. See "Surrendering your contract to
receive its cash value" below. For the tax consequences of withdrawals, see
"Tax information" later in this Prospectus.
SPECIAL RULES FOR PRINCIPAL PROTECTOR(SM). If you elect Principal Protector(SM),
all withdrawal methods described above can be used. We will not treat a
withdrawal request that results in a withdrawal in excess of 90% of the
contract's cash value as a request to surrender the contract unless it is a GWB
Excess withdrawal. In addition, we will not terminate your contract if either
your account value or cash value falls below $500, unless it is due to a GWB
Excess withdrawal. In other words, if you take a GWB Excess withdrawal that
equals more than 90% of your cash value or reduces your cash value to less than
$500, we will treat your request as a surrender of your contract even if your
GWB benefit base is greater than zero. Please also see "Termination of your
contract" in "Determining your contract value" earlier in this Prospectus.
Please also see "Principal Protector(SM)" in "Contract features and benefits,"
earlier in this Prospectus, for more information on how withdrawals affect your
guaranteed benefits and could potentially cause your contract to terminate.
LOANS UNDER ROLLOVER TSA CONTRACTS
You may take loans from a Rollover TSA unless restricted by the employer who
provided the Rollover TSA funds. If you cannot take a loan, or cannot take a
loan without approval from the employer who provided the funds, we will have
this information in our records based on what you and the employer who provided
the funds told us when you purchased your contract. The employer must also tell
us whether special employer plan rules of the Employee Retirement Income
Security Act of 1974 ("ERISA") apply. We will not permit you to take a loan
while you are enrolled in our "automatic required minimum distribution (RMD)
service."
You should read the terms and conditions on our loan request form carefully
before taking out a loan. Under Rollover TSA contracts subject to ERISA, you
may only take a loan with the written consent of your spouse. Your contract
contains further details of the loan provision. Please see Appendix VII later
in this Prospectus for any state restrictions you may be subject to if you take
a loan from a Rollover TSA contract. Also, see "Tax information" later in this
Prospectus for general rules applicable to loans.
We will permit you to have only one loan outstanding at a time. The minimum
loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your
account value, subject to any limits under the federal income tax rules. The
term of a loan is five years. However, if you use the loan to acquire your
primary residence, the term is 10 years. The term may not extend beyond the
earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
(3) the date a death benefit is paid (the outstanding loan will be deducted
from the death benefit amount).
A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the properly completed
loan request form is received. Interest will accrue daily on your outstanding
loan at a rate we set. The loan interest rate will be equal to the Moody's
Corporate Bond Yield Averages for Baa bonds for the calendar month ending two
months before the first day of the calendar quarter in which the rate is
determined.
LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the
amount of your loan to the loan reserve account. Unless you specify otherwise,
we will subtract your loan on a pro rata basis from your value in the variable
investment options and the guaranteed interest option. If those amounts are
insufficient, any additional amount of the loan will be subtracted from the
fixed maturity options (other than the Special 10 year fixed maturity option)
in the order of the earliest maturity date(s) first. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. A market value adjustment will apply to withdrawals from
the fixed maturity options (including the Special 10 year fixed maturity
option). If the amounts are withdrawn from the Special 10 year fixed maturity
option, the guaranteed benefit will be adversely affected. See "Guaranteed
principal benefit option 2" in "Contract features and benefits" earlier in this
Prospectus.
We will credit interest to the amount in the loan reserve account at a rate of
2% lower than the loan interest rate that applies for the time your loan is
outstanding. On each contract date anniversary after the date the loan is
processed, we will transfer the amount of interest earned in the loan reserve
account to the variable investment options on a pro rata basis. When you make a
loan repayment, unless you specify otherwise, we will transfer the dollar
amount of the loan repaid from the loan reserve account to the investment
options according to the allocation percentages we have on our records.
46 Accessing your money
SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time while the
annuitant is living and before you begin to receive annuity payments. (Rollover
TSA contracts may have restrictions.) For a surrender to be effective, we must
receive your written request and your contract at our processing office. We
will determine your cash value on the date we receive the required information.
All benefits under the contract will terminate as of the date we receive the
required information, including Principal Protector(SM) (if applicable) if your
cash value is greater than your GWB Annual withdrawal amount. If you have a GWB
benefit base greater than zero, you should consider the impact of a contract
surrender on the Principal Protector(SM) benefit. If your surrender request does
not constitute a GWB Excess withdrawal, you may be eligible for additional
benefits. If, however, your surrender request constitutes a GWB Excess
withdrawal, you will lose those benefits. For more information, please see
"Annuity benefit" under "Termination of your contract" in "Determining your
contract value" and "Principal Protector(SM)" in "Contract features and
benefits" earlier in this Prospectus.
You may receive your cash value in a single sum payment or apply it to one or
more of the annuity payout options. See "Your annuity payout options" below.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments out of the variable investment
options within seven calendar days after the date of the transaction to which
the request relates. These transactions may include applying proceeds to a
variable annuity, payment of a death benefit, payment of any amount you
withdraw and, upon surrender, payment of the cash value. We may postpone such
payments or applying proceeds for any period during which:
(1) the New York Stock Exchange is closed or restricts trading,
(2) sales of securities or determination of the fair value of a variable
investment option's assets is not reasonably practicable because of an
emergency, or
(3) the SEC, by order, permits us to defer payment to protect people remaining
in the variable investment options.
We can defer payment of any portion of your value in the guaranteed interest
option and fixed maturity options (other than for death benefits) for up to six
months while you are living. We also may defer payments for a reasonable amount
of time (not to exceed 10 days) while we are waiting for a contribution check
to clear.
All payments are made by check and are mailed to you (or the payee named in a
tax-free exchange) by U.S. mail, unless you request that we use an express
delivery service at your expense.
YOUR ANNUITY PAYOUT OPTIONS
Accumulator(R) Select(SM) offers you several choices of annuity payout options.
Some enable you to receive fixed annuity payments, which can be either level or
increasing, and others enable you to receive variable annuity payments. Please
see Appendix VII later in this Prospectus for variations that may apply in your
state.
You can choose from among the annuity payout options listed below. Restrictions
may apply, depending on the type of contract you own or the annuitant's age at
contract issue. In addition, if you are exercising your Guaranteed minimum
income benefit, your choice of payout options are those that are available under
the Guaranteed minimum income benefit (see "Our Guaranteed minimum income
benefit option" in "Contract features and benefits" earlier in this Prospectus).
If you elect Principal Protector(SM) and choose to annuitize your contract,
Principal Protector(SM) will terminate without value even if your GWB benefit
base is greater than zero. Payments you receive under the annuity payout option
you select may be less than your GWB benefit base. See "Principal Protector(SM)"
in "Contract features and benefits" earlier in this Prospectus for further
information.
- -----------------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period certain
Life annuity with refund certain
Period certain annuity
- -----------------------------------------------------------------------------
Variable Immediate Annuity Life annuity
payout options Life annuity with period certain
- -----------------------------------------------------------------------------
Income Manager(R) payout options Life annuity with period certain
(available for annuitants age 83 Period certain annuity
or less at contract issue)
- -----------------------------------------------------------------------------
o Life annuity: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment before the
annuitant's death. Because there is no continuation of benefits following the
annuitant's death with this payout option, it provides the highest monthly
payment of any of the life annuity options, so long as the annuitant is
living.
o Life annuity with period certain: An annuity that guarantees payments for the
rest of the annuitant's life. If the annuitant dies before the end of a
selected period of time ("period certain"), payments continue to the
beneficiary for the balance of the period certain. The period certain cannot
extend beyond the annuitant's life expectancy. A life annuity with a period
certain is the form of annuity under the contracts that you will receive if
you do not elect a different payout option. In this case, the period certain
will be based on the annuitant's age and will not exceed 10 years.
o Life annuity with refund certain: An annuity that guarantees payments for the
rest of the annuitant's life. If the annuitant dies before the amount applied
to purchase the annuity option has been recovered, payments to the
beneficiary will continue until that amount has been recovered. This payout
option is available only as a fixed annuity.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15, or 20 years. This guaranteed period may
not exceed the annuitant's life expectancy. This option does not guarantee
payments for the rest of the annuitant's life. It does not permit any
repayment of the unpaid principal, so you cannot elect to receive part of the
payments as a single sum payment with the rest paid in monthly annuity
payments. This payout option is available only as a fixed annuity.
Accessing your money 47
The life annuity, life annuity with period certain, and life annuity with
refund certain payout options are available on a single life or joint and
survivor life basis. The joint and survivor life annuity guarantees payments
for the rest of the annuitant's life and, after the annuitant's death, payments
continue to the survivor. We may offer other payout options not outlined here.
Your financial professional can provide details.
FIXED ANNUITY PAYOUT OPTIONS
With fixed annuities, we guarantee fixed annuity payments will be based either
on the tables of guaranteed annuity purchase factors in your contract or on our
then current annuity purchase factors, whichever is more favorable for you.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS
Variable Immediate Annuities are described in a separate prospectus that is
available from your financial professional. Before you select a Variable
Immediate Annuity payout option, you should read the prospectus which contains
important information that you should know.
Variable Immediate Annuities may be funded through your choice of available
variable investment options investing in portfolios of EQ Advisors Trust and
AXA Premier VIP Trust. The contract also offers a fixed income annuity payout
option that can be elected in combination with the variable annuity payout
option. The amount of each variable income annuity payment will fluctuate,
depending upon the performance of the variable investment options, and whether
the actual rate of investment return is higher or lower than an assumed base
rate.
INCOME MANAGER(R) PAYOUT OPTIONS
The Income Manager(R) payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts may provide higher or
lower income levels, but do not have all the features of the Income Manager(R)
payout annuity contract. You may request an illustration of the Income
Manager(R) payout annuity contract from your financial professional. Income
Manager(R) payout options are described in a separate prospectus that is
available from your financial professional. Before you select an Income
Manager(R) payout option, you should read the prospectus which contains
important information that you should know.
Both NQ and IRA Income Manager(R) payout options provide guaranteed level
payments. The Income Manager(R) (life annuity with period certain) also
provides guaranteed increasing payments (NQ contracts only).
For Rollover TSA contracts, if you want to elect an Income Manager(R) payout
option, we will first roll over amounts in such contract to a Rollover IRA
contract with the plan participant as owner. You must be eligible for a
distribution under the Rollover TSA contract.
You may choose to apply only part of the account value of your Accumulator(R)
Select(SM) contract to an Income Manager(R) payout annuity. In this case, we
will consider any amounts applied as a withdrawal from your Accumulator(R)
Select(SM). For the tax consequences of withdrawals, see "Tax information" later
in this Prospectus.
Depending upon your circumstances, an Income Manager(R) contract may be
purchased on a tax-free basis. Please consult your tax adviser. The Income
Manager(R) payout options are not available in all states.
THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION
The amount applied to purchase an annuity payout option varies, depending on
the payout option that you choose, and the timing of your purchase as it
relates to any market value adjustments.
If amounts in a fixed maturity option are used to purchase any annuity payout
option, prior to the maturity date, a market value adjustment will apply.
SELECTING AN ANNUITY PAYOUT OPTION
When you select a payout option, we will issue you a separate written agreement
confirming your right to receive annuity payments. We require you to return
your contract before annuity payments begin. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
thirteen months from the Accumulator(R) Select(SM) contract date. Except with
respect to the Income Manager(R) annuity payout options, where payments are
made on the 15th day of each month, you can change the date your annuity
payments are to begin anytime before that date as long as you do not choose a
date later than the 28th day of any month. Also, that date may not be later
than the annuity maturity date described below.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier.
In no event will you ever receive payments under a fixed option or an initial
payment under a variable option of less than the minimum amounts guaranteed by
the contract.
If, at the time you elect a payout option, the amount to be applied is less
than $2,000 or the initial payment under the form elected is less than $20
monthly, we reserve the right to pay the account value in a single sum rather
than as payments under the payout option chosen.
ANNUITY MATURITY DATE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 95th birthday.
Please see Appendix VII later in this Prospectus for variations that may apply
in your state.
Before the last day by which your annuity payments must begin, we will notify
you by letter. Once you have selected an annuity payout option and payments
have begun, no change can be made other than: (i) transfers (if permitted in
the future) among the variable investment options if a Variable Immediate
Annuity payout option is selected; and (ii) withdrawals or contract surrender
(subject to a market value adjustment) if an Income Manager(R) payout option is
chosen.
48 Accessing your money
5. Charges and expenses
- --------------------------------------------------------------------------------
CHARGES THAT AXA EQUITABLE DEDUCTS
We deduct the following charges each day from the net assets of each variable
investment option. These charges are reflected in the unit values of each
variable investment option:
o A mortality and expense risks charge
o An administrative charge
o A distribution charge
We deduct the following charges from your account value. When we deduct these
charges from your variable investment options, we reduce the number of units
credited to your contract:
o On each contract date anniversary -- an annual administrative charge, if
applicable.
o On each contract date anniversary -- a charge if you elect a death benefit
(other than the Standard death benefit).
o On each contract date anniversary -- a charge for the Guaranteed minimum
income benefit, if you elect this optional benefit.
o On each contract date anniversary -- a charge for Principal Protector(SM), if
you elect this optional benefit.
o On each contract date anniversary -- a charge for Protection Plus(SM), if you
elect this optional benefit.
o On the first 10 contract date anniversaries -- a charge for GPB Option 2, if
you elect this optional benefit.
o At the time annuity payments are to begin -- charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your state.
An annuity administrative fee may also apply.
More information about these charges appears below. We will not increase these
charges for the life of your contract, except as noted. We may reduce certain
charges under group or sponsored arrangements. See "Group or sponsored
arrangements" later in this section.
The charges under the contracts are designed to cover, in the aggregate, our
direct and indirect costs of selling, administering and providing benefits
under the contracts. They are also designed, in the aggregate, to compensate us
for the risks of loss we assume pursuant to the contracts. If, as we expect,
the charges that we collect from the contracts exceed our total costs in
connection with the contracts, we will earn a profit. Otherwise, we will incur
a loss.
The rates of certain of our charges have been set with reference to estimates
of the amount of specific types of expenses or risks that we will incur. In
most cases, this Prospectus identifies such expenses or risks in the name of
the charge; however, the fact that any charge bears the name of, or is designed
primarily to defray, a particular expense or risk does not mean that the amount
we collect from that charge will never be more than the amount of such expense
or risk. Nor does it mean that we may not also be compensated for such expense
or risk out of any other charges we are permitted to deduct by the terms of the
policies.
To help with your retirement planning, we may offer other annuities with
different charges, benefits and features. Please contact your financial
professional for more information.
MORTALITY AND EXPENSE RISKS CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for mortality and expense risks, including the Standard
guaranteed minimum death benefit. The daily charge is equivalent to an annual
rate of 1.10% of the net assets in each variable investment option.
The mortality risk we assume is the risk that annuitants as a group will live
for a longer time than our actuarial tables predict. If that happens, we would
be paying more in annuity income than we planned. We also assume a risk that
the mortality assumptions reflected in our guaranteed annuity payment tables,
shown in each contract, will differ from actual mortality experience. Lastly,
we assume a mortality risk to the extent that at the time of death, the
guaranteed minimum death benefit exceeds the cash value of the contract. The
expense risk we assume is the risk that it will cost us more to issue and
administer the contracts than we expect.
ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for administrative expenses under the contracts. The daily
charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
DISTRIBUTION CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for a portion of our sales expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.35% of the net assets in each
variable investment option.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on each contract
date anniversary. We deduct the charge if your account value on the last
business day of the contract year is less than $50,000. If your account value
on such date is $50,000 or more, we do not deduct the charge. During the first
two contract years, the charge is equal to $30 or, if less, 2% of your account
value. The charge is $30 for contract years three and later.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VII later in this Prospectus
to see if deducting this charge from the guaranteed interest option is
permitted in your state) on a pro rata basis. If those
Charges and expenses 49
amounts are insufficient, we will deduct all or a portion of the charge from
the fixed maturity options (other than the Special 10 year fixed maturity
option) in the order of the earliest maturity date(s) first. If such amounts
are still insufficient, we will deduct any remaining portion from the Special
10 year fixed maturity option. If the contract is surrendered or annuitized or
a death benefit is paid, we will deduct a pro rata portion of the charge for
that year. A market value adjustment will apply to deductions from the fixed
maturity options (including the Special 10 year fixed maturity option).
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
GUARANTEED MINIMUM DEATH BENEFIT CHARGE
ANNUAL RATCHET TO AGE 85. If you elect the Annual Ratchet to age 85 enhanced
death benefit, we deduct a charge annually from your account value on each
contract date anniversary for which it is in effect. The charge is equal to
0.25% of the Annual Ratchet to age 85 benefit base.
GREATER OF 6% ROLL UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this
enhanced death benefit, we deduct a charge annually from your account value on
each contract date anniversary for which it is in effect. The charge is equal
to 0.60% of the greater of the 6% Roll up to age 85 or the Annual Ratchet to
age 85 benefit base.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VII later in this Prospectus
to see if deducting this charge from the guaranteed interest option is
permitted in your state) on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options (other than the Special 10 year fixed maturity option) in the
order of the earliest maturity date(s) first. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. If the contract is surrendered or annuitized or a death
benefit is paid, we will deduct a pro rata portion of the charge for that year.
A market value adjustment will apply to deductions from the fixed maturity
options (including the Special 10 year fixed maturity option).
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
STANDARD DEATH BENEFIT. There is no additional charge for the standard death
benefit.
GUARANTEED PRINCIPAL BENEFIT OPTION 2
If you purchase GPB Option 2, we deduct a charge annually from your account
value on the first 10 contract date anniversaries. The charge is equal to 0.50%
of the account value. We will deduct this charge from your value in the
variable investment options and the guaranteed interest option (see Appendix
VII later in this Prospectus to see if deducting this charge from the
guaranteed interest option is permitted in your state) on a pro rata basis. If
those amounts are insufficient, we will deduct any remaining portion of the
charge from amounts in any fixed maturity options (other than the Special 10
year fixed maturity option) in the order of the earliest maturity date(s)
first. If such amounts are still insufficient, we will deduct any remaining
portion from the Special 10 year fixed maturity option. If the contract is
surrendered or annuitized or a death benefit is paid, we will deduct a pro rata
portion of the charge for that year. A market value adjustment will apply to
deductions from the fixed maturity options (including the Special 10 year fixed
maturity option).
GUARANTEED MINIMUM INCOME BENEFIT CHARGE
If you elect the Guaranteed minimum income benefit, we deduct a charge annually
from your account value on each contract date anniversary until such time as
you exercise the Guaranteed minimum income benefit, elect another annuity
payout option, or the contract date anniversary after the annuitant reaches 85,
whichever occurs first. The charge is equal to 0.65% of the applicable benefit
base in effect on the contract date anniversary.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VII later in this Prospectus
to see if deducting this charge from the guaranteed interest option is
permitted in your state) on a pro rata basis. If those amounts are still
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in the order of the earliest maturity date(s) first. If the
contract is surrendered or annuitized or a death benefit is paid, we will
deduct a pro rata portion of the charge for that year. A market value
adjustment will apply to deductions from the fixed maturity options.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
PROTECTION PLUS(SM) CHARGE
If you elect Protection Plus(SM), we deduct a charge annually from your account
value on each contract date anniversary for which it is in effect. The charge
is equal to 0.35% of the account value on each contract date anniversary. We
will deduct this charge from your value in the variable investment options and
the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options (other than the Special 10 year fixed maturity option) in the
order of the earliest maturity date(s) first. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. If the contract is surrendered or annuitized or a death
benefit is paid, we will deduct a pro rata portion of the charge for that year.
A market value adjustment will apply to deductions from the fixed maturity
options (including the Special 10 year fixed maturity option).
PRINCIPAL PROTECTOR(SM) CHARGE
If you elect Principal Protector(SM), we deduct a charge annually as a
percentage of your account value on each contract anniversary. If you elect the
5% GWB Annual withdrawal option, the charge is equal to
50 Charges and expenses
0.35%. If you elect the 7% GWB Annual withdrawal option, the charge is equal to
0.50%. We will deduct this charge from your value in the variable investment
options and the guaranteed interest option (see Appendix VII later in this
Prospectus to see if deducting this charge from the guaranteed interest option
is permitted in your state) on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in the order of the earliest maturity date(s) first. If the
contract is surrendered or annuitized or a death benefit is paid, we will
deduct a pro rata portion of the charge for that year. If you die, and your
beneficiary continues Principal Protector(SM) under the Beneficiary continuation
option, we will not deduct a pro rata portion of the charge upon your death.
However the Principal Protector(SM) charge will continue. A market value
adjustment will apply to deductions from the fixed maturity options.
If your GWB benefit base falls to zero but your contract is still in force, the
charge will be suspended as of the next contract date anniversary. The charge
will be reinstated, as follows: (i) if you make a subsequent contribution, we
will reinstate the charge that was in effect at the time your GWB benefit base
became depleted, (ii) if you elect to exercise the Optional step up provision,
we will reinstate a charge, as discussed immediately below, and (iii) if your
beneficiary elects the Beneficiary continuation option and reinstates the
Principal Protector(SM) benefit with a one time step up, we will reinstate the
charge that was in effect when the GWB benefit base fell to zero.
If your beneficiary elects the Beneficiary continuation option, and is eligible
to continue Principal Protector(SM), the benefit and the charge will continue
unless your beneficiary tells us to terminate the benefit at the time of
election.
OPTIONAL STEP UP CHARGE. Every time you elect the Optional step up, we reserve
the right to raise the benefit charge at the time of the step up. The maximum
charge for Principal Protector(SM) with a 5% GWB Annual withdrawal option is
0.60%. The maximum charge for Principal Protector(SM) with a 7% GWB Annual
withdrawal amount option is 0.80%. The increased charge, if any, will apply as
of the next contract anniversary following the step up and on all contract
anniversaries thereafter.
If you die and your beneficiary elects the Beneficiary continuation option, if
available, a one time step up only (at no additional charge) is applicable. For
more information on the Optional step up, one time step up and Automatic reset
provisions, see "Principal Protector(SM)" in "Contract features and benefits."
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state. Generally, we deduct the charge from
the amount applied to provide an annuity payout option. The current tax charge
that might be imposed varies by jurisdiction and ranges from 0% to 3.5%.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $350 from the amount to be applied to the Variable Immediate
Annuity payout option.
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
o Management fees ranging from 0.10% to 1.50%.
o 12b-1 fees of either 0.25% or 0.35%.
o Operating expenses, such as trustees' fees, independent public accounting
firms' fees, legal counsel fees, administrative service fees, custodian fees
and liability insurance.
o Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of each Trust are purchased at their net asset value, these fees and
expenses are, in effect, passed on to the variable investment options and are
reflected in their unit values. For more information about these charges,
please refer to the prospectuses for the Trusts.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the mortality and
expense risks charge or change the minimum initial contribution requirements.
We also may change the Guaranteed minimum income benefit or the Guaranteed
minimum death benefit, or offer variable investment options that invest in
shares of the Trusts that are not subject to the 12b-1 fee. Group arrangements
include those in which a trustee or an employer, for example, purchases
contracts covering a group of individuals on a group basis. Group arrangements
are not available for Rollover IRA and Roth Conversion IRA contracts. Sponsored
arrangements include those in which an employer allows us to sell contracts to
its employees or retirees on an individual basis.
Our costs for sales, administration and mortality generally vary with the size
and stability of the group or sponsoring organization, among other factors. We
take all these factors into account when reducing charges. To qualify for
reduced charges, a group or sponsored arrangement must meet certain
requirements, such as requirements for size and number of years in existence.
Group or sponsored arrangements that have been set up solely to buy contracts
or that have been in existence less than six months will not qualify for
reduced charges.
We also may establish different rates to maturity for the fixed maturity
options under different classes of contracts for group or sponsored
arrangements.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these rules from time to
time. Any variation will reflect differences in costs or services and will not
be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules,
ERISA or both. We make no representations with regard to the impact of these
and other applicable laws on such programs. We recommend that employers,
trustees, and others purchasing or making contracts available for purchase
under such programs seek the advice of their own legal and benefits advisers.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that results
in savings of sales and administrative expenses, such
Charges and expenses 51
as sales through persons who are compensated by clients for recommending
investments and who receive no commission or reduced commissions in connection
with the sale of the contracts. We will not permit a reduction or elimination
of charges where it would be unfairly discriminatory.
52 Charges and expenses
6. Payment of death benefit
- --------------------------------------------------------------------------------
YOUR BENEFICIARY AND PAYMENT OF BENEFIT
You designate your beneficiary when you apply for your contract. You may change
your beneficiary at any time. The change will be effective on the date the
written request for the change is received in our processing office. We are not
responsible for any beneficiary change request that we do not receive. We will
send you written confirmation when we receive your request.
Under jointly owned contracts, the surviving owner is considered the
beneficiary, and will take the place of any other beneficiary. You may be
limited as to the beneficiary you can designate in a Rollover TSA contract.
Where an NQ contract is owned by a minor pursuant to the Uniform Gift to Minors
Act or the Uniform Transfer to Minors Act, the beneficiary must be the estate
of the annuitant. Where an IRA contract is owned in a custodial individual
retirement account, the custodian must be the beneficiary so that the custodian
can reinvest or distribute the death benefit as the beneficiary of the account
desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
applicable Guaranteed minimum death benefit. We determine the amount of the
death benefit (other than the applicable Guaranteed minimum death benefit) and
any amount applicable under the Protection Plus(SM) feature, as of the date we
receive satisfactory proof of the annuitant's death, any required instructions
for the method of payment, information and forms necessary to effect payment.
The amount of the applicable Guaranteed minimum death benefit will be such
Guaranteed minimum death benefit as of the date of the annuitant's death,
adjusted for any subsequent withdrawals. The death benefit will be less a
deduction for any outstanding loan plus accrued interest on the date that the
death benefit payment is made (applies to Rollover TSA only).
EFFECT OF THE ANNUITANT'S DEATH
If the annuitant dies before the annuity payments begin, we will pay the death
benefit to your beneficiary.
Generally, the death of the annuitant terminates the contract. However, a
surviving spouse, who is the sole primary beneficiary, of the deceased
owner/annuitant can choose to be treated as the successor owner/annuitant and
continue the contract. The Successor owner/annuitant feature is only available
under NQ and individually owned IRA (other than Inherited IRAs) contracts. See
"Inherited IRA beneficiary continuation contract" in "Contracts features and
benefits," earlier in this Prospectus.
For NQ and all types of IRA contracts, a beneficiary may be able to have
limited ownership as discussed under "Beneficiary continuation option" below.
WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT
Under certain conditions the owner changes after the original owner's death for
purposes of receiving required distributions from the contract. When the owner
is not the annuitant under an NQ contract and the owner dies before annuity
payments begin, unless you specify otherwise, the beneficiary named to receive
this death benefit upon the annuitant's death will become the successor owner.
If you do not want this beneficiary to be the successor owner, you should name
a specific successor owner. You may name a successor owner at any time during
your life by sending satisfactory notice to our processing office. If the
contract is jointly owned and the first owner to die is not the annuitant, the
surviving owner becomes the sole contract owner. This person will be considered
the successor owner for purposes of the distribution rules described in this
section. The surviving owner automatically takes the place of any other
beneficiary designation.
You should carefully consider the following if you have elected the Guaranteed
minimum income benefit and you are the owner, but not the annuitant. Because
the payments under the Guaranteed minimum income benefit are based on the life
of the annuitant, and the federal tax law required distributions described
below are based on the life of the successor owner, a successor owner who is
not also the annuitant may not be able to exercise the Guaranteed minimum
income benefit, if you die before annuity payments begin. Therefore, one year
before you become eligible to exercise the Guaranteed minimum income benefit,
you should consider the effect of your beneficiary designations on potential
payments after your death. For more information, see "Exercise rules," under
"Our Guaranteed minimum income benefit option," in "Contract features and
benefits" earlier in this Prospectus.
Unless the surviving spouse of the owner who has died (or in the case of a
joint ownership situation, the surviving spouse of the first owner to die) is
the successor owner for this purpose, the entire interest in the contract must
be distributed under the following rules:
o The cash value of the contract must be fully paid to the successor owner (new
owner) within five years after your death (the "5-year rule"), or in a joint
ownership situation, the death of the first owner to die.
o If Principal Protector(SM) was elected and if the "5-year rule" is elected
and the successor owner dies prior to the end of the fifth year, we will pay
any remaining account value in a lump sum and the contract and any remaining
GWB benefit base will terminate without value. Your successor owner should
consult with a tax adviser before choosing to use the "5 year rule." The GWB
benefit base may be adversely affected if the successor owner makes any
withdrawals that cause a GWB Excess withdrawal. Also, when the contract
terminates at the end of 5 years, any remaining GWB benefit base would be
lost. If you elect Principal Protector(SM), the successor owner has the
option to terminate the benefit and charge upon receipt by us of due proof of
death and notice to discontinue the benefit; otherwise, the benefit and
charge will automatically continue.
o The successor owner may instead elect to receive the cash value as a life
annuity (or payments for a period certain of not longer than the new owner's
life expectancy). Payments must begin within one
Payment of death benefit 53
year after the non-annuitant owner's death. Unless this alternative is
elected, we will pay any cash value five years after your death (or the death
of the first owner to die).
o A successor owner should name a new beneficiary.
If the surviving spouse is the successor owner or joint owner, the spouse may
elect to continue the contract. No distributions are required as long as the
surviving spouse and annuitant are living. An eligible successor owner,
including a surviving joint owner after the first owner dies, may elect the
beneficiary continuation option for NQ contracts discussed in "Beneficiary
continuation option" below.
HOW DEATH BENEFIT PAYMENT IS MADE
We will pay the death benefit to the beneficiary in the form of the annuity
payout option you have chosen. If you have not chosen an annuity payout option
as of the time of the annuitant's death, the beneficiary will receive the death
benefit in a single sum. Payment of the death benefit in a lump sum terminates
all rights and any applicable guarantees under the contract, including
Guaranteed minimum income benefit, GPB Options 1 and 2, and Principal
Protector(SM). Subject to any exceptions in the contract, our rules and any
applicable requirements under federal income tax rules, the beneficiary may
elect to apply the death benefit to one or more annuity payout options we offer
at the time. See "Your annuity payout options" in "Accessing your money"
earlier in this Prospectus. Please note that any annuity payout option chosen
may not extend beyond the life expectancy of the beneficiary.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may elect to
receive the death benefit or continue the contract as successor
owner/annuitant. The successor owner/annuitant must be 85 or younger as of the
date of the non-surviving spouse's death.
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required instructions,
information and forms necessary to effect the Successor owner/annuitant
feature, we will increase the account value to equal your elected Guaranteed
minimum death benefit as of the date of your death if such death benefit is
greater than such account value, plus any amount applicable under the
Protection Plus(SM) feature and adjusted for any subsequent withdrawals. The
increase in the account value will be allocated to the investment options
according to the allocation percentages we have on file for your contract.
We will determine whether your applicable Guaranteed minimum death benefit
option will continue as follows:
o If the successor owner/annuitant is age 75 or younger on the date of the
original owner/annuitant's death, and the original owner/annuitant was age
84 or younger at death, the guaranteed minimum death benefit continues based
upon the option that was elected by the original owner/annuitant and will
continue to grow according to its terms until the contract date anniversary
following the date the successor owner/annuitant reaches age 85.
o If the successor owner/annuitant is age 75 or younger on the date of the
original owner/annuitant's death, and the original owner/annuitant was age
85 or older at death, we will reinstate the Guaranteed minimum death benefit
that was elected by the original owner/annuitant. The benefit will continue
to grow according to its terms until the contract date anniversary following
the date the successor owner/annuitant reaches age 85.
o If the successor owner/annuitant is age 76 or over on the date of the
original owner/annuitant's death, the Guaranteed minimum death benefit will
no longer grow, and we will no longer charge for the benefit.
If you elect Principal Protector(SM), the benefit and charge will remain in
effect. If the GWB benefit base is zero at the time of your death, and the
charge had been suspended, the charge will be reinstated if any of the events,
described in "Principal Protector(SM) charge" in "Charges and expenses" earlier
in this Prospectus, occur. The GWB benefit base will not automatically be
stepped up to equal the account value, if higher, upon your death. Your spouse
must wait five complete years from the prior step up or from contract issue,
whichever is later, in order to be eligible for the Optional step up. For more
information, see "Principal Protector(SM)" in "Contract features and benefits"
earlier in this Prospectus.
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole beneficiary of the account, the custodian may
request that the spouse be substituted as annuitant after your death.
For information on the operation of the successor owner/annuitant feature with
the Guaranteed minimum income benefit, see "Exercise of Guaranteed minimum
income benefit" under "Our Guaranteed minimum income benefit option" in
"Contract features and benefits," earlier in this Prospectus. For information
on the operation of this feature with Protection Plus(SM), see "Protection
Plus(SM)" in "Guaranteed minimum death benefit "under "Contract features and
benefits," earlier in this Prospectus.
SPOUSAL PROTECTION
SPOUSAL PROTECTION OPTION FOR NQ CONTRACTS ONLY. This feature permits spouses
who are joint contract owners to increase the account value to equal the
guaranteed minimum death benefit, if higher, and by the value of any Protection
Plus(SM) benefit, if elected, upon the death of either spouse. This account
value "step up" occurs even if the surviving spouse was the named annuitant. If
you and your spouse jointly own the contract and one of you is the named
annuitant, you may elect the Spousal protection option at the time you purchase
your contract at no additional charge. Both spouses must be between the ages of
20 and 70 at the time the contract is issued and must each be named the primary
beneficiary in the event of the other's death.
The annuitant's age is generally used for the purpose of determining contract
benefits. However, for the Annual Ratchet to age 85 and the Greater of 6% Roll
up to age 85 or the Annual Ratchet to age 85 guaranteed minimum death benefits
and the Protection Plus(SM) benefit, the benefit is based on the older spouse's
age. The older spouse may or may not be the annuitant.
54 Payment of death benefit
If the annuitant dies prior to annuitization, the surviving spouse may elect to
receive the death benefit, including the value of the Protection Plus(SM)
benefit, or, if eligible, continue the contract as the sole owner/annuitant
by electing the successor owner/annuitant option. If the non-annuitant spouse
dies prior to annuitization, the surviving spouse continues the contract
automatically as the sole owner/annuitant. In either case, the contract would
continue, as follows:
o As of the date we receive due proof of the spouse's death, the account value
will be re-set to equal the Guaranteed minimum death benefit as of the date
of the non-surviving spouse's death, if higher, increased by the value of the
Protection Plus(SM) benefit.
o The Guaranteed minimum death benefit continues to be based on the older
spouse's age for the life of the contract, even if the younger spouse is
originally or becomes the sole owner/annuitant.
o The Protection Plus(SM) benefit will now be based on the surviving spouse's
age at the date of the non-surviving spouse's death for the remainder of the
life of the contract. If the benefit had been previously frozen because the
older spouse had attained age 80, it will be reinstated if the surviving
spouse is age 75 or younger. The benefit is then frozen on the contract date
anniversary after the surviving spouse reaches age 80. If the surviving
spouse is age 76 or older, the benefit will be discontinued even if the
surviving spouse is the older spouse (upon whose age the benefit was
originally based).
o The Guaranteed minimum income benefit may continue if the benefit had not
already terminated and the benefit will be based on the successor
owner/annuitant, if applicable. See "Guaranteed minimum income benefit" in
"Contract features and benefits" earlier in this Prospectus.
o If you elect Principal Protector(SM), the benefit and charge will remain in
effect. If your GWB benefit base is zero at the time of your death, and the
charge had been suspended, the charge will be reinstated if any of the
events, described in "Principal Protector(SM) charge" in "Charges and
expenses" earlier in this Prospectus, occur. The GWB benefit base will not
automatically be stepped up to equal the account value, if higher, upon your
death. Your spouse must wait five complete years from the prior step up or
from contract issue, whichever is later, in order to be eligible for the
Optional step up. For more information, see "Principal Protector(SM)" in
"Contract features and benefits" earlier in this Prospectus.
We will not allow Spousal protection to be added after contract issue. If there
is a change in owner or primary beneficiary, the Spousal protection benefit
will be terminated. If you divorce but do not change the owner or primary
beneficiary, Spousal protection continues.
BENEFICIARY CONTINUATION OPTION
This feature permits a designated individual, on the contract owner's death, to
maintain a contract in the deceased contract owner's name and receive
distributions under the contract, instead of receiving the death benefit in a
single sum. We make this option available to beneficiaries under traditional
IRA, Roth IRA and NQ contracts, subject to state availability. Please speak
with your financial professional or see Appendix VII later in this Prospectus
for further information.
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. The beneficiary continuation option must be elected by September 30th of
the year following the calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this option. If the election is made, then, as of the
date we receive satisfactory proof of death, any required instructions,
information and forms necessary to effect the beneficiary continuation option
feature, we will increase the account value to equal the applicable death
benefit if such death benefit is greater than such account value, plus any
amount applicable under the Protection Plus(SM) feature, adjusted for any
subsequent withdrawals. Where an IRA contract is owned in a custodial
individual retirement account, the custodian may reinvest the death benefit in
an individual retirement annuity contract, using the account beneficiary as the
annuitant. Please speak with your financial professional for further
information.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy (determined in the calendar year after your death
and determined on a term certain basis). These payments must begin no later
than December 31st of the calendar year after the year of your death. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70-1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed later in this Prospectus in
"Tax information" under "Individual retirement arrangements (IRAs)," the
beneficiary may choose the "5-year rule" option instead of annual payments over
life expectancy. The 5-year rule is always available to beneficiaries under
Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may
take withdrawals as desired, but the entire account value must be fully
withdrawn by December 31st of the calendar year which contains the fifth
anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA contracts:
o The contract continues in your name for the benefit of your beneficiary.
o This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals for
this purpose.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's own
life expectancy, if payments over life expectancy are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the Guaranteed minimum income benefit, an optional
enhanced death benefit, GPB Option 2 or Principal Protector(SM) (in certain
circumstances) under the contract, they will no longer be in effect and
charges for such benefits will stop. Also, any
Payment of death benefit 55
Guaranteed minimum death benefit feature will no longer be in effect. See
below for certain circumstances where Principal Protector(SM) may continue to
apply.
o The beneficiary may choose at any time to withdraw all or a portion of the
account value.
o Any partial withdrawal must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking required minimum distributions based on
the remaining life expectancy of the deceased beneficiary or to receive any
remaining interest in the contract in a lump sum. The option elected will be
processed when we receive satisfactory proof of death, any required
instructions for the method of payment and any required information and forms
necessary to effect payment.
o If you had elected Principal Protector(SM), your spousal beneficiary may not
continue Principal Protector(SM), and the benefit will terminate without
value, even if the GWB benefit base is greater than zero. In general, spousal
beneficiaries who wish to continue Principal Protector(SM) should consider
continuing the contract under the Successor owner and annuitant feature, if
eligible. In general, eligibility requires that your spouse must be the sole
primary beneficiary. Please see "Successor owner and annuitant" in "How death
benefit payment is made" under "Payment of death benefit" earlier in this
Prospectus for further details. If there are multiple beneficiaries who elect
the Beneficiary continuation option, the spousal beneficiary may continue the
contract without Principal Protector(SM) and non-spousal beneficiaries may
continue with Principal Protector(SM). In this case, the spouse's portion of
the GWB benefit base will terminate without value.
o If you had elected Principal Protector(SM), your non-spousal beneficiary may
continue the benefit, as follows:
o The beneficiary was 75 or younger on the original contract date.
o The benefit and charge will remain in effect unless your beneficiary
tells us to terminate the benefit at the time of the Beneficiary
continuation option election.
o One time step up: Upon your death, if your account value is greater than
the GWB benefit base, the GWB benefit base will be automatically stepped
up to equal the account value, at no additional charge. If Principal
Protector(SM) is not in effect at the time of your death because the GWB
benefit base is zero, the beneficiary may reinstate the benefit (at the
charge that was last in effect) with the one time step up. If the
beneficiary chooses not to reinstate the Principal Protector(SM) at the
time the Beneficiary continuation option is elected, Principal
Protector(SM) will terminate.
o If there are multiple beneficiaries each beneficiary's interest in the GWB
benefit base will be separately accounted for.
o As long as the GWB benefit base is $5,000 or greater, the beneficiary may
elect the Beneficiary continuation option and continue Principal
Protector(SM) even if the account value is less than $5,000.
o If scheduled payments are elected, the beneficiary's sched uled payments
will be calculated, using the greater of the account value or the GWB
benefit base, as of each December 31. If the beneficiary dies prior to
receiving all payments, we will make the remaining payments to the person
designated by the deceased non-spousal beneficiary, unless that person
elects to take any remaining account value in a lump sum, in which case
any remaining GWB benefit base will terminate without value.
o If the "5-year rule" is elected and the beneficiary dies prior to the end
of the fifth year, we will pay any remaining account value in a lump sum
and the contract and any remaining GWB benefit base will terminate without
value.
o Provided no other withdrawals are taken during a contract year while the
beneficiary receives scheduled payments, the scheduled payments will not
cause a GWB Excess withdrawal, even if they exceed the GWB Annual
withdrawal amount. If the beneficiary takes any other withdrawals while
the Beneficiary continuation option scheduled payments are in effect, the
GWB Excess withdrawal exception terminates permanently. In order to take
advantage of this exception, the beneficiary must elect the scheduled
payments rather than the "5-year rule." If the beneficiary elects the
"5-year rule," there is no exception.
BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known
as the Inherited annuity, may only be elected when the NQ contract owner dies
before the annuity commencement date, whether or not the owner and the
annuitant are the same person. If the owner and annuitant are different and the
owner dies before the annuitant, for purposes of this discussion, "beneficiary"
refers to the successor owner. For a discussion of successor owner, see "When
an NQ contract owner dies before the annuitant" earlier in this section. This
feature must be elected within 9 months following the date of your death and
before any other inconsistent election is made. Beneficiaries who do not make a
timely election will not be eligible for this option.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy, determined on a term certain basis and in the
year payments start. These payments must begin no later than one year after the
date of your death and are referred to as "scheduled payments." The beneficiary
may choose the "5-year rule" instead of scheduled payments over life
expectancy. If the beneficiary chooses the 5-year rule, there will be no
scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals
as desired, but the entire account value must be fully withdrawn by the fifth
anniversary of your death.
Under the beneficiary continuation option for NQ contracts (regardless of
whether the owner and annuitant are the same person):
o This feature is only available if the beneficiary is an individual. It is not
available for any entity such as a trust, even if all of the beneficiaries of
the trust are individuals.
56 Payment of death benefit
o The contract continues in your name for the benefit of your beneficiary.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the respective
beneficiary's own life expectancy, if scheduled payments are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the Guaranteed minimum income benefit, an optional
enhanced death benefit, GPB Option 2 or Principal Protector(SM) (in certain
circumstances) under the contract, they will no longer be in effect and
charges for such benefits will stop. Also, any Guaranteed minimum death
benefit feature will no longer be in effect. See below for certain
circumstances where Principal Protector(SM) may continue to apply.
o If the beneficiary chooses the "5-year rule," withdrawals may be made at any
time. If the beneficiary instead chooses scheduled payments, the beneficiary
must also choose between two potential withdrawal options at the time of
election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary
cannot later withdraw funds in addition to the scheduled payments the
beneficiary is receiving; "Withdrawal Option 1" permits total surrender only.
"Withdrawal Option 2" permits the beneficiary to take withdrawals, in
addition to scheduled payments, at any time. However, the scheduled payments
under "Withdrawal Option 1" are afforded favorable tax treatment as "annuity
payments." See "Taxation of nonqualified annuities" in "Tax Information"
later in this Prospectus.
o Any partial withdrawals must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract on the beneficiary's death.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking scheduled payments based on the
remaining life expectancy of the deceased beneficiary (if scheduled payments
were chosen) or to receive any remaining interest in the contract in a lump
sum. We will pay any remaining interest in the contract in a lump sum if your
beneficiary elects the 5-year rule. The option elected will be processed when
we receive satisfactory proof of death, any required instructions for the
method of payment and any required information and forms necessary to effect
payment.
o If you had elected Principal Protector(SM), your spousal beneficiary may not
continue Principal Protector(SM), and the benefit will terminate without
value, even if the GWB benefit base is greater than zero. In general, spousal
beneficiaries who wish to continue Principal Protector(SM) should consider
continuing the contract under the Successor owner and annuitant feature, if
eligible. In general, eligibility requires that you must be the owner and
annuitant and your spouse must be the sole primary beneficiary. Please see
"Successor owner and annuitant" in "How death benefit payment is made" under
"Payment of death benefit" earlier in this Prospectus for further details. If
there are multiple beneficiaries who elect the Beneficiary continuation
option, the spousal beneficiary may continue the contract without Principal
Protector(SM) and non-spousal beneficiaries may continue with Principal
Protector(SM). In this case, the spouse's portion of the GWB benefit base
will terminate without value.
o If the non-spousal beneficiary chooses scheduled payments under "Withdrawal
Option 1," as discussed above in this section, Principal Protector(SM) may
not be continued and will automatically terminate without value even if the
GWB benefit base is greater than zero.
o If you had elected Principal Protector(SM), your non-spousal beneficiary may
continue the benefit, as follows:
o The beneficiary was 75 or younger on the original contract date.
o The benefit and charge will remain in effect unless your beneficiary tells
us to terminate the benefit at the time of the Beneficiary continuation
option election.
o One time step up: Upon your death, if your account value is greater than
the GWB benefit base, the GWB benefit base will be automatically stepped
up to equal the account value, at no additional charge. If Principal
Protector(SM) is not in effect at the time of your death because the GWB
benefit base is zero, the beneficiary may reinstate the benefit (at the
charge that was last in effect) with the one time step up. If the
beneficiary chooses not to reinstate the Principal Protector(SM) at the
time the Beneficiary continuation option is elected, Principal
Protector(SM) will terminate.
o If there are multiple beneficiaries, each beneficiary's interest in the
GWB benefit base will be separately accounted for.
o As long as the GWB benefit base is $5,000 or greater, the beneficiary may
elect the Beneficiary continuation option and continue Principal
Protector(SM) even if the account value is less than $5,000.
o If scheduled payments under "Withdrawal Option 2" is elected, the
beneficiary's scheduled payments will be calculated using the greater of
the account value or the GWB benefit base, as of each December 31. If the
beneficiary dies prior to receiving all payments, we will make the
remaining payments to the person designated by the deceased non-spousal
beneficiary, unless that person elects to take any remaining account value
in a lump sum, in which case any remaining GWB benefit base will terminate
without value.
o If the "5-year rule" is elected and the beneficiary dies prior to the end
of the fifth year, we will pay any remaining account value in a lump sum
and the contract and any remaining GWB benefit base will terminate without
value.
o Provided no other withdrawals are taken during a contract year while the
beneficiary receives scheduled payments, the scheduled payments will not
cause a GWB Excess withdrawal, even if they exceed the GWB Annual
withdrawal amount. If the beneficiary takes any other withdrawals while
the Beneficiary continuation option scheduled payments are
Payment of death benefit 57
in effect, the GWB Excess withdrawal exception terminates permanently. In
order to take advantage of this exception, the beneficiary must elect
scheduled payments under "Withdrawal Option 2" rather than the "5-year rule."
If the beneficiary elects the "5-year rule," there is no exception.
If you are both the owner and annuitant:
o As of the date we receive satisfactory proof of death, any required
instructions, information and forms necessary to effect the beneficiary
continuation option feature, we will increase the annuity account value to
equal the applicable death benefit if such death benefit is greater than such
account value, plus any amount applicable under the Protection Plus(SM)
feature, adjusted for any subsequent withdrawals.
If the owner and annuitant are not the same person:
o If the beneficiary continuation option is elected, the beneficiary
automatically becomes the new annuitant of the contract, replacing the
existing annuitant.
o The annuity account value will not be reset to the death benefit amount.
If a contract is jointly owned:
o The surviving owner supersedes any other named beneficiary and may elect the
beneficiary continuation option.
o If the deceased joint owner was also the annuitant, see "If you are both the
owner and annuitant" earlier in this section.
o If the deceased joint owner was not the annuitant, see "If the owner and
annuitant are not the same person" earlier in this section.
58 Payment of death benefit
7. Tax information
- --------------------------------------------------------------------------------
OVERVIEW
In this part of the prospectus, we discuss the current federal income tax rules
that generally apply to Accumulator(R) Select(SM) contracts owned by United
States individual taxpayers. The tax rules can differ, depending on the type of
contract, whether NQ, traditional IRA, Roth IRA or TSA. Therefore, we discuss
the tax aspects of each type of contract separately.
Federal income tax rules include the United States laws in the Internal Revenue
Code, and Treasury Department Regulations and Internal Revenue Service ("IRS")
interpretations of the Internal Revenue Code. These tax rules may change
without notice. We cannot predict whether, when, or how these rules could
change. Any change could affect contracts purchased before the change. Congress
may also consider proposals in the future to comprehensively reform or overhaul
the United States tax and retirement systems, which if enacted, could affect
the tax benefits of a contract.
We cannot provide detailed information on all tax aspects of the contracts.
Moreover, the tax aspects that apply to a particular person's contract may vary
depending on the facts applicable to that person. We do not discuss state
income and other state taxes, federal income tax, and withholding rules for
non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the
contract, rights or values under the contract, or payments under the contract,
for example, the amounts due to beneficiaries, may be subject to federal or
state gift, estate, or inheritance taxes. You should not rely only on this
document, but should consult your tax adviser before your purchase.
President Bush signed the Economic Growth and Tax Relief Reconciliation Act of
2001 ("EGTRRA") on June 7, 2001. Many of the provisions of EGTRRA became
effective on January 1, 2002, and are phased in during the first decade of the
twenty-first century. In the absence of future legislation, all of the
amendments made by EGTRRA will no longer apply after December 31, 2010, and the
law in effect in 2001 will apply again. In general, EGTRRA liberalizes
contributions which can be made to all types of tax-favored retirement plans.
In addition to increasing the amounts which can be contributed and permitting
individuals over age 50 to make additional contributions, EGTRRA also permits
rollover contributions to be made between different types of tax-favored
retirement plans. Please discuss with your tax adviser how EGTRRA affects your
personal financial situation.
BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT
Generally, there are two types of funding vehicles that are available for
Individual Retirement Arrangements ("IRAs") and Code Section 403(b)
Arrangements ("TSAs"), respectively: an IRA or 403(b) annuity contract such as
this one, or an IRA or 403(b)(7) custodial or other qualified account. How
these arrangements work, including special rules applicable to each, are
described in the specific sections for each type of arrangement, below. You
should be aware that the funding vehicle for a qualified arrangement does not
provide any tax deferral benefit beyond that already provided by the Code for
all permissible funding vehicles. Before choosing an annuity contract,
therefore, you should consider the annuity's features and benefits, such as
Accumulator(R) Select(SM)'s 12 month dollar cost averaging, choice of death
benefits, the Guaranteed minimum income benefit, selection of investment funds,
guaranteed interest option, fixed maturity options and its choices of pay-out
options, as well as the features and benefits of other permissible funding
vehicles and the relative costs of annuities and other arrangements. You should
be aware that cost may vary depending on the features and benefits made
available and the charges and expenses of the investment options or funds that
you elect.
Beginning in 2006, certain provisions of the Treasury Regulations on required
minimum distributions concerning the actuarial present value of additional
contract benefits could increase the amount required to be distributed from
annuity contracts funding qualified plans, TSAs and IRAs. You should consider
the potential implication of these Regulations before you purchase this annuity
contract or purchase additional features under this annuity contract.
TRANSFERS AMONG INVESTMENT OPTIONS
You can make transfers among investment options inside the contract without
triggering taxable income.
TAXATION OF NONQUALIFIED ANNUITIES
CONTRIBUTIONS
You may not deduct the amount of your contributions to a nonqualified annuity
contract.
CONTRACT EARNINGS
Generally, you are not taxed on contract earnings until you receive a
distribution from your contract, whether as a withdrawal or as an annuity
payment. However, earnings are taxable, even without a distribution:
o if a contract fails investment diversification requirements as specified in
federal income tax rules (these rules are based on or are similar to those
specified for mutual funds under the securities laws);
o if you transfer a contract, for example, as a gift to someone other than your
spouse (or former spouse);
o if you use a contract as security for a loan (in this case, the amount
pledged will be treated as a distribution); and
o if the owner is other than an individual.
All nonqualified deferred annuity contracts that AXA Equitable and its
affiliates issue to you during the same calendar year are linked
Tax information 59
together and treated as one contract for calculating the taxable amount of any
distribution from any of those contracts.
ANNUITY PAYMENTS
Once annuity payments begin, a portion of each payment is taxable as ordinary
income. You get back the remaining portion without paying taxes on it. This is
your "investment in the contract." Generally, your investment in the contract
equals the contributions you made, less any amounts you previously withdrew
that were not taxable.
For fixed annuity payments, the tax-free portion of each payment is determined
by (1) dividing your investment in the contract by the total amount you are
expected to receive out of the contract, and (2) multiplying the result by the
amount of the payment. For variable annuity payments, your tax-free portion of
each payment is your investment in the contract divided by the number of
expected payments.
Once you have received the amount of your investment in the contract, all
payments after that are fully taxable. If payments under a life annuity stop
because the annuitant dies, there is an income tax deduction for any
unrecovered investment in the contract.
PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN
If you make withdrawals before annuity payments begin under your contract, they
are taxable to you as ordinary income if there are earnings in the contract.
Generally, earnings are your account value less your investment in the
contract. If you withdraw an amount which is more than the earnings in the
contract as of the date of the withdrawal, the balance of the distribution is
treated as a return of your investment in the contract and is not taxable.
PROTECTION PLUS(SM) FEATURE
In order to enhance the amount of the death benefit to be paid at the
annuitant's death, you may purchase a Protection Plus(SM) rider for your NQ
contract. Although we regard this benefit as an investment protection feature
which is part of the contract and which should have no adverse tax effect, it is
possible that the IRS could take a contrary position or assert that the
Protection Plus(SM) rider is not part of the contract. In such a case the
charges for the Protection Plus(SM) rider could be treated for federal income
tax purposes as a partial withdrawal from the contract. If this were so, such a
deemed withdrawal could be taxable, and for contract owners under age 59-1/2,
also subject to a tax penalty. Were the IRS to take this position, AXA Equitable
would take all reasonable steps to attempt to avoid this result, which could
include amending the contract (with appropriate notice to you).
CONTRACTS PURCHASED THROUGH EXCHANGES
You may purchase your NQ contract through an exchange of another contract.
Normally, exchanges of contracts are taxable events. The exchange will not be
taxable under Section 1035 of the Internal Revenue Code if:
o the contract that is the source of the funds you are using to purchase the NQ
contract is another nonqualified deferred annuity contract (or life insurance
or endowment contract).
o The owner and the annuitant are the same under the source contract and the
Accumulator(R) Select(SM) NQ contract. If you are using a life insurance or
endowment contract the owner and the insured must be the same on both sides
of the exchange transaction.
The tax basis, also referred to as your investment in the contract, of the
source contract carries over to the Accumulator(R) Select(SM) NQ contract.
An owner may direct the proceeds of a partial withdrawal from one nonqualified
deferred annuity contract to a different insurer to purchase a new nonqualified
deferred annuity contract on a tax-deferred basis. Special forms, agreement
between carriers, and provision of cost basis information may be required to
process this type of an exchange.
SURRENDERS
If you surrender or cancel the contract, the distribution is taxable as
ordinary income (not capital gain) to the extent it exceeds your investment in
the contract.
DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER
YOUR DEATH
For the rules applicable to death benefits, see "Payment of death benefit"
earlier in this Prospectus. The tax treatment of a death benefit taken as a
single sum is generally the same as the tax treatment of a withdrawal from or
surrender of your contract. The tax treatment of a death benefit taken as
annuity payments is generally the same as the tax treatment of annuity payments
under your contract. The IRS has not specifically addressed the tax treatment
of the Spousal protection benefit. Please consult with your tax adviser before
electing this feature.
BENEFICIARY CONTINUATION OPTION
We have received a private letter ruling from the IRS regarding certain tax
consequences of scheduled payments under the beneficiary continuation option
for NQ contracts. See the discussion "Beneficiary continuation option for NQ
Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among
other things, the IRS rules that:
o scheduled payments under the beneficiary continuation option for NQ contracts
satisfy the death of owner rules of Section 72(s)(2) of the Code, regardless
of whether the beneficiary elects "Withdrawal Option 1" or "Withdrawal Option
2";
o scheduled payments, any additional withdrawals under "Withdrawal Option 2",
or contract surrenders under "Withdrawal Option 1" will only be taxable to
the beneficiary when amounts are actually paid, regardless of the Withdrawal
Option selected by the beneficiary;
o a beneficiary who irrevocably elects scheduled payments with "Withdrawal
Option 1" will receive "excludable amount" tax treatment on scheduled
payments. See "Annuity payments" earlier in this section. If the beneficiary
elects to surrender the contract before all scheduled payments are paid, the
amount received upon surrender is a non-annuity payment taxable to the extent
it exceeds any remaining investment in the contract.
The ruling specifically does not address the taxation of any payments received
by a beneficiary electing "Withdrawal Option 2" (whether scheduled payments or
any withdrawal that might be taken). The rul-
60 Tax information
ing also does not address the effect of the retention of the Principal
Protector(SM) feature discussed earlier in this Prospectus under "Contract
features and benefits," which a non-spousal beneficiary may elect under certain
conditions. Before electing the beneficiary continuation option feature, the
individuals you designate as beneficiary or successor owner should discuss with
their tax advisers the consequences of such elections.
The tax treatment of a withdrawal after the death of the owner taken as a
single sum or taken as withdrawals under the 5-year rule is generally the same
as the tax treatment of a withdrawal from or surrender of your contract.
EARLY DISTRIBUTION PENALTY TAX
If you take distributions before you are age 59-1/2 a penalty tax of 10% of the
taxable portion of your distribution applies in addition to the income tax.
Some of the available exceptions to the pre-age 59-1/2 penalty tax include
distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o in the form of substantially equal periodic annuity payments for your life
(or life expectancy), or the joint lives (or joint life expectancy) of you
and a beneficiary, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If
you were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. The IRS has said that the owners of variable annuities will
not be treated as owning the separate account assets provided the underlying
portfolios are restricted to variable life and annuity assets. The variable
annuity owners must have the right only to choose among the portfolios, and
must have no right to direct the particular investment decisions within the
portfolios.
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some
issues that remain unclear. For example, the IRS has not issued any guidance as
to whether having a larger number of portfolios available, or an unlimited
right to transfer among them, could cause you to be treated as the owner. We do
not know whether the IRS will ever provide such guidance or whether such
guidance, if unfavorable, would apply retroactively to your contract.
Furthermore, the IRS could reverse its current guidance at any time. We reserve
the right to modify your contract as necessary to prevent you from being
treated as the owner of the assets of Separate Accounts 45 and 49.
SPECIAL RULES FOR NQ CONTRACTS ISSUED IN PUERTO RICO
Income from NQ contracts we issue is U.S. source. A Puerto Rico resident is
subject to U.S. taxation on such U.S. source income. Only Puerto Rico source
income of Puerto Rico residents is excludable from U.S. taxation. Income from
NQ contracts is also subject to Puerto Rico tax. The calculation of the taxable
portion of amounts distributed from a contract may differ in the two
jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax
returns, showing different amounts of income from the contract for each tax
return. Puerto Rico generally provides a credit against Puerto Rico tax for
U.S. tax paid. Depending on your personal situation and the timing of the
different tax liabilities, you may not be able to take full advantage of this
credit.
INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS)
GENERAL
"IRA" stands for individual retirement arrangement. There are two basic types
of such arrangements, individual retirement accounts and individual retirement
annuities. In an individual retirement account, a trustee or custodian holds
the assets for the benefit of the IRA owner. The assets funding the account
typically include mutual funds and/or individual stocks and/or securities in a
custodial account and bank certificates of deposit in a trusteed account. In an
individual retirement annuity, an insurance company issues an annuity contract
that serves as the IRA.
There are two basic types of IRAs, as follows:
o Traditional IRAs, typically funded on a pre-tax basis, including SEP-IRAs and
SIMPLE IRAs issued and funded in connection with employer-sponsored
retirement plans; and
o Roth IRAs, funded on an after-tax basis.
Regardless of the type of IRA, your ownership interest in the IRA cannot be
forfeited. You or your beneficiaries who survive you are the only ones who can
receive the IRA's benefits or payments. All types of IRAs qualify for tax
deferral regardless of the funding vehicle selected.
You can hold your IRA assets in as many different accounts and annuities as you
would like, as long as you meet the rules for setting up and making
contributions to IRAs. However, if you own multiple IRAs, you may be required
to combine IRA values or contributions for tax purposes. For further
information about individual retirement arrangements, you can read Internal
Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)").
This publication is usually updated annually, and can be obtained from any IRS
district office or the IRS website (www.irs.gov).
AXA Equitable designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may purchase
the contract as a traditional IRA ("Rollover IRA") or Roth IRA ("Roth
Conversion IRA"). We also offer the Inherited IRA for payment of post-death
required minimum distributions in traditional IRA and Roth IRA. This Prospectus
contains the information that the IRS requires you to have before you purchase
an IRA. The first section covers some of the special tax rules that apply to
traditional IRAs. The next section covers Roth IRAs. The disclosure generally
assumes direct ownership of the individual retirement annuity contract. For
contracts owned in a custodial individual retirement account, the disclosure
will apply only if you terminate your account or transfer ownership of the
contract to yourself.
We have not applied for an opinion letter from the IRS to approve the
respective forms of the Accumulator(R) Select(SM) traditional and Roth IRA
contracts for use as a traditional and Roth IRA, respectively. We have
Tax information 61
received IRS opinion letters approving the respective forms of a similar
traditional IRA and Roth IRA endorsement for use as a traditional and Roth IRA,
respectively. This IRS approval is a determination only as to the form of the
annuity. It does not represent a determination of the merits of the annuity as
an investment. The contracts submitted for IRS approval do not include every
feature possibly available under the Accumulator(R) Select(SM) traditional and
Roth IRA contracts.
The Inherited IRA beneficiary continuation contract has not been submitted to
the IRS for approval as to form for use as a traditional IRA or Roth IRA.
PROTECTION PLUS(SM) FEATURE
The Protection Plus(SM) feature is offered for IRA contracts, subject to state
and contract availability. We have received IRS Opinion Letters that the
contract with a similar Protection Plus(SM) feature qualifies as to form for use
as a traditional IRA and Roth IRA, respectively. This IRS approval is a
determination only as to the form of the annuity. It does not represent a
determination of the merits of the annuity as an investment. The contracts
submitted for IRS approval do not include every feature possibly available
under the Accumulator(R) Select(SM) traditional and Roth IRA contracts. You
should discuss with your tax adviser whether you should consider purchasing an
Accumulator(R) Select(SM) IRA or Accumulator(R) Select(SM) Roth IRA with the
optional Protection Plus(SM) feature.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
You can cancel any version of the Accumulator(R) Select(SM) IRA contract
(traditional IRA or Roth IRA) by following the directions in "Your right to
cancel within a certain number of days" under "Contract features and benefits"
earlier in this Prospectus. If you cancel a traditional IRA contract, we may
have to withhold tax, and we must report the transaction to the IRS. A contract
cancellation could have an unfavorable tax impact.
TRADITIONAL INDIVIDUAL RETIREMENT ANNUITIES (TRADITIONAL IRAS)
CONTRIBUTIONS TO TRADITIONAL IRAS. Individuals may make three different types
of contributions to a traditional IRA:
o regular contributions out of earned income or compensation; or
o tax-free "rollover" contributions; or
o direct custodian-to-custodian transfers from other traditional IRAs ("direct
transfers").
REGULAR CONTRIBUTIONS TO TRADITIONAL IRAS
LIMITS ON CONTRIBUTIONS. The "maximum regular contribution amount" for any
taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $4,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for each of the taxable years 2005
and 2006. When your earnings are below $4,000, your earned income or
compensation for the year is the most you can contribute. This limit does not
apply to rollover contributions or direct custodian-to-custodian transfers into
a traditional IRA. You cannot make regular traditional IRA contributions for
the tax year in which you reach age 70-1/2 or any tax year after that.
If you reach age 50 before the close of the taxable year for which you are
making a regular contribution to your IRA, you may be eligible to make an
additional "catch up contribution" of up to $500 to your traditional IRA for
2005. This amount increases to $1,000 for the taxable year 2006.
SPECIAL RULES FOR SPOUSES. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to traditional IRAs
(and Roth IRAs discussed below). Even if one spouse has no compensation or
compensation under $4,000, married individuals filing jointly can contribute up
to $8,000 for each of the taxable years 2005 and 2006 to any combination of
traditional IRAs and Roth IRAs. Any contributions to Roth IRAs reduce the
ability to contribute to traditional IRAs and vice versa. The maximum amount
may be less if earned income is less and the other spouse has made IRA
contributions. No more than a combined total of $4,000 can be contributed
annually to either spouse's traditional and Roth IRAs. Each spouse owns his or
her traditional IRAs and Roth IRAs even if the other spouse funded the
contributions. A working spouse age 70-1/2 or over can contribute up to the
lesser of $4,000 or 100% of "earned income" to a traditional IRA for a
nonworking spouse until the year in which the nonworking spouse reaches age
70-1/2. Catch-up contributions may be made as described above for spouses who
are at least age 50 but under age 70-1/2 at any time during the taxable year for
which the contribution is made.
DEDUCTIBILITY OF CONTRIBUTIONS. The amount of traditional IRA contributions
that you can deduct for a taxable year depends on whether you are covered by an
employer-sponsored-tax-favored retirement plan, as defined under special
federal income tax rules. Your Form W-2 will indicate whether or not you are
covered by such a retirement plan.
If you are not covered by a retirement plan during any part of the year, you
can make fully deductible contributions to your traditional IRAs for the
taxable year up to the maximum amount discussed earlier in this section under
"Limits on contributions." That is, for each of the taxable years 2005 and 2006
your fully deductible contribution can be up to $4,000, or if less, your earned
income. The dollar limit is $4,500 for people eligible to make age 50-70-1/2
catch-up contributions for 2005 and $5,000 for 2006, respectively.
If you are covered by a retirement plan during any part of the year, and your
adjusted gross income (AGI) is below the lower dollar figure in a phase-out
range, you can make fully deductible contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls within a phase-out range, you can make partially deductible
contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls above the higher figure in the phase-out range, you may not deduct
any of your regular contributions to your traditional IRAs.
62 Tax information
If you are single and covered by a retirement plan during any part of the
taxable year, the deduction for traditional IRA contributions phases out with
AGI between $50,000 and $60,000 in 2005 and later years.
If you are married and file a joint return, and you are covered by a retirement
plan during any part of the taxable year, the deduction for traditional IRA
contributions phases out with AGI between $70,000 and $80,000 in 2005 and AGI
between $75,000 and $85,000 in 2006. In 2007, the deduction will phase out for
AGI between $80,000 and $100,000.
Married individuals filing separately and living apart at all times are not
considered married for purposes of this deductible contribution calculation.
Generally, the active participation in an employer-sponsored retirement plan of
an individual is determined independently for each spouse. Where spouses have
"married filing jointly" status, however, the maximum deductible traditional
IRA contribution for an individual who is not an active participant (but whose
spouse is an active participant) is phased out for taxpayers with an AGI
between $150,000 and $160,000.
To determine the deductible amount of the contribution for 2005, for example,
you determine AGI and subtract $50,000 if you are single, or $70,000 if you are
married and file a joint return with your spouse. The resulting amount is your
excess AGI. You then determine the limit on the deduction for traditional IRA
contributions using the following formula:
($10,000-excess AGI) times the maximum Equals the adjusted
-------------------- x regular = deductible
divided by $10,000 contribution contribution
for the year limit
ADDITIONAL "SAVER'S CREDIT" FOR CONTRIBUTIONS TO A TRADITIONAL IRA OR ROTH IRA
You may be eligible for a nonrefundable income tax credit for contributions you
make to a traditional IRA or Roth IRA. The final year this credit is available
is 2006. If you qualify, you may take this credit even though your traditional
IRA contribution is already fully or partially deductible. To take advantage of
this "saver's credit" you must be age 18 or over before the end of the taxable
year for which the contribution is made. You cannot be a full-time student or
claimed as a dependent on another's tax return, and your adjusted gross income
cannot exceed $50,000. The amount of the tax credit you can get varies from 10%
of your contribution to 50% of your contribution, and depends on your income
tax filing status and your adjusted gross income. The maximum annual
contribution eligible for the saver's credit is $2,000. If you and your spouse
file a joint return, and each of you qualifies, each is eligible for a maximum
annual contribution of $2,000. Your saver's credit may also be reduced if you
take or have taken a taxable distribution from any plan eligible for a saver's
credit contribution -- even if you make a contribution to one plan and take the
distribution from another plan -- during the "testing period." The "testing
period" begins two years before the year for which you make the contribution
and ends when your tax return is due for the year for which you make the
contribution. Saver's-credit-eligible contributions may be made to a 401(k)
plan, 403(b) TSA, governmental employer 457(b) plan, SIMPLE IRA or SARSEP IRA,
as well as a traditional IRA or Roth IRA.
NONDEDUCTIBLE REGULAR CONTRIBUTIONS. If you are not eligible to deduct part or
all of the traditional IRA contribution, you may still make nondeductible
contributions on which earnings will accumulate on a tax-deferred basis. The
combined deductible and nondeductible contributions to your traditional IRA (or
the nonworking spouse's traditional IRA) may not, however, exceed the maximum
dollar per person limit for the applicable taxable year ($4,000 for 2005 and
2006). The dollar limit is $4,500 in 2005 and $5,000 in 2006 for people
eligible to make age 50-70-1/2 catch-up contributions. See "Excess
contributions" later in this section. You must keep your own records of
deductible and nondeductible contributions in order to prevent double taxation
on the distribution of previously taxed amounts. See "Withdrawals, payments and
transfers of funds out of traditional IRAs" later in this section.
If you are making nondeductible contributions in any taxable year, or you have
made nondeductible contributions to a traditional IRA in prior years and are
receiving distributions from any traditional IRA, you must file the required
information with the IRS. Moreover, if you are making nondeductible traditional
IRA contributions, you must retain all income tax returns and records
pertaining to such contributions until interests in all traditional IRAs are
fully distributed.
WHEN YOU CAN MAKE REGULAR CONTRIBUTIONS. If you file your tax returns on a
calendar year basis like most taxpayers, you have until the April 15 return
filing deadline (without extensions) of the following calendar year to make
your regular traditional IRA contributions for a taxable year.
ROLLOVER AND TRANSFER CONTRIBUTIONS TO TRADITIONAL IRAS
Rollover contributions may be made to a traditional IRA from these "eligible
retirement plans":
o qualified plans;
o governmental employer 457(b) plans;
o TSAs (including Internal Revenue Code Section 403(b)(7) custo dial accounts);
and
o other traditional IRAs.
Direct transfer contributions may only be made directly from one traditional
IRA to another. Any amount contributed to a traditional IRA after you reach age
70-1/2 must be net of your required minimum distribution for the year in which
the rollover or direct transfer contribution is made.
ROLLOVERS FROM "ELIGIBLE RETIREMENT PLANS" OTHER THAN TRADITIONAL IRAS
Your plan administrator will tell you whether or not your distribution is
eligible to be rolled over. Spousal beneficiaries and spousal alternate payees
under qualified domestic relations orders may roll over funds on the same basis
as the plan participant.
Tax information 63
There are two ways to do rollovers:
o Do it yourself:
You actually receive a distribution that can be rolled over and you roll it
over to a traditional IRA within 60 days after the date you receive the
funds. The distribution from your eligible retirement plan will be net of 20%
mandatory federal income tax withholding. If you want, you can replace the
withheld funds yourself and roll over the full amount.
o Direct rollover:
You tell the trustee or custodian of the eligible retirement plan to send the
distribution directly to your traditional IRA issuer. Direct rollovers are
not subject to mandatory federal income tax withholding.
All distributions from a TSA, qualified plan or governmental employer 457(b)
plan are eligible rollover distributions, unless the distributions are:
o "required minimum distributions" after age 70-1/2 or retirement from service
with the employer; or
o substantially equal periodic payments made at least annually for your life
(or life expectancy) or the joint lives (or joint life expectancies) of you
and your designated beneficiary; or
o substantially equal periodic payments made for a specified period of 10 years
or more; or
o hardship withdrawals; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o death benefit payments to a beneficiary who is not your surviving spouse; or
o qualified domestic relations order distributions to a beneficiary who is not
your current spouse or former spouse.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental employer 457(b) plan are not subject to the
additional 10% federal income tax penalty for premature distributions, but they
may become subject to this penalty if you roll the funds to a different type of
eligible retirement plan such as a traditional IRA, and subsequently take a
premature distribution.
ROLLOVERS OF AFTER-TAX CONTRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS OTHER THAN
TRADITIONAL IRAS
Any after-tax contributions you have made to a qualified plan or TSA (but not a
governmental employer 457(b) plan) may be rolled over to a traditional IRA
(either in a direct rollover or a rollover you do yourself). When the recipient
plan is a traditional IRA, you are responsible for recordkeeping and
calculating the taxable amount of any distributions you take from that
traditional IRA. See "Taxation of Payments" later in this section under
"Withdrawals, payments and transfers of funds out of traditional IRAs."
After-tax contributions in a traditional IRA cannot be rolled over from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan.
ROLLOVERS FROM TRADITIONAL IRAS TO TRADITIONAL IRAS
You may roll over amounts from one traditional IRA to one or more of your other
traditional IRAs if you complete the transaction within 60 days after you
receive the funds. You may make such a rollover only once in every 12-month
period for the same funds. Trustee-to-trustee or custodian-to-custodian direct
transfers are not rollover transactions. You can make these more frequently
than once in every 12-month period.
SPOUSAL ROLLOVER AND DIVORCE-RELATED DIRECT TRANSFERS
The surviving spouse beneficiary of a deceased individual can roll over funds
from, or directly transfer funds from, an inherited traditional IRA to one or
more other traditional IRAs. Also, in some cases, traditional IRAs can be
transferred on a tax-free basis between spouses or former spouses as a result
of a court ordered divorce or separation decree.
EXCESS CONTRIBUTIONS
Excess contributions to IRAs are subject to a 6% excise tax for the year in
which made and for each year after until withdrawn. The following are excess
contributions to IRAs:
o regular contributions of more than the maximum regular contribution amount
for the applicable taxable year); or
o regular contributions to a traditional IRA made after you reach age 70-1/2;
or
o rollover contributions of amounts which are not eligible to be rolled over,
for example, minimum distributions required to be made after age 70-1/2.
You can avoid the excise tax by withdrawing an excess contribution (rollover or
regular) before the due date (including extensions) for filing your federal
income tax return for the year. If it is an excess regular traditional IRA
contribution, you cannot take a tax deduction for the amount withdrawn. You do
not have to include the excess contribution withdrawn as part of your income.
It is also not subject to the 10% additional penalty tax on early
distributions, discussed later in this section under "Early distribution
penalty tax." You do have to withdraw any earnings that are attributed to the
excess contribution. The withdrawn earnings would be included in your gross
income and could be subject to the 10% penalty tax.
Even after the due date for filing your return, you may withdraw an excess
rollover contribution, without income inclusion or 10% penalty, if:
(1) the rollover was from an eligible retirement plan to a traditional IRA;
(2) the excess contribution was due to incorrect information that the plan
provided; and
64 Tax information
(3) you took no tax deduction for the excess contribution.
RECHARACTERIZATIONS
Amounts that have been contributed as traditional IRA funds may subsequently be
treated as Roth IRA funds. Special federal income tax rules allow you to change
your mind again and have amounts that are subsequently treated as Roth IRA
funds, once again treated as traditional IRA funds. You do this by using the
forms we prescribe. This is referred to as having "recharacterized" your
contribution.
WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF TRADITIONAL IRAS
NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or
all of your funds from a traditional IRA at any time. You do not need to wait
for a special event like retirement.
TAXATION OF PAYMENTS. Earnings in traditional IRAs are not subject to federal
income tax until you or your beneficiary receive them. Taxable payments or
distributions include withdrawals from your contract, surrender of your
contract and annuity payments from your contract. Death benefits are also
taxable.
Except as discussed below, the total amount of any distribution from a
traditional IRA must be included in your gross income as ordinary income. We
report all payments from traditional IRA contracts on IRS Form 1099R as fully
taxable.
If you have ever made nondeductible IRA contributions to any traditional IRA
(it does not have to be to this particular traditional IRA contract), those
contributions are recovered tax free when you get distributions from any
traditional IRA. It is your responsibility to keep permanent tax records of all
of your nondeductible contributions to traditional IRAs so that you can
correctly report the taxable amount of any distribution on your own tax return.
At the end of any year in which you have received a distribution from any
traditional IRA, you calculate the ratio of your total nondeductible
traditional IRA contributions (less any amounts previously withdrawn tax free)
to the total account balances of all traditional IRAs you own at the end of the
year plus all traditional IRA distributions made during the year. Multiply this
by all distributions from the traditional IRA during the year to determine the
nontaxable portion of each distribution.
A distribution from a traditional IRA is not taxable if:
o the amount received is a withdrawal of excess contributions, as described
under "Excess contributions" earlier in this section; or
o the entire amount received is rolled over to another traditional IRA or
other eligible retirement plan which agrees to accept the funds. (See
"Rollovers from eligible retirement plans other than traditional IRAs"
under "Rollover and transfer contributions to traditional IRAs" earlier in
this section.)
The following are eligible to receive rollovers of distributions from a
traditional IRA: a qualified plan, a TSA or a governmental employer 457(b)
plan. After-tax contributions in a traditional IRA cannot be rolled from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan. Before you decide to roll over a distribution from a
traditional IRA to another eligible retirement plan, you should check with the
administrator of that plan about whether the plan accepts rollovers and, if so,
the types it accepts. You should also check with the administrator of the
receiving plan about any documents required to be completed before it will
accept a rollover.
Distributions from a traditional IRA are not eligible for favorable ten-year
averaging and long-term capital gain treatment available under limited
circumstances for certain distributions from qualified plans. If you might be
eligible for such tax treatment from your qualified plan, you may be able to
preserve such tax treatment even though an eligible rollover from a qualified
plan is temporarily rolled into a "conduit IRA" before being rolled back into a
qualified plan. See your tax adviser.
REQUIRED MINIMUM DISTRIBUTIONS
BACKGROUND ON REGULATIONS -- REQUIRED MINIMUM DISTRIBUTIONS
Distributions must be made from traditional IRAs according to rules contained
in the Code and Treasury Regulations. Certain provisions of the Treasury
Regulations will require, beginning in 2006, that the actuarial present value
of additional annuity contract benefits be added to the dollar amount credited
for purposes of calculating certain types of required minimum distributions
from individual retirement annuity contracts. This could increase the amount
required to be distributed from these contracts if you take annual withdrawals
instead of annuitizing. Please consult your tax adviser concerning
applicability of these complex rules to your situation.
LIFETIME REQUIRED MINIMUM DISTRIBUTIONS. You must start taking annual
distributions from your traditional IRAs for the year in which you turn age
70-1/2.
WHEN YOU HAVE TO TAKE THE FIRST LIFETIME REQUIRED MINIMUM DISTRIBUTION. The
first required minimum distribution is for the calendar year in which you turn
age 70-1/2. You have the choice to take this first required minimum distribution
during the calendar year you actually reach age 70-1/2, or to delay taking it
until the first three-month period in the next calendar year (January 1 - April
1). Distributions must start no later than your "Required Beginning Date,"
which is April 1st of the calendar year after the calendar year in which you
turn age 70-1/2. If you choose to delay taking the first annual minimum
distribution, then you will have to take two minimum distributions in that
year--the delayed one for the first year and the one actually for that year.
Once minimum distributions begin, they must be made at some time each year.
HOW YOU CAN CALCULATE REQUIRED MINIMUM DISTRIBUTIONS. There are two approaches
to taking required minimum distributions -- "account-based" or "annuity-based."
ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the
value of your traditional IRA as of December 31st of the past calendar year by
a number corresponding to your age from an IRS table. This gives you the
required minimum distribution amount for that particular IRA for that year. If
your spouse is your sole beneficiary and more than 10 years younger than you,
the dividing number you use may be from another IRS table and may produce a
smaller lifetime required minimum distribution amount. Regardless of the table
used,
Tax information 65
the required minimum distribution amount will vary each year as the account
value and the divisor change. If you initially choose an account-based method,
you may later apply your traditional IRA funds to a life annuity-based payout
with any certain period not exceeding remaining life expectancy, determined in
accordance with IRS tables.
ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to
do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a designated beneficiary or for a
period certain not extending beyond applicable life expectancies, determined in
accordance with IRS tables.
DO YOU HAVE TO PICK THE SAME METHOD TO CALCULATE YOUR REQUIRED MINIMUM
DISTRIBUTIONS FOR ALL OF YOUR TRADITIONAL IRAS AND OTHER RETIREMENT PLANS? No.
If you want, you can choose a different method for each of your traditional
IRAs and other retirement plans. For example, you can choose an annuity payout
from one IRA, a different annuity payout from a qualified plan and an
account-based annual withdrawal from another IRA.
WILL WE PAY YOU THE ANNUAL AMOUNT EVERY YEAR FROM YOUR TRADITIONAL IRA BASED ON
THE METHOD YOU CHOOSE? We will only pay you automatically if you affirmatively
select an annuity payout option or an account-based withdrawal option such as
our "automatic required minimum distribution (RMD) service." Even if you do not
enroll in our service, we will calculate the amount of the required minimum
distribution withdrawal for you, if you so request in writing. However, in that
case you will be responsible for asking us to pay the required minimum
distribution withdrawal to you.
Also, the IRS will let you calculate the required minimum distribution for each
traditional IRA that you maintain, using the method that you picked for that
particular IRA. You can add these required minimum distribution amount
calculations together. As long as the total amount you take out every year
satisfies your overall traditional IRA required minimum distribution amount,
you may choose to take your annual required minimum distribution from any one
or more traditional IRAs that you own.
WHAT IF YOU TAKE MORE THAN YOU NEED TO FOR ANY YEAR? The required minimum
distribution amount for your traditional IRAs is calculated on a year-by-year
basis. There are no carry-back or carry-forward provisions. Also, you cannot
apply required minimum distribution amounts you take from your qualified plans
to the amounts you have to take from your traditional IRAs and vice versa.
WHAT IF YOU TAKE LESS THAN YOU NEED TO FOR ANY YEAR? Your IRA could be
disqualified, and you could have to pay tax on the entire value. Even if your
IRA is not disqualified, you could have to pay a 50% penalty tax on the
shortfall (required amount for traditional IRAs less amount actually taken). It
is your responsibility to meet the required minimum distribution rules. We will
remind you when our records show that you are within the age group which must
take lifetime required minimum distributions. If you do not select a method
with us, we will assume you are taking your required minimum distribution from
another traditional IRA that you own.
WHAT ARE THE REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER YOU DIE? These could
vary depending on whether you die before or after your Required Beginning Date
for lifetime required minimum distribution payments, and the status of your
beneficiary. The following assumes that you have not yet elected an
annuity-based payout at the time of your death. If you elect an annuity-based
payout, payments (if any) after your death must be made at least as rapidly as
when you were alive.
INDIVIDUAL BENEFICIARY. Regardless of whether your death occurs before or after
your Required Beginning Date, an individual death beneficiary calculates annual
post-death required minimum distribution payments based on the beneficiary's
life expectancy using the "term certain method." That is, he or she determines
his or her life expectancy using the IRS-provided life expectancy tables as of
the calendar year after the owner's death and reduces that number by one each
subsequent year.
If you die before your Required Beginning Date, the rules permit any individual
beneficiary, including a spousal beneficiary, to elect instead to apply the
"5-year rule." Under this rule, instead of annual payments having to be made
beginning with the first in the year following the owner's death, the entire
account must be distributed by the end of the calendar year which contains the
fifth anniversary of the owner's death. No distribution is required before that
fifth year.
SPOUSAL BENEFICIARY. If you die after your Required Beginning Date, and your
death beneficiary is your surviving spouse, your spouse has a number of
choices. Post-death distributions may be made over your spouse's single life
expectancy. Any amounts distributed after that surviving spouse's death are
made over the spouse's life expectancy calculated in the year of his/her death,
reduced by one for each subsequent year. In some circumstances, your surviving
spouse may elect to become the owner of the traditional IRA and halt
distributions until he or she reaches age 70-1/2, or roll over amounts from your
traditional IRA into his/her own traditional IRA or other eligible retirement
plan.
If you die before your Required Beginning Date, and the death beneficiary is
your surviving spouse, the rules permit the spouse to delay starting payments
over his/her life expectancy until the year in which you would have attained
age 70-1/2.
NON-INDIVIDUAL BENEFICIARY. If you die after your Required Beginning Date, and
your death beneficiary is a non-individual, such as the estate, the rules
permit the beneficiary to calculate post-death required minimum distribution
amounts based on the owner's life expectancy in the year of death. However,
note that we need an individual annuitant to keep an annuity contract in force.
If the beneficiary is not an individual, we must distribute amounts remaining
in the annuity contract after the death of the annuitant.
If you die before your Required Beginning Date for lifetime required minimum
distribution payments, and the death beneficiary is a non-individual, such as
the estate, the rules continue to apply the 5-year rule discussed earlier under
"Individual beneficiary." Please note that we need an individual annuitant to
keep an annuity contract in force. If the beneficiary is not an individual, we
must distribute amounts remaining in the annuity contract after the death of
the annuitant.
66 Tax information
SUCCESSOR OWNER AND ANNUITANT
If your spouse is the sole primary beneficiary and elects to become the
successor owner and annuitant, no death benefit is payable until your surviving
spouse's death.
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
IRA death benefits are taxed the same as IRA distributions.
BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS
You cannot get loans from a traditional IRA. You cannot use a traditional IRA
as collateral for a loan or other obligation. If you borrow against your IRA or
use it as collateral, its tax-favored status will be lost as of the first day
of the tax year in which this prohibited event occurs. If this happens, you
must include the value of the traditional IRA in your federal gross income.
Also, the early distribution penalty tax of 10% may apply if you have not
reached age 59-1/2 before the first day of that tax year.
EARLY DISTRIBUTION PENALTY TAX
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a traditional IRA made before you reach age 59-1/2. Some of
the available exceptions to the pre-age 59-1/2 penalty tax include distributions
made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o used to pay certain extraordinary medical expenses (special federal income
tax definition); or
o used to pay medical insurance premiums for unemployed individuals (special
federal income tax definition); or
o used to pay certain first-time home buyer expenses (special federal income
tax definition; $10,000 lifetime total limit for these distributions from
all your traditional and Roth IRAs); or
o used to pay certain higher education expenses (special federal income tax
definition); or
o in the form of substantially equal periodic payments made at least annually
over your life (or your life expectancy) or over the joint lives of you and
your beneficiary (or your joint life expectancies using an IRS-approved
distribution method.
To meet this last exception, you could elect to apply your contract value to an
Income Manager(R) (life annuity with a period certain) payout annuity contract
(level payments version). You could also elect the substantially equal
withdrawals option. We will calculate the substantially equal annual payments
using your choice of IRS-approved methods we offer. Although substantially
equal withdrawals and Income Manager(R) payments are not subject to the 10%
penalty tax, they are taxable as discussed in "Withdrawals, payments and
transfers of funds out of traditional IRAs" above. Once substantially equal
withdrawals or Income Manager(R) annuity payments begin, the distributions
should not be stopped or changed until after the later of your reaching age
59-1/2 or five years after the date of the first distribution, or the penalty
tax, including an interest charge for the prior penalty avoidance, may apply to
all prior distributions under this option. Also, it is possible that the IRS
could view any additional withdrawal or payment you take from your contract as
changing your pattern of substantially equal withdrawals or Income Manager(R)
payments for purposes of determining whether the penalty applies.
ROTH INDIVIDUAL RETIREMENT ANNUITIES (ROTH IRAS)
This section of the Prospectus covers some of the special tax rules that apply
to Roth IRAs. If the rules are the same as those that apply to the traditional
IRA, we will refer you to the same topic under "traditional IRAs."
The Accumulator(R) Select(SM) Roth Conversion IRA contract is designed to
qualify as a Roth individual retirement annuity under Sections 408A(b) and
408(b) of the Internal Revenue Code.
CONTRIBUTIONS TO ROTH IRAS
Individuals may make four different types of contributions to a Roth IRA:
o regular after-tax contributions out of earnings; or
o taxable rollover contributions from traditional IRAs ("conversion"
contributions); or
o tax-free rollover contributions from other Roth IRAs; or
o tax-free direct custodian-to-custodian transfers from other Roth IRAs
("direct transfers").
Regular after-tax, direct transfer and rollover contributions may be made to a
Roth Conversion IRA contract. See "Rollovers and direct transfers" later in
this section. If you use the forms we require, we will also accept traditional
IRA funds which are subsequently recharacterized as Roth IRA funds following
special federal income tax rules.
REGULAR CONTRIBUTIONS TO ROTH IRAS
LIMITS ON REGULAR CONTRIBUTIONS. The "maximum regular contribution amount" for
any taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $4,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for each of the taxable years 2005
and 2006. This limit does not apply to rollover contributions or direct
custodian-to-custodian transfers into a Roth IRA. Any contributions to Roth
IRAs reduce your ability to contribute to traditional IRAs and vice versa. When
your earnings are below $4,000, your earned income or compensation for the year
is the most you can contribute. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to Roth IRAs and
traditional IRAs. See the discussion earlier in this section under traditional
IRAs. If you or your spouse are at least age 50 at any time during the taxable
year
Tax information 67
for which you are making a regular contribution, additional catch-up
contributions totaling up to $500 can be made for the taxable year 2005. This
amount increases to $1,000 for the taxable year 2006.
With a Roth IRA, you can make regular contributions when you reach 70-1/2, as
long as you have sufficient earnings. But, you cannot make contributions,
regardless of your age, for any year that:
o your federal income tax filing status is "married filing jointly" and your
modified adjusted gross income is over $160,000; or
o your federal income tax filing status is "single" and your modified
adjusted gross income is over $110,000.
However, you can make regular Roth IRA contributions in reduced amounts when:
o your federal income tax filing status is "married filing jointly" and your
modified adjusted gross income is between $150,000 and $160,000; or
o your federal income tax filing status is "single" and your modified
adjusted gross income is between $95,000 and $110,000.
If you are married and filing separately and your modified adjusted gross
income is between $0 and $10,000 the amount of regular contributions you are
permitted to make is phased out. If your modified adjusted gross income is more
than $10,000 you cannot make regular Roth IRA contributions.
WHEN YOU CAN MAKE CONTRIBUTIONS. Same as traditional IRAs.
DEDUCTIBILITY OF CONTRIBUTIONS. Roth IRA contributions are not tax deductible.
ROLLOVERS AND DIRECT TRANSFERS
WHAT IS THE DIFFERENCE BETWEEN ROLLOVER AND DIRECT TRANSFER TRANSACTIONS? You
may make rollover contributions to a Roth IRA from only two sources:
o another Roth IRA ("tax-free rollover contribution"); or
o another traditional IRA, including a SEP-IRA or SIMPLE IRA (after a
two-year rollover limitation period for SIMPLE IRA funds), in a taxable
conversion rollover ("conversion contribution").
You may not make contributions to a Roth IRA from a qualified plan under
Section 401(a) of the Internal Revenue Code, a TSA under Section 403(b) of the
Internal Revenue Code or any other eligible retirement plan. You may make
direct transfer contributions to a Roth IRA only from another Roth IRA.
The difference between a rollover transaction and a direct transfer transaction
is the following: in a rollover transaction you actually take possession of the
funds rolled over or are considered to have received them under tax law in the
case of a change from one type of plan to another. In a direct transfer
transaction, you never take possession of the funds, but direct the first Roth
IRA custodian trustee or issuer to transfer the first Roth IRA funds directly
to the recipient Roth IRA custodian, trustee or issuer. You can make direct
transfer transactions only between identical plan types (for example, Roth IRA
to Roth IRA). You can also make rollover transactions between identical plan
types. However, you can only use rollover transactions between different plan
types (for example, traditional IRA to Roth IRA).
You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to
Roth IRA direct transfer transactions. This can be accomplished on a completely
tax-free basis. However, you may make Roth IRA to Roth IRA rollover
transactions only once in any 12-month period for the same funds.
Trustee-to-trustee or custodian-to-custodian direct transfers can be made more
frequently than once a year. Also, if you send us the rollover contribution to
apply it to a Roth IRA, you must do so within 60 days after you receive the
proceeds from the original IRA to get rollover treatment.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some
cases, Roth IRAs can be transferred on a tax-free basis between spouses or
former spouses as a result of a court-ordered divorce or separation decree.
CONVERSION CONTRIBUTIONS TO ROTH IRAS
In a conversion rollover transaction, you withdraw (or are considered to have
withdrawn) all or a portion of funds from a traditional IRA you maintain and
convert it to a Roth IRA within 60 days after you receive (or are considered to
have received) the traditional IRA proceeds. Unlike a rollover from a
traditional IRA to another traditional IRA, the conversion rollover transaction
is not tax-free. Instead, the distribution from the traditional IRA is
generally fully taxable. For this reason, we are required to withhold 10%
federal income tax from the amount converted unless you elect out of such
withholding. If you have ever made nondeductible regular contributions to any
traditional IRA -- whether or not it is the traditional IRA you are converting
- -- a pro rata portion of the distribution is tax free.
There is, however, no early distribution penalty tax on the traditional IRA
withdrawal that you are converting to a Roth IRA, even if you are under age
59-1/2.
You cannot make conversion contributions to a Roth IRA for any taxable year in
which your modified adjusted gross income exceeds $100,000. (For this purpose,
your modified adjusted gross income is calculated without the gross income
stemming from the traditional IRA conversion. Beginning in 2005, modified
adjusted gross income for this purpose will also exclude any lifetime required
minimum distribution from a traditional IRA.) You also cannot make conversion
contributions to a Roth IRA for any taxable year in which your federal income
tax filing status is "married filing separately."
You cannot make conversion contributions to a Roth IRA to the extent that the
funds in your traditional IRA are subject to the annual required minimum
distribution rule applicable to traditional IRAs beginning at age 70-1/2.
You cannot convert and reconvert an amount during the same taxable year, or if
later, during the 30-day period following a recharacterization. If you
reconvert during either of these periods, it will be a failed Roth IRA
conversion.
68 Tax information
RECHARACTERIZATIONS
You may be able to treat a contribution made to one type of IRA as having been
made to a different type of IRA. This is called recharacterizing the
contribution.
HOW TO RECHARACTERIZE. To recharacterize a contribution, you generally must
have the contribution transferred from the first IRA (the one to which it was
made) to the second IRA in a deemed trustee-to-trustee transfer. If the
transfer is made by the due date (including extensions) for your tax return for
the year during which the contribution was made, you can elect to treat the
contribution as having been originally made to the second IRA instead of to the
first IRA. It will be treated as having been made to the second IRA on the same
date that it was actually made to the first IRA. You must report the
recharacterization and must treat the contribution as having been made to the
second IRA, instead of the first IRA, on your tax return for the year during
which the contribution was made.
The contribution will not be treated as having been made to the second IRA
unless the transfer includes any net income allocable to the contribution. You
can take into account any loss on the contribution while it was in the IRA when
calculating the amount that must be transferred. If there was a loss, the net
income you must transfer may be a negative amount.
No deduction is allowed for the contribution to the first IRA and any net
income transferred with the recharacterized contribution is treated as earned
in the second IRA. The contribution will not be treated as having been made to
the second IRA to the extent any deduction was allowed with respect to the
contribution to the first IRA.
For recharacterization purposes, a distribution from a traditional IRA that is
received in one tax year and rolled over into a Roth IRA in the next year, but
still within 60 days of the distribution from the traditional IRA, is treated
as a contribution to the Roth IRA in the year of the distribution from the
traditional IRA.
Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be
recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or
SIMPLE IRA).
To recharacterize a contribution, you must use our forms.
The recharacterization of a contribution is not treated as a rollover for
purposes of the 12-month limitation period described above. This rule applies
even if the contribution would have been treated as a rollover contribution by
the second IRA if it had been made directly to the second IRA rather than as a
result of a recharacterization of a contribution to the first IRA.
WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF ROTH IRAS
NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or
all of your funds from a Roth IRA at any time; you do not need to wait for a
special event like retirement.
DISTRIBUTIONS FROM ROTH IRAS
Distributions include withdrawals from your contract, surrender of your
contract and annuity payments from your contract. Death benefits are also
distributions.
You must keep your own records of regular and conversion contributions to all
Roth IRAs to assure appropriate taxation. You may have to file information on
your contributions to and distributions from any Roth IRA on your tax return.
You may have to retain all income tax returns and records pertaining to such
contributions and distributions until your interests in all Roth IRAs are
distributed.
Like traditional IRAs, taxable distributions from a Roth IRA are not entitled
to special favorable ten-year averaging and long-term capital gain treatment
available in limited cases to certain distributions from qualified plans.
The following distributions from Roth IRAs are free of income tax:
o rollovers from a Roth IRA to another Roth IRA;
o direct transfers from a Roth IRA to another Roth IRA;
o qualified distributions from a Roth IRA; and
o return of excess contributions or amounts recharacterized to a traditional
IRA.
QUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Qualified distributions from Roth IRAs
made because of one of the following four qualifying events or reasons are not
includable in income:
o you are age 59-1/2 or older; or
o you die; or
o you become disabled (special federal income tax definition); or
o your distribution is a "qualified first-time homebuyer distribution"
(special federal income tax definition; $10,000 lifetime total limit for
these distributions from all of your traditional and Roth IRAs).
You also have to meet a five-year aging period. A qualified distribution is any
distribution made after the five-taxable-year period beginning with the first
taxable year for which you made any contribution to any Roth IRA (whether or
not the one from which the distribution is being made).
NONQUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Nonqualified distributions from Roth
IRAs are distributions that do not meet both the qualifying event and five-year
aging period tests described above. If you receive such a distribution, part of
it may be taxable. For purposes of determining the correct tax treatment of
distributions (other than the withdrawal of excess contributions and the
earnings on them), there is a set order in which contributions (including
conversion contributions) and earnings are considered to be distributed from
your Roth IRA. The order of distributions is as follows:
(1) Regular contributions.
(2) Conversion contributions, on a first-in-first-out basis (generally, total
conversions from the earliest year first). These conversion contributions
are taken into account as follows:
(a) Taxable portion (the amount required to be included in gross income
because of conversion) first, and then the
(b) Nontaxable portion.
Tax information 69
(3) Earnings on contributions.
Rollover contributions from other Roth IRAs are disregarded for this purpose.
To determine the taxable amount distributed, distributions and contributions
are aggregated or grouped together as follows:
(1) All distributions made during the year from all Roth IRAs you maintain --
with any custodian or issuer -- are added together.
(2) All regular contributions made during and for the year (contribu tions made
after the close of the year, but before the due date of your return) are
added together. This total is added to the total undistributed regular
contributions made in prior years.
(3) All conversion contributions made during the year are added together. For
purposes of the ordering rules, in the case of any conversion in which the
conversion distribution is made in 2005 and the conversion contribution is
made in 2006, the conversion contribution is treated as contributed prior
to other conversion contributions made in 2006.
Any recharacterized contributions that end up in a Roth IRA are added to the
appropriate contribution group for the year that the original contribution
would have been taken into account if it had been made directly to the Roth
IRA.
Any recharacterized contribution that ends up in an IRA other than a Roth IRA
is disregarded for the purpose of grouping both contributions and
distributions. Any amount withdrawn to correct an excess contribution
(including the earnings withdrawn) is also disregarded for this purpose.
REQUIRED MINIMUM DISTRIBUTIONS DURING LIFE
Lifetime required minimum distributions do not apply.
REQUIRED MINIMUM DISTRIBUTIONS AT DEATH
Same as traditional IRA under "What are the required minimum distribution
payments after you die?"
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
Distributions to a beneficiary generally receive the same tax treatment as if
the distribution had been made to you.
Borrowing and loans are prohibited transactions.
Same as traditional IRA.
EXCESS CONTRIBUTIONS
Generally the same as traditional IRA, except that regular contributions made
after age 70-1/2 are not excess contributions.
Excess rollover contributions to Roth IRAs are contributions not eligible to be
rolled over (for example, conversion contributions from a traditional IRA if
your modified adjusted gross income is in excess of $100,000 in the conversion
year).
You can withdraw or recharacterize any contribution to a Roth IRA before the
due date (including extensions) for filing your federal income tax return for
the tax year. If you do this, you must also withdraw or recharacterize any
earnings attributable to the contribution.
EARLY DISTRIBUTION PENALTY TAX
Same as traditional IRA.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
GENERAL
This section of the Prospectus covers some of the special tax rules that apply
to TSA contracts under Section 403(b) of the Internal Revenue Code (TSAs). If
the rules are the same as those that apply to another kind of contract, for
example, traditional IRAs, we will refer you to the same topic under
"traditional IRAs."
PLEASE NOTE: The following discussion reflects our understanding of some of the
current federal income tax rules applicable to Section 403(b) of the Code. The
IRS and Treasury have recently issued Proposed Regulations on Section 403(b) of
the Code. If finalized in their current form, these Proposed Regulations would
affect the establishment and operation of plans and arrangements under Section
403(b) of the Code, and the contracts issued to fund such plans. Please consult
your tax adviser concerning how these Proposed Regulations could affect you.
Generally there are two types of funding vehicles available for 403(b)
arrangements -- an annuity contract under Section 403(b)(1) of the Code or a
custodial account which invests only in mutual funds and which is treated as an
annuity contract under Section 403(b)(7) of the Code. Both types of 403(b)
arrangements qualify for tax deferral.
PROTECTION PLUS(SM) FEATURE
The Protection Plus(SM) feature is offered for Rollover TSA contracts, subject
to state and contract availability. There is a limit to the amount of life
insurance benefits that TSAs may offer. Although we view the optional Protection
Plus(SM) benefit as an investment protection feature which should have no
adverse tax effect and not as a life insurance benefit, the IRS has not
specifically addressed this question. It is possible that the IRS could take a
contrary position regarding tax qualification or assert that the Protection
Plus(SM) rider is not a permissible part of a TSA contract. If the IRS were to
take the position that the optional Protection Plus(SM) benefit is not part of
the contract, in such a case, the charges for the Protection Plus(SM) rider
could be treated for federal income tax purposes as a partial withdrawal from
the contract. If this were so, such a deemed withdrawal could affect the tax
qualification of the TSA and could be taxable. Were the IRS to take any adverse
position, AXA Equitable would take all reasonable steps to attempt to avoid any
adverse result, which would include amending the contract (with appropriate
notice to you). You should discuss with
70 Tax information
your tax adviser whether you should consider purchasing an Accumulator(R)
Select(SM) Rollover TSA contract with the optional Protection Plus(SM) feature.
CONTRIBUTIONS TO TSAS
There are two ways you can make contributions to establish this Accumulator(R)
Select(SM) Rollover TSA contract:
o a full or partial direct transfer of assets ("direct transfer") from
another contract or arrangement that meets the requirements of Section
403(b) of the Internal Revenue Code by means of IRS Revenue Ruling 90-24;
or
o a rollover from another 403(b) arrangement.
If you make a direct transfer, you must fill out our transfer form.
We do not accept after-tax contribution rollovers to the Accumulator(R)
Select(SM) TSA.
EMPLOYER-REMITTED CONTRIBUTIONS. The Accumulator(R) Select(SM) Rollover TSA
contract does not accept employer-remitted contributions. However, we provide
the following discussion as part of our description of restrictions on the
distribution of funds directly transferred, which include employer-remitted
contributions to other TSAs.
Employer-remitted contributions to TSAs made through the employer's payroll are
subject to annual limits. (Tax-free direct transfer contributions from another
403(b) arrangement and rollover contributions from another eligible retirement
plan are not subject to these annual contribution limits.) Commonly, some or
all of the contributions made to a TSA are made under a salary reduction
agreement between the employee and the employer. These contributions are called
"salary reduction" or "elective deferral" contributions. However, a TSA can
also be wholly or partially funded through nonelective employer contributions
or after-tax employee contributions. Amounts attributable to salary reduction
contributions to TSAs are generally subject to withdrawal restrictions. Also,
all amounts attributable to investments in a 403(b)(7) custodial account are
subject to withdrawal restrictions discussed below.
ROLLOVER OR DIRECT TRANSFER CONTRIBUTIONS. Once you establish your Rollover TSA
with 403(b)-source funds, you may make subsequent rollover contributions to
your Rollover TSA contract from these sources: qualified plans, governmental
employer 457(b) plans and traditional IRAs, as well as other TSAs and 403(b)
arrangements. All rollover contributions must be pre-tax funds only with
appropriate documentation satisfactory to us.
Generally, you may make a rollover contribution to your TSA when you have a
distributable event from an existing TSA or other eligible retirement plan as a
result of your:
o termination of employment with the employer who provided the funds for the
plan; or
o reaching age 59-1/2 even if you are still employed; or
o disability (special federal income tax definition).
You can roll over pre-tax funds from a traditional IRA to a TSA at any time.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental 457(b) plan are not subject to the additional
10% federal income tax penalty for premature distributions, but they may become
subject to this penalty if you roll the funds to a different type of eligible
retirement plan and subsequently take a premature distribution.
If the recipient plan separately accounts for funds rolled over from another
eligible retirement plan, the IRS has ruled that an exception is available in
certain situations to withdrawal restrictions that would otherwise apply to the
rollover contribution funds in the recipient plan. We do not currently
separately account for rollover contributions from other eligible retirement
plans.
A transfer occurs when changing the funding vehicle, even if there is no
distributable event. Under a direct transfer, you do not receive a
distribution. We accept direct transfers of TSA funds under Revenue Ruling
90-24 only if:
o you give us acceptable written documentation as to the source of the funds;
and
o the Accumulator(R) Select(SM) contract receiving the funds has provisions
at least as restrictive as the source contract.
Before you transfer funds to an Accumulator(R) Select(SM) Rollover TSA contract,
you may have to obtain your employer's authorization or demonstrate that you do
not need employer authorization. For example, the transferring TSA may be
subject to Title I of ERISA, if the employer makes matching contributions to
salary reduction contributions made by employees. In that case, the employer
must continue to approve distributions from the plan or contract.
Your contribution to the Accumulator(R) Select(SM) TSA must be net of the
required minimum distribution for the tax year in which we issue the contract
if:
o you are or will be at least age 70-1/2 in the current calendar year, and
o you have retired from service with the employer who provided the funds to
purchase the TSA you are transferring or rolling over to the Accumulator(R)
Select(SM) Rollover TSA.
This rule applies regardless of whether the source of funds is a:
o rollover by check of the proceeds from another TSA or eligible retirement
plan; or
o direct rollover from another TSA or eligible retirement plan; or
o direct transfer under Revenue Ruling 90-24 from another TSA.
Tax information 71
DISTRIBUTIONS FROM TSAS
GENERAL. Depending on the terms of the employer plan and your employment
status, you may have to get your employer's consent to take a loan or
withdrawal. Your employer will tell us this when you establish the TSA through
a direct transfer.
WITHDRAWAL RESTRICTIONS. If this is a Revenue Ruling 90-24 direct transfer, we
will treat all amounts transferred to this contract and any future earnings on
the amount transferred as not eligible for withdrawal until one of the
following events happens:
o you are severed from employment with the employer who pro vided the funds
to purchase the TSA you are transferring to the Accumulator(R) Select(SM)
Rollover TSA; or
o you reach age 59-1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o you take a hardship withdrawal (special federal income tax defi-
nition).
If any portion of the funds directly transferred to your TSA contract is
attributable to amounts that you invested in a 403(b)(7) custodial account,
such amounts, including earnings, are subject to withdrawal restrictions. With
respect to the portion of the funds that were never invested in a 403(b)(7)
custodial account, these restrictions apply to the salary reduction (elective
deferral) contributions to a TSA annuity contract you made and any earnings on
them. These restrictions do not apply to the amount directly transferred to
your TSA contract that represents your December 31, 1988, account balance
attributable to salary reduction contributions to a TSA annuity contract and
earnings. To take advantage of this grandfathering you must properly notify us
in writing at our processing office of your December 31, 1988, account balance
if you have qualifying amounts transferred to your TSA contract.
THIS PARAGRAPH APPLIES ONLY TO PARTICIPANTS IN A TEXAS OPTIONAL RETIREMENT
PROGRAM. Texas Law permits withdrawals only after one of the following
distributable events occur:
(1) the requirements for minimum distribution (discussed under "Required
minimum distributions" later in this section) are met; or
(2) death; or
(3) retirement; or
(4) termination of employment in all Texas public institutions of higher
education.
For you to make a withdrawal, we must receive a properly completed written
acknowledgment from the employer. If a distributable event occurs before you
are vested, we will refund to the employer any amounts provided by an
employer's first-year matching contribution. We reserve the right to change
these provisions without your consent, but only to the extent necessary to
maintain compliance with applicable law. Loans are not permitted under Texas
Optional Retirement Programs.
TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSAs are generally not
subject to federal income tax until benefits are distributed. Distributions
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSAs are includable in
gross income as ordinary income. Distributions from TSAs may be subject to 20%
federal income tax withholding. See "Federal and state income tax withholding
and information reporting" later in this section. In addition, TSA
distributions may be subject to additional tax penalties.
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since we currently do not accept
after-tax funds, we do not track your investment in the contract, if any. We
will report all distributions from this Rollover TSA as fully taxable. It is
your responsibility to determine how much of the distribution is taxable.
DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount
received in excess of the investment in the contract is taxable. The amount of
any partial distribution from a TSA prior to the annuity starting date is
generally taxable, except to the extent that the distribution is treated as a
withdrawal of after-tax contributions. Distributions are normally treated as
pro rata withdrawals of any after-tax contributions and earnings on those
contributions.
ANNUITY PAYMENTS. If you elect an annuity payout option, you will recover any
investment in the contract as each payment is received by dividing the
investment in the contract by an expected return determined under an IRS table
prescribed for qualified annuities. The amount of each payment not excluded
from income under this exclusion ratio is fully taxable. The full amount of the
payments received after your investment in the contract is recovered is fully
taxable. If you (and your beneficiary under a joint and survivor annuity) die
before recovering the full investment in the contract, a deduction is allowed
on your (or your beneficiary's) final tax return.
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH. Death benefit distributions from a
TSA generally receive the same tax treatment as distributions during your
lifetime. In some instances, distributions from a TSA made to your surviving
spouse may be rolled over to a traditional IRA or other eligible retirement
plan.
LOANS FROM TSAS. You may take loans from a TSA unless restricted by the
employer (for example, under an employer plan subject to ERISA). If you cannot
take a loan, or cannot take a loan without approval from the employer who
provided the funds, we will have this information in our records based on what
you and the employer who provided the TSA funds told us when you purchased your
contract.
Loans are generally not treated as a taxable distribution. If the amount of the
loan exceeds permissible limits under federal income tax rules when made, the
amount of the excess is treated (solely for tax purposes) as a taxable
distribution. Additionally, if the loan is not repaid at least quarterly,
amortizing (paying down) interest and principal, the amount not repaid when due
will be treated as a taxable distribution. The entire unpaid balance of the
loan is includable in income in the year of the default.
72 Tax information
TSA loans are subject to federal income tax limits and may also be subject to
the limits of the plan from which the funds came. Federal income tax rule
requirements apply even if the plan is not subject to ERISA. For example, loans
offered by TSAs are subject to the following conditions:
o The amount of a loan to a participant, when combined with all other loans
to the participant from all qualified plans of the employer, cannot exceed
the lesser of:
(1) the greater of $10,000 or 50% of the participant's nonforfeitable accrued
benefits; and
(2) $50,000 reduced by the excess (if any) of the highest outstand ing loan
balance over the previous twelve months over the outstanding loan balance
of plan loans on the date the loan was made.
o In general, the term of the loan cannot exceed five years unless the loan
is used to acquire the participant's primary residence. Accumulator(R)
Select(SM) Rollover TSA contracts have a term limit of 10 years for loans
used to acquire the participant's primary residence.
o All principal and interest must be amortized in substantially level
payments over the term of the loan, with payments being made at least
quarterly. In very limited circumstances, the repayment obligation may be
temporarily suspended during a leave of absence.
The amount borrowed and not repaid may be treated as a distribution if:
o the loan does not qualify under the conditions above;
o the participant fails to repay the interest or principal when due; or
o in some instances, the participant separates from service with the employer
who provided the funds or the plan is terminated.
In this case, the participant may have to include the unpaid amount due as
ordinary income. In addition, the 10% early distribution penalty tax may apply.
The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as
a distribution.
See Appendix VII later in this Prospectus for any state rules that may affect
loans from a Rollover TSA contract.
TAX-DEFERRED ROLLOVERS AND DIRECT TRANSFERS. You may roll over any "eligible
rollover distribution" from a TSA into another eligible retirement plan which
agrees to accept the rollover. The rollover may be a direct rollover or one you
do yourself within 60 days after you receive the distribution. To the extent
rolled over, a distribution remains tax-deferred.
You may roll over a distribution from a TSA to any of the following: a
qualified plan, a governmental employer 457(b) plan (separate accounting
required) or a traditional IRA. A spousal beneficiary may also roll over death
benefits as above.
The taxable portion of most distributions will be eligible for rollover, except
as specifically excluded under federal income tax rules. Distributions that you
cannot roll over generally include periodic payments for life or for a period
of 10 years or more, hardship withdrawals and required minimum distributions
under federal income tax rules.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling
90-24 are not distributions.
REQUIRED MINIMUM DISTRIBUTIONS
Generally the same as traditional IRA with these differences:
WHEN YOU HAVE TO TAKE THE FIRST REQUIRED MINIMUM DISTRIBUTION.
The minimum distribution rules force TSA participants to start calculating and
taking annual distributions from their TSAs by a required date. Generally, you
must take the first required minimum distribution for the calendar year in
which you turn age 70-1/2. You may be able to delay the start of required
minimum distributions for all or part of your account balance until after age
70-1/2, as follows:
o For TSA participants who have not retired from service with the
employer who provided the funds for the TSA by the calendar year the
participant turns age 70-1/2, the required beginning date for minimum
distributions is extended to April 1 following the calendar year of
retirement.
o TSA plan participants may also delay the start of required minimum
distributions to age 75 of the portion of their account value
attributable to their December 31, 1986, TSA account balance, even if
retired at age 70-1/2. We will know whether or not you qualify for this
exception because it will only apply to people who establish their
Accumulator(R) Select(SM) Rollover TSA by direct Revenue Ruling 90-24
transfers. If you do not give us the amount of your December 31, 1986,
account balance that is being transferred to the Accumulator(R) Select(SM)
Rollover TSA on the form used to establish the TSA, you do not qualify.
SPOUSAL CONSENT RULES
This will only apply to you if you establish your Accumulator(R) Select(SM)
Rollover TSA by direct Revenue Ruling 90-24 transfer. Your employer will tell
us on the form used to establish the TSA whether or not you need to get spousal
consent for loans, withdrawals or other distributions. If you do, you will need
such consent if you are married when you request a withdrawal under the TSA
contract. In addition, unless you elect otherwise with the written consent of
your spouse, the retirement benefits payable under the plan must be paid in the
form of a qualified joint and survivor annuity. A qualified joint and survivor
annuity is payable for the life of the annuitant with a survivor annuity for
the life of the spouse in an amount not less than one-half of the amount
payable to the annuitant during his or her lifetime. In addition, if you are
married, the beneficiary must be your spouse, unless your spouse consents in
writing to the designation of another beneficiary.
If you are married and you die before annuity payments have begun, payments
will be made to your surviving spouse in the form of a life annuity unless at
the time of your death a contrary election was in effect. However, your
surviving spouse may elect, before payments
Tax information 73
begin, to receive payments in any form permitted under the terms of the TSA
contract and the plan of the employer who provided the funds for the TSA.
EARLY DISTRIBUTION PENALTY TAX
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a TSA before you reach age 59-1/2. This is in addition to any
income tax. There are exceptions to the extra penalty tax. Some of the
available exceptions to the pre-age 59-1/2 penalty tax include distributions
made:
o on or after your death; or
o because you are disabled (special federal income tax definition);
or
o to pay for certain extraordinary medical expenses (special federal
income tax definition); or
o in any form of payout after you have separated from service (only
if the separation occurs during or after the calendar year you reach age
55); or
o in a payout in the form of substantially equal periodic payments
made at least annually over your life (or your life expectancy), or over
the joint lives of you and your beneficiary (or your joint life
expectancies) using an IRS-approved distribution method (only after you
have separated from service at any age).
FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING
We must withhold federal income tax from distributions from annuity contracts.
You may be able to elect out of this income tax withholding in some cases.
Generally, we do not have to withhold if your distributions are not taxable.
The rate of withholding will depend on the type of distribution and, in certain
cases, the amount of your distribution. Any income tax withheld is a credit
against your income tax liability. If you do not have sufficient income tax
withheld or do not make sufficient estimated income tax payments, you may incur
penalties under the estimated income tax rules.
You must file your request not to withhold in writing before the payment or
distribution is made. Our processing office will provide forms for this
purpose. You cannot elect out of withholding unless you provide us with your
correct Taxpayer Identification Number and a United States residence address.
You cannot elect out of withholding if we are sending the payment out of the
United States.
You should note the following special situations:
o We might have to withhold and/or report on amounts we pay
under a free look or cancellation.
o We are generally required to withhold on conversion rollovers of
traditional IRAs to Roth IRAs, as it is considered a withdrawal from the
traditional IRA and is taxable.
o We are required to withhold on the gross amount of a distribu
tion from a Roth IRA to the extent it is reasonable for us to believe that
a distribution is includable in your gross income. This may result in tax
being withheld even though the Roth IRA distribution is ultimately not
taxable. You can elect out of withholding as described below.
Special withholding rules apply to foreign recipients and United States
citizens residing outside the United States. We do not discuss these rules here
in detail. However we may require additional documentation in the case of
payments made to non United States persons and United States persons living
abroad prior to processing any requested transaction.
Certain states have indicated that state income tax withholding will also apply
to payments from the contracts made to residents. In some states, you may elect
out of state withholding, even if federal withholding applies. Generally, an
election out of federal withholding will also be considered an election out of
state withholding. If you need more information concerning a particular state
or any required forms, call our processing office at the toll-free number.
FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS
We withhold differently on "periodic" and "non-periodic" payments. For a
periodic annuity payment, for example, unless you specify a different number of
withholding exemptions, we withhold assuming that you are married and claiming
three withholding exemptions. If you do not give us your correct Taxpayer
Identification Number, we withhold as if you are single with no exemptions.
Based on the assumption that you are married and claiming three withholding
exemptions, if you receive less than $17,760 in periodic annuity payments in
2005, your payments will generally be exempt from federal income tax
withholding. You could specify a different choice of withholding exemption or
request that tax be withheld. Your withholding election remains effective
unless and until you revoke it. You may revoke or change your withholding
election at anytime.
FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS)
For a non-periodic distribution (total surrender or partial withdrawal), we
generally withhold at a flat 10% rate. We apply that rate to the taxable amount
in the case of nonqualified contracts, and to the payment amount in the case of
traditional IRAs and Roth IRAs, where it is reasonable to assume an amount is
includable in gross income.
You cannot elect out of withholding if the payment is an eligible rollover
distribution from a qualified plan or TSA. If a non-periodic distribution from
a qualified plan or TSA is not an eligible rollover distribution then the 10%
withholding rate applies.
MANDATORY WITHHOLDING FROM TSA AND QUALIFIED PLAN DISTRIBUTIONS
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans and TSAs are subject to mandatory 20%
withholding. The plan administrator is responsible for withholding from
qualified plan distributions. An eligible rollover dis-
74 Tax information
tribution from a TSA or a qualified plan can be rolled over to another eligible
retirement plan. All distributions from a TSA or qualified plan are eligible
rollover distributions unless they are on the following list of exceptions:
o any distributions which are required minimum distributions after
age 70-1/2 or retirement from service with the employer; or
o substantially equal periodic payments made at least annually for
your life (or life expectancy) or the joint lives (or joint life
expectancies) of you and your designated beneficiary; or
o substantially equal periodic payments made for a specified period
of 10 years or more; or
o hardship withdrawals; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviving
spouse; or
o a qualified domestic relations order distribution to a beneficiary
who is not your current spouse or former spouse.
A death benefit payment to your surviving spouse, or a qualified domestic
relations order distribution to your current or former spouse, may be a
distribution subject to mandatory 20% withholding.
IMPACT OF TAXES TO AXA EQUITABLE
The contracts provide that we may charge Separate Account No. 49 for taxes. We
do not now, but may in the future set up reserves for such taxes.
Tax information 75
8. More information
- --------------------------------------------------------------------------------
ABOUT OUR SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 49. We
established Separate Account No. 49 in 1996 under special provisions of the New
York Insurance Law. These provisions prevent creditors from any other business
we conduct from reaching the assets we hold in our variable investment options
for owners of our variable annuity contracts. We are the legal owner of all of
the assets in Separate Account No. 49 and may withdraw any amounts that exceed
our reserves and other liabilities with respect to variable investment options
under our contracts. The results of Separate Account's operations are accounted
for without regard to AXA Equitable's other operations.
The Separate Account is registered under the Investment Company Act of 1940 and
is classified by that act as a "unit investment trust." The SEC, however, does
not manage or supervise AXA Equitable or the Separate Account.
Each subaccount (variable investment option) within Separate Account No. 49
invests solely in class B/B shares issued by the corresponding portfolio of its
Trust.
We reserve the right subject to compliance with laws that apply:
(1) to add variable investment options to, or to remove variable investment
options from the Separate Account or to add other separate accounts;
(2) to combine any two or more variable investment options;
(3) to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment option
to another variable investment option;
(4) to operate the Separate Account or any variable investment option as a
management investment company under the Investment Company Act of 1940 (in
which case, charges and expenses that otherwise would be assessed against
an underlying mutual fund would be assessed against the Separate Account or
a variable investment option directly);
(5) to deregister the Separate Account under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to the Separate Account; and
(7) to cause one or more variable investment options to invest some or all of
their assets in one or more other trusts or investment companies.
ABOUT THE TRUSTS
The Trusts are registered under the Investment Company Act of 1940. They are
classified as "open-end management investment companies," more commonly called
mutual funds. Each Trust issues different shares relating to each portfolio.
The Trusts do not impose sales charges or "loads" for buying and selling its
shares. All dividends and other distributions on Trust shares are reinvested in
full. The Board of Trustees of the Trusts may establish additional portfolios
or eliminate existing portfolios at any time. More detailed information about
each Trust, its portfolio investment objectives, policies, restrictions, risks,
expenses, its Rule 12b-1 Plan and other aspects of its operations, appears in
the prospectuses for each Trust which generally accompany this Prospectus, or
in their respective SAIs which are available upon request.
ABOUT OUR FIXED MATURITY OPTIONS
RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE
We can determine the amount required to be allocated to one or more fixed
maturity options in order to produce specified maturity values. For example, we
can tell you how much you need to allocate per $100 of maturity value.
FMO rates are determined daily. The rates in the table below are illustrative
only and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
For example the rates to maturity for new allocations as of February 15, 2005
and the related price per $100 of maturity value were as shown below:
- -------------------------------------------------------------------------
Fixed maturity options
with February 15th Rate to maturity
maturity date of as of Price per $100 of
maturity year February 15, 2005 maturity value
- -------------------------------------------------------------------------
2006 3.00%* $ 97.09
2007 3.00%* $ 94.26
2008 3.00%* $ 91.51
2009 3.00%* $ 88.84
2010 3.00%* $ 86.25
2011 3.00%* $ 83.74
2012 3.00%* $ 81.30
2013 3.08% $ 78.44
2014 3.22% $ 75.17
2015 3.32% $ 72.12
- -------------------------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated to
these options.
HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT
We use the following procedure to calculate the market value adjustment (up or
down) we make if you withdraw all of your value from a fixed maturity option
before its maturity date.
(1) We determine the market adjusted amount on the date of the withdrawal as
follows:
(a) We determine the fixed maturity amount that would be payable on the
maturity date, using the rate to maturity for the fixed maturity
option.
76 More information
(b) We determine the period remaining in your fixed maturity option (based
on the withdrawal date) and convert it to fractional years based on a
365-day year. For example, three years and 12 days becomes 3.0329.
(c) We determine the current rate to maturity for your FMO based on the
rate for a new FMO issued on the same date and having the same
maturity date as your FMO; if the same maturity date is not available
for new FMOs, we determine a rate that is between the rates for new
FMO maturities that immediately precede and immediately follow your
FMOs maturity date.
(d) We determine the present value of the fixed maturity amount payable at
the maturity date, using the period determined in (b) and the rate
determined in (c).
(2) We determine the fixed maturity amount as of the current date.
(3) We subtract (2) from the result in (1)(d). The result is the market value
adjustment applicable to such fixed maturity option, which may be positive
or negative.
If you withdraw only a portion of the amount in a fixed maturity option, the
market value adjustment will be a percentage of the market value adjustment
that would have applied if you had withdrawn the entire value in that fixed
maturity option. This percentage is equal to the percentage of the value in the
fixed maturity option that you are withdrawing. See Appendix II at the end of
this Prospectus for an example.
For purposes of calculating the rate to maturity for new allocations to a fixed
maturity option (see (1)(c) above), we use the rate we have in effect for new
allocations to that fixed maturity option. We use this rate even if new
allocations to that option would not be accepted at that time. This rate will
not be less than 3%. If we do not have a rate to maturity in effect for a fixed
maturity option to which the "current rate to maturity" in (1)(c) above would
apply, we will use the rate at the next closest maturity date. If we are no
longer offering new fixed maturity option, the "current rate to maturity" will
be determined by using a widely-published Index. We reserve the right to add up
to 0.25% to the current rate in (1)(c) above for purposes of calculating the
market value adjustment only.
INVESTMENTS UNDER THE FIXED MATURITY OPTIONS
Amounts allocated to the fixed maturity options are held in a "nonunitized"
separate account we have established under the New York Insurance Law. This
separate account provides an additional measure of assurance that we will make
full payment of amounts due under the fixed maturity options. Under New York
Insurance Law, the portion of the separate account's assets equal to the
reserves and other contract liabilities relating to the contracts are not
chargeable with liabilities from any other business we may conduct. We own the
assets of the separate account, as well as any favorable investment performance
on those assets. You do not participate in the performance of the assets held
in this separate account. We may, subject to state law that applies, transfer
all assets allocated to the separate account to our general account. We
guarantee all benefits relating to your value in the fixed maturity options,
regardless of whether assets supporting fixed maturity options are held in a
separate account or our general account.
We expect the rates to maturity for the fixed maturity options to be influenced
by, but not necessarily correspond to, among other things, the yields that we
can expect to realize on the separate account's investments from time to time.
Our current plans are to invest in fixed-income obligations, including
corporate bonds, mortgage-backed and asset-backed securities, and government
and agency issues having durations in the aggregate consistent with those of
the fixed maturity options.
Although the above generally describes our plans for investing the assets
supporting our obligations under the fixed maturity options under the
contracts, we are not obligated to invest those assets according to any
particular plan except as we may be required to by state insurance laws. We
will not determine the rates to maturity we establish by the performance of the
nonunitized separate account.
ABOUT THE GENERAL ACCOUNT
Our general account supports all of our policy and contract guarantees,
including those that apply to the guaranteed interest option and fixed maturity
options, as well as our general obligations.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations
of all jurisdictions where we are authorized to do business. Because of
exemptions and exclusionary provisions that apply, interests in the general
account have not been registered under the Securities Act of 1933, nor is the
general account an investment company under the Investment Company Act of 1940.
However, the market value adjustment interests under the contracts are
registered under the Securities Act of 1933.
We have been advised that the staff of the SEC has not reviewed the portions of
this Prospectus that relate to the general account (other than market value
adjustment interests). The disclosure with regard to the general account,
however, may be subject to certain provisions of the federal securities laws
relating to the accuracy and completeness of statements made in prospectuses.
ABOUT OTHER METHODS OF PAYMENT
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept initial and subsequent contributions sent by wire to our processing
office by agreement with certain broker-dealers. Such transmittals must be
accompanied by information we require to allocate your contribution. Wire
orders not accompanied by complete information may be retained as described
under "How you can make your contributions" under "Contract features and
benefits" earlier in this Prospectus.
Even if we accept the wire order and essential information, a contract
generally will not be issued until we receive and accept a properly completed
application. In certain cases we may issue a contract based on information
provided through certain broker-dealers with which we
More information 77
have established electronic facilities. In any such cases, you must sign our
Acknowledgement of Receipt form.
Where we require a signed application, the above procedures do not apply and no
financial transactions will be permitted until we receive the signed
application and have issued the contract. Where we issue a contract based on
information provided through electronic facilities, we require an
Acknowledgement of Receipt form, and financial transactions are only permitted
if you request them in writing, sign the request and have it signature
guaranteed, until we receive the signed Acknowledgement of Receipt form. After
your contract has been issued, additional contributions may be transmitted by
wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
After your contract has been issued, additional contributions may be
transmitted by wire.
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY
You may use our automatic investment program, or "AIP," to have a specified
amount automatically deducted from a checking account, money market account, or
credit union checking account and contributed as an additional contribution
into an NQ contract on a monthly or quarterly basis. AIP is not available for
Rollover IRA, Roth Conversion IRA or Rollover TSA contracts, nor is it
available with GPB Option 2. Please see Appendix VII later in this Prospectus
to see if the automatic investment program is available in your state.
The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP
additional contributions may be allocated to any of the variable investment
options and available fixed maturity options. You choose the day of the month
you wish to have your account debited. However, you may not choose a date later
than the 28th day of the month.
You may cancel AIP at any time by notifying our processing office. We are not
responsible for any debits made to your account before the time written notice
of cancellation is received at our processing office.
DATES AND PRICES AT WHICH CONTRACT
EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this Prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our business day, generally, is any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions. Our business day generally ends at 4:00 p.m. Eastern Time for
purposes of determining the date when contributions are applied and any other
transaction requests are processed. Contributions will be applied and any other
transaction requests will be processed when they are received along with all
the required information unless another date applies as indicated below.
o If your contribution, transfer or any other transaction request, containing
all the required information, reaches us on a non-business day or after 4:00
p.m. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then the
transaction will occur on the 1st day of the next month.
o When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
o If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your contribution
will be considered received at the time your broker-dealer receives your
contribution and all information needed to process your application, along
with any required documents, and transmits your order to us in accordance
with our processing procedures. Such arrangements may apply to initial
contributions, subsequent contributions, or both, and may be commenced or
terminated at any time without prior notice. If required by law, the "closing
time" for such orders will be earlier than 4 p.m., Eastern Time.
CONTRIBUTIONS AND TRANSFERS
o Contributions allocated to the variable investment options are invested at
the value next determined after the close of the business day.
o Contributions allocated to the guaranteed interest option will receive the
crediting rate in effect on that business day for the specified time period.
o Contributions allocated to a fixed maturity option will receive the rate to
maturity in effect for that fixed maturity option on that business day
(unless a rate lock-in is applicable).
o Transfers to or from variable investment options will be made at the value
next determined after the close of the business day.
o Transfers to a fixed maturity option will be based on the rate to maturity in
effect for that fixed maturity option on the business day of the transfer.
o Transfers to the guaranteed interest option will receive the crediting rate
in effect on that business day for the specified time period.
78 More information
o For the interest sweep option, the first monthly transfer will occur on the
last business day of the month following the month that we receive your
election form at our processing office.
ABOUT YOUR VOTING RIGHTS
As the owner of the shares of the Trusts we have the right to vote on certain
matters involving the portfolios, such as:
o the election of trustees; or
o the formal approval of independent public accounting firms selected for each
Trust; or
o any other matters described in each prospectus for the Trusts or requiring a
shareholders' vote under the Investment Company Act of 1940.
We will give contract owners the opportunity to instruct us how to vote the
number of shares attributable to their contracts if a shareholder vote is
taken. If we do not receive instructions in time from all contract owners, we
will vote the shares of a portfolio for which no instructions have been
received in the same proportion as we vote shares of that portfolio for which
we have received instructions. We will also vote any shares that we are
entitled to vote directly because of amounts we have in a portfolio in the same
proportions that contract owners vote.
The Trusts sell their shares to AXA Equitable separate accounts in connection
with AXA Equitable's variable annuity and/or life insurance products, and to
separate accounts of insurance companies, both affiliated and unaffiliated with
AXA Equitable. EQ Advisors Trust and AXA Premier VIP Trust also sell their
shares to the trustee of a qualified plan for AXA Equitable. We currently do
not foresee any disadvantages to our policyowners arising out of these
arrangements. However, the Board of Trustees or Directors of each Trust intends
to monitor events to identify any material irreconcilable conflicts that may
arise and to determine what action, if any, should be taken in response. If we
believe that a Board's response insufficiently protects our policyowners, we
will see to it that appropriate action is taken to do so.
SEPARATE ACCOUNT NO. 49 VOTING RIGHTS
If actions relating to the Separate Account require contract owner approval,
contract owners will be entitled to one vote for each unit they have in the
variable investment options. Each contract owner who has elected a variable
annuity payout option may cast the number of votes equal to the dollar amount
of reserves we are holding for that annuity in a variable investment option
divided by the annuity unit value for that option. We will cast votes
attributable to any amounts we have in the variable investment options in the
same proportion as votes cast by contract owners.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this Prospectus are created under applicable
federal securities laws. To the extent that those laws or the regulations
published under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
ABOUT LEGAL PROCEEDINGS
AXA Equitable and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings would be considered material with respect
to a contract owner's interest in Separate Account No. 49, nor would any of
these proceedings be likely to have a material adverse effect upon the Separate
Account, our ability to meet our obligations under the contracts, or the
distributions of the contracts.
ABOUT OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The consolidated financial statements of AXA Equitable at December 31, 2004 and
2003, and for the three years ended December 31, 2004 incorporated in this
Prospectus by reference to the 2004 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent registered
public accounting firm, given on the authority of said firm as experts in
auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 49, as well as the
consolidated financial statements of AXA Equitable, are in the SAI. The SAI is
available free of charge. You may request one by writing to our processing
office or calling 1-800-789-7771.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING
You can transfer ownership of an NQ contract at any time before annuity
payments begin. We will continue to treat you as the owner until we receive
written notification of any change at our processing office. You cannot assign
your NQ contract as collateral or security for a loan. Loans are also not
available under your NQ contract. In some cases, an assignment or change of
ownership may have adverse tax consequences. See "Tax information" earlier in
this Prospectus.
For NQ contracts only, subject to regulatory approval, if you elected the
Guaranteed minimum death benefit, Guaranteed minimum income benefit, Protection
Plus(SM) death benefit, Guaranteed principal benefit option 2, and/or the
Principal Protector(SM) ("Benefit"), generally the Benefit will automatically
terminate if you change ownership of the contract or if you assign the owner's
right to change the beneficiary or person to whom annuity payments will be
made. However, the Benefit will not terminate if the ownership of the contract
is transferred to: (i) a family member (as defined in the contract); (ii) a
trust created for the benefit of a family member or members; (iii) a trust
qualified under section 501(c) of the Internal Revenue Code; or (iv) a
successor by operation of law, such as an executor or guardian. Please speak
with your financial professional for further information. See Appendix VII
later in this Prospectus for any state variations with regard to terminating
any benefits under your contract.
You cannot assign or transfer ownership of Rollover IRA, Roth Conversion IRA or
Rollover TSA contract except by surrender to us. If your individual retirement
annuity contract is held in your custodial individual retirement account, you
may only assign or transfer ownership
More information 79
of such an IRA contract to yourself. Loans are not available and you cannot
assign Rollover IRA, Roth Conversion IRA or Rollover TSA contracts as security
for a loan or other obligation. If the employer that provided the funds does
not restrict them, loans are available under a Rollover TSA contract.
For limited transfers of ownership after the owner's death see "Beneficiary
continuation option" in "Payment of death benefit" earlier in this Prospectus.
You may direct the transfer of the values under your Rollover IRA, Roth
Conversion IRA or Rollover TSA contract to another similar arrangement under
federal income tax rules. In the case of such a transfer which involves a
surrender of your contract, we will impose a withdrawal charge, if one applies.
DISTRIBUTION OF THE CONTRACTS
The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and
AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The
Distributors serve as principal underwriters of Separate Account No. 49. The
offering of the contracts is intended to be continuous.
AXA Advisors (the successor to EQ Financial Consultants, Inc.), an affiliate of
AXA Equitable, and AXA Distributors, an indirect wholly owned subsidiary of AXA
Equitable, are registered with the SEC as broker-dealers and are members of the
National Association of Securities Dealers, Inc. ("NASD"). Their principal
business address is 1290 Avenue of the Americas, New York, NY 10104. Both
broker-dealers also act as distributors for other AXA Equitable annuity
products. AXA Distributors is a successor by merger to all of the functions,
rights and obligations of Equitable Distributors, Inc. ("EDI"). Like AXA
Distributors, EDI was owned by Equitable Holdings, LLC.
The contracts are sold by financial professionals of AXA Advisors and its
affiliates and by financial professionals of both affiliated and unaffiliated
broker-dealers that have entered into selling agreements with the Distributors
("Selling broker-dealers"). Affiliated broker-dealers include MONY Securities
Corporation ("MSC")* and Advest, Inc. The Distributors, MSC and Advest are all
under the common control of AXA Financial, Inc.
AXA Equitable pays sales compensation to both Distributors. In general,
broker-dealers receiving sales compensation will pay all or a portion of it to
its individual financial representatives (or to its Selling broker-dealers) as
commissions related to the sale of contracts.
Sales compensation paid to AXA Advisors will generally not exceed 8.5% of the
total contributions made under the contracts. AXA Advisors, in turn, may pay
its financial professionals (or Selling broker-dealers) either a portion of the
contribution-based compensation or a reduced portion of the contribution-based
compensation in combination with ongoing annual compensation ("asset-based
compensation") up to 1.00% of the account value of the contract sold, based on
the financial professional's choice. Contribution-based compensation, when
combined with asset-based compensation, could exceed 8.5% of the total
contributions made under the contracts.
Sales compensation paid to AXA Distributors will generally not exceed 2.00% of
the total contributions made under the contracts. AXA Distributors passes all
sales compensation it receives through to the Selling broker-dealer. The
Selling broker-dealer may elect to receive reduced contribution-based
compensation in combination with asset-based compensation of up to 1.25% of the
account value of all or a portion of the contracts sold through the
broker-dealer. Contribution-based compensation, when combined with asset-based
compensation, could exceed 2.00% of the total contributions made under the
contracts. The sales compensation we pay varies among broker-dealers. AXA
Distributors may also receive compensation and reimbursement for its marketing
services under the terms of its distribution agreement with AXA Equitable.
The Distributors may also pay certain affiliated and/or unaffiliated
broker-dealers and other financial intermediaries additional compensation for
certain services and/or in recognition of certain expenses that may be incurred
by them or on their behalf (commonly referred to as "marketing allowances").
Services for which such payments are made may include, but are not limited to,
the preferred placement of AXA Equitable and/or Accumulator(R) Select(SM) on a
company and/or product list; sales personnel training; due diligence and
related costs; marketing and related services; conferences; and/or other
support services, including some that may benefit the contract owner. Payments
may be based on the amount of assets or purchase payments attributable to
contracts sold through a broker-dealer. We may also make fixed payments to
broker-dealers in connection with the initiation of a new relationship or the
introduction of a new product. These payments may serve as an incentive for
Selling broker-dealers to promote the sale of our products. Additionally, as an
incentive for financial professionals of Selling broker-dealers to promote the
sale of our products, we may increase the sales compensation paid to the
Selling broker-dealer for a period of time (commonly referred to as
"compensation enhancements"). These types of payments are made out of the
Distributors' assets. Not all Selling broker-dealers receive additional
compensation. For more information about any such arrangements, ask your
financial professional.
The Distributors will receive 12b-1 fees from certain portfolios for providing
certain distribution and/or shareholder support services. In connection with
portfolios offered through unaffiliated insurance trusts, the Distributors may
also receive other payments from the portfolio advisers and/or their affiliates
for administrative costs, as well as payments for sales meetings and/or seminar
sponsorships.
In an effort to promote the sale of our products, AXA Advisors may provide its
financial professionals and managerial personnel with a higher percentage of
sales commissions and/or compensation for the sale of an affiliated variable
product than it would the sale of an unaffiliated product. Such practice is
known as providing "differential compensation." Other forms of compensation
financial professionals may receive include health and retirement benefits. In
addition, managerial personnel may receive expense reimbursements, marketing
allowances and commission-based payments known as "overrides."
- ----------------------
* On or about June 6, 2005, MSC financial professionals are expected to become
financial professionals of AXA Advisors. From that date forward, former MSC
financial professionals will be compensated by AXA Advisors, and the
Distributors will replace MSC as the principal underwriters of its affiliated
products.
80 More information
For tax reasons, AXA Advisors financial professionals qualify for health and
retirement benefits based solely on their sales of our affiliated products.
These payments and differential compensation (together, the "payments") can
vary in amount based on the applicable product and/or entity or individual
involved. As with any incentive, such payments may cause the financial
professional to show preference in recommending the purchase or sale of our
products. However, under applicable rules of the NASD, AXA Advisors may only
recommend to you products that they reasonably believe are suitable for you
based on facts that you have disclosed as to your other security holdings,
financial situation and needs. In making any recommendation, financial
professionals may nonetheless face conflicts of interest because of the
differences in compensation from one product category to another, and because
of differences in compensation between products in the same category.
In addition, AXA Advisors financial professionals who meet specified production
levels for the sale of both affiliated and unaffiliated products may qualify,
under sales incentive programs, to receive non-cash compensation such as stock
options awards and/or stock appreciation rights, expense-paid trips,
expense-paid educational seminars and merchandise.
Although AXA Equitable takes all of its costs into account in establishing the
level of fees and expenses in our products, any compensation paid will not
result in any separate charge to you under your contract. All payments made
will be in compliance with all applicable NASD rules and other laws and
regulations.
More information 81
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
AXA Equitable's annual report on Form 10-K for the year ended December 31,
2004, is considered to be a part of this Prospectus because they are
incorporated by reference.
After the date of this Prospectus and before we terminate the offering of the
securities under this Prospectus, all documents or reports we file with the SEC
under the Securities Exchange Act of 1934 ("Exchange Act"), will be considered
to become part of this Prospectus because they are incorporated by reference.
Any statement contained in a document that is or becomes part of this
Prospectus, will be considered changed or replaced for purposes of this
Prospectus if a statement contained in this Prospectus changes or is replaced.
Any statement that is considered to be a part of this Prospectus because of its
incorporation will be considered changed or replaced for the purpose of this
Prospectus if a statement contained in any other subsequently filed document
that is considered to be part of this Prospectus changes or replaces that
statement. After that, only the statement that is changed or replaced will be
considered to be part of this Prospectus.
We file our Exchange Act documents and reports, including our Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR
under CIK No. 0000727920. The SEC maintains a website that contains reports,
proxy and information statements, and other information regarding registrants
that file electronically with the SEC. The address of the website is
www.sec.gov.
Upon written or oral request, we will provide, free of charge, to each person
to whom this Prospectus is delivered, a copy of any or all of the documents
considered to be part of this Prospectus because they are incorporated herein.
This does not include exhibits not specifically incorporated by reference into
the text of such documents. Requests for documents should be directed to AXA
Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New
York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234).
82 Incorporation of certain documents by reference
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account 49 with the same daily asset charges of 1.70%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004
- --------------------------------------------------------------------------------
For the years ending December 31,
- --------------------------------------------------------------------------------
2004 2003 2002
- --------------------------------------------------------------------------------
AXA Aggressive Allocation
- --------------------------------------------------------------------------------
Unit value $ 11.72 $ 10.66 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 656 32 --
- --------------------------------------------------------------------------------
AXA Conservative Allocation
- --------------------------------------------------------------------------------
Unit value $ 10.74 $ 10.30 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 281 1 --
- --------------------------------------------------------------------------------
AXA Conservative-Plus Allocation
- --------------------------------------------------------------------------------
Unit value $ 11.02 $ 10.41 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 414 84 --
- --------------------------------------------------------------------------------
AXA Moderate Allocation
- --------------------------------------------------------------------------------
Unit value $ 41.36 $ 38.70 $ 33.05
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 893 383 86
- --------------------------------------------------------------------------------
AXA Moderate-Plus Allocation
- --------------------------------------------------------------------------------
Unit value $ 11.71 $ 10.66 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,788 46 --
- --------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- --------------------------------------------------------------------------------
Unit value $ 50.38 $ 45.72 $ 33.82
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 28 10 4
- --------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- --------------------------------------------------------------------------------
Unit value $ 11.07 $ 10.84 $ 10.63
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,424 1,202 628
- --------------------------------------------------------------------------------
AXA Premier VIP Health Care
- --------------------------------------------------------------------------------
Unit value $ 10.93 $ 9.91 $ 7.87
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 284 143 57
- --------------------------------------------------------------------------------
AXA Premier VIP High Yield
- --------------------------------------------------------------------------------
Unit value $ 27.64 $ 25.87 $ 21.48
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 771 557 125
- --------------------------------------------------------------------------------
AXA Premier VIP International Equity
- --------------------------------------------------------------------------------
Unit value $ 11.90 $ 10.27 $ 7.78
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 806 360 135
- --------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- --------------------------------------------------------------------------------
Unit value $ 10.34 $ 9.59 $ 7.61
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 272 238 104
- --------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 9.10 $ 8.68 $ 6.76
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 876 792 408
- --------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- --------------------------------------------------------------------------------
Unit value $ 11.42 $ 10.15 $ 7.88
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,242 726 316
- --------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 9.35 $ 8.52 $ 6.18
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,055 731 292
- --------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- ------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------
2004 2003 2002
- ------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ------------------------------------------------------------------------------------
Unit value $ 11.49 $ 10.15 $ 7.34
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,011 560 206
- ------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ------------------------------------------------------------------------------------
Unit value $ 9.02 $ 8.74 $ 5.64
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 306 98 14
- ------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ------------------------------------------------------------------------------------
Unit value $ 214.55 $ 191.26 $ 130.09
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 64 29 9
- ------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ------------------------------------------------------------------------------------
Unit value $ 27.18 $ 24.60 $ 19.19
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 549 371 133
- ------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- ------------------------------------------------------------------------------------
Unit value $ 17.76 $ 17.72 $ 17.65
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 416 458 259
- ------------------------------------------------------------------------------------
EQ/Alliance International
- ------------------------------------------------------------------------------------
Unit value $ 12.84 $ 11.05 $ 8.32
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 649 530 142
- ------------------------------------------------------------------------------------
EQ/Alliance Large Cap Growth
- ------------------------------------------------------------------------------------
Unit value $ 6.16 $ 5.78 $ 4.77
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 981 856 341
- ------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- ------------------------------------------------------------------------------------
Unit value $ 15.27 $ 14.97 $ 14.71
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 555 512 198
- ------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ------------------------------------------------------------------------------------
Unit value $ 14.95 $ 13.34 $ 9.63
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 312 478 121
- ------------------------------------------------------------------------------------
EQ/Bear Stearns Small Company Growth
- ------------------------------------------------------------------------------------
Unit value $ 7.46 -- --
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 59 -- --
- ------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ------------------------------------------------------------------------------------
Unit value $ 14.06 $ 12.60 $ 9.96
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,169 1,481 530
- ------------------------------------------------------------------------------------
EQ/Boston Advisors Equity Income
- ------------------------------------------------------------------------------------
Unit value $ 5.54 -- --
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 15 -- --
- ------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ------------------------------------------------------------------------------------
Unit value $ 7.96 $ 7.82 $ 6.22
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 204 249 42
- ------------------------------------------------------------------------------------
EQ/Capital Guardian Growth
- ------------------------------------------------------------------------------------
Unit value $ 11.62 $ 11.20 $ 9.19
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 160 164 40
- ------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ------------------------------------------------------------------------------------
Unit value $ 10.47 $ 9.38 $ 7.19
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,926 1,026 282
- ------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ------------------------------------------------------------------------------------
Unit value $ 11.08 $ 10.16 $ 7.86
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,200 776 200
- ------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ------------------------------------------------------------------------------------
Unit value $ 10.87 $ 10.12 $ 7.55
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,037 1,222 345
- ------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- --------------------------------------------------------------------------------
For the years ending December 31,
- --------------------------------------------------------------------------------
2004 2003 2002
- --------------------------------------------------------------------------------
EQ/Equity 500 Index
- --------------------------------------------------------------------------------
Unit value $ 24.66 $ 22.76 $ 18.11
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,386 1,074 399
- --------------------------------------------------------------------------------
EQ/Evergreen Omega
- --------------------------------------------------------------------------------
Unit value $ 8.15 $ 7.75 $ 5.70
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 377 218 32
- --------------------------------------------------------------------------------
EQ/FI Mid Cap
- --------------------------------------------------------------------------------
Unit value $ 10.97 $ 9.62 $ 6.81
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,391 883 285
- --------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- --------------------------------------------------------------------------------
Unit value $ 14.02 $ 12.10 $ 9.24
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,007 636 237
- --------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- --------------------------------------------------------------------------------
Unit value $ 13.50 $ 13.20 $ 12.99
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,343 1,175 441
- --------------------------------------------------------------------------------
EQ/JP Morgan Value Opportunities
- --------------------------------------------------------------------------------
Unit value $ 12.84 $ 11.78 $ 9.45
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 370 307 128
- --------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 5.93 $ 5.38 $ 4.35
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 700 561 192
- --------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- --------------------------------------------------------------------------------
Unit value $ 16.22 $ 14.09 $ 10.43
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 884 641 270
- --------------------------------------------------------------------------------
EQ/Marsico Focus
- --------------------------------------------------------------------------------
Unit value $ 13.79 $ 12.69 $ 9.85
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,938 1,510 386
- --------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- --------------------------------------------------------------------------------
Unit value $ 19.43 $ 17.87 $ 13.86
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 802 502 184
- --------------------------------------------------------------------------------
EQ/Mercury International Value
- --------------------------------------------------------------------------------
Unit value $ 16.44 $ 13.75 $ 10.92
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 522 441 161
- --------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- --------------------------------------------------------------------------------
Unit value $ 12.84 $ 11.60 $ 9.12
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 149 93 38
- --------------------------------------------------------------------------------
EQ/MFS Investors Trust
- --------------------------------------------------------------------------------
Unit value $ 8.79 $ 8.03 $ 6.69
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 610 598 229
- --------------------------------------------------------------------------------
EQ/Money Market
- --------------------------------------------------------------------------------
Unit value $ 25.92 $ 26.17 $ 26.47
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 349 434 630
- --------------------------------------------------------------------------------
EQ/Montag & Caldwell Growth
- --------------------------------------------------------------------------------
Unit value $ 4.34 -- --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 22 -- --
- --------------------------------------------------------------------------------
EQ/Small Company Index
- --------------------------------------------------------------------------------
Unit value $ 14.00 $ 12.10 $ 8.44
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 575 449 122
- --------------------------------------------------------------------------------
EQ/Small Company Value
- --------------------------------------------------------------------------------
Unit value $ 21.50 -- --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 9 -- --
- --------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004 (CONTINUED)
- --------------------------------------------------------------------------------
For the years ending December 31,
- --------------------------------------------------------------------------------
2004 2003 2002
- --------------------------------------------------------------------------------
EQ/TCW Equity
- --------------------------------------------------------------------------------
Unit value $ 16.03 -- --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 6 -- --
- --------------------------------------------------------------------------------
EQ/UBS Growth and Income
- --------------------------------------------------------------------------------
Unit value $ 5.05 -- --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------
EQ/Van Kampen Emerging Markets Equity
- --------------------------------------------------------------------------------
Unit value $ 10.37 $ 8.53 $ 5.56
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 609 457 69
- --------------------------------------------------------------------------------
EQ/Wells Fargo Montgomery Small Cap
- --------------------------------------------------------------------------------
Unit value $ 11.36 -- --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1 -- --
- --------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity
- --------------------------------------------------------------------------------
Unit value $ 10.35 $ 10.16 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 143 1 --
- --------------------------------------------------------------------------------
U.S. Real Estate -- Class II
- --------------------------------------------------------------------------------
Unit value $ 14.70 $ 10.99 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 334 1 --
- --------------------------------------------------------------------------------
A-4 Appendix I: Condensed financial information
Appendix II: Market value adjustment example
- --------------------------------------------------------------------------------
The example below shows how the market value adjustment would be determined and
how it would be applied to a withdrawal, assuming that $100,000 was allocated
on February 15, 2005 to a fixed maturity option with a maturity date of
February 15, 2014 (nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value of $183,914 on the maturity date. We
further assume that a withdrawal of $50,000 is made four years later on
February 15, 2009.
- -------------------------------------------------------------------------------------------------------------------------
Hypothetical assumed rate to maturity on February 15, 2009
---------------------------------------------------------------
5.00% 9.00%
- -------------------------------------------------------------------------------------------------------------------------
As of February 15, 2009 (before withdrawal)
- -------------------------------------------------------------------------------------------------------------------------
(1) Market adjusted amount $144,082 $ 119,503
- -------------------------------------------------------------------------------------------------------------------------
(2) Fixed maturity amount $131,104 $ 131,104
- -------------------------------------------------------------------------------------------------------------------------
(3) Market value adjustment:
(1) - (2) $ 12,978 $ (11,601)
- -------------------------------------------------------------------------------------------------------------------------
On February 15, 2009 (after withdrawal)
- -------------------------------------------------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with withdrawal:
(3) x [$50,000/(1)] $ 4,504 $ (4,854)
- -------------------------------------------------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount: [$50,000 - (4)] $ 45,496 $ 54,854
- -------------------------------------------------------------------------------------------------------------------------
(6) Fixed maturity amount: (2) - (5) $ 85,608 $ 76,250
- -------------------------------------------------------------------------------------------------------------------------
(7) Maturity value $120,091 $ 106,965
- -------------------------------------------------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,082 $ 69,503
- -------------------------------------------------------------------------------------------------------------------------
You should note that under this example if a withdrawal is made when rates have
increased from 7.00% to 9.00% (right column), a portion of a negative market
value adjustment is realized. On the other hand, if a withdrawal is made when
rates have decreased from 7.00% to 5.00% (left column), a portion of a positive
market value adjustment is realized. The market value is computed differently
if you withdraw amounts on a date other than the anniversary of the
establishment of the fixed maturity option.
Appendix II: Market value adjustment example B-1
Appendix III: Enhanced death benefit example
- --------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the enhanced death benefit if elected.
The following illustrates the enhanced death benefit calculation. Assuming
$100,000 is allocated to the variable investment options (with no allocation to
the EQ/Alliance Intermediate Government Securities, EQ/Money Market, EQ/PIMCO
Real Return, EQ/Short Duration Bond, the guaranteed interest option, the fixed
maturity options or the Special 10 year fixed maturity option), no additional
contributions, no transfers, no withdrawals and no loans under a Rollover TSA
contract, the enhanced death benefit for an annuitant age 45 would be
calculated as follows:
- -------------------------------------------------------------------------------------
End of
contract 6% Roll up to age 85 Annual Ratchet to age 85
year Account value enhanced death benefit enhanced death benefit
- -------------------------------------------------------------------------------------
1 105,000 106,000 105,000
- -------------------------------------------------------------------------------------
2 115,500 112,360 115,500
- -------------------------------------------------------------------------------------
3 129,360 119,102 129,360
- -------------------------------------------------------------------------------------
4 103,488 126,248 129,360
- -------------------------------------------------------------------------------------
5 113,837 133,823 129,360
- -------------------------------------------------------------------------------------
6 127,497 141,852 129,360
- -------------------------------------------------------------------------------------
7 127,497 150,363 129,360
- -------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%.
We are using these rates solely to illustrate how the benefit is determined.
The return rates bear no relationship to past or future investment results.
ANNUAL RATCHET TO AGE 85
(1) At the end of contract years 1 through 3, the enhanced death benefit is the
current account value.
(2) At the end of contract years 4 through 7, the enhanced death benefit is the
enhanced death benefit at the end of the prior year since it is equal to or
higher than the current account value.
GREATER OF 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85
The enhanced death benefit under this option for each year shown would be the
greater of the amounts shown under the 6% Roll up to age 85 or the Annual
Ratchet to age 85.*
* At the end of contract years 4 through 7, the death benefit will be the
enhanced death benefit. At the end of contract years 1, 2 and 3, the death
benefit will be the current account value.
C-1 Appendix III: Enhanced death benefit example
Appendix IV: Hypothetical illustrations
- --------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM
BENEFITS
The following tables illustrate the changes in account value, cash value and
the values of the "greater of 6% Roll up to Age 85 or the Annual Ratchet to age
85" guaranteed minimum death benefit, the Protection Plus(SM) benefit and the
Guaranteed minimum income benefit under certain hypothetical circumstances for
an Accumulator(R) Select(SM) contract. The table illustrates the operation of a
contract based on a male, issue age 60, who makes a single $100,000
contribution and takes no withdrawals. The amounts shown are for the beginning
of each contract year and assume that all of the account value is invested in
portfolios that achieve investment returns at constant gross annual rates of 0%
and 6% (i.e., before any investment management fees, 12b-1 fees or other
expenses are deducted from the underlying portfolio assets). After the
deduction of the arithmetic average of the investment management fees, 12b-1
fees and other expenses of all of the underlying Portfolios (as described
below), the corresponding net annual rates of return would be (3.03)%, 2.97%
for the Accumulator(R) Select(SM) contract, at the 0% and 6% gross annual rates,
respectively. These net annual rates of return reflect the trust and separate
account level charges but they do not reflect the charges we deduct from your
account value annually for the optional Guaranteed minimum death benefit,
Protection Plus(SM) benefit and the Guaranteed minimum income benefit features,
as well as the annual administrative charge. If the net annual rates of return
did reflect these charges, the net annual rates of return would be lower;
however, the values shown in the following tables reflect all contract charges.
The values shown under "Lifetime annual guaranteed minimum income benefit"
reflect the lifetime income that would be guaranteed if the Guaranteed minimum
income benefit is selected at that contract anniversary. An "N/A" in these
columns indicates that the benefit is not exercisable in that year. A "0" under
any of the death benefit and/or "Lifetime annual guaranteed minimum income
benefit" columns indicates that the contract has terminated due to insufficient
account value and, consequently, the guaranteed benefit has no value.
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in all tables reflect (1) investment management
fees equivalent to an effective annual rate of 0.69%, and (2) an assumed
average asset charge for all other expenses of the underlying portfolios
equivalent to an effective annual rate of 0.39% and (3) 12b-1 fees equivalent
to an effective annual rate of 0.25%. These rates are the arithmetic average
for all portfolios that are available as investment options. In other words,
they are based on the hypothetical assumption that account values are allocated
equally among the variable investment options. The actual rates associated with
any contract will vary depending upon the actual allocation of policy values
among the investment options. These rates do not reflect expense limitation
arrangements in effect with respect to certain of the underlying portfolios as
described in the footnotes to the fee table for the underlying portfolios in
"Fee Table" earlier in this prospectus. With these arrangements, the charges
shown above would be lower. This would result in higher values than those shown
in the following tables.
Because your circumstances will no doubt differ from those in the illustrations
that follow, values under your contract will differ, in most cases
substantially. Upon request, we will furnish you with a personalized
illustration.
Appendix IV: Hypothetical illustrations D-1
Variable deferred annuity
Accumulator Select
$100,000 Single contribution and no withdrawals
Male, issue age 60
Benefits:
Greater of 6% Roll up to age 85 or the Annual Ratchet to age 85 Guaranteed
minimum death benefit
Protection Plus
Guaranteed minimum income benefit
Greater of 6% Roll
up to age 85 or the Lifetime Annual
Annual Ratchet to Guaranteed Minimum Income Benefit
age 85 Guaranteed Total Death Benefit ----------------------------------
Minimum with Protection Guaranteed Hypothetical
Account Value Cash Value Death Benefit Plus Income Income
Contract ------------------- ------------------- ------------------- ------------------- ----------------- ----------------
Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% 0% 6%
Age --------- --------- --------- --------- --------- --------- --------- --------- --------- -------- -------- -------- -------
60 1 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 N/A N/A N/A N/A
61 2 95,306 101,285 95,306 101,285 106,000 106,000 108,400 108,400 N/A N/A N/A N/A
62 3 90,690 102,523 90,690 102,523 112,360 112,360 117,304 117,304 N/A N/A N/A N/A
63 4 86,145 103,710 86,145 103,710 119,102 119,102 126,742 126,742 N/A N/A N/A N/A
64 5 81,665 104,838 81,665 104,838 126,248 126,248 136,747 136,747 N/A N/A N/A N/A
65 6 77,240 105,901 77,240 105,901 133,823 133,823 147,352 147,352 N/A N/A N/A N/A
66 7 72,865 106,892 72,865 106,892 141,852 141,852 158,593 158,593 N/A N/A N/A N/A
67 8 68,530 107,802 68,530 107,802 150,363 150,363 170,508 170,508 N/A N/A N/A N/A
68 9 64,229 108,623 64,229 108,623 159,385 159,385 183,139 183,139 N/A N/A N/A N/A
69 10 59,953 109,345 59,953 109,345 168,948 168,948 196,527 196,527 N/A N/A N/A N/A
74 15 38,580 111,122 38,580 111,122 226,090 226,090 276,527 276,527 14,266 14,266 14,266 14,266
79 20 16,514 108,659 16,514 108,659 302,560 302,560 383,584 383,584 20,393 20,393 20,393 20,393
84 25 0 99,859 0 99,859 0 404,893 0 493,179 0 34,821 0 34,821
89 30 0 96,929 0 96,929 0 429,187 0 517,472 N/A N/A N/A N/A
94 35 0 96,688 0 96,688 0 429,187 0 517,472 N/A N/A N/A N/A
95 36 0 96,636 0 96,636 0 429,187 0 517,472 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for
individual contract years. We can make no representation that these
hypothetical investment results can be achieved for any one year or continued
over any period of time. In fact, for any given period of time, the investment
results could be negative.
D-2 Appendix IV: Hypothetical illustrations
Appendix V: Guaranteed principal benefit example
- --------------------------------------------------------------------------------
For purposes of these examples, we assume that there is an initial contribution
of $100,000, made to the contract on February 15, 2005. We also assume that no
additional contributions, no transfers among options and no withdrawals from
the contract are made. For GPB Option 1, the example also assumes that a 10
year fixed maturity option is chosen. The hypothetical gross rates of return
with respect to amounts allocated to the variable investment options are 0%, 6%
and 10%. The numbers below reflect the deduction of all applicable separate
account and contract charges and also reflect the charge for GPB Option 2.
Also, for any given performance of your variable investment options, GPB Option
1 produces higher account values than GPB Option 2 unless investment
performance has been significantly positive. The examples should not be
considered a representation of past or future expenses. Similarly, the annual
rates of return assumed in the example are not an estimate or guarantee of
future investment performance.
- --------------------------------------------------------------------------------------------------------------
Assuming 100%
Assuming in the variable
100% in the Under GPB Under GPB investment
FMO Option 1 Option 2 options
- --------------------------------------------------------------------------------------------------------------
Amount allocated to FMO on February 15, 2005 100,000 72,120 40,000 --
based upon a 3.32% rate to maturity
- --------------------------------------------------------------------------------------------------------------
Initial account value allocated to the variable 0 27,880 60,000 100,000
investment options on February 15, 2005
- --------------------------------------------------------------------------------------------------------------
Account value in the fixed maturity option on Feb- 138,651 100,000 55,460 0
ruary 15, 2015
- --------------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding 138,651 120,496 100,000* 73,515
together the value at the maturity date of the
applicable fixed maturity option plus the value of
amounts in the variable investment options on
February 15, 2015, assuming a 0% gross rate of
return)
- --------------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding 138,651 137,359 129,260** 134,001
together the value at the maturity date of the
applicable fixed maturity option plus the value of
amounts in the variable investment options on
February 15, 2015, assuming a 6% gross rate of
return)
- --------------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding 138,651 154,691 164,224** 196,164
together the value at the maturity date of the
applicable fixed maturity option plus the value of
amounts in the variable investment options on
February 15, 2015, assuming a 10% gross rate of
return)
- --------------------------------------------------------------------------------------------------------------
* Since the annuity account value is less than the alternate benefit under GPB
Option 2, the annuity account value is adjusted upward to the guaranteed
amount or an increase of $4,665 in this example
** Since the annuity account value is greater than the alternate benefit under
GPB Option 2, GPB Option 2 will not affect the annuity account value.
Appendix V: Guaranteed principal benefit example E-1
Appendix VI: Protection Plus(SM) example
- --------------------------------------------------------------------------------
The following illustrates the calculation of a death benefit that includes
Protection Plus for an annuitant age 45. The example assumes a contribution of
$100,000 and no additional contributions. Where noted, a single withdrawal in
the amount shown is also assumed. The calculation is as follows:
- --------------------------------------------------------------------------------------------------------------
No Withdrawal $3000 withdrawal $6000 withdrawal
- --------------------------------------------------------------------------------------------------------------
A Initial Contribution 100,000 100,000 100,000
- --------------------------------------------------------------------------------------------------------------
B Death Benefit: prior to withdrawal.* 104,000 104,000 104,000
- --------------------------------------------------------------------------------------------------------------
Protection Plus Earnings: Death Benefit less net
C contributions (prior to the withdrawal in D). 4,000 4,000 4,000
B minus A.
- --------------------------------------------------------------------------------------------------------------
D Withdrawal 0 3,000 6,000
- --------------------------------------------------------------------------------------------------------------
Excess of the withdrawal over the Protection Plus
E earnings 0 0 2,000
greater of D minus C or zero
- --------------------------------------------------------------------------------------------------------------
Net Contributions (adjusted for the withdrawal in D)
F A minus E 100,000 100,000 98,000
- --------------------------------------------------------------------------------------------------------------
Death Benefit (adjusted for the withdrawal in D)
G B minus D 104,000 101,000 98,000
- --------------------------------------------------------------------------------------------------------------
Death Benefit less Net Contributions
H G minus F 4,000 1,000 0
- --------------------------------------------------------------------------------------------------------------
I Protection Plus Factor 40% 40% 40%
- --------------------------------------------------------------------------------------------------------------
Protection Plus Benefit
J H times I 1,600 400 0
- --------------------------------------------------------------------------------------------------------------
Death Benefit: Including Protection Plus
K G plus J 105,600 101,400 98,000
- --------------------------------------------------------------------------------------------------------------
* The Death Benefit is the greater of the Account Value or any applicable death
benefit.
F-1 Appendix VI: Protection Plus(SM) example
Appendix VII: State contract availability and/or variations of certain features
and benefits
- --------------------------------------------------------------------------------
The following information is a summary of the states where the Accumulator(R)
Select(SM) contract or certain features and/or benefits are either not available
as of the date of this Prospectus or vary from the contract's features and
benefits as previously described in this Prospectus.
STATES WHERE CERTAIN ACCUMULATOR(R) SELECT(SM) FEATURES AND/OR BENEFITS ARE NOT
AVAILABLE OR HAS CERTAIN VARIATIONS TO FEATURES AND/OR BENEFITS:
- --------------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- --------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA See "Contract features and benefits"--"Your right to If you reside in the state of California and you are
cancel within a certain number of days" age 60 and older at the time the contract is issued,
you may return your variable annuity contract within
30 days from the date that you receive it and receive a
refund as described below.
If you allocate your entire initial contribution to the
money market account (and/or guaranteed interest
option, if available), the amount of your refund will
be equal to your contribution less interest, unless you
make a transfer, in which case the amount of your
refund will be equal to your account value on the date
we receive your request to cancel at our processing
office. This amount could be less than your initial
contribution. If you allocate any portion of your
initial contribution to the variable investment options
(other than the money market account) and/or fixed
maturity options, your refund will be equal to your
account value on the date we receive your request to
cancel at our processing office.
- --------------------------------------------------------------------------------------------------------------------------------
FLORIDA See "Transfers of ownership, collateral assignments, The second paragraph in this section is deleted.
loans and borrowing" in "More information"
- --------------------------------------------------------------------------------------------------------------------------------
MARYLAND Fixed maturity options Not Available
Guaranteed principal benefit option1 and Guaranteed Not Available
principal benefit option 2
- --------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS Automatic investment program Not Available
Annual administrative charge The annual administrative charge will not be deducted from
amounts allocated to the Guaranteed interest option.
- --------------------------------------------------------------------------------------------------------------------------------
NEW YORK Greater of the 6% roll up or Annual Ratchet Guaran- Not Available (you have a choice of the standard death
teed minimum death benefit benefit or the Annual Ratchet to age 85 guaranteed minimum
death benefit), as described earlier in this Prospectus.
Principal Protector(SM) Not Available
Protection Plus(SM) Not Available
Variable Immediate Annuity payout options -- Life Not Available
annuity contracts
See "Termination of your contract" in "Determining If your account value in the variable investment
your contract's value" options and the fixed maturity options is insufficient
to pay the annual administrative charge, or either
enhanced death benefit charge, and you have no account
value in the guaranteed interest option, your contract
will terminate without value, and you will lose any
applicable benefits. See "Charges and expenses"
earlier in this Prospectus.
- --------------------------------------------------------------------------------------------------------------------------------
Appendix VII: State contract availability and/or variations of certain features
and benefits G-1
- --------------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- --------------------------------------------------------------------------------------------------------------------------------
NEW YORK, See "The amount applied to purchase an annuity The amount applied to purchase an annuity payout option
CONTINUED payout option" in "Accessing your money" varies, depending on the payout option that you choose,
and the timing of your purchase as it relates to any
market value adjustments. The income provided, however,
will never be less than what would be provided by
applying the account value to the guaranteed annuity
purchase factors.
See "Charges and expenses" With regard to the Annual administrative, either
enhanced death benefit, Guaranteed principal benefit
option 2 and Guaranteed minimum income benefit charges,
respectively, we will deduct the related charge, as
follows for each: we will deduct the charge from your
value in the variable investment options on a pro rata
basis. If those amounts are insufficient, we will
deduct all or a portion of the charge from the fixed
maturity options (other than the Special 10 year fixed
maturity option) in the order of the earliest maturity
date(s) first. If such amounts are still insufficient,
we will deduct any remaining portion from the Special
10 year fixed maturity option. If the contract is
surrendered or annuitized or a death benefit is paid,
we will deduct a pro rata portion of the charge for
that year. A market value adjustment will apply to
deductions from the fixed maturity options (including
the Special 10 year fixed maturity option).
Deductions from the fixed maturity options (including
the Special 10 year fixed maturity option) cannot cause
the credited net interest for the contract year to fall
below 1.5%.
With regard to the Annual administrative, and either
enhanced death benefit charge only, if your account
value in the variable investment options and the fixed
maturity options is insufficient to pay the applicable
charge, and you have no account value in the guaranteed
interest option, your contract will terminate without
value and you will lose any applicable guaranteed
benefits. Please see "Termination of your contract" in
"Determining your contract's value" earlier in this
Prospectus.
See "Annuity maturity date" in "Accessing your The maturity date by which you must take a lump sum with-
money" drawal or select an annuity payout option is as follows:
Maximum
Issue age Annuitization age
--------- -----------------
0-80 90
81 91
82 92
83 93
84 94
85 95
Please see this section earlier in this Prospectus for more
information.
- --------------------------------------------------------------------------------------------------------------------------------
G-2 Appendix VII: State contract availability and/or variations of certain
features and benefits
- --------------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- --------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA Contribution age limitations If the annuitant was 0-75 at contract issue, the maximum
contribution age is 85.
See "Annuity maturity date" in "Accessing your The maturity date by which you must take a lump sum with-
money" drawal or select an annuity payout option is as follows:
Maximum
Issue age annuitization age
--------- -----------------
0-75 85
76 86
77 87
78-80 88
81-85 90
Loans under Rollover TSA contracts Taking a loan in excess of the Internal Revenue Code
limits may result in adverse tax consequences. Please
consult your tax adviser before taking a loan that
exceeds the Internal Revenue Code limits.
- --------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO IRA, Roth IRA, Inherited IRA and Rollover TSA con- Not Available
tracts
Beneficiary continuation option (IRA) Not Available
- --------------------------------------------------------------------------------------------------------------------------------
TEXAS See "Annual administrative charge" in "Charges and The annual administrative charge will not be deducted from
expenses" amounts allocated to the Guaranteed interest option.
- --------------------------------------------------------------------------------------------------------------------------------
UTAH See "Transfers of ownership, collateral assignments, The second paragraph in this section is deleted.
loans and borrowing" in "More information"
- --------------------------------------------------------------------------------------------------------------------------------
VERMONT Loans under Rollover TSA contracts Taking a loan in excess of the Internal Revenue Code
limits may result in adverse tax consequences. Please
consult your tax adviser before taking a loan that
exceeds the Internal Revenue Code limits.
- --------------------------------------------------------------------------------------------------------------------------------
WASHINGTON Guaranteed interest option Not Available
Investment simplifier -- Fixed-dollar option and Inter- Not Available
est sweep option
Fixed maturity options Not Available
Guaranteed Principal Benefit Options 1 and 2 Not Available
Income Manager(R) payout option Not Available
Protection Plus(SM) Not Available
See "Guaranteed minimum death benefit" in "Con- You have a choice of the standard death benefit, the
tract features and benefits" Annual Ratchet to age 85 enhanced death benefit, or the
Greater of 4% Roll up to age 85 or the Annual Ratchet
to age 85 enhanced death benefit.
See "Annual administrative charge" in "Charges and The annual administrative charge will be deducted from the
expenses" value in the variable investment options on a pro rata
basis.
- --------------------------------------------------------------------------------------------------------------------------------
Appendix VII: State contract availability and/or variations of certain features
and benefits G-3
Appendix VIII: Contract Variations
- --------------------------------------------------------------------------------
Although this Prospectus is primarily designed for potential purchasers of the
contract, you may be receiving it as a current contract owner. If you are a
current contract owner, you should note that your contract's options, features
and charges may vary from what is described in this Prospectus depending on the
date on which you purchased your contract. You may not change your contract or
its features after issue. This Appendix reflects contract variations that
differ from what is described in this Prospectus but may have been in effect at
the time your contract was issued.
In addition, options and/or features may vary among states in light of
applicable regulations or state approvals. Any such state variations are
generally not included here but instead included in Appendix VII earlier in this
section. For more information about state variations applicable to you, as well
as particular features, charges and options available under your contract based
upon when you purchased it, please contact your financial professional and/or
refer to your contract.
- -----------------------------------------------------------------------------------------------------------------------------------
Approximate Time Period Feature/Benefit Variation
- -----------------------------------------------------------------------------------------------------------------------------------
September 2003 - January 2005 Guaranteed interest option Your lifetime minimum interest rate is either
1.5% or 3.0% (depending on the state where
your contract was issued).
- -----------------------------------------------------------------------------------------------------------------------------------
September 2003 - July 2004 Principal Protector(SM) benefit Unavailable.
- -----------------------------------------------------------------------------------------------------------------------------------
September 2003 - December 2004 Termination of guaranteed benefits Your guaranteed benefits will not automatically
terminate if you change ownership of your NQ
contract.
- -----------------------------------------------------------------------------------------------------------------------------------
September 2003 - January 2004 Guaranteed minimum income benefit:
The effective annual interest credited to the
o Benefit base crediting rate applicable benefit base is 5%.*
Guaranteed minimum income benefit charge:
o Fee table 0.55%.*
- -----------------------------------------------------------------------------------------------------------------------------------
September 2003 - January 2004 Greater of the 6% Roll up to age 85 or the
Annual Ratchet to age 85 enhanced death
benefit:
The effective annual interest credited to the
o Benefit base crediting rate applicable benefit base is 5%.*
Greater of the 5% Roll up to age 85 or the
o Fee table Annual Ratchet to age 85 enhanced death
benefit charge: 0.50%.*
- -----------------------------------------------------------------------------------------------------------------------------------
September 2003 - January 2004 Effect of withdrawals on your Greater of the Withdrawals will reduce each of the benefit
6% Roll up to age 85 or the Annual Ratchet bases on a pro rata basis only.*
to age 85 enhanced death benefit
- -----------------------------------------------------------------------------------------------------------------------------------
* Contract owners who elected the Guaranteed minimum income benefit and/or the
Greater of the 5% Roll up to age 85 or the Annual Ratchet to age 85 enhanced
death benefit had a limited opportunity to change to the new versions of
these benefits, as they are described in "Contract features and benefits" and
"Accessing your money," earlier in this Prospectus.
H-1 Appendix VIII: Contract Variations
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Unit Values 2
Custodian and Independent Registered Public Accounting Firm 2
Distribution of the Contracts 2
Financial Statements 2
How to obtain an Accumulator(R) Select(SM) Statement of Additional Information
for Separate Account No. 49
Send this request form to:
Accumulator(R) Select(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me an Accumulator(R) Select(SM) SAI for Separate Account No. 49
dated May 1, 2005.
- --------------------------------------------------------------------------------
Name:
- --------------------------------------------------------------------------------
Address:
- --------------------------------------------------------------------------------
City State Zip
(SAI 4ACS(5/03))
X00997/Select '02, OR and '04 Series
AXA EQUITABLE LIFE INSURANCE COMPANY
SUPPLEMENT DATED MAY 1, 2005 TO PROSPECTUSES FOR:
o Income Manager Accumulator(R) o Accumulator(R) o Accumulator(R) Advisor(SM)
o Income Manager(R) Rollover IRA o Accumulator(R) Select(SM) o Accumulator(R) Elite(SM)
o Accumulator(R) (IRA, NQ, QP) o Accumulator(R) Select(SM) II o Accumulator(R) Elite(SM) II
o Accumulator(R) Plus(SM) o Accumulator(R) Express(SM)
- --------------------------------------------------------------------------------
This Supplement updates certain information in the most recent prospectus and
statement of additional information you received for any of the products listed
above, and in any Supplements to that prospectus and statement of additional
information. The Appendix sets forth the dates of such prior prospectuses,
statements of additional information and supplements, which, in addition to
this Supplement, should be kept for future reference.
We have filed with the Securities and Exchange Commission (SEC) our Statement
of Additional Information (SAI) dated May 1, 2005. If you do not presently have
a copy of the prospectus and prior Supplements, you may obtain additional
copies, as well as a copy of the SAI, from us, free of charge, by writing to
AXA Equitable, P.O. Box 1547, Secaucus, NJ 07096-1547, or calling (800)
789-7771. If you only need a copy of the SAI, you may mail in the SAI request
form located at the end of this Supplement. The SAI has been incorporated by
reference into this Supplement. This Supplement and the SAI can also be
obtained from the SEC's website at www.sec.gov.
In this Supplement, we provide information on the following: (1) how to reach
us; (2) combination of certain investment options; (3) investment options; (4)
the Trusts' annual expenses and expense example; (5) important information
about guaranteed benefits; (6) tax information; (7) updated information on AXA
Equitable; (8) disruptive transfer activity; (9) wire transmittals and
electronic applications information; (10) certain information about our
business day; (11) legal proceedings; (12) certain information about our
distribution of the contracts; (13) condensed financial information; and (14)
hypothetical illustrations.
(1) HOW TO REACH US
You may communicate with our processing office as listed below for the purposes
described. Certain methods of contacting us, such as by telephone or
electronically, may be unavailable or delayed (for example our facsimile
service may not be available at all times and/or we may be unavailable due to
emergency closing). In addition, the level and type of service available may be
restricted based on criteria established by us.
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Accumulator(R)
P.O. Box 13014
Newark, NJ 07188-0014
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Accumulator(R)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Accumulator(R)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Accumulator(R)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year and
any calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract
year, including notification of eligibility to exercise the guaranteed
minimum income benefit, if applicable.
- --------------------------------------------------------------------------------
TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND EQACCESS SYSTEMS:
- --------------------------------------------------------------------------------
TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQAccess is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for the fixed maturity options;
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
available through TOPS).
You can also:
o change your allocation percentages and/or transfer among the investment
options;
X01006 - Global
o elect to receive certain contract statements electronically;
o change your address (not available through TOPS);
o change your TOPS personal identification number ("PIN") (through TOPS only)
and your EQAccess password (through EQAccess only); and
o access Frequently Asked Questions and Service Forms (not available through
TOPS).
TOPS and EQAccess are normally available seven days a week, 24 hours a day. You
may use TOPS by calling toll free 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our website at www.axaonline.com and
logging in to access your account. All other clients may access EQAccess by
visiting our website at www.axa-equitable.com. Of course, for reasons beyond our
control, these services may sometimes be unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or Internet are genuine. For example, we will require
certain personal identification information before we will act on telephone or
Internet instructions and we will provide written confirmation of your
transfers. If we do not employ reasonable procedures to confirm the genuineness
of telephone or Internet instructions, we may be liable for any losses arising
out of any act or omission that constitutes negligence, lack of good faith, or
willful misconduct. In light of our procedures, we will not be liable for
following telephone or Internet instructions we reasonably believe to be
genuine.
We reserve the right to limit access to these services if we determine that you
engaged in a disruptive transfer activity, such as "market timing" (see
"Disruptive transfer activity" in "Transferring your money among investment
options" in your Prospectus).
- --------------------------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVE:
- --------------------------------------------------------------------------------
You may also use our toll-free number (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time.
(2) INVESTMENT OPTIONS
- --------------------------------------------------------------------------------
Variable investment options
- --------------------------------------------------------------------------------
o AXA Aggressive Allocation(1) o EQ/Equity 500 Index
o AXA Conservative Allocation(1) o EQ/Evergreen Omega
o AXA Conservative-Plus Allocation(1) o EQ/FI Mid Cap
o AXA Moderate Allocation(1) o EQ/FI Small/Mid Cap Value
o AXA Moderate-Plus Allocation(1) o EQ/International Growth(3)
o AXA Premier VIP Aggressive Equity o EQ/J.P. Morgan Core Bond
o AXA Premier VIP Core Bond o EQ/Janus Large Cap Growth
o AXA Premier VIP Health Care o EQ/JP Morgan Value Opportunities
o AXA Premier VIP High Yield o EQ/Lazard Small Cap Value
o AXA Premier VIP International Equity o EQ/Long Term Bond(3)
o AXA Premier VIP Large Cap Core o EQ/Lord Abbett Growth and Income(3)
Equity o EQ/Lord Abbett Large Cap Core(3)
o AXA Premier VIP Large Cap Growth o EQ/Lord Abbett Mid Cap Value(3)
o AXA Premier VIP Large Cap Value o EQ/Marsico Focus
o AXA Premier VIP Small/Mid Cap o EQ/Mercury Basic Value Equity
Growth o EQ/Mercury International Value
o AXA Premier VIP Small/Mid Cap Value o EQ/Mergers and Acquisitions(3)
o AXA Premier VIP Technology o EQ/MFS Emerging Growth Companies
o EQ/Alliance Common Stock o EQ/MFS Investors Trust
o EQ/Alliance Growth and Income o EQ/Money Market
o EQ/Alliance Intermediate Government o EQ/Montag & Caldwell Growth(2)
Securities o EQ/PIMCO Real Return(3)
o EQ/Alliance International o EQ/Short Duration Bond(3)
o EQ/Alliance Large Cap Growth(2) o EQ/Small Company Index
o EQ/Alliance Quality Bond o EQ/Small Company Value(2)
o EQ/Alliance Small Cap Growth o EQ/TCW Equity(2)
o EQ/Bear Stearns Small Company o EQ/UBS Growth and Income(2)
Growth(2) o EQ/Van Kampen Comstock(3)
o EQ/Bernstein Diversified Value o EQ/Van Kampen Emerging Markets
o EQ/Boston Advisors Equity Income(2) Equity(2)
o EQ/Calvert Socially Responsible o EQ/Van Kampen Mid Cap Growth(3)
o EQ/Capital Guardian Growth o EQ/Wells Fargo Montgomery
o EQ/Capital Guardian International Small Cap(3)
o EQ/Capital Guardian Research
o EQ/Capital Guardian U.S. Equity
o EQ/Caywood-Scholl High Yield Bond(3)
(1) The "AXA Allocation" portfolios.
(2) This is the option's new name, effective on or about May 9, 2005, subject
to regulatory approval. Please see "Portfolios of the Trusts" later in
this Supplement for the option's former name.
(3) Available on or about May 9, 2005, subject to regulatory approval. Please
see "Portfolios of the Trusts" later in this Supplement for more
information on the option's new fund.
2
(3) INVESTMENT OPTIONS
PORTFOLIOS OF THE TRUSTS
You should note that some portfolios have objectives and strategies that are
substantially similar to those of certain retail funds that are purchased
directly rather than under a variable insurance product such as an
Accumulator(R) series variable annuity. These funds may even have the same
manager(s) and/or a similar name. However, there are numerous factors that can
contribute to differences in performance between two investments, particularly
over short periods of time. Such factors include the timing of stock purchases
and sales; differences in fund cash flows; and specific strategies employed by
the portfolio manager.
AXA Equitable serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. As such, AXA Equitable oversees
the activities of the investment advisers with respect to the Trusts and is
responsible for retaining or discontinuing the services of those advisers. The
advisers for these Portfolios, listed in the chart below, are those who make
the investment decisions for each Portfolio. The chart also indicates the
investment manager for each of the other Portfolios. Not all of the Portfolios
listed below are available in all the contracts to which this supplement
applies.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o AXA Equitable
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o AXA Equitable
ALLOCATION greater emphasis on current income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current o AXA Equitable
income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation and current o AXA Equitable
ALLOCATION income, with a greater emphasis on capital
appreciation.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
EQUITY o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of o Pacific Investment Management Company
risk. LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o AIM Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of o Alliance Capital Management L.P.
current income and capital appreciation. o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P., through its
INTERNATIONAL EQUITY Bernstein Investment Research and Management
Unit
o J.P. Morgan Investment Management Inc.
o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
3
PORTFOLIOS OF THE TRUSTS (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P., through
CORE EQUITY its Bernstein Investment Research and
Management Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH o RCM Capital Management LLC
o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE o Institutional Capital Corporation
o MFS Investment Management
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management LLC
CAP VALUE o TCW Investment Management Company
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent o Alliance Capital Management L.P.
GOVERNMENT SECURITIES with relative stability of principal.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE LARGE CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH(1)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent o Alliance Capital Management L.P.
with moderate risk to capital.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BEAR STEARNS Seeks to achieve capital appreciation. o Bear Stearns Asset Management Inc.
SMALL COMPANY GROWTH(7)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment Research
and Management Unit
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BOSTON ADVISORS EQUITY Seeks a combination of growth and income to o Boston Advisors, Inc.
INCOME(4) achieve an above-average and consistent total
return.
- ------------------------------------------------------------------------------------------------------------------------------------
4
PORTFOLIOS OF THE TRUSTS (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN GROWTH Seeks long-term growth of capital. o Capital Guardian Trust Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAYWOOD-SCHOLL HIGH Seeks to maximize current income. o Caywood-Scholl Capital Management
YIELD BOND
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that o Alliance Capital Management L.P.
approximates the total return performance of
the S&P 500 Index, including reinvestment of
dividends, at a risk level consistent with
that of the S&P 500 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA Seeks long-term capital growth. o Evergreen Investment Management
Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o SSgA Funds Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent o J.P. Morgan Investment Management Inc.
with moderate risk to capital and maintenance
of liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JP MORGAN VALUE Long-term capital appreciation. o J.P. Morgan Investment Management Inc.
OPPORTUNITIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LONG TERM BOND Seeks to maximize income and capital appreciation o Boston Advisors, Inc.
through investment in long-maturity debt
obligations.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT GROWTH AND Capital appreciation and growth of income without o Lord, Abbett & Co. LLC
INCOME excessive fluctuation in market value.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT LARGE CAP Capital appreciation and growth of income with o Lord, Abbett & Co. LLC
CORE reasonable risk.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT MID CAP VALUE Capital appreciation. o Lord, Abbett & Co, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers
VALUE International Limited
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERGERS AND ACQUISITIONS Seeks to achieve capital appreciation. o GAMCO Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
- ------------------------------------------------------------------------------------------------------------------------------------
5
PORTFOLIOS OF THE TRUSTS (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name* Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary o MFS Investment Management
objective to seek reasonable current income.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, o Alliance Capital Management L.P.
preserve its assets and maintain liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONTAG & CALDWELL Seeks to achieve capital appreciation. o Montag & Caldwell, Inc.
GROWTH(5)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PIMCO REAL RETURN Seeks maximum real return consistent with o Pacific Investment Management Company,
preservation of real capital and prudent investment LLC
management.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SHORT DURATION BOND Seeks current income with reduced volatility of o Boston Advisors, Inc.
principal.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o Alliance Capital Management L. P.
deduction of portfolio expenses) the total return of
the Russell 2000 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY VALUE(8) Seeks to maximize capital appreciation. o GAMCO Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/TCW EQUITY(3) Seeks to achieve long-term capital appreciation. o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/UBS GROWTH AND INCOME(6) Seeks to achieve total return through capital o UBS Global Asset Management
appreciation with income as a secondary consideration. (Americas) Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN COMSTOCK Capital growth and income. o Morgan Stanley Investment
Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN EMERGING Seeks long-term capital appreciation. o Morgan Stanley Investment
MARKETS EQUITY(2) Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN MID CAP Capital growth. o Morgan Stanley Investment
GROWTH Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/WELLS FARGO MONTGOMERY Seeks long-term capital appreciation. o Wells Capital Management Inc.
SMALL CAP
- ------------------------------------------------------------------------------------------------------------------------------------
* This portfolio information reflects the portfolio's name change effective
on or about May 9, 2005, subject to regulatory approval. The table below
reflects the portfolio name in effect until on or about May 9, 2005. The
number in the "FN" column corresponds with the number contained in the
chart above.
- ---------------------------------------------------------
FN Portfolio Name until May 9, 2005
- ---------------------------------------------------------
(1) EQ/Alliance Premier Growth
- ---------------------------------------------------------
(2) EQ/Emerging Markets Equity
- ---------------------------------------------------------
(3) EQ/Enterprise Equity
- ---------------------------------------------------------
(4) EQ/Enterprise Equity Income
- ---------------------------------------------------------
(5) EQ/Enterprise Growth
- ---------------------------------------------------------
(6) EQ/Enterprise Growth and Income
- ---------------------------------------------------------
(7) EQ/Enterprise Small Company Growth
- ---------------------------------------------------------
(8) EQ/Enterprise Small Company Value
- ---------------------------------------------------------
You should consider the investment objectives, risks and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this supplement, you may
call one of our customer service representatives at 1-800-789-7771.
6
(4) THE TRUSTS' ANNUAL EXPENSES AND EXPENSE EXAMPLE
The following table shows the lowest and highest total operating expenses
charged by any of the Portfolios that you will pay periodically during the time
that you own the contract. These fees and expenses are reflected in the
Portfolio's net asset value each day. Therefore, they reduce the investment
return of the Portfolio and the related variable investment option. Actual fees
and expenses are likely to fluctuate from year to year. More detail concerning
each Portfolio's fees and expenses is contained in the Trust prospectus for the
Portfolio.
This table shows the fees and expenses for 2004 as an annual percentage of each
Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Manage- Portfolio (Before Expense After
ment 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name Fees(2) Fees(3) Expenses (4) Expenses(5) Limitation) ments(6) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 0.29% 0.99% 1.63% (0.29)% 1.34%
AXA Conservative Allocation 0.10% 0.25% 0.41% 0.75% 1.51% (0.41)% 1.10%
AXA Conservative-Plus Allocation 0.10% 0.25% 0.30% 0.80% 1.45% (0.30)% 1.15%
AXA Moderate Allocation 0.10% 0.25% 0.16% 0.83% 1.34% (0.16)% 1.18%
AXA Moderate-Plus Allocation 0.10% 0.25% 0.20% 1.02% 1.57% (0.20)% 1.37%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.18% -- 1.05% -- 1.05%
AXA Premier VIP Core Bond 0.60% 0.25% 0.20% -- 1.05% (0.10)% 0.95%
AXA Premier VIP Health Care 1.20% 0.25% 0.40% -- 1.85% 0.00% 1.85%
AXA Premier VIP High Yield 0.58% 0.25% 0.18% -- 1.01% -- 1.01%
AXA Premier VIP International Equity 1.05% 0.25% 0.50% -- 1.80% 0.00% 1.80%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.32% -- 1.47% (0.12)% 1.35%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.26% -- 1.41% (0.06)% 1.35%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.25% -- 1.40% (0.05)% 1.35%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.25% -- 1.60% 0.00% 1.60%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.25% -- 1.60% 0.00% 1.60%
AXA Premier VIP Technology 1.20% 0.25% 0.40% -- 1.85% 0.00% 1.85%
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.47% 0.25% 0.05% -- 0.77% -- 0.77%
EQ/Alliance Growth and Income 0.56% 0.25% 0.05% -- 0.86% -- 0.86%
EQ/Alliance Intermediate Government
Securities 0.50% 0.25% 0.06% -- 0.81% -- 0.81%
EQ/Alliance International 0.73% 0.25% 0.12% -- 1.10% 0.00% 1.10%
EQ/Alliance Large Cap Growth* 0.90% 0.25% 0.05% -- 1.20% (0.10)% 1.10%
EQ/Alliance Quality Bond 0.50% 0.25% 0.06% -- 0.81% -- 0.81%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.06% -- 1.06% -- 1.06%
EQ/Bear Stearns Small Company Growth* 1.00% 0.25% 0.18% -- 1.43% (0.13)% 1.30%
EQ/Bernstein Diversified Value 0.63% 0.25% 0.07% -- 0.95% 0.00% 0.95%
EQ/Boston Advisors Equity Income* 0.75% 0.25% 0.21% -- 1.21% (0.16)% 1.05%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.29% -- 1.19% (0.14)% 1.05%
EQ/Capital Guardian Growth 0.65% 0.25% 0.09% -- 0.99% (0.04)% 0.95%
EQ/Capital Guardian International 0.85% 0.25% 0.17% -- 1.27% (0.07)% 1.20%
EQ/Capital Guardian Research 0.65% 0.25% 0.05% -- 0.95% 0.00% 0.95%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.05% -- 0.95% 0.00% 0.95%
EQ/Caywood-Scholl High Yield Bond 0.60% 0.25% 0.12% -- 0.97% (0.12)% 0.85%
EQ/Equity 500 Index 0.25% 0.25% 0.05% -- 0.55% -- 0.55%
EQ/Evergreen Omega 0.65% 0.25% 0.11% -- 1.01% (0.06)% 0.95%
EQ/FI Mid Cap 0.70% 0.25% 0.06% -- 1.01% (0.01)% 1.00%
EQ/FI Small/Mid Cap Value 0.74% 0.25% 0.08% -- 1.07% 0.00% 1.07%
EQ/International Growth 0.85% 0.25% 0.22% -- 1.32% 0.00% 1.32%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.06% -- 0.75% 0.00% 0.75%
EQ/JP Morgan Value Opportunities 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.08% -- 1.23% (0.08)% 1.15%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.05% -- 1.05% 0.00% 1.05%
EQ/Long Term Bond 0.50% 0.25% 0.25% -- 1.00% 0.00% 1.00%
EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Lord Abbett Mid Cap Value 0.70% 0.25% 0.19% -- 1.14% (0.09)% 1.05%
EQ/Marsico Focus 0.88% 0.25% 0.06% -- 1.19% (0.04)% 1.15%
EQ/Mercury Basic Value Equity 0.58% 0.25% 0.05% -- 0.88% 0.00% 0.88%
EQ/Mercury International Value 0.85% 0.25% 0.15% -- 1.25% 0.00% 1.25%
- ------------------------------------------------------------------------------------------------------------------------------------
7
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Manage- Portfolio (Before Expense After
ment 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name Fees(2) Fees(3) Expenses (4) Expenses(5) Limitation) ments(6) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mergers and Acquisitions 0.90% 0.25% 1.21% -- 2.36% (0.91)% 1.45%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.06% -- 0.96% -- 0.96%
EQ/MFS Investors Trust 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Money Market 0.34% 0.25% 0.05% -- 0.64% -- 0.64%
EQ/Montag & Caldwell Growth* 0.75% 0.25% 0.12% -- 1.12% 0.00% 1.12%
EQ/PIMCO Real Return 0.55% 0.25% 0.20% -- 1.00% (0.35)% 0.65%
EQ/Short Duration Bond 0.45% 0.25% 0.52% -- 1.22% (0.57)% 0.65%
EQ/Small Company Index 0.25% 0.25% 0.13% -- 0.63% 0.00% 0.63%
EQ/Small Company Value* 0.80% 0.25% 0.12% -- 1.17% 0.00% 1.17%
EQ/TCW Equity* 0.80% 0.25% 0.12% -- 1.17% (0.02)% 1.15%
EQ/UBS Growth and Income* 0.75% 0.25% 0.16% -- 1.16% (0.11)% 1.05%
EQ/Van Kampen Comstock 0.65% 0.25% 0.19% -- 1.09% (0.09)% 1.00%
EQ/Van Kampen Emerging Markets Equity* 1.15% 0.25% 0.40% -- 1.80% 0.00% 1.80%
EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.19% -- 1.14% (0.09)% 1.05%
EQ/Wells Fargo Montgomery Small Cap 0.85% 0.25% 6.51% -- 7.61% (6.33)% 1.28%
- ------------------------------------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject
to regulatory approval. Please see "Portfolios of the Trusts" earlier in
this supplement for the option's former name.
8
- ------------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2004 (expenses that are deducted Lowest Highest
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ------ -------
other expenses)(1) 0.55% 7.61%
(1) "Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2004 and for the
underlying portfolios.
(2) The management fees for each Portfolio cannot be increased without a vote
of that Portfolio's Shareholders. See Footnote (6) for any expense
limitation agreement information.
(3) Portfolio shares are all subject to fees imposed under the distribution
plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1
under the Investment Company Act of 1940. The 12b-1 fee will not be
increased for the life of the contracts.
(4) Other expenses shown are those incurred in 2004. The amounts shown as
"Other Expenses" will fluctuate from year to year depending on actual
expenses. See footnote (6) for any expense limitation agreement
information.
(5) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and AXA
Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolios's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocations
as of 12/31/04. A "--" indicates that the listed portfolio does not invest
in underlying portfolios, i.e., it is not an allocation portfolio.
(6) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A "--" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver or reimbursement. AXA Equitable,
the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has
entered into Expense Limitation Agreements with respect to certain
Portfolios, which are effective through April 30, 2006. Under these
agreements AXA Equitable has agreed to waive or limit its fees and assume
other expenses of certain Portfolios, if necessary, in an amount that
limits each affected Portfolio's total Annual Expenses (exclusive of
interest, taxes, brokerage commissions, capitalized expenditures and
extraordinary expenses) to not more than specified amounts. Each Portfolio
may at a later date make a reimbursement to AXA Equitable for any of the
management fees waived or limited and other expenses assumed and paid by
AXA Equitable pursuant to the expense limitation agreement provided that
the Portfolio's current annual oper ating expenses do not exceed the
operating expense limit determined for such Portfolio. See the prospectus
for each applicable underlying Trust for more information about the
arrangements. In addition, a portion of the brokerage commissions of
certain portfolios of EQ Advisors Trust and AXA Premier VIP Trust is used
to reduce the applicable Portfolio's expenses. If the above table reflected
both the expense limitation arrange ments plus the portion of the brokerage
commissions used to reduce portfolio expenses, the net expenses would be as
shown in the table below:
----------------------------------------------------------------------
Portfolio Name
----------------------------------------------------------------------
AXA Moderate Allocation 1.17%
----------------------------------------------------------------------
AXA Premier VIP Aggressive Equity 0.93%
----------------------------------------------------------------------
AXA Premier VIP Health Care 1.81%
----------------------------------------------------------------------
AXA Premier VIP International Equity 1.75%
----------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity 1.32%
----------------------------------------------------------------------
AXA Premier VIP Large Cap Growth 1.30%
----------------------------------------------------------------------
AXA Premier VIP Large Cap Value 1.21%
----------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth 1.50%
----------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value 1.54%
----------------------------------------------------------------------
AXA Premier VIP Technology 1.75%
----------------------------------------------------------------------
EQ/Alliance Common Stock 0.68%
----------------------------------------------------------------------
EQ/Alliance Growth and Income 0.80%
----------------------------------------------------------------------
EQ/Alliance International 1.08%
----------------------------------------------------------------------
EQ/Alliance Large Cap Growth 1.04%
----------------------------------------------------------------------
EQ/Alliance Small Cap Growth 0.98%
----------------------------------------------------------------------
EQ/Calvert Socially Responsible 1.00%
----------------------------------------------------------------------
EQ/Capital Guardian Growth 0.67%
----------------------------------------------------------------------
EQ/Capital Guardian International 1.17%
----------------------------------------------------------------------
EQ/Capital Guardian Research 0.90%
----------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity 0.93%
----------------------------------------------------------------------
EQ/Evergreen Omega 0.57%
----------------------------------------------------------------------
EQ/FI Mid Cap 0.96%
----------------------------------------------------------------------
EQ/FI Small/Mid Cap Value 1.05%
----------------------------------------------------------------------
9
----------------------------------------------------------------------
Portfolio Name
----------------------------------------------------------------------
EQ/JP Morgan Value Opportunities 0.76%
----------------------------------------------------------------------
EQ/Lazard Small Cap Value 0.86%
----------------------------------------------------------------------
EQ/Marsico Focus 1.12%
----------------------------------------------------------------------
EQ/Mercury Basic Value Equity 0.86%
----------------------------------------------------------------------
EQ/Mercury International Value 1.18%
----------------------------------------------------------------------
EQ/MFS Emerging Growth Companies 0.91%
----------------------------------------------------------------------
EQ/MFS Investors Trust 0.91%
----------------------------------------------------------------------
EQ/Small Company Value 1.16%
----------------------------------------------------------------------
EQ/TCW Equity 1.14%
----------------------------------------------------------------------
EQ/Van Kampen Emerging Markets Equity 1.75%
----------------------------------------------------------------------
EQ/Wells Fargo Montgomery Small Cap 1.26%
----------------------------------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses.
The example below shows the expenses that a hypothetical contract owner (who
has elected the Guaranteed Minimum Income Benefit with the enhanced death
benefit that provides for the greater of the 6% Roll-up or the Annual Ratchet
to age 85 and Protection Plus(SM)) would pay in the situations illustrated. The
annual administrative charge is based on the charges that apply to a mix of
estimated contract sizes, resulting in an estimated administrative charge for
the purpose of these examples of $1.70 per $10,000. Some of these features may
not be available or may be different under your contract. Some of these charges
may not be applicable under your contract.
The fixed maturity options, guaranteed interest option and the account for
special dollar cost averaging are not covered by the fee table and examples.
However, the annual administrative charge, the charge if you elect a Variable
Immediate Annuity payout option, the charge for any optional benefits and the
withdrawal charge do apply to the fixed maturity options, guaranteed interest
option and the account for special dollar cost averaging. A market value
adjustment (up or down) may apply as a result of a withdrawal, transfer, or
surrender of amounts from a fixed maturity option. Some of these investment
options and charges may not be applicable under your contract.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes that your investment has a 5%
return each year. This example should not be considered a representation of
past or future expenses for each option. Actual expenses may be greater or less
than those shown. Similarly, the annual rate of return assumed in the example
is not an estimate or guarantee of future investment performance. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
10
- ------------------------------------------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of the applicable time period
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,212.65 $ 2,052.72 $ 2,425.90 $ 4,443.89
AXA Conservative Allocation $ 1,200.05 $ 2,016.00 $ 2,363.21 $ 4,336.31
AXA Conservative-Plus Allocation $ 1,193.75 $ 1,997.60 $ 2,331.74 $ 4,282.02
AXA Moderate Allocation $ 1,181.99 $ 1,963.19 $ 2,272.78 $ 4,179.75
AXA Moderate-Plus Allocation $ 1,206.35 $ 2,034.37 $ 2,394.60 $ 4,390.27
AXA Premier VIP Aggressive Equity $ 1,151.75 $ 1,874.33 $ 2,119.84 $ 3,911.23
AXA Premier VIP Core Bond $ 1,151.75 $ 1,874.33 $ 2,119.84 $ 3,911.23
AXA Premier VIP Health Care $ 1,235.75 $ 2,119.81 $ 2,539.98 $ 4,637.64
AXA Premier VIP High Yield $ 1,147.55 $ 1,861.95 $ 2,098.45 $ 3,873.29
AXA Premier VIP International Equity $ 1,230.50 $ 2,104.59 $ 2,514.15 $ 4,594.00
AXA Premier VIP Large Cap Core Equity $ 1,195.85 $ 2,003.73 $ 2,342.24 $ 4,300.15
AXA Premier VIP Large Cap Growth $ 1,189.55 $ 1,985.32 $ 2,310.72 $ 4,245.63
AXA Premier VIP Large Cap Value $ 1,188.50 $ 1,982.25 $ 2,305.46 $ 4,236.51
AXA Premier VIP Small/Mid Cap Growth $ 1,209.50 $ 2,043.55 $ 2,410.26 $ 4,417.12
AXA Premier VIP Small/Mid Cap Value $ 1,209.50 $ 2,043.55 $ 2,410.26 $ 4,417.12
AXA Premier VIP Technology $ 1,235.75 $ 2,119.81 $ 2,539.98 $ 4,637.64
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 1,122.35 $ 1,787.42 $ 1,969.31 $ 3,642.37
EQ/Alliance Growth and Income $ 1,131.80 $ 1,815.41 $ 2,017.90 $ 3,729.64
EQ/Alliance Intermediate Government Securities $ 1,126.55 $ 1,799.87 $ 1,990.93 $ 3,681.25
EQ/Alliance International $ 1,157.00 $ 1,889.80 $ 2,146.53 $ 3,958.42
EQ/Alliance Large Cap Growth* $ 1,167.50 $ 1,920.68 $ 2,199.74 $ 4,052.08
EQ/Alliance Quality Bond $ 1,126.55 $ 1,799.87 $ 1,990.93 $ 3,681.25
EQ/Alliance Small Cap Growth $ 1,152.80 $ 1,877.43 $ 2,125.19 $ 3,920.69
EQ/Bear Stearns Small Company Growth* $ 1,191.65 $ 1,991.46 $ 2,321.23 $ 4,263.84
EQ/Bernstein Diversified Value $ 1,141.25 $ 1,843.35 $ 2,066.29 $ 3,816.10
EQ/Boston Advisors Equity Income* $ 1,168.55 $ 1,923.76 $ 2,205.05 $ 4,061.40
EQ/Calvert Socially Responsible $ 1,166.45 $ 1,917.59 $ 2,194.43 $ 4,042.76
EQ/Capital Guardian Growth $ 1,145.45 $ 1,855.75 $ 2,087.74 $ 3,854.27
EQ/Capital Guardian International $ 1,174.85 $ 1,942.26 $ 2,236.84 $ 4,117.07
EQ/Capital Guardian Research $ 1,141.25 $ 1,843.35 $ 2,066.29 $ 3,816.10
EQ/Capital Guardian U.S. Equity $ 1,141.25 $ 1,843.35 $ 2,066.29 $ 3,816.10
EQ/Caywood-Scholl High Yield Bond $ 1,143.35 $ 1,849.55 $ 2,077.02 $ 3,835.20
EQ/Equity 500 Index $ 1,099.25 $ 1,718.76 $ 1,849.76 $ 3,425.60
EQ/Evergreen Omega $ 1,147.55 $ 1,861.95 $ 2,098.45 $ 3,873.29
EQ/FI Mid Cap $ 1,147.55 $ 1,861.95 $ 2,098.45 $ 3,873.29
EQ/FI Small/Mid Cap Value $ 1,153.85 $ 1,880.52 $ 2,130.53 $ 3,930.14
EQ/International Growth $ 1,180.10 $ 1,957.65 $ 2,263.28 $ 4,163.20
EQ/J.P. Morgan Core Bond $ 1,120.25 $ 1,781.19 $ 1,958.49 $ 3,622.86
EQ/JP Morgan Value Opportunities $ 1,141.25 $ 1,843.35 $ 2,066.29 $ 3,816.10
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
If you annuitize at the end of the applicable time period
- ------------------------------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 773.15 $ 1,633.25 $ 2,512.10 $ 4,793.89
AXA Conservative Allocation $ 760.55 $ 1,596.61 $ 2,453.01 $ 4,686.31
AXA Conservative-Plus Allocation $ 754.25 $ 1,578.25 $ 2,423.35 $ 4,632.02
AXA Moderate Allocation $ 742.49 $ 1,543.91 $ 2,367.77 $ 4,529.75
AXA Moderate-Plus Allocation $ 766.85 $ 1,614.94 $ 2,482.59 $ 4,740.27
AXA Premier VIP Aggressive Equity $ 712.25 $ 1,455.25 $ 2,223.61 $ 4,261.23
AXA Premier VIP Core Bond $ 712.25 $ 1,455.25 $ 2,223.61 $ 4,261.23
AXA Premier VIP Health Care $ 796.25 $ 1,700.20 $ 2,619.62 $ 4,987.64
AXA Premier VIP High Yield $ 708.05 $ 1,442.89 $ 2,203.44 $ 4,223.29
AXA Premier VIP International Equity $ 791.00 $ 1,685.01 $ 2,595.27 $ 4,944.00
AXA Premier VIP Large Cap Core Equity $ 756.35 $ 1,584.37 $ 2,433.25 $ 4,650.15
AXA Premier VIP Large Cap Growth $ 750.05 $ 1,566.00 $ 2,403.53 $ 4,595.63
AXA Premier VIP Large Cap Value $ 749.00 $ 1,562.93 $ 2,398.57 $ 4,586.51
AXA Premier VIP Small/Mid Cap Growth $ 770.00 $ 1,624.10 $ 2,497.36 $ 4,767.12
AXA Premier VIP Small/Mid Cap Value $ 770.00 $ 1,624.10 $ 2,497.36 $ 4,767.12
AXA Premier VIP Technology $ 796.25 $ 1,700.20 $ 2,619.62 $ 4,987.64
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 682.85 $ 1,368.52 $ 2,081.70 $ 3,992.37
EQ/Alliance Growth and Income $ 692.30 $ 1,396.45 $ 2,127.50 $ 4,079.64
EQ/Alliance Intermediate Government Securities $ 687.05 $ 1,380.94 $ 2,102.08 $ 4,031.25
EQ/Alliance International $ 717.50 $ 1,470.68 $ 2,248.77 $ 4,308.42
EQ/Alliance Large Cap Growth* $ 728.00 $ 1,501.50 $ 2,298.92 $ 4,402.08
EQ/Alliance Quality Bond $ 687.05 $ 1,380.94 $ 2,102.08 $ 4,031.25
EQ/Alliance Small Cap Growth $ 713.30 $ 1,458.33 $ 2,228.64 $ 4,270.69
EQ/Bear Stearns Small Company Growth* $ 752.15 $ 1,572.12 $ 2,413.45 $ 4,613.84
EQ/Bernstein Diversified Value $ 701.75 $ 1,424.33 $ 2,173.12 $ 4,166.10
EQ/Boston Advisors Equity Income* $ 729.05 $ 1,504.57 $ 2,303.92 $ 4,411.40
EQ/Calvert Socially Responsible $ 726.95 $ 1,498.42 $ 2,293.91 $ 4,392.76
EQ/Capital Guardian Growth $ 705.95 $ 1,436.71 $ 2,193.34 $ 4,204.27
EQ/Capital Guardian International $ 735.35 $ 1,523.03 $ 2,333.90 $ 4,467.07
EQ/Capital Guardian Research $ 701.75 $ 1,424.33 $ 2,173.12 $ 4,166.10
EQ/Capital Guardian U.S. Equity $ 701.75 $ 1,424.33 $ 2,173.12 $ 4,166.10
EQ/Caywood-Scholl High Yield Bond $ 703.85 $ 1,430.52 $ 2,183.24 $ 4,185.20
EQ/Equity 500 Index $ 659.75 $ 1,300.01 $ 1,968.98 $ 3,775.60
EQ/Evergreen Omega $ 708.05 $ 1,442.89 $ 2,203.44 $ 4,223.29
EQ/FI Mid Cap $ 708.05 $ 1,442.89 $ 2,203.44 $ 4,223.29
EQ/FI Small/Mid Cap Value $ 714.35 $ 1,461.42 $ 2,233.68 $ 4,280.14
EQ/International Growth $ 740.60 $ 1,538.39 $ 2,358.82 $ 4,513.20
EQ/J.P. Morgan Core Bond $ 680.75 $ 1,362.30 $ 2,071.49 $ 3,972.86
EQ/JP Morgan Value Opportunities $ 701.75 $ 1,424.33 $ 2,173.12 $ 4,166.10
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end
of the applicable time period
- ------------------------------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 423.15 $ 1,283.25 $ 2,162.10 $ 4,443.89
AXA Conservative Allocation $ 410.55 $ 1,246.61 $ 2,103.01 $ 4,336.31
AXA Conservative-Plus Allocation $ 404.25 $ 1,228.25 $ 2,073.35 $ 4,282.02
AXA Moderate Allocation $ 392.49 $ 1,193.91 $ 2,017.77 $ 4,179.75
AXA Moderate-Plus Allocation $ 416.85 $ 1,264.94 $ 2,132.59 $ 4,390.27
AXA Premier VIP Aggressive Equity $ 362.25 $ 1,105.25 $ 1,873.61 $ 3,911.23
AXA Premier VIP Core Bond $ 362.25 $ 1,105.25 $ 1,873.61 $ 3,911.23
AXA Premier VIP Health Care $ 446.25 $ 1,350.20 $ 2,269.62 $ 4,637.64
AXA Premier VIP High Yield $ 358.05 $ 1,092.89 $ 1,853.44 $ 3,873.29
AXA Premier VIP International Equity $ 441.00 $ 1,335.01 $ 2,245.27 $ 4,594.00
AXA Premier VIP Large Cap Core Equity $ 406.35 $ 1,234.37 $ 2,083.25 $ 4,300.15
AXA Premier VIP Large Cap Growth $ 400.05 $ 1,216.00 $ 2,053.53 $ 4,245.63
AXA Premier VIP Large Cap Value $ 399.00 $ 1,212.93 $ 2,048.57 $ 4,236.51
AXA Premier VIP Small/Mid Cap Growth $ 420.00 $ 1,274.10 $ 2,147.36 $ 4,417.12
AXA Premier VIP Small/Mid Cap Value $ 420.00 $ 1,274.10 $ 2,147.36 $ 4,417.12
AXA Premier VIP Technology $ 446.25 $ 1,350.20 $ 2,269.62 $ 4,637.64
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 332.85 $ 1,018.52 $ 1,731.70 $ 3,642.37
EQ/Alliance Growth and Income $ 342.30 $ 1,046.45 $ 1,777.50 $ 3,729.64
EQ/Alliance Intermediate Government Securities $ 337.05 $ 1,030.94 $ 1,752.08 $ 3,681.25
EQ/Alliance International $ 367.50 $ 1,120.68 $ 1,898.77 $ 3,958.42
EQ/Alliance Large Cap Growth* $ 378.00 $ 1,151.50 $ 1,948.92 $ 4,052.08
EQ/Alliance Quality Bond $ 337.05 $ 1,030.94 $ 1,752.08 $ 3,681.25
EQ/Alliance Small Cap Growth $ 363.30 $ 1,108.33 $ 1,878.64 $ 3,920.69
EQ/Bear Stearns Small Company Growth* $ 402.15 $ 1,222.12 $ 2,063.45 $ 4,263.84
EQ/Bernstein Diversified Value $ 351.75 $ 1,074.33 $ 1,823.12 $ 3,816.10
EQ/Boston Advisors Equity Income* $ 379.05 $ 1,154.57 $ 1,953.92 $ 4,061.40
EQ/Calvert Socially Responsible $ 376.95 $ 1,148.42 $ 1,943.91 $ 4,042.76
EQ/Capital Guardian Growth $ 355.95 $ 1,086.71 $ 1,843.34 $ 3,854.27
EQ/Capital Guardian International $ 385.35 $ 1,173.03 $ 1,983.90 $ 4,117.07
EQ/Capital Guardian Research $ 351.75 $ 1,074.33 $ 1,823.12 $ 3,816.10
EQ/Capital Guardian U.S. Equity $ 351.75 $ 1,074.33 $ 1,823.12 $ 3,816.10
EQ/Caywood-Scholl High Yield Bond $ 353.85 $ 1,080.52 $ 1,833.24 $ 3,835.20
EQ/Equity 500 Index $ 309.75 $ 950.01 $ 1,618.98 $ 3,425.60
EQ/Evergreen Omega $ 358.05 $ 1,092.89 $ 1,853.44 $ 3,873.29
EQ/FI Mid Cap $ 358.05 $ 1,092.89 $ 1,853.44 $ 3,873.29
EQ/FI Small/Mid Cap Value $ 364.35 $ 1,111.42 $ 1,883.68 $ 3,930.14
EQ/International Growth $ 390.60 $ 1,188.39 $ 2,008.82 $ 4,163.20
EQ/J.P. Morgan Core Bond $ 330.75 $ 1,012.30 $ 1,721.49 $ 3,622.86
EQ/JP Morgan Value Opportunities $ 351.75 $ 1,074.33 $ 1,823.12 $ 3,816.10
- ------------------------------------------------------------------------------------------------------------------------------------
11
- ------------------------------------------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of the applicable time period
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth $ 1,170.65 $ 1,929.93 $ 2,215.65 $ 4,079.99
EQ/Lazard Small Cap Value $ 1,151.75 $ 1,874.33 $ 2,119.84 $ 3,911.23
EQ/Long Term Bond $ 1,146.50 $ 1,858.85 $ 2,093.10 $ 3,863.79
EQ/Lord Abbett Growth and Income $ 1,155.95 $ 1,886.71 $ 2,141.20 $ 3,949.00
EQ/Lord Abbett Large Cap Core $ 1,155.95 $ 1,886.71 $ 2,141.20 $ 3,949.00
EQ/Lord Abbett Mid Cap Value $ 1,161.20 $ 1,902.16 $ 2,167.84 $ 3,996.00
EQ/Marsico Focus $ 1,166.45 $ 1,917.59 $ 2,194.43 $ 4,042.76
EQ/Mercury Basic Value Equity $ 1,133.90 $ 1,821.62 $ 2,028.67 $ 3,748.92
EQ/Mercury International Value $ 1,172.75 $ 1,936.10 $ 2,226.25 $ 4,098.55
EQ/Mergers and Acquisitions $ 1,289.30 $ 2,274.10 $ 2,800.25 $ 5,069.90
EQ/MFS Emerging Growth Companies $ 1,142.30 $ 1,846.45 $ 2,071.66 $ 3,825.66
EQ/MFS Investors Trust $ 1,141.25 $ 1,843.35 $ 2,066.29 $ 3,816.10
EQ/Money Market $ 1,108.70 $ 1,746.89 $ 1,898.80 $ 3,514.87
EQ/Montag & Caldwell Growth* $ 1,159.10 $ 1,895.98 $ 2,157.19 $ 3,977.23
EQ/PIMCO Real Return $ 1,146.50 $ 1,858.85 $ 2,093.10 $ 3,863.79
EQ/Short Duration Bond $ 1,169.60 $ 1,926.85 $ 2,210.35 $ 4,070.70
EQ/Small Company Index $ 1,107.65 $ 1,743.76 $ 1,893.36 $ 3,504.99
EQ/Small Company Value* $ 1,164.35 $ 1,911.42 $ 2,183.80 $ 4,024.09
EQ/TCW Equity* $ 1,164.35 $ 1,911.42 $ 2,183.80 $ 4,024.09
EQ/UBS Growth and Income* $ 1,163.30 $ 1,908.33 $ 2,178.48 $ 4,014.74
EQ/Van Kampen Comstock $ 1,155.95 $ 1,886.71 $ 2,141.20 $ 3,949.00
EQ/Van Kampen Emerging Markets Equity* $ 1,230.50 $ 2,104.59 $ 2,514.15 $ 4,594.00
EQ/Van Kampen Mid Cap Growth $ 1,161.20 $ 1,902.16 $ 2,167.84 $ 3,996.00
EQ/Wells Fargo Montgomery Small Cap $ 1,840.55 $ 3,765.44 $ 5,160.24 $ 8,364.52
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
If you annuitize at the end of the applicable time period
- ------------------------------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth $ 731.15 $ 1,510.73 $ 2,313.92 $ 4,429.99
EQ/Lazard Small Cap Value $ 712.25 $ 1,455.25 $ 2,223.61 $ 4,261.23
EQ/Long Term Bond $ 707.00 $ 1,439.80 $ 2,198.39 $ 4,213.79
EQ/Lord Abbett Growth and Income $ 716.45 $ 1,467.59 $ 2,243.74 $ 4,299.00
EQ/Lord Abbett Large Cap Core $ 716.45 $ 1,467.59 $ 2,243.74 $ 4,299.00
EQ/Lord Abbett Mid Cap Value $ 721.70 $ 1,483.01 $ 2,268.85 $ 4,346.00
EQ/Marsico Focus $ 726.95 $ 1,498.42 $ 2,293.91 $ 4,392.76
EQ/Mercury Basic Value Equity $ 694.40 $ 1,402.65 $ 2,137.65 $ 4,098.92
EQ/Mercury International Value $ 733.25 $ 1,516.88 $ 2,323.92 $ 4,448.55
EQ/Mergers and Acquisitions $ 849.80 $ 1,854.16 $ 2,864.89 $ 5,419.90
EQ/MFS Emerging Growth Companies $ 702.80 $ 1,427.43 $ 2,178.18 $ 4,175.66
EQ/MFS Investors Trust $ 701.75 $ 1,424.33 $ 2,173.12 $ 4,166.10
EQ/Money Market $ 669.20 $ 1,328.07 $ 2,015.22 $ 3,864.87
EQ/Montag & Caldwell Growth* $ 719.60 $ 1,476.85 $ 2,258.81 $ 4,327.23
EQ/PIMCO Real Return $ 707.00 $ 1,439.80 $ 2,198.39 $ 4,213.79
EQ/Short Duration Bond $ 730.10 $ 1,507.65 $ 2,308.93 $ 4,420.70
EQ/Small Company Index $ 668.15 $ 1,324.96 $ 2,010.09 $ 3,854.99
EQ/Small Company Value* $ 724.85 $ 1,492.26 $ 2,283.90 $ 4,374.09
EQ/TCW Equity* $ 724.85 $ 1,492.26 $ 2,283.90 $ 4,374.09
EQ/UBS Growth and Income* $ 723.80 $ 1,489.18 $ 2,278.89 $ 4,364.74
EQ/Van Kampen Comstock $ 716.45 $ 1,467.59 $ 2,243.74 $ 4,299.00
EQ/Van Kampen Emerging Markets Equity* $ 791.00 $ 1,685.01 $ 2,595.27 $ 4,944.00
EQ/Van Kampen Mid Cap Growth $ 721.70 $ 1,483.01 $ 2,268.85 $ 4,346.00
EQ/Wells Fargo Montgomery Small Cap $ 1,401.05 $ 3,342.17 $ 5,086.82 $ 8,714.52
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end
of the applicable time period
- ------------------------------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth $ 381.15 $ 1,160.73 $ 1,963.92 $ 4,079.99
EQ/Lazard Small Cap Value $ 362.25 $ 1,105.25 $ 1,873.61 $ 3,911.23
EQ/Long Term Bond $ 357.00 $ 1,089.80 $ 1,848.39 $ 3,863.79
EQ/Lord Abbett Growth and Income $ 366.45 $ 1,117.59 $ 1,893.74 $ 3,949.00
EQ/Lord Abbett Large Cap Core $ 366.45 $ 1,117.59 $ 1,893.74 $ 3,949.00
EQ/Lord Abbett Mid Cap Value $ 371.70 $ 1,133.01 $ 1,918.85 $ 3,996.00
EQ/Marsico Focus $ 376.95 $ 1,148.42 $ 1,943.91 $ 4,042.76
EQ/Mercury Basic Value Equity $ 344.40 $ 1,052.65 $ 1,787.65 $ 3,748.92
EQ/Mercury International Value $ 383.25 $ 1,166.88 $ 1,973.92 $ 4,098.55
EQ/Mergers and Acquisitions $ 499.80 $ 1,504.16 $ 2,514.89 $ 5,069.90
EQ/MFS Emerging Growth Companies $ 352.80 $ 1,077.43 $ 1,828.18 $ 3,825.66
EQ/MFS Investors Trust $ 351.75 $ 1,074.33 $ 1,823.12 $ 3,816.10
EQ/Money Market $ 319.20 $ 978.07 $ 1,665.22 $ 3,514.87
EQ/Montag & Caldwell Growth* $ 369.60 $ 1,126.85 $ 1,908.81 $ 3,977.23
EQ/PIMCO Real Return $ 357.00 $ 1,089.80 $ 1,848.39 $ 3,863.79
EQ/Short Duration Bond $ 380.10 $ 1,157.65 $ 1,958.93 $ 4,070.70
EQ/Small Company Index $ 318.15 $ 974.96 $ 1,660.09 $ 3,504.99
EQ/Small Company Value* $ 374.85 $ 1,142.26 $ 1,933.90 $ 4,024.09
EQ/TCW Equity* $ 374.85 $ 1,142.26 $ 1,933.90 $ 4,024.09
EQ/UBS Growth and Income* $ 373.80 $ 1,139.18 $ 1,928.89 $ 4,014.74
EQ/Van Kampen Comstock $ 366.45 $ 1,117.59 $ 1,893.74 $ 3,949.00
EQ/Van Kampen Emerging Markets Equity* $ 441.00 $ 1,335.01 $ 2,245.27 $ 4,594.00
EQ/Van Kampen Mid Cap Growth $ 371.70 $ 1,133.01 $ 1,918.85 $ 3,996.00
EQ/Wells Fargo Montgomery Small Cap $ 1,051.05 $ 2,992.17 $ 4,736.82 $ 8,364.52
- ------------------------------------------------------------------------------------------------------------------------------------
* This is the option's new name, effective on or about May 9, 2005, subject
to regulatory approval. Please see "Portfolios of the Trusts" earlier in
this Supplement for the option's former name.
12
(5) IMPORTANT INFORMATION ABOUT YOUR GUARANTEED BENEFITS
For purposes of calculating any applicable guaranteed minimum death benefit or
guaranteed minimum income benefit (if elected) that rolls-up at a specified
rate, the EQ/PIMCO Real Return and the EQ/Short Duration Bond join EQ/Money
Market, EQ/Alliance Intermediate Government Securities, and the Fixed Maturity
Options (FMOs) as investment options for which the benefit base rolls up at 3%.
In some early Accumulator(R) Series, this group of funds rolls up at 4% and
certain additional variable investment options roll up at 3%. All other
investment options continue to roll up at 5% or, as provided by your
Accumulator(R) Series contract 6% (4% roll up for "Greater of" Guaranteed
minimum death benefit elections in the state of Washington.) For more
information about these benefits, please see "Contract features and benefits"
in your Prospectus or your contract, or consult with your financial
professional.
(6) TAX INFORMATION
REQUIRED MINIMUM DISTRIBUTIONS
Certain provisions of Treasury Regulations will require, beginning in 2006,
that the actuarial present value of additional annuity contract benefits be
added to the dollar amount credited for purposes of calculating certain types
of required minimum distributions from individual retirement annuity contracts.
This could increase the amount required to be distributed from these contracts
if you take annual withdrawals instead of annuitizing.
(7) UPDATED INFORMATION ON AXA EQUITABLE
We are AXA Equitable Life Insurance Company ("AXA Equitable") (previously, "The
Equitable Life Assurance Society of the United States"), a New York stock life
insurance corporation. We have been doing business since 1859. AXA Equitable is
a subsidiary of AXA Financial, Inc. AXA, a French holding company for an
international group of insurance and related financial services companies, is
the sole shareholder of AXA Financial, Inc. As the sole shareholder, and under
its other arrangements with AXA Equitable and AXA Equitable's parent, AXA
exercises significant influence over the operations and capital structure of
AXA Equitable and its parent. No company other than AXA Equitable, however, has
any legal responsibility to pay amounts that AXA Equitable owes under the
contract.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$598 billion in assets as of December 31, 2004. For over 100 years AXA
Equitable has been among the largest insurance companies in the United States.
We are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office
is located at 1290 Avenue of the Americas, New York, N.Y. 10104.
(8) DISRUPTIVE TRANSFER ACTIVITY
DISRUPTIVE TRANSFER ACTIVITY
You should note that the contract is not designed for professional "market
timing" organizations, or other organizations or individuals engaging in a
market timing strategy. The contract is not designed for programmed transfers,
frequent transfers or transfers that are large in relation to the total assets
of the underlying portfolio.
Frequent transfers, including market timing and other program trading or
short-term trading strategies, may be disruptive to the underlying portfolios
in which the variable investment options invest. Disruptive transfer activity
may adversely affect performance and the interests of long-term investors by
requiring a portfolio to maintain larger amounts of cash or to liquidate
portfolio holdings at a disadvantageous time or price. For example, when market
timing occurs, a portfolio may have to sell its holdings to have the cash
necessary to redeem the market timer's investment. This can happen when it is
not advantageous to sell any securities, so the portfolio's performance may be
hurt. When large dollar amounts are involved, market timing can also make it
difficult to use long-term investment strategies because a portfolio cannot
predict how much cash it will have to invest. In addition, disruptive transfers
or purchases and redemptions of portfolio investments may impede efficient
portfolio management and impose increased transaction costs, such as brokerage
costs, by requiring the portfolio manager to effect more frequent purchases and
sales of portfolio securities. Similarly, a portfolio may bear increased
administrative costs as a result of the asset level and investment volatility
that accompanies patterns of excessive or short-term trading. Portfolios that
invest a significant portion of their assets in foreign securities or the
securities of small- and mid-capitalization companies tend to be subject to the
risks associated with market timing and short-term trading strategies to a
greater extent than portfolios that do not. Securities trading in overseas
markets present time zone arbitrage opportunities when events affecting
portfolio securities values occur after the close of the overseas market but
prior to the close of the U.S. markets. Securities of small- and
mid-capitalization companies present arbitrage opportunities because the market
for such securities may be less liquid than the market for securities of larger
companies, which could result in pricing inefficiencies. Please see the
prospectuses for the underlying portfolios for more information on how
portfolio shares are priced.
We currently use the procedures described below to discourage disruptive
transfer activity. You should understand, however, that these procedures are
subject to the following limitations: (1) they primarily rely on the policies
and procedures implemented by the underlying portfolios; (2) they do
13
not eliminate the possibility that disruptive transfer activity, including
market timing, will occur or that portfolio performance will be affected by
such activity; and (3) the design of market timing procedures involves
inherently subjective judgments, which we seek to make in a fair and reasonable
manner consistent with the interests of all policy and contract owners.
The AXA Premier VIP Trust and EQ Advisors Trust (the "affiliated trusts") have
adopted policies and procedures designed to discourage disruptive transfers by
contract owners investing in the portfolios of the affiliated trusts. The
affiliated trusts discourage frequent purchases and redemptions of portfolio
shares and will not make special arrangements to accommodate such transactions.
As a general matter, the affiliated trusts reserve the right to refuse or limit
any purchase or exchange order by a particular investor (or group of related
investors) if the transaction is deemed harmful to the portfolio's other
investors or would disrupt the management of the portfolio. The affiliated
trusts monitor aggregate inflows and outflows for each portfolio on a daily
basis. On any day when a portfolio's net inflows or outflows exceed an
established monitoring threshold, the affiliated trust obtains from us contract
owner trading activity. The affiliated trusts currently consider transfers into
and out of (or vice versa) the same variable investment option within a five
business day period as potentially disruptive transfer activity. When a
contract owner is identified as having engaged in a potentially disruptive
transfer for the first time, a letter is sent to the contract owner explaining
that there is a policy against disruptive transfer activity and that if such
activity continues certain transfer privileges may be eliminated. If and when
the contract owner is identified a second time as engaged in potentially
disruptive transfer activity, we currently prohibit the use of voice, fax and
automated transaction services. We currently apply such action for the
remaining life of each affected contract. We or the affiliated trusts may
change the definition of potentially disruptive transfer activity, the
monitoring procedures and thresholds, any notification procedures, and the
procedures to restrict this activity. Any new or revised policies and
procedures will apply to all contract owners uniformly. We do not permit
exceptions to our policies restricting disruptive transfer activity.
We may also offer investment options with underlying portfolios that are not
part of the AXA Premier VIP Trust or EQ Advisors Trust (the "unaffiliated
trusts"). Each unaffiliated trust may have its own policies and procedures
regarding disruptive transfer activity, which may be different than those
applied by the affiliated trusts. In most cases, the unaffiliated trust
reserves the right to reject a transfer that it believes, in its sole
discretion, is disruptive (or potentially disruptive) to the management of one
of its portfolios. Please see the prospectus for the underlying trust for
information regarding the policies and procedures, if any, employed by that
trust and any associated risks of investing in that trust. If an unaffiliated
trust advises us that there may be disruptive transfer activity from our
contract owners, we will work with the unaffiliated trust to review contract
owner trading activity. If the underlying trust determines that the trading
activity of a particular contract owner is disruptive, we will take action to
limit the disruptive trading activity of that contract owner as described
above.
Contract owners should note that it is not always possible for us and the
underlying trusts to identify and prevent disruptive transfer activity. Our
ability to monitor potentially disruptive transfer activity is limited in
particular with respect to certain group contracts. Group annuity contracts may
be owned by retirement plans on whose behalf we provide transfer instructions
on an omnibus (aggregate) basis, which may mask the disruptive transfer
activity of individual plan participants, and/or interfere with our ability to
restrict communication services. In addition, because we do not monitor for all
frequent trading at the separate account level, contract owners may engage in
frequent trading which may not be detected, for example due to low net inflows
or outflows on the particular day(s). Therefore, no assurance can be given that
we or the trusts will successfully impose restrictions on all disruptive
transfers. Because there is no guarantee that disruptive trading will be
stopped, some contract owners/ participants may be treated differently than
others, resulting in the risk that some contract owners/participants may be
able to engage in frequent transfer activity while others will bear the effect
of that frequent transfer activity. The potential affects of frequent transfer
activity are discussed above.
(9) WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept initial and subsequent contributions sent by wire to our processing
office by agreement with certain broker-dealers. Such transmittals must be
accompanied by information we require to allocate your contribution. Wire
orders not accompanied by complete information may be retained as described
under "How you can make your contributions" under "Contract features and
benefits" earlier in this Prospectus.
Even if we accept the wire order and essential information, a contract
generally will not be issued until we receive and accept a properly completed
application. In certain cases we may issue a contract based on information
provided through certain broker-dealers with which we have established
electronic facilities. In any such cases, you must sign our Acknowledgment of
Receipt form.
Where we require a signed application, the above procedures do not apply and no
financial transactions will be permitted until we receive the signed
application and have issued the contract. Where we issue a contract based on
information provided through electronic facilities, we require an
Acknowledgment of Receipt form, and financial transactions are only permitted
if you request them in writing, sign the request and have it signature
guaranteed, until we receive the signed Acknowledgment of Receipt form. After
your contract has been issued, additional contributions may be transmitted by
wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken
14
to pay contribution amounts on behalf of our customers. In such cases, the
transaction date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
After your contract has been issued, additional contributions may be
transmitted by wire.
(10) CERTAIN INFORMATION ABOUT OUR BUSINESS DAY
Our business day, generally, is any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions. Our business day generally ends at 4:00 p.m. Eastern Time for
purposes of determining the date when contributions are applied and any other
transaction requests are processed. Contributions will be applied and any other
transaction requests will be processed when they are received along with all
the required information.
If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your contribution
will be considered received at the time your broker-dealer receives your
contribution and all information needed to process your application, along with
any required documents, and transmits your order to us in accordance with our
processing procedures. Such arrangements may apply to initial contributions,
subsequent contributions, or both, and may be commenced or terminated at any
time without prior notice. If required by law, the "closing time" for such
orders will be earlier than 4 p.m., Eastern Time.
For more information, including additional instances when a different date may
apply to your contributions, please see "More Information" in your prospectus.
(11) LEGAL PROCEEDINGS
AXA Equitable and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings would be considered material with respect
to a contract owner's interest in Separate Account Nos. 45 and 49,
respectively, nor would any of these proceedings be likely to have a material
adverse effect upon either Separate Account, our ability to meet our
obligations under the contracts, or the distribution of the contracts.
(12) DISTRIBUTION OF THE CONTRACTS
The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and
AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The
Distributors serve as principal underwriters of Separate Account Nos. 45 and
49, respectively. The offering of the contracts is intended to be continuous.
AXA Advisors (the successor to EQ Financial Consultants, Inc.), an affiliate of
AXA Equitable, and AXA Distributors, an indirect wholly owned subsidiary of AXA
Equitable, are registered with the SEC as broker-dealers and are members of the
National Association of Securities Dealers, Inc. ("NASD"). Their principal
business address is 1290 Avenue of the Americas, New York, NY 10104. Both
broker-dealers also act as distributors for other AXA Equitable annuity
products. AXA Distributors is a successor by merger to all of the functions,
rights and obligations of Equitable Distributors, Inc. ("EDI"). Like AXA
Distributors, EDI was owned by Equitable Holdings, LLC.
The contracts are sold by financial professionals of AXA Advisors and its
affiliates and by financial professionals of both affiliated and unaffiliated
broker-dealers that have entered into selling agreements with the Distributors
("Selling broker-dealers"). Affiliated broker-dealers include MONY Securities
Corporation ("MSC")* and Advest, Inc. The Distributors, MSC and Advest are all
under the common control of AXA Financial, Inc.
AXA Equitable pays sales compensation to both Distributors. In general,
broker-dealers receiving sales compensation will pay all or a portion of it to
its individual financial representatives (or to its Selling broker-dealers) as
commissions related to the sale of contracts.
Sales compensation paid to AXA Advisors will generally not exceed 8.5% of the
total contributions made under the contracts. AXA Advisors, in turn, may pay
its financial professionals (or Selling broker-dealers) either a portion of the
contribution-based compensation or a reduced portion of the contribution-based
compensation in combination with ongoing annual compensation ("asset-based
compensation") up to 1.20% of the account value of the contract sold, based on
the financial professional's choice. Contribution-based compensation, when
combined with asset-based compensation, could exceed 8.5% of the total
contributions made under the contracts.
Sales compensation paid to AXA Distributors will generally not exceed 7.50% of
the total contributions made under the contracts. AXA Distributors, at the
direction of a Selling broker-dealer, may elect to receive reduced
contribution-based compensation in combination with asset-based compensation of
up to 1.25% of the account value of all or a portion of the contracts sold
through the broker-dealer. Contribution-based compensation, when combined with
asset-based compensation, could exceed 7.50% of the total contributions made
under the contracts. The sales compensation we pay varies among broker-dealers.
AXA Distributors may also receive compensation and reimbursement for its
marketing services under the terms of its distribution agreement with AXA
Equitable.
- ----------
* On or about June 6, 2005, MSC financial professionals are expected to
become financial professionals of AXA Advisors. From that date forward,
former MSC financial professionals will be compensated by AXA Advisors, and
the Distributors will replace MSC as the principal underwriters of its
affiliated produc
15
The Distributors may also pay certain affiliated and/or unaffiliated
broker-dealers and other financial intermediaries additional compensation for
certain services in recognition of certain expenses that may be incurred by
them or on their behalf (commonly referred to as "marketing allowances").
Services for which such payments are made may include, but are not limited to,
the preferred placement of AXA Equitable and/or Accumulator(R) products on a
company product list; sales personnel training; due diligence and related
costs; marketing and related services; conferences; and/or other support
services, including some that may benefit the contract owner. Payments may be
based on the amount of assets or purchase payments attributable to contracts
sold through a broker-dealer. We may also make fixed payments to broker-dealers
in connection with the initiation of a new relationship or the introduction of
a new product. These payments may serve as an incentive for Selling
broker-dealers to promote the sale of our products. Additionally, as an
incentive for financial professionals of Selling broker-dealers to promote the
sale of our products, we may increase the sales compensation paid to the
Selling broker-dealer for a period of time (commonly referred to as
"compensation enhancements"). These types of payments are made out of the
Distributors' assets. Not all Selling broker-dealers receive additional
compensation. For more information about any such arrangements, ask your
financial professional.
The Distributors will receive 12b-1 fees from certain portfolios for providing
certain distribution and/or shareholder support services. In connection with
portfolios offered through unaffiliated insurance trusts, the Distributors may
also receive other payments from the portfolio advisers and/or their affiliates
for administrative costs, as well as payments for sales meetings and/or seminar
sponsorships.
In an effort to promote the sale of our products, AXA Advisors may provide its
financial professionals and managerial personnel with a higher percentage of
sales commissions and/or compensation for the sale of an affiliated variable
product than it would the sale of an unaffiliated product. Such practice is
known as providing "differential compensation." Other forms of compensation
financial professionals may receive include health and retirement benefits. In
addition, managerial personnel may receive expense reimbursements, marketing
allowances and commission-based payments known as "overrides." For tax reasons,
AXA Advisors financial professionals qualify for health and retirement benefits
based solely on their sales of our affiliated products.
These payments and differential compensation (together, the "payments") can
vary in amount based on the applicable product and/or entity or individual
involved. As with any incentive, such payments may cause the financial
professional to show preference in recommending the purchase or sale of our
products. However, under applicable rules of the NASD, AXA Advisors may only
recommend to you products that they reasonably believe are suitable for you
based on facts that you have disclosed as to your other security holdings,
financial situation and needs. In making any recommendation, financial
professionals may nonetheless face conflicts of interest because of the
differences in compensation from one product category to another, and because
of differences in compensation between products in the same category.
In addition, AXA Advisors financial professionals who meet specified production
levels for the sale of both affiliated and unaffiliated products may qualify,
under sales incentive programs, to receive non-cash compensation such as stock
options awards and/or stock appreciation rights, expense-paid trips,
expense-paid educational seminars and merchandise.
Although AXA Equitable takes all of its costs into account in establishing the
level of fees and expenses in our products, any compensation paid will not
result in any separate charge to you under your contract. All payments made
will be in compliance with all applicable NASD rules and other laws and
regulations.
(13) CONDENSED FINANCIAL INFORMATION
The following table sets forth the unit values and number of units outstanding
at the year end for each variable investment option, except those options
offered for the first time after December 31, 2004. The table shows unit values
based on the lowest and highest charges that would apply to any contract or
investment option to which this supplement relates, including the lowest and
highest charges that would apply to the underlying portfolios. Therefore, if
your contract has different charges or features than those assumed, your unit
values will be different than those shown. Please refer to the SAI for a
complete presentation of the unit values and units outstanding. The table also
shows the total number of units outstanding for all contracts to which this
supplement relates.
16
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account 45 with the same daily asset charges of 1.15%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- ----------------------------------------------------------------------------------------------------------
For the years ending December 31,
----------------------------------------------
2004 2003 2002 2001
- ----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation--Class B
- ----------------------------------------------------------------------------------------------------------
Unit value $ 10.64 -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 64 -- -- --
- ----------------------------------------------------------------------------------------------------------
AXA Conservative Allocation--Class B
- ----------------------------------------------------------------------------------------------------------
Unit value $ 10.31 -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 98 -- -- --
- ----------------------------------------------------------------------------------------------------------
AXA Conservative-Plus Allocation--Class B
- ----------------------------------------------------------------------------------------------------------
Unit value $ 10.41 -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 54 -- -- --
- ----------------------------------------------------------------------------------------------------------
AXA Moderate Allocation--Class A
- ----------------------------------------------------------------------------------------------------------
Unit value $ 48.21 $ 44.75 $ 37.91 $ 43.83
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 778 909 1,013 387
- ----------------------------------------------------------------------------------------------------------
AXA Moderate Allocation--Class B
- ----------------------------------------------------------------------------------------------------------
Unit value $ 45.97 $ 42.78 $ 36.32 $ 42.10
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,106 1,263 1,386 736
- ----------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity--Class A
- ----------------------------------------------------------------------------------------------------------
Unit value $ 57.16 $ 51.45 $ 37.75 $ 53.56
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 320 387 453 576
- ----------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity--Class B
- ----------------------------------------------------------------------------------------------------------
Unit value $ 55.99 $ 50.53 $ 37.17 $ 52.87
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 272 297 327 399
- ----------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond--Class B
- ----------------------------------------------------------------------------------------------------------
Unit value $ 11.26 $ 10.97 $ 10.69 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 551 570 493 --
- ----------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care --Class B
- ----------------------------------------------------------------------------------------------------------
Unit value $ 11.11 $ 10.02 $ 7.91 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 231 234 160 --
- ----------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield--Class A
- ----------------------------------------------------------------------------------------------------------
Unit value $ 31.20 $ 28.97 $ 23.85 $ 24.80
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 132 131 93 104
- ----------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield--Class B
- ----------------------------------------------------------------------------------------------------------
Unit value $ 30.56 $ 28.44 $ 23.48 $ 24.47
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 548 583 592 707
- ----------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity--Class B
- ----------------------------------------------------------------------------------------------------------
Unit value $ 12.11 $ 10.39 $ 7.82 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 243 212 129 --
- ----------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity--Class B
- ----------------------------------------------------------------------------------------------------------
Unit value $ 10.52 $ 9.70 $ 7.66 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 131 133 88 --
- ----------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth--Class B
- ----------------------------------------------------------------------------------------------------------
Unit value $ 9.26 $ 8.78 $ 6.80 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 281 251 164 --
- ----------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value--Class B
- ----------------------------------------------------------------------------------------------------------
Unit value $ 11.61 $ 10.27 $ 7.92 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 259 232 205 --
- ----------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
-------------------------------------------------------
2000 1999 1998 1997 1996
- -------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
AXA Conservative Allocation--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
AXA Conservative-Plus Allocation--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
AXA Moderate Allocation--Class A
- -------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
AXA Moderate Allocation--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity--Class A
- -------------------------------------------------------------------------------------------------------------------
Unit value $ 72.23 $ 84.11 $ 71.60 $ 72.23 --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 705 854 1101 1261 --
- -------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value $ 71.48 $ 83.44 $ 71.21 $ 72.00 --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 478 561 680 369 --
- -------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care --Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield--Class A
- -------------------------------------------------------------------------------------------------------------------
Unit value $ 24.85 $ 27.52 $ 28.81 $ 30.73 --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 71 99 173 98 --
- -------------------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value $ 24.59 $ 27.30 $ 28.65 $ 30.63 --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 796 1,064 1,451 505 --
- -------------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
17
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- -------------------------------------------------------------------------------------------------------
For the years ending December 31,
-------------------------------------------
2004 2003 2002 2001
- -------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth--Class B
- -------------------------------------------------------------------------------------------------------
Unit value $ 9.51 $ 8.61 $ 6.21 --
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 333 384 214 --
- -------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value--Class B
- -------------------------------------------------------------------------------------------------------
Unit value $ 11.69 $ 10.26 $ 7.38 --
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 447 402 250 --
- -------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology--Class B
- -------------------------------------------------------------------------------------------------------
Unit value $ 9.18 $ 8.84 $ 5.67 --
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 537 207 44 --
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock--Class A
- -------------------------------------------------------------------------------------------------------
Unit value $ 257.37 $ 227.59 $ 153.56 $ 232.44
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 407 498 560 748
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock--Class B
- -------------------------------------------------------------------------------------------------------
Unit value $ 252.09 $ 223.47 $ 151.16 $ 229.38
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 552 639 698 875
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income--Class A
- -------------------------------------------------------------------------------------------------------
Unit value $ 29.50 $ 26.48 $ 20.49 $ 26.26
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,692 2,039 2,361 2,922
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income--Class B
- -------------------------------------------------------------------------------------------------------
Unit value $ 28.94 $ 26.04 $ 20.20 $ 25.96
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,261 2,666 3,020 3,602
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities--Class A
- -------------------------------------------------------------------------------------------------------
Unit value $ 19.55 $ 19.35 $ 19.12 $ 17.76
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 354 460 1,043 641
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities--Class B
- -------------------------------------------------------------------------------------------------------
Unit value $ 19.17 $ 19.03 $ 18.85 $ 17.56
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 766 998 1,296 1,054
- -------------------------------------------------------------------------------------------------------
EQ/Alliance International--Class A
- -------------------------------------------------------------------------------------------------------
Unit value $ 13.84 $ 11.82 $ 8.83 $ 9.91
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,509 1,843 1,978 816
- -------------------------------------------------------------------------------------------------------
EQ/Alliance International--Class B
- -------------------------------------------------------------------------------------------------------
Unit value $ 13.56 $ 11.61 $ 8.69 $ 9.77
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,359 1,568 1,624 390
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Large Cap Growth
- -------------------------------------------------------------------------------------------------------
Unit value $ 6.36 $ 5.93 $ 4.87 $ 7.16
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,269 1,663 1,968 2,839
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond-- Class B
- -------------------------------------------------------------------------------------------------------
Unit value $ 16.26 $ 15.86 $ 15.49 --
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 275 292 240 --
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth--Class A
- -------------------------------------------------------------------------------------------------------
Unit value $ 15.89 $ 14.06 $ 10.07 $ 14.57
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 358 402 428 497
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth--Class B
- -------------------------------------------------------------------------------------------------------
Unit value $ 15.60 $ 13.85 $ 9.94 $ 14.41
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1361 1,510 1,604 1,800
- -------------------------------------------------------------------------------------------------------
EQ/Bear Stearns Small Company Growth--Class B
- -------------------------------------------------------------------------------------------------------
Unit value $ 7.72 -- -- --
- -------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 13 -- -- --
- -------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
-----------------------------------------------------------
2000 1999 1998 1997 1996
- -----------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth--Class B
- -----------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value--Class B
- -----------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology--Class B
- -----------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock--Class A
- -----------------------------------------------------------------------------------------------------------------------
Unit value $ 262.80 $ 309.23 $ 249.88 $ 195.37 --
- -----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 893 993 1079 1114 --
- -----------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock--Class B
- -----------------------------------------------------------------------------------------------------------------------
Unit value $ 260.00 $ 306.70 $ 248.45 $ 194.74 --
- -----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 988 1066 1101 519 --
- -----------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income--Class A
- -----------------------------------------------------------------------------------------------------------------------
Unit value $ 26.92 $ 24.99 $ 21.30 $ 17.83 --
- -----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3,126 3,318 3481 3,433 --
- -----------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income--Class B
- -----------------------------------------------------------------------------------------------------------------------
Unit value $ 26.67 $ 24.82 $ 21.22 $ 17.80 --
- -----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3,709 3,857 3845 1,829 --
- -----------------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities--Class A
- -----------------------------------------------------------------------------------------------------------------------
Unit value $ 16.62 $ 15.40 $ 15.55 $ 14.60 --
- -----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 360 451 524 413 --
- -----------------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities--Class B
- -----------------------------------------------------------------------------------------------------------------------
Unit value $ 16.46 $ 15.30 $ 15.49 $ 14.58 --
- -----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 735 871 1,079 345 --
- -----------------------------------------------------------------------------------------------------------------------
EQ/Alliance International--Class A
- -----------------------------------------------------------------------------------------------------------------------
Unit value $ 13.00 $ 17.08 $ 12.54 $ 11.48 --
- -----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 941 855 1,001 1,151 --
- -----------------------------------------------------------------------------------------------------------------------
EQ/Alliance International--Class B
- -----------------------------------------------------------------------------------------------------------------------
Unit value $ 12.89 $ 16.97 $ 12.49 $ 11.46 --
- -----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 438 414 438 285 --
- -----------------------------------------------------------------------------------------------------------------------
EQ/Alliance Large Cap Growth
- -----------------------------------------------------------------------------------------------------------------------
Unit value $ 9.53 $ 11.81 -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3,046 1,792 -- -- --
- -----------------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond-- Class B
- -----------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth--Class A
- -----------------------------------------------------------------------------------------------------------------------
Unit value $ 16.95 $ 15.04 $ 11.90 $ 12.57 --
- -----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 487 192 314 208 --
- -----------------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth--Class B
- -----------------------------------------------------------------------------------------------------------------------
Unit value $ 16.81 $ 14.96 $ 11.86 $ 12.55 --
- -----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,985 1,762 2,306 1,084 --
- -----------------------------------------------------------------------------------------------------------------------
EQ/Bear Stearns Small Company Growth--Class B
- -----------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
18
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- ---------------------------------------------------------------------------------------------------------
For the years ending December 31,
---------------------------------------------
2004 2003 2002 2001
- ---------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value--Class B
- ---------------------------------------------------------------------------------------------------------
Unit value $ 14.61 $ 13.03 $ 10.24 $ 12.00
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,543 2,775 2,810 2,882
- ---------------------------------------------------------------------------------------------------------
EQ/Boston Advisors Equity Income--Class B
- ---------------------------------------------------------------------------------------------------------
Unit value $ 5.73 -- -- --
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 50 -- -- --
- ---------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible--Class B
- ---------------------------------------------------------------------------------------------------------
Unit value $ 8.21 $ 8.01 $ 6.34 $ 8.72
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 19 10 3 --
- ---------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Growth--Class B
- ---------------------------------------------------------------------------------------------------------
Unit value $ 12.12 $ 11.62 $ 9.48 --
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 15 14 11 --
- ---------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International--Class B
- ---------------------------------------------------------------------------------------------------------
Unit value $ 10.81 $ 9.62 $ 7.34 --
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 209 144 56 --
- ---------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research--Class B
- ---------------------------------------------------------------------------------------------------------
Unit value $ 11.44 $ 10.43 $ 8.02 $ 10.78
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,468 1,625 1,727 80
- ---------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity--Class B
- ---------------------------------------------------------------------------------------------------------
Unit value $ 11.22 $ 10.39 $ 7.70 $ 10.21
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 543 562 346 98
- ---------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index--Class B
- ---------------------------------------------------------------------------------------------------------
Unit value $ 26.20 $ 24.04 $ 19.03 $ 24.80
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 858 994 1,017 1,094
- ---------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega--Class B
- ---------------------------------------------------------------------------------------------------------
Unit value $ 8.43 $ 7.97 $ 5.83 $ 7.76
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 225 198 84 52
- ---------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap--Class B
- ---------------------------------------------------------------------------------------------------------
Unit value $ 11.24 $ 9.80 $ 6.90 $ 8.56
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 697 677 427 292
- ---------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value--Class B
- ---------------------------------------------------------------------------------------------------------
Unit value $ 14.63 $ 12.56 $ 9.53 $ 11.31
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,058 2,302 2,470 2,317
- ---------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond--Class B
- ---------------------------------------------------------------------------------------------------------
Unit value $ 14.04 $ 13.64 $ 13.35 --
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 621 618 623 --
- ---------------------------------------------------------------------------------------------------------
EQ/JP Morgan Value Opportunities--Class B
- ---------------------------------------------------------------------------------------------------------
Unit value $ 13.40 $ 12.23 $ 9.76 $ 12.19
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 946 1,120 1,280 1,543
- ---------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth--Class B
- ---------------------------------------------------------------------------------------------------------
Unit value $ 6.08 $ 5.48 $ 4.41 $ 6.40
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 188 187 253 295
- ---------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ---------------------------------------------------------------------------------------------------------
Unit value $ 16.86 $ 14.57 $ 10.73 --
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 526 495 384 --
- ---------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- ---------------------------------------------------------------------------------------------------------
Unit value $ 14.05 $ 12.86 $ 9.92 $ 11.35
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 693 778 439 29
- ---------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
------------------------------------------------------
2000 1999 1998 1997 1996
- -------------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
EQ/Boston Advisors Equity Income--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Growth--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value $ 11.13 $ 10.63 -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 57 20 -- -- --
- -------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value $ 10.54 $ 10.29 -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 39 8 -- -- --
- -------------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value $ 28.57 $ 32.04 $ 26.99 $ 21.38 --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,206 11 14 5 --
- -------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value $ 9.47 $ 10.84 -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 59 44 -- -- --
- -------------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value $ 10.00 -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 43 -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value $ 11.00 $ 10.58 $ 10.52 $ 11.82 --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,758 2,259 2,984 2,096 --
- -------------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
EQ/JP Morgan Value Opportunities--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value $ 13.24 $ 12.54 $ 12.86 $ 11.53 --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,692 2,198 2,347 1,230 --
- -------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth--Class B
- -------------------------------------------------------------------------------------------------------------------
Unit value $ 8.40 -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 78 -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- -------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- -------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
19
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- ---------------------------------------------------------------------------------------------------------
For the years ending December 31,
---------------------------------------------
2004 2003 2002 2001
- ---------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ---------------------------------------------------------------------------------------------------------
Unit value $ 20.27 $ 18.55 $ 14.30 $ 17.36
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,843 2,009 2,129 2,223
- ---------------------------------------------------------------------------------------------------------
EQ/Mercury International Value--Class B
- ---------------------------------------------------------------------------------------------------------
Unit value $ 17.16 $ 14.27 $ 11.27 --
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 779 839 956 --
- ---------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies--Class B
- ---------------------------------------------------------------------------------------------------------
Unit value $ 13.40 $ 12.04 $ 9.42 $ 14.51
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,570 1,952 2,239 3,104
- ---------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust--Class B
- ---------------------------------------------------------------------------------------------------------
Unit value $ 9.09 $ 8.25 $ 6.84 $ 8.76
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 98 107 99 84
- ---------------------------------------------------------------------------------------------------------
EQ/Money Market--Class A
- ---------------------------------------------------------------------------------------------------------
Unit value $ 30.08 $ 30.12 $ 30.22 $ 30.12
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 344 444 863 954
- ---------------------------------------------------------------------------------------------------------
EQ/Money Market--Class B
- ---------------------------------------------------------------------------------------------------------
Unit value $ 29.55 $ 29.66 $ 29.84 $ 29.82
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 566 711 1,022 965
- ---------------------------------------------------------------------------------------------------------
EQ/Montag & Caldwell Growth
- ---------------------------------------------------------------------------------------------------------
Unit value $ 4.49 -- -- --
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------------
EQ/Small Company Index
- ---------------------------------------------------------------------------------------------------------
Unit value $ 14.56 $ 12.51 $ 8.68 $ 11.10
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 499 427 297 320
- ---------------------------------------------------------------------------------------------------------
EQ/Small Company Value--Class B
- ---------------------------------------------------------------------------------------------------------
Unit value $ 23.56 -- -- --
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 20 -- -- --
- ---------------------------------------------------------------------------------------------------------
EQ/TCW Equity--Class B
- ---------------------------------------------------------------------------------------------------------
Unit value $ 17.57 -- -- --
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------------
EQ/UBS Growth and Income--Class B
- ---------------------------------------------------------------------------------------------------------
Unit value $ 5.23 -- -- --
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------------
EQ/Van Kampen Emerging Markets Equity--Class B
- ---------------------------------------------------------------------------------------------------------
Unit value $ 10.80 $ 8.84 $ 5.73 $ 6.16
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 876 859 894 812
- ---------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
---------------------------------------------------------
2000 1999 1998 1997 1996
- ----------------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 16.64 $ 15.06 $ 12.81 $ 11.61 --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,946 2,162 2,127 849 --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Mercury International Value--Class B
- ----------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies--Class B
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 22.25 $ 27.74 $ 16.16 $ 12.15 --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3,748 3,430 2,619 982 --
- ----------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust--Class B
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 10.55 $ 10.75 -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 75 73 -- -- --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Money Market--Class A
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 29.34 $ 27.94 $ 26.92 $ 25.85 $ 24.81
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 817 1,201 839 928 1,302
- ----------------------------------------------------------------------------------------------------------------------
EQ/Money Market--Class B
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 29.13 $ 27.80 $ 26.85 $ 25.85 --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 851 1,548 1,193 794 --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Montag & Caldwell Growth
- ----------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Small Company Index
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 11.01 $ 11.52 $ 9.66 -- --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 303 334 244 -- --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Small Company Value--Class B
- ----------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
EQ/TCW Equity--Class B
- ----------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
EQ/UBS Growth and Income--Class B
- ----------------------------------------------------------------------------------------------------------------------
Unit value -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Van Kampen Emerging Markets Equity--Class B
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 6.57 $ 11.09 $ 5.73 $ 7.95 --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 908 795 567 282 --
- ----------------------------------------------------------------------------------------------------------------------
20
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account 45 and 49 with the same daily asset charges of
1.70%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- ----------------------------------------------------------------------------------------------
For the years ending December 31,
----------------------------------
2004 2003 2002
- ----------------------------------------------------------------------------------------------
AXA Aggressive Allocation
- ----------------------------------------------------------------------------------------------
Unit value $ 11.72 $ 10.66 --
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 13 -- --
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 656 32 --
- ----------------------------------------------------------------------------------------------
AXA Conservative Allocation
- ----------------------------------------------------------------------------------------------
Unit value $ 10.74 $ 10.30 --
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 5 -- --
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 281 1 --
- ----------------------------------------------------------------------------------------------
AXA Conservative-Plus Allocation
- ----------------------------------------------------------------------------------------------
Unit value $ 11.02 $ 10.41 --
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- --
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 414 84 --
- ----------------------------------------------------------------------------------------------
AXA Moderate Allocation
- ----------------------------------------------------------------------------------------------
Unit value $ 41.36 $ 38.70 $ 33.05
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 8 9 13
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 893 383 86
- ----------------------------------------------------------------------------------------------
AXA Moderate-Plus Allocation
- ----------------------------------------------------------------------------------------------
Unit value $ 11.71 $ 10.66 --
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- --
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,788 46 --
- ----------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ----------------------------------------------------------------------------------------------
Unit value $ 50.38 $ 45.72 $ 33.82
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2 2 2
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 28 10 4
- ----------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ----------------------------------------------------------------------------------------------
Unit value $ 11.07 $ 10.84 $ 10.63
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 11 19 23
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,424 1,202 628
- ----------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ----------------------------------------------------------------------------------------------
Unit value $ 10.93 $ 9.91 $ 7.87
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 10 11 7
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 284 143 57
- ----------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ----------------------------------------------------------------------------------------------
Unit value $ 27.64 $ 25.87 $ 21.48
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 14 20 21
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 771 557 125
- ----------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ----------------------------------------------------------------------------------------------
Unit value $ 11.90 $ 10.27 $ 7.78
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 1 --
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 806 360 135
- ----------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ----------------------------------------------------------------------------------------------
Unit value $ 10.34 $ 9.59 $ 7.61
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3 3 3
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 272 238 104
- ----------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- ----------------------------------------------------------------------------------------------
Unit value $ 9.10 $ 8.68 $ 6.76
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 27 27 21
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 876 792 408
- ----------------------------------------------------------------------------------------------
21
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- ----------------------------------------------------------------------------------------------
For the years ending
December 31,
----------------------------------
2004 2003 2002
- ----------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ----------------------------------------------------------------------------------------------
Unit value $ 11.42 $ 10.15 $ 7.88
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 45 45 36
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,242 726 316
- ----------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- ----------------------------------------------------------------------------------------------
Unit value $ 9.35 $ 8.52 $ 6.18
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 6 8 8
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,055 731 292
- ----------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ----------------------------------------------------------------------------------------------
Unit value $ 11.49 $ 10.15 $ 7.34
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 29 30 23
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,011 560 206
- ----------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ----------------------------------------------------------------------------------------------
Unit value $ 9.02 $ 8.74 $ 5.64
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 15 14 10
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 306 98 14
- ----------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ----------------------------------------------------------------------------------------------
Unit value $ 214.55 $ 191.26 $ 130.09
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3 4 6
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 64 29 9
- ----------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ----------------------------------------------------------------------------------------------
Unit value $ 27.18 $ 24.60 $ 19.19
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 32 39 43
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 549 371 133
- ----------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- ----------------------------------------------------------------------------------------------
Unit value $ 17.76 $ 17.72 $ 17.65
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 67 84 146
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 416 458 259
- ----------------------------------------------------------------------------------------------
EQ/Alliance International
- ----------------------------------------------------------------------------------------------
Unit value $ 12.84 $ 11.05 $ 8.32
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 13 20 20
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 649 530 142
- ----------------------------------------------------------------------------------------------
EQ/Alliance Large Cap Growth
- ----------------------------------------------------------------------------------------------
Unit value $ 6.16 $ 5.78 $ 4.77
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 17 24 22
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 981 856 341
- ----------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- ----------------------------------------------------------------------------------------------
Unit value $ 15.27 $ 14.97 $ 14.71
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 17 14 17
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 555 512 198
- ----------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ----------------------------------------------------------------------------------------------
Unit value $ 14.95 $ 13.34 $ 9.63
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 20 25 28
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 312 478 121
- ----------------------------------------------------------------------------------------------
EQ/Bear Stearns Small Company Growth
- ----------------------------------------------------------------------------------------------
Unit value $ 7.46 -- --
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- --
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 59 -- --
- ----------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ----------------------------------------------------------------------------------------------
Unit value $ 14.06 $ 12.60 $ 9.96
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 49 54 60
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,169 1,481 530
- ----------------------------------------------------------------------------------------------
22
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- ------------------------------------------------------------------------------------------
For the years ending
December 31,
------------------------------
2004 2003 2002
- ------------------------------------------------------------------------------------------
EQ/Boston Advisors Equity Income
- ------------------------------------------------------------------------------------------
Unit value $ 5.54 -- --
- ------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 15 -- --
- ------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ------------------------------------------------------------------------------------------
Unit value $ 7.96 $ 7.82 $ 6.22
- ------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 1 --
- ------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 204 249 42
- ------------------------------------------------------------------------------------------
EQ/Capital Guardian Growth
- ------------------------------------------------------------------------------------------
Unit value $ 11.62 $ 11.20 $ 9.19
- ------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 160 164 40
- ------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ------------------------------------------------------------------------------------------
Unit value $ 10.47 $ 9.38 $ 7.19
- ------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,926 1,026 282
- ------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ------------------------------------------------------------------------------------------
Unit value $ 11.08 $ 10.16 $ 7.86
- ------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 -- --
- ------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,200 776 200
- ------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ------------------------------------------------------------------------------------------
Unit value $ 10.87 $ 10.12 $ 7.55
- ------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 14 16 10
- ------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,037 1,222 345
- ------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ------------------------------------------------------------------------------------------
Unit value $ 24.66 $ 22.76 $ 18.11
- ------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 13 16 10
- ------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,386 1,074 399
- ------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ------------------------------------------------------------------------------------------
Unit value $ 8.15 $ 7.75 $ 5.70
- ------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 2 4
- ------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 377 218 32
- ------------------------------------------------------------------------------------------
EQ/FI Mid Cap
- ------------------------------------------------------------------------------------------
Unit value $ 10.97 $ 9.62 $ 6.81
- ------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 38 41 39
- ------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,391 883 285
- ------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ------------------------------------------------------------------------------------------
Unit value $ 14.02 $ 12.10 $ 9.24
- ------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 26 31 36
- ------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,007 636 237
- ------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ------------------------------------------------------------------------------------------
Unit value $ 13.50 $ 13.20 $ 12.99
- ------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 8 7 9
- ------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,343 1,175 441
- ------------------------------------------------------------------------------------------
EQ/JP Morgan Value Opportunities
- ------------------------------------------------------------------------------------------
Unit value $ 12.84 $ 11.78 $ 9.45
- ------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 11 16 13
- ------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 370 307 128
- ------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ------------------------------------------------------------------------------------------
Unit value $ 5.93 $ 5.38 $ 4.35
- ------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 25 27 24
- ------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 70 561 192
- ------------------------------------------------------------------------------------------
23
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- ---------------------------------------------------------------------------------------------
For the years ending December 31,
- ---------------------------------------------------------------------------------------------
2004 2003 2002
- ---------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ---------------------------------------------------------------------------------------------
Unit value $ 16.22 $ 14.09 $ 10.43
- ---------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 5 7 8
- ---------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 884 641 270
- ---------------------------------------------------------------------------------------------
EQ/Marsico Focus
- ---------------------------------------------------------------------------------------------
Unit value $ 13.79 $ 12.69 $ 9.85
- ---------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 11 16 8
- ---------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,938 1,510 386
- ---------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ---------------------------------------------------------------------------------------------
Unit value $ 19.43 $ 17.87 $ 13.86
- ---------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 21 25 32
- ---------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 802 502 184
- ---------------------------------------------------------------------------------------------
EQ/Mercury International Value
- ---------------------------------------------------------------------------------------------
Unit value $ 16.44 $ 13.75 $ 10.92
- ---------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3 6 4
- ---------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 522 441 161
- ---------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ---------------------------------------------------------------------------------------------
Unit value $ 12.84 $ 11.60 $ 9.12
- ---------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2 5 7
- ---------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 149 93 38
- ---------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ---------------------------------------------------------------------------------------------
Unit value $ 8.79 $ 8.03 $ 6.69
- ---------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- --
- ---------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 610 598 229
- ---------------------------------------------------------------------------------------------
EQ/Money Market
- ---------------------------------------------------------------------------------------------
Unit value $ 25.92 $ 26.17 $ 26.47
- ---------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 15 37 57
- ---------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 349 434 630
- ---------------------------------------------------------------------------------------------
EQ/Montag & Caldwell Growth
- ---------------------------------------------------------------------------------------------
Unit value $ 4.34 -- --
- ---------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- --
- ---------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 22 -- --
- ---------------------------------------------------------------------------------------------
EQ/Small Company Index
- ---------------------------------------------------------------------------------------------
Unit value $ 14.00 $ 12.10 $ 8.44
- ---------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 11 10 8
- ---------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 575 449 122
- ---------------------------------------------------------------------------------------------
EQ/Small Company Value
- ---------------------------------------------------------------------------------------------
Unit value $ 21.50 -- --
- ---------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- --
- ---------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 9 -- --
- ---------------------------------------------------------------------------------------------
EQ/TCW Equity
- ---------------------------------------------------------------------------------------------
Unit value $ 16.03 -- --
- ---------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- --
- ---------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6 -- --
- ---------------------------------------------------------------------------------------------
EQ/UBS Growth and Income
- ---------------------------------------------------------------------------------------------
Unit value $ 5.05 -- --
- ---------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- --
- ---------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ---------------------------------------------------------------------------------------------
EQ/Van Kampen Emerging Markets Equity
- ---------------------------------------------------------------------------------------------
Unit value $ 10.37 $ 8.53 $ 5.56
- ---------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- 6 6
- ---------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 609 457 69
- ---------------------------------------------------------------------------------------------
24
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- -------------------------------------------------------------------------------------------
For the years ending
December 31,
- -------------------------------------------------------------------------------------------
2004 2003 2002
- -------------------------------------------------------------------------------------------
EQ/Wells Fargo Montgomery Small Cap
- -------------------------------------------------------------------------------------------
Unit value $ 11.36 -- --
- -------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1 -- --
- -------------------------------------------------------------------------------------------
25
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account 49 with the same daily asset charges of 0.95%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
-----------------------------------------------------------------------
2004 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.66 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Conservative Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.33 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Conservative-Plus Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.43 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Moderate Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 47.77 $ 44.36 $ 37.59 $ 43.48 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3 3 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Moderate-Plus Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.67 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 58.18 $ 52.40 $ 38.47 $ 54.60 $ 73.67 $ 85.83
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1 1 1 1 1 --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.33 $ 11.01 $ 10.71 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 24 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.18 $ 10.06 $ 7.93 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 31.69 $ 29.44 $ 24.25 $ 25.23 $ 25.30 $ 28.03
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6 11 12 13 13 --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.18 $ 10.43 $ 7.84 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6 3 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.58 $ 9.74 $ 7.67 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 20 9 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.31 $ 8.82 $ 6.81 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.68 $ 10.31 $ 7.94 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1 1 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.57 $ 8.65 $ 6.22 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5 3 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.76 $ 10.30 $ 7.40 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6 5 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.23 $ 8.88 $ 5.69 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 25 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
26
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
-----------------------------------------------------------------------
2004 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 267.26 $ 236.45 $ 159.61 $ 241.72 $ 273.42 $ 321.89
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2 2 2 2 2 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 29.60 $ 26.59 $ 20.58 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2 2 1 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 19.71 $ 19.53 $ 19.30 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4 7 10 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.83 $ 11.81 $ 8.82 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 8 8 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 6.43 $ 5.99 $ 4.91 $ 7.20 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 71 93 89 79 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 16.64 $ 16.19 $ 15.78 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2 3 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 15.85 $ 14.04 $ 10.05 $ 14.55 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 27 30 32 32 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Bear Stearns Small Company Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 7.82 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.82 $ 13.19 $ 10.35 $ 12.09 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 40 38 38 34 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Boston Advisors Equity Income
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 5.80 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.30 $ 8.09 $ 6.38 $ 8.76 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.31 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.93 $ 9.71 $ 7.40 $ 8.79 $ 11.22 $ 14.00
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 41 39 35 34 28 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.57 $ 10.53 $ 8.08 $ 10.83 $ 11.16 $ 10.64
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 53 66 69 26 18 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.35 $ 10.48 $ 7.76 $ 10.26 $ 10.58 $ 10.31
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 31 34 25 21 15 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 26.78 $ 24.53 $ 19.37 $ 25.20 $ 28.97 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 11 10 10 11 6 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.53 $ 8.05 $ 5.88 $ 7.81 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
27
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
-----------------------------------------------------------------------
2004 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.34 $ 9.86 $ 6.93 $ 8.59 $ 10.01 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 29 34 29 19 3 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.86 $ 12.73 $ 9.64 $ 11.41 $ 11.08 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 15 20 14 11 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.24 $ 13.81 $ 13.49 $ 12.43 $ 11.62 $ 10.53
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 26 36 44 46 34 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JP Morgan Value Opportunities
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.61 $ 12.40 $ 9.87 $ 12.31 $ 13.34 $ 12.61
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 15 18 20 18 4 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 6.13 $ 5.52 $ 4.43 $ 6.41 $ 8.41 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 24 28 22 24 10 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 17.10 $ 14.75 $ 10.84 $ 12.70 $ 10.89 $ 9.28
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 16 17 18 15 9 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.14 $ 12.92 $ 9.95 $ 11.36 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5 3 2 1 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 20.59 $ 18.80 $ 14.47 $ 17.53 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1 1 1 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury International Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 17.42 $ 14.46 $ 11.70 $ 13.81 $ 17.77 $ 20.45
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 35 51 73 65 47 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.61 $ 12.20 $ 9.53 $ 14.64 $ 22.48 $ 27.88
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 31 42 42 43 35 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.20 $ 8.34 $ 6.90 $ 8.82 $ 10.59 $ 10.77
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6 6 7 6 2 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 30.98 $ 31.04 $ 31.16 $ 31.08 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 26 2 6 13 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Montag & Caldwell Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 4.54 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.76 $ 12.67 $ 8.97 $ 11.19 $ 11.07 $ 11.57
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 16 15 17 17 10 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 24.36 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/TCW Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 18.16 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/UBS Growth and Income
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 5.29 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
28
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- ------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
------------------------------------------------------------------
2004 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------
EQ/Van Kampen Emerging Markets Equity
- ------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.96 $ 8.95 $ 5.80 $ 6.22 -- --
- ------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 12 12 12 9 -- --
- ------------------------------------------------------------------------------------------------------------------------------
29
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account 49 with the same daily asset charges of 1.90%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- ---------------------------------------------------------------------------------------
For the years ending December 31,
---------------------------------------------
2004 2003 2002 2001
- ---------------------------------------------------------------------------------------
AXA Aggressive Allocation
- ---------------------------------------------------------------------------------------
Unit value $ 10.56 -- -- --
- ---------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------
AXA Conservative Allocation
- ---------------------------------------------------------------------------------------
Unit value $ 10.24 -- -- --
- ---------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------
AXA Conservative-Plus Allocation
- ---------------------------------------------------------------------------------------
Unit value $ 10.34 -- -- --
- ---------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------
AXA Moderate Allocation
- ---------------------------------------------------------------------------------------
Unit value $ 39.80 $ 37.31 $ 31.93 $ 37.29
- ---------------------------------------------------------------------------------------
Number of units outstanding (000's) 13 11 7 4
- ---------------------------------------------------------------------------------------
AXA Moderate-Plus Allocation
- ---------------------------------------------------------------------------------------
Unit value $ 10.58 -- -- --
- ---------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ---------------------------------------------------------------------------------------
Unit value $ 48.47 $ 44.08 $ 32.67 $ 46.83
- ---------------------------------------------------------------------------------------
Number of units outstanding (000's) 12 -- -- --
- ---------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ---------------------------------------------------------------------------------------
Unit value $ 11.01 $ 10.80 $ 10.61 --
- ---------------------------------------------------------------------------------------
Number of units outstanding (000's) 20 18 13 --
- ---------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ---------------------------------------------------------------------------------------
Unit value $ 10.86 $ 9.87 $ 7.85 --
- ---------------------------------------------------------------------------------------
Number of units outstanding (000's) 3 3 3 --
- ---------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ---------------------------------------------------------------------------------------
Unit value $ 26.64 $ 24.99 $ 20.79 $ 21.83
- ---------------------------------------------------------------------------------------
Number of units outstanding (000's) 16 11 7 --
- ---------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ---------------------------------------------------------------------------------------
Unit value $ 11.83 $ 10.23 $ 7.76 --
- ---------------------------------------------------------------------------------------
Number of units outstanding (000's) 9 6 7 --
- ---------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ---------------------------------------------------------------------------------------
Unit value $ 10.28 $ 9.55 $ 7.60 --
- ---------------------------------------------------------------------------------------
Number of units outstanding (000's) 15 15 17 --
- ---------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- ---------------------------------------------------------------------------------------
Unit value $ 9.05 $ 8.65 $ 6.75 --
- ---------------------------------------------------------------------------------------
Number of units outstanding (000's) 30 36 39 --
- ---------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ---------------------------------------------------------------------------------------
Unit value $ 11.35 $ 10.11 $ 7.86 --
- ---------------------------------------------------------------------------------------
Number of units outstanding (000's) 29 28 30 --
- ---------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- ---------------------------------------------------------------------------------------
Unit value $ 9.30 $ 8.48 $ 6.16 --
- ---------------------------------------------------------------------------------------
Number of units outstanding (000's) 31 30 34 --
- ---------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ---------------------------------------------------------------------------------------
Unit value $ 11.42 $ 10.11 $ 7.33 --
- ---------------------------------------------------------------------------------------
Number of units outstanding (000's) 26 23 25 --
- ---------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ---------------------------------------------------------------------------------------
Unit value $ 8.97 $ 8.71 $ 5.63 --
- ---------------------------------------------------------------------------------------
Number of units outstanding (000's) 11 4 4 --
- ---------------------------------------------------------------------------------------
30
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- ----------------------------------------------------------------------------------------------------
For the years ending December 31,
-------------------------------------------------
2004 2003 2002 2001
- ----------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ----------------------------------------------------------------------------------------------------
Unit value $ 202.28 $ 180.69 $ 123.15 $ 188.32
- ----------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3 3 3 1
- ----------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ----------------------------------------------------------------------------------------------------
Unit value $ 26.56 $ 24.09 $ 18.83 --
- ----------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 11 11 10 --
- ----------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- ----------------------------------------------------------------------------------------------------
Unit value $ 17.27 $ 17.27 $ 17.23 --
- ----------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3 3 2 --
- ----------------------------------------------------------------------------------------------------
EQ/Alliance International
- ----------------------------------------------------------------------------------------------------
Unit value $ 12.59 $ 10.86 $ 8.19 --
- ----------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 13 14 -- --
- ----------------------------------------------------------------------------------------------------
EQ/Alliance Large Cap Growth
- ----------------------------------------------------------------------------------------------------
Unit value $ 6.09 $ 5.73 $ 4.74 $ 7.02
- ----------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 86 111 108 27
- ----------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- ----------------------------------------------------------------------------------------------------
Unit value $ 14.93 $ 14.67 $ 14.44 --
- ----------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 24 25 28 --
- ----------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ----------------------------------------------------------------------------------------------------
Unit value $ 14.72 $ 13.61 $ 9.52 $ 13.91
- ----------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 17 25 31 7
- ----------------------------------------------------------------------------------------------------
EQ/Bear Stearns Small Company Growth
- ----------------------------------------------------------------------------------------------------
Unit value $ 7.37 -- -- --
- ----------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ----------------------------------------------------------------------------------------------------
Unit value $ 13.86 $ 12.45 $ 9.86 $ 11.64
- ----------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 46 66 66 16
- ----------------------------------------------------------------------------------------------------
EQ/Boston Advisors Equity Income
- ----------------------------------------------------------------------------------------------------
Unit value $ 5.47 -- -- --
- ----------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ----------------------------------------------------------------------------------------------------
Unit value $ 7.88 $ 7.75 $ 6.18 $ 8.56
- ----------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------
EQ/Capital Guardian Growth
- ----------------------------------------------------------------------------------------------------
Unit value $ 11.44 $ 11.05 $ 9.08 $ 12.57
- ----------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3 3 8 4
- ----------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ----------------------------------------------------------------------------------------------------
Unit value $ 10.35 $ 9.29 $ 7.14 $ 8.57
- ----------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 43 36 48 41
- ----------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ----------------------------------------------------------------------------------------------------
Unit value $ 10.95 $ 10.07 $ 7.80 $ 10.56
- ----------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 34 35 37 13
- ----------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ----------------------------------------------------------------------------------------------------
Unit value $ 10.75 $ 10.02 $ 7.49 $ 10.00
- ----------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 40 38 40 21
- ----------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ----------------------------------------------------------------------------------------------------
Unit value $ 24.12 $ 22.31 $ 17.79 $ 23.37
- ----------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 19 28 29 11
- ----------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ----------------------------------------------------------------------------------------------------
Unit value $ 8.05 $ 7.67 $ 5.66 $ 7.59
- ----------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 7 7 4 --
- ----------------------------------------------------------------------------------------------------
31
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- ------------------------------------------------------------------------------------
For the years ending December 31,
--------------------------------------------
2004 2003 2002 2001
- ------------------------------------------------------------------------------------
EQ/FI Mid Cap
- ------------------------------------------------------------------------------------
Unit value $ 10.87 $ 9.55 $ 6.78 $ 8.48
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 28 22 25 5
- ------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ------------------------------------------------------------------------------------
Unit value $ 13.80 $ 11.94 $ 9.13 $ 10.91
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 32 39 40 14
- ------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ------------------------------------------------------------------------------------
Unit value $ 13.31 $ 13.04 $ 12.85 $ 11.96
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 56 60 73 31
- ------------------------------------------------------------------------------------
EQ/JP Morgan Value Opportunities
- ------------------------------------------------------------------------------------
Unit value $ 12.64 $ 11.62 $ 9.34 $ 11.77
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 22 25 29 19
- ------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ------------------------------------------------------------------------------------
Unit value $ 5.88 $ 5.34 $ 4.33 $ 6.33
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 36 38 47 6
- ------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ------------------------------------------------------------------------------------
Unit value $ 15.99 $ 13.92 $ 10.33 $ 12.22
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 36 44 43 14
- ------------------------------------------------------------------------------------
EQ/Marsico Focus
- ------------------------------------------------------------------------------------
Unit value $ 13.70 $ 12.63 $ 9.82 $ 11.32
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 12 14 3 2
- ------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ------------------------------------------------------------------------------------
Unit value $ 19.12 $ 17.63 $ 13.70 $ 16.76
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 39 40 34 9
- ------------------------------------------------------------------------------------
EQ/Mercury International Value
- ------------------------------------------------------------------------------------
Unit value $ 16.18 $ 13.56 $ 10.80 $ 13.20
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 19 21 15 18
- ------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ------------------------------------------------------------------------------------
Unit value $ 12.64 $ 11.44 $ 9.02 $ 14.00
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 1 3 2 1
- ------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ------------------------------------------------------------------------------------
Unit value $ 8.68 $ 7.94 $ 6.64 $ 8.56
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 12 12 15 6
- ------------------------------------------------------------------------------------
EQ/Money Market
- ------------------------------------------------------------------------------------
Unit value $ 24.71 $ 25.00 $ 25.34 $ 25.51
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 10 21 115 217
- ------------------------------------------------------------------------------------
EQ/Montag & Caldwell Growth
- ------------------------------------------------------------------------------------
Unit value $ 4.28 -- -- --
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------
EQ/Small Company Index
- ------------------------------------------------------------------------------------
Unit value $ 13.80 $ 11.95 $ 8.35 $ 10.77
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) 6 13 14 1
- ------------------------------------------------------------------------------------
EQ/Small Company Value
- ------------------------------------------------------------------------------------
Unit value $ 20.79 -- -- --
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------
EQ/TCW Equity
- ------------------------------------------------------------------------------------
Unit value $ 15.50 -- -- --
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------
EQ/UBS Growth and Income
- ------------------------------------------------------------------------------------
Unit value $ 4.99 -- -- --
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------
32
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2004.
- ------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------
2004 2003 2002 2001
- ------------------------------------------------------------------------------------
EQ/Van Kampen Emerging Markets Equity
- ------------------------------------------------------------------------------------
Unit value $ 10.21 $ 8.42 $ 5.50 $ 5.96
- ------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------
33
(14) HYPOTHETICAL ILLUSTRATIONS
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED
MINIMUM BENEFITS
The following tables illustrate the changes in account value, cash value and the
values of the "5% Roll up to age 80" guaranteed minimum death benefit, the
Protection Plus(SM) benefit and the Guaranteed minimum income benefit under
certain hypothetical circumstances for an Accumulator(R), Accumulator(R) Elite,
Accumulator(R) Plus(SM) and Accumulator(R) Select(SM) contracts, respectively.
The table illustrates the operation of a contract based on a male, issue age 60,
who makes a single $100,000 contribution, takes no withdrawals, and has a
current account value of $105,000 in contract year 3. For Accumulator(R)
Plus(SM) we assume a current account value of $110,000 in contract year 3. The
amounts shown are for the beginning of each contract year and assume that all of
the account value is invested in portfolios that achieve investment returns at
constant gross annual rates of 0% and 6% (i.e., before any investment management
fees, 12b-1 fees or other expenses are deducted from the underlying portfolio
assets). After the deduction of the arithmetic average of the investment
management fees, 12b-1 fees and other expenses of all of the underlying
Portfolios (as described below), the corresponding net annual rates of return
would be (2.88)% and 3.12% for the Accumulator(R) contracts; (3.13)% and 2.87%
for Accumulator(R) Elite(SM) contracts; (2.93)% and 3.07% for Accumulator(R)
Plus(SM) contracts; and (3.23)% and 2.77% for Accumulator(R) Select(SM)
contracts, respectively, at the 0% and 6% gross annual rates, respectively.
These net annual rates of return reflect the trust and separate account level
charges, but they do not reflect the charges we deduct from your account value
annually for the 5% Roll up to age 80 Guaranteed minimum death benefit,
Protection Plus(SM) benefit, and the Guaranteed minimum income benefit features,
as well as the annual administrative charge. If the net annual rates of return
did reflect these charges, the net annual rates of return shown would be lower;
however, the values shown in the following tables reflect all contract charges.
The values shown under "Lifetime Annual Guaranteed Minimum Income Benefit"
reflect the lifetime income that would be guaranteed if the Guaranteed minimum
income benefit is selected at that contract anniversary. An "N/A" in these
columns indicates that the benefit is not exercisable in that year. A "0" under
any of the death benefit and/or "Lifetime Annual Guaranteed Minimum Income
Benefit" columns indicates that the contract has terminated due to insufficient
account value and, consequently, the guaranteed benefit has no value.
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in all tables reflect (1) investment management
fees equivalent to an effective annual rate of 0.69%, and (2) an assumed
average asset charge for all other expenses of the underlying portfolios
equivalent to an effective annual rate of 0.39% and (3) 12b-1 fees equivalent
to an effective annual rate of 0.25%. These rates are the arithmetic average
for all portfolios that are available as investment options. In other words,
they are based on the hypothetical assumption that account values are allocated
equally among the variable investment options. The actual rates associated with
any contract will vary depending upon the actual allocation of policy values
among the investment options. These rates do not reflect expense limitation
arrangements in effect with respect to certain of the underlying portfolios as
described in the footnotes to the fee table for the underlying portfolios in
"Fee Table" earlier in this prospectus. With these arrangements, the charges
shown above would be lower. This would result in higher values than those shown
in the following tables.
Because your circumstances will no doubt differ from those in the illustrations
that follow, values under your contract will differ, in most cases
substantially. Upon request, we will furnish you with a personalized
illustration.
34
Variable deferred annuity
Accumulator
$100,000 Single contribution and no withdrawals
$105,000 year 3 account value
Male, issue age 60
Benefits:
5% Roll Up to age 80 Guaranteed minimum death benefit
Protection Plus
Guaranteed minimum income benefit
5% Roll up Lifetime Annual
to age 80 Guaranteed
Guaranteed Total Death Benefit Minimum
Minimum Death with Protection Income
Account Value Cash Value Benefit Plus Benefit
Contract ------------------- ------------------- ------------------- ------------------- ----------------
Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6%
Age --------- --------- --------- --------- --------- --------- --------- --------- --------- -------- -------
62 3 105,000 105,000 100,000 100,000 110,250 110,250 114,350 114,350 N/A N/A
63 4 101,425 107,712 97,425 103,712 115,763 115,763 122,068 122,068 N/A N/A
64 5 97,942 110,486 94,942 107,486 121,551 121,551 130,171 130,171 N/A N/A
65 6 94,548 113,322 92,548 111,322 127,628 127,628 138,679 138,679 N/A N/A
66 7 91,240 116,222 90,240 115,222 134,010 134,010 147,613 147,613 N/A N/A
67 8 88,012 119,187 88,012 119,187 140,710 140,710 156,994 156,994 N/A N/A
68 9 84,864 122,216 84,864 122,216 147,746 147,746 166,844 166,844 N/A N/A
69 10 81,789 125,312 81,789 125,312 155,133 155,133 177,186 177,186 N/A N/A
74 15 67,420 141,809 67,420 141,809 197,993 197,993 237,190 237,190 12,493 12,493
79 20 54,424 160,066 54,424 160,066 252,695 252,695 313,773 313,773 17,032 17,032
84 25 42,814 180,566 42,814 180,566 265,330 265,330 331,462 331,462 22,818 22,818
89 30 35,923 207,558 35,923 207,558 265,330 265,330 331,462 331,462 N/A N/A
94 35 30,731 239,611 30,731 239,611 265,330 265,330 331,462 331,462 N/A N/A
95 36 29,786 246,593 29,786 246,593 265,330 265,330 331,462 331,462 N/A N/A
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for
individual contract years. We can make no representation that these
hypothetical investment results can be achieved for any one year or continued
over any period of time. In fact, for any given period of time, the investment
results could be negative.
35
Variable deferred annuity
Accumulator Plus
$100,000 Single contribution and no withdrawals
$110,000 year 3 account value
Male, issue age 60
Benefits:
5% Roll Up to age 80 Guaranteed minimum death benefit
Protection Plus
5% Roll up
to age 80 Guaranteed Total Death Benefit
Account Value Cash Value Minimum Death Benefit with Protection Plus
Contract --------------------- --------------------- ---------------------- --------------------
Year 0% 6% 0% 6% 0% 6% 0% 6%
Age --------- --------- --------- --------- --------- ---------- --------- --------- --------
62 3 110,000 110,000 103,000 103,000 114,660 114,660 120,524 120,524
63 4 106,563 113,150 100,563 107,150 120,393 120,393 128,550 128,550
64 5 103,234 116,391 98,234 111,391 126,413 126,413 136,978 136,978
65 6 100,009 119,724 96,009 115,724 132,733 132,733 145,827 145,827
66 7 96,885 123,153 93,885 120,153 139,370 139,370 155,118 155,118
67 8 93,858 126,680 91,858 124,680 146,338 146,338 164,874 164,874
68 9 90,926 130,308 90,926 130,308 153,655 153,655 175,118 175,118
69 10 88,085 134,039 88,085 134,039 161,338 161,338 185,873 185,873
74 15 75,159 154,364 75,159 154,364 205,913 205,913 248,278 248,278
79 20 64,129 177,771 64,129 177,771 262,803 262,803 327,924 327,924
84 25 54,719 204,727 54,719 204,727 275,943 275,943 346,320 346,320
89 30 46,689 235,770 46,689 235,770 275,943 275,943 346,320 346,320
94 35 39,837 271,521 39,837 271,521 275,943 275,943 346,320 346,320
95 36 38,593 279,297 38,593 279,297 275,943 275,943 346,320 346,320
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for
individual contract years. We can make no representation that these
hypothetical investment results can be achieved for any one year or continued
over any period of time. In fact, for any given period of time, the investment
results could be negative.
36
Variable deferred annuity
Accumulator Elite
$100,000 Single contribution and no withdrawals
$105,000 year 3 account value
Male, issue age 60
Benefits:
5% Roll Up to age 80 Guaranteed minimum death benefit
Protection Plus
Guaranteed minimum income benefit
5% Roll up
to age 80 Lifetime Annual
Guaranteed Total Death Benefit Guaranteed
Minimum Death with Protection Minimum Income
Account Value Cash Value Benefit Plus Benefit
Contract ------------------- ------------------- ------------------- ------------------- ----------------
Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6%
Age --------- --------- --------- --------- --------- --------- --------- --------- --------- -------- -------
62 3 105,000 105,000 97,000 97,000 110,250 110,250 114,350 114,350 N/A N/A
63 4 101,163 107,450 101,163 107,450 115,763 115,763 122,068 122,068 N/A N/A
64 5 97,436 109,948 97,436 109,948 121,551 121,551 130,171 130,171 N/A N/A
65 6 93,814 112,495 93,814 112,495 127,628 127,628 138,679 138,679 N/A N/A
66 7 90,294 115,090 90,294 115,090 134,010 134,010 147,613 147,613 N/A N/A
67 8 86,871 117,734 86,871 117,734 140,710 140,710 156,994 156,994 N/A N/A
68 9 83,540 120,427 83,540 120,427 147,746 147,746 166,844 166,844 N/A N/A
69 10 80,298 123,171 80,298 123,171 155,133 155,133 177,186 177,186 N/A N/A
74 15 65,277 137,636 65,277 137,636 197,993 197,993 237,190 237,190 12,493 12,493
79 20 51,891 153,348 51,891 153,348 252,695 252,695 313,773 313,773 17,032 17,032
84 25 40,098 170,697 40,098 170,697 265,330 265,330 331,462 331,462 22,818 22,818
89 30 33,167 193,796 33,167 193,796 265,330 265,330 331,462 331,462 N/A N/A
94 35 28,010 221,025 28,010 221,025 265,330 265,330 331,462 331,462 N/A N/A
95 36 27,079 226,913 27,079 226,913 265,330 265,330 331,462 331,462 N/A N/A
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for
individual contract years. We can make no representation that these
hypothetical investment results can be achieved for any one year or continued
over any period of time. In fact, for any given period of time, the investment
results could be negative.
37
Variable deferred annuity
Accumulator Select
$100,000 Single contribution and no withdrawals
$105,000 year 3 account value
Male, issue age 60
Benefits:
5% Roll Up to age 80 Guaranteed minimum death benefit
Protection Plus
Guaranteed minimum income benefit
5% Roll up
to age 80 Lifetime Annual
Guaranteed Total Death Benefit Guaranteed
Minimum Death with Protection Minimum Income
Account Value Cash Value Benefit Plus Benefit
Contract ------------------- ------------------- ------------------- ------------------- ----------------
Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6%
Age --------- --------- --------- --------- --------- --------- --------- --------- --------- -------- -------
62 3 105,000 105,000 105,000 105,000 110,250 110,250 114,350 114,350 N/A N/A
63 4 101,058 107,345 101,058 107,345 115,763 115,763 122,068 122,068 N/A N/A
64 5 97,234 109,734 97,234 109,734 121,551 121,551 130,171 130,171 N/A N/A
65 6 93,522 112,165 93,522 112,165 127,628 127,628 138,679 138,679 N/A N/A
66 7 89,918 114,639 89,918 114,639 134,010 134,010 147,613 147,613 N/A N/A
67 8 86,418 117,157 86,418 117,157 140,710 140,710 156,994 156,994 N/A N/A
68 9 83,016 119,718 83,016 119,718 147,746 147,746 166,844 166,844 N/A N/A
69 10 79,708 122,323 79,708 122,323 155,133 155,133 177,186 177,186 N/A N/A
74 15 64,437 135,997 64,437 135,997 197,993 197,993 237,190 237,190 12,493 12,493
79 20 50,907 150,735 50,907 150,735 252,695 252,695 313,773 313,773 17,032 17,032
84 25 39,053 166,890 39,053 166,890 265,330 265,330 331,462 331,462 22,818 22,818
89 30 32,118 188,534 32,118 188,534 265,330 265,330 331,462 331,462 N/A N/A
94 35 26,984 213,981 26,984 213,981 265,330 265,330 331,462 331,462 N/A N/A
95 36 26,060 219,468 26,060 219,468 265,330 265,330 331,462 331,462 N/A N/A
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for
individual contract years. We can make no representation that these
hypothetical investment results can be achieved for any one year or continued
over any period of time. In fact, for any given period of time, the investment
results could be negative.
38
Appendix I
- --------------------------------------------------------------------------------
Dates of previous Prospectuses and Supplements
- ------------------------------------------------------------------------------------------------------------------------------------
Product Distributor
--------------------------------------------------------------------------------------------------------------
AXA Advisors AXA Distributors
--------------------------------------------------------------------------------------------------------------
Prospectus and Prospectus and
Product Name SAI Dates Supplement Dates SAI Dates Supplement Dates
- ------------------------------------------------------------------------------------------------------------------------------------
Income Manager(R) 4/7/95 7/1/95; 9/28/95 4/7/95 7/1/95; 9/28/95
Accumulator(R) 11/1/95 11/1/95
Income Manager(R) 5/1/96 10/16/96 2/10/97
Rollover IRA 10/17/96 2/10/97 5/1/97 5/1/97
5/1/97 5/1/97; 12/31/97; 5/1/98; 8/1/97
1/4/99; 5/1/99; 5/1/00; 6/23/00; 12/31/97 12/31/97; 5/1/98;
9/1/00; 2/9/01; 9/1/01; 1/14/02; 1/4/99; 5/1/99; 5/1/00; 9/1/00;
2/22/02; 7/15/02; 8/20/02; 1/6/03; 2/9/01; 9/1/01; 1/14/02;
2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/22/02; 7/15/02; 8/20/02;
2/1/04; 8/4/04; 8/10/04; 12/13/04; 1/6/03; 2/20/03; 5/15/03;
12/31/04 8/15/03; 11/24/03; 2/1/04;
-------------------------------------------------------- 8/4/04; 8/10/04; 12/13/04;
12/31/97 12/31/97; 5/1/98; 1/4/99; 5/1/99; 12/31/04
5/1/00; 6/23/00; 9/1/00; 2/9/01;
9/1/01; 1/14/02; 2/22/02; 7/15/02;
8/20/02; 1/6/03; 2/20/03; 5/15/03;
8/15/03; 11/24/03; 2/1/04; 8/4/04;
8/10/04; 12/13/04; 12/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) 5/1/98 5/1/98; 6/18/98; 11/30/98 10/1/97(2)
(IRA, NQ and QP) (Accumulator 5/1/99; 5/1/00; 9/1/00; 2/9/01; 12/31/97(2)
Accumulator(R) only) 9/1/01; 1/14/02; 2/22/02; 7/15/02; 5/1/98 5/1/98; 6/18/98; 11/30/98;
Select(SM) 5/1/99 8/20/02; 1/6/03; 2/20/03; 5/15/03; 5/1/99; 5/1/00; 9/1/00; 2/9/01;
(IRA, NQ, QP) 8/15/03; 11/24/03; 2/1/04; 8/4/04; 9/1/01; 1/14/02; 2/22/02;
8/10/04; 12/13/04; 12/31/04 7/15/02; 8/20/02; 1/6/03;
2/20/03; 5/15/03; 8/15/03;
11/24/03; 2/1/04; 8/4/04;
8/10/04; 12/13/04; 12/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) 10/18/99(3) 3/20/00; 5/1/00; 6/23/00; 9/1/00; 5/1/99
Select(SM) 10/13/00; 2/9/01; 9/1/01; 1/14/02; 10/18/99 3/20/00; 5/1/00; 9/1/00;
Accumulator(R) 2/22/02; 7/15/02; 8/20/02; 1/6/03; 10/13/00; 2/9/01; 9/1/01;
Accumulator(R) 2/20/03; 5/15/03; 8/15/03; 11/24/03; 1/14/02; 2/22/02; 7/15/02;
Select(SM) 2/1/04; 8/4/04; 8/10/04; 12/13/04; 8/20/02; 1/6/03; 2/20/03;
(2002 Series) 12/31/04 5/15/03; 8/15/03; 11/24/03;
Accumulator(R) 2/1/04; 8/4/04; 8/10/04;
(2002 Series) 12/13/04; 12/31/04
--------------------------------------------------------------------------------------------------------------
5/1/00(3) 3/20/00; 6/23/00; 9/1/00; 9/6/00; 5/1/00 3/20/00; 9/1/00; 9/6/00;
10/13/00; 2/9/01; 9/1/01; 1/14/02; 10/13/00; 2/9/01; 9/1/01;
2/22/02; 7/15/02; 8/20/02; 1/6/03; 1/14/02; 2/22/02; 7/15/02;
2/20/03; 5/15/03; 8/15/03; 11/24/03; 8/20/02; 1/6/03; 2/20/03;
2/1/04; 8/4/04; 8/10/04; 12/13/04; 5/15/03; 8/15/03; 11/24/03;
12/31/04 2/1/04; 8/4/04; 8/10/04;
12/13/04; 12/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix I 1
- ------------------------------------------------------------------------------------------------------------------------------------
Product Distributor
--------------------------------------------------------------------------------------------------------------
AXA Advisors AXA Distributors
--------------------------------------------------------------------------------------------------------------
Prospectus and Prospectus and
Product Name SAI Dates Supplement Dates SAI Dates Supplement Dates
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) 5/1/01(3) 5/1/01(1); 7/30/01(5); 9/1/01; 5/1/01 5/1/01(1); 7/30/01(5);
Select(SM) 10/1/01(6); 12/14/01; 1/14/02; 2/22/02; 9/1/01; 10/1/01(6); 12/14/01;
Accumulator(R) 7/15/02; 8/20/02; 1/6/03; 2/20/03; 1/14/02; 2/22/02; 7/15/02;
Accumulator(R) 5/15/03; 8/15/03; 11/24/03; 2/1/04; 8/20/02; 1/6/03; 2/20/03;
Select(SM) 8/4/04; 8/10/04; 12/13/04; 12/31/04 5/15/03; 8/15/03; 11/24/03;
(2002 Series) 8/20/02; 1/6/03; 2/20/03;
Accumulator(R) 2/1/04; 8/4/04; 8/10/04;
(2002 Series) 12/13/04; 12/31/04
--------------------------------------------------------------------------------------------------------------
8/13/01(2) 9/1/01; 10/1/01(6); 12/14/01; 1/14/02; N/A N/A
2/22/02; 7/15/02; 8/20/02; 1/6/03;
2/20/03; 5/15/03; 8/15/03; 11/24/03;
2/1/04; 8/4/04; 8/10/04; 12/13/04;
12/31/04
--------------------------------------------------------------------------------------------------------------
4/1/02(4) 4/3/02; 5/20/02(7); 6/7/02(2); 4/1/02(4) 4/3/02; 5/20/02(7); 6/7/02(2);
7/15/02; 8/5/02(5); 8/20/02; 11/11/02; 7/15/02; 8/5/02(5); 8/20/02;
12/6/02; 12/09/02; 1/6/03; 2/4/03; 11/11/02; 12/6/02; 12/09/02;
2/20/03; 5/15/03; 8/8/03(8); 8/15/03; 1/6/03; 2/4/03; 2/20/03;
11/24/03; 2/1/04; 2/10/04; 8/4/04; 5/15/03; 8/8/03(8); 8/15/03;
8/10/04; 12/13/04; 12/31/04 11/24/03; 2/1/04; 2/10/04;
8/4/04; 8/10/04; 12/13/04;
12/31/04
--------------------------------------------------------------------------------------------------------------
5/1/02(3) 5/1/02(1); 7/15/02; 8/20/02; 1/6/03; 5/1/02(3) 5/1/02(1); 7/15/02; 8/20/02;
2/20/03; 5/15/03; 8/15/03; 11/24/03; 1/6/03; 2/20/03; 5/15/03;
2/1/04; 8/4/04; 8/10/04; 12/13/04; 8/15/03; 11/24/03; 2/1/04;
12/31/04 8/4/04; 8/10/04; 12/13/04;
12/31/04
--------------------------------------------------------------------------------------------------------------
5/1/02(4) 5/20/02(7); 6/7/02(2); 7/15/02; 5/1/02(4) 5/20/02(7); 6/7/02(2); 7/15/02;
8/5/02(5); 8/20/02; 11/11/02; 12/6/02; 8/5/02(5); 8/20/02; 11/11/02;
12/09/02; 1/6/03; 2/4/02; 2/20/03 ; 12/06/02; 12/09/02; 1/6/03;
5/15/03; 8/8/03(8); 8/15/03; 11/24/03; 2/4/03; 2/20/03; 5/15/03;
2/1/04; 2/10/04; 8/4/04; 8/10/04; 8/8/03(8); 8/15/03; 11/24/03;
12/13/04; 12/31/04 2/1/04; 2/10/04; 8/4/04;
8/10/04; 12/13/04; 12/31/04
--------------------------------------------------------------------------------------------------------------
5/1/03(4) 5/15/03; 8/8/03(8); 8/15/03; 11/24/03; 5/1/03(4) 5/15/03; 8/8/03(8); 8/15/03;
2/1/04; 2/10/04; 8/4/04; 8/10/04; 11/24/03; 2/1/04; 2/10/04;
12/13/04; 12/31/04 8/4/04; 8/10/04; 12/13/04;
12/31/04
--------------------------------------------------------------------------------------------------------------
5/1/04(4) 8/4/04; 8/10/04; 10/25/04(5); 12/13/04; 5/1/04(4) 8/4/04; 8/10/04; 10/25/04(5);
12/31/04 12/13/04; 12/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) 9/15/03 9/15/03(9); 11/24/03; 12/5/03; 1/23/04; 9/15/03 9/15/03(9); 11/24/03; 12/5/03;
(2004 Series) 2/2/04; 2/10/04; 2/23/04(7); 8/4/04; 1/23/04; 2/2/04; 2/10/04(7);
8/10/04; 12/13/04; 12/31/04 2/23/04(7); 4/23/04; 8/4/04;
8/10/04; 12/13/04; 12/31/04
--------------------------------------------------------------------------------------------------------------
5/1/04 7/1/04; 7/19/04; 8/4/04; 8/10/04; 5/1/04 7/1/04; 7/19/04; 8/4/04;
10/25/04(11); 12/10/04(5); 12/13/04; 8/10/04; 10/25/04(11);
12/21/04; 12/31/04 12/10/04(5); 12/13/04;
12/21/04; 12/31/04; 4/04/05
- ------------------------------------------------------------------------------------------------------------------------------------
2 Appendix I
- ------------------------------------------------------------------------------------------------------------------------------------
Product Distributor
--------------------------------------------------------------------------------------------------------------
AXA Advisors AXA Distributors
--------------------------------------------------------------------------------------------------------------
Prospectus and Prospectus and
Product Name SAI Dates Supplement Dates SAI Dates Supplement Dates
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) 9/15/03 9/15/03(9); 11/24/03; 12/5/03; 2/10/04; 9/15/03 9/15/03(9); 11/24/03; 12/5/03;
Select(SM) 2/23/04(7); 8/4/04; 8/10/04; 12/13/04; 2/10/04; 2/23/04(7); 4/23/04;
(2004 Series) 12/31/04 8/4/04; 8/10/04; 12/13/04;
12/31/04
--------------------------------------------------------------------------------------------------------------
5/1/04 7/1/04; 7/19/04; 8/4/04; 8/10/04; 5/1/04 7/1/04; 7/19/04; 8/4/04;
10/25/04(11); 12/10/04(5); 12/13/04; 8/10/04; 10/25/04(11);
12/21/04; 12/31/04 12/10/04(5); 12/13/04;
12/21/04; 12/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) 9/2/99(3) 8/2/99(3)
Plus(SM) 10/18/99(3) 10/18/99(3)
Accumulator(R) 5/1/00(3) 6/23/00; 9/1/00; 9/6/00; 10/13/00; 5/1/00(3) 9/1/00; 9/6/00; 10/13/00;
Plus(SM) (2002 2/9/01; 3/19/01; 7/30/01; 9/1/01; 2/9/01; 3/19/01; 7/30/01;
Series) 1/14/02; 2/22/02; 7/15/02; 8/20/02; 9/1/01; 1/14/02; 2/22/02;
1/6/03; 2/20/03; 5/15/03; 8/15/03; 7/15/02; 8/20/02; 1/6/03;
11/24/03; 2/1/04; 8/4/04; 8/10/04; 2/20/03; 5/15/03; 8/15/03;
12/13/04; 12/31/04 11/24/03; 2/1/04; 8/4/04;
8/10/04; 12/13/04; 12/31/04
--------------------------------------------------------------------------------------------------------------
5/1/01(3) 7/30/01(5); 9/1/01; 12/14/01; 1/14/02; 5/1/01(3) 5/1/01; 7/30/01(5); 9/1/01;
2/22/02; 7/15/02; 8/20/02; 1/6/03; 12/14/01; 1/14/02; 2/22/02;
2/20/03; 5/15/03; 8/15/03; 11/24/03; 7/15/02; 8/20/02; 1/6/03;
2/1/04; 8/4/04;8/10/04; 12/13/04; 2/20/03; 5/15/03; 8/15/03;
12/31/04 11/24/03; 2/1/04; 8/4/04;
8/10/04; 12/13/04; 12/31/04
--------------------------------------------------------------------------------------------------------------
4/1/02(4) 4/3/02; 7/15/02; 8/5/02(5); 8/20/02; 4/1/02(4) 4/3/02; 7/15/02; 8/5/02(5);
11/11/02; 12/6/02; 12/9/02; 1/6/03; 8/20/02; 11/11/02; 12/6/02;
2/4/03; 2/20/03; 5/15/03; 8/15/03; 12/9/02; 1/6/03; 2/4/03;
11/24/03; 2/1/04; 2/10/04; 8/4/04; 2/20/03; 5/15/03; 8/15/03;
8/10/04; 12/13/04; 12/31/04 11/24/03; 2/1/04; 2/10/04;
8/4/04; 8/10/04; 12/13/04;
12/31/04
--------------------------------------------------------------------------------------------------------------
5/1/02(3) 7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/1/02(3) 7/15/02; 8/20/02; 1/6/03;
5/15/03; 8/15/03; 11/24/03; 2/1/04; 2/20/03; 5/15/03; 8/15/03;
2/10/04; 8/4/04; 8/10/04; 12/13/04; 11/24/03; 2/1/04; 2/10/04;
12/31/04 8/4/04; 8/10/04; 12/13/04;
12/31/04
--------------------------------------------------------------------------------------------------------------
5/1/02(4) 7/15/02; 8/5/02(5); 8/20/02; 11/11/02; 5/1/02(4) 7/15/02; 8/5/02(5); 8/20/02;
12/6/02; 12/9/02; 1/6/03; 2/4/03; 11/11/02; 12/6/02; 12/9/02;
2/20/03; 5/15/03; 8/15/03; 11/24/03; 1/6/03; 2/4/03; 2/20/03;
2/1/04; 2/10/04; 8/4/04; 8/10/04; 5/15/03; 8/15/03; 11/24/03;
12/13/04; 12/31/04 2/1/04; 2/10/04; 8/4/04;
8/10/04; 12/13/04; 12/31/04
--------------------------------------------------------------------------------------------------------------
5/1/03(4) 5/15/03; 6/20/03; 8/15/03; 11/24/03; 5/1/03(4) 5/15/03; 6/20/03; 8/15/03;
2/1/04; 2/10/04; 8/4/04; 8/10/04; 11/24/03; 2/1/04; 2/10/04;
12/13/04; 12/31/04 4/23/04; 8/4/04; 8/10/04;
12/13/04; 12/31/04
--------------------------------------------------------------------------------------------------------------
5/1/04(4) 8/4/04; 8/10/04; 10/25/04(5); 12/13/04; 5/1/04(4) 8/4/04; 8/10/04; 10/25/04(5);
12/31/04 12/13/04; 12/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix I 3
- ------------------------------------------------------------------------------------------------------------------------------------
Product Distributor
--------------------------------------------------------------------------------------------------------------
AXA Advisors AXA Distributors
--------------------------------------------------------------------------------------------------------------
Prospectus and Prospectus and
Product Name SAI Dates Supplement Dates SAI Dates Supplement Dates
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) 9/15/03 9/15/03; 11/24/03; 12/5/03; 1/23/04; 9/15/03 9/15/03; 11/24/03; 12/5/03;
Plus(SM) 2/2/04; 2/10/04; 2/23/04(7); 6/21/04; 1/23/04; 2/2/04; 2/10/04;
(2004 Series) 8/4/04; 8/10/04; 12/13/04; 12/31/04; 2/23/04(7) ; 4/23/04; 6/21/04;
2/17/05 8/4/04; 8/10/04;12/13/04;
12/31/04; 2/17/05
--------------------------------------------------------------------------------------------------------------
5/1/04 6/21/04; 7/1/04; 7/19/04; 8/4/04; 5/1/04 6/21/04; 7/1/04; 7/19/04;
8/10/04; 10/25/04(11); 12/10/04(5)(12); 8/4/04; 8/10/04; 10/25/04(11);
12/13/04; 12/21/04; 12/31/04; 12/10/04(5)(12); 12/13/04;
2/17/05 12/21/04; 12/31/04; 2/17/05;
4/04/05
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) N/A N/A 10/1/01 10/1/01(6); 12/14/01; 1/14/02;
Select(SM) II 2/22/02 7/15/02; 8/20/02;
1/6/03; 2/20/03; 5/15/03;
8/15/03; 11/24/03; 2/1/04;
8/4/04; 8/10/04; 12/13/04;
12/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) N/A N/A 10/1/01 10/1/01(7); 12/14/01; 1/14/02;
Elite(SM) II 2/22/02 7/15/02; 8/20/02;
1/6/03; 2/20/03; 5/15/03;
8/15/03; 11/24/03; 2/1/04;
8/4/04; 8/10/04; 12/13/04;
12/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) 8/13/01(3) 9/1/01; 10/1/01(7); 12/14/01; 1/14/02; 8/13/01(3) 9/1/01; 10/1/01(7); 12/14/01;
Elite(SM) 2/22/02; 7/15/02; 8/20/02; 11/11/02; 1/14/02; 2/22/02; 7/15/02;
Accumulator(R) 1/6/03; 2/20/03; 5/15/03; 8/15/03; 8/20/02; 11/11/02; 1/6/03;
Elite(SM) 11/24/03; 2/1/04; 8/4/04; 8/10/04; 2/20/03; 5/15/03; 8/15/03;
(2002 Series) 12/13/04; 12/31/04 11/24/03; 2/1/04; 8/4/04;
8/10/04; 12/13/04; 12/31/04
--------------------------------------------------------------------------------------------------------------
4/1/02(4) 4/3/02(5); 5/20/02(7); 7/15/02; 8/5/02(5); 4/1/02(4) 4/3/02(5); 5/20/02(7); 7/15/02;
8/20/02; 11/11/02; 12/6/02; 12/9/02; 8/5/02(5); 8/20/02; 11/11/02;
1/6/03; 2/4/03; 2/20/03 ; 5/15/03; 12/6/02; 12/9/02; 1/6/03;
8/15/03; 11/24/03; 2/1/04; 2/10/04; 2/4/03; 2/20/03; 5/15/03;
8/4/04; 8/10/04; 12/13/04; 12/31/04 8/15/03; 11/24/03; 2/1/04;
2/10/04 ; 8/4/04; 8/10/04;
12/13/04; 12/31/04
--------------------------------------------------------------------------------------------------------------
5/1/02(3) 7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/1/02(3) 7/15/02; 8/20/02; 1/6/03;
5/15/03; 8/15/03; 11/24/03; 2/1/04; 2/20/03; 5/15/03; 8/15/03;
8/4/04; 8/10/04; 12/13/04; 12/31/04 11/24/03; 2/1/04; 8/4/04;
8/10/04; 12/13/04; 12/31/04
--------------------------------------------------------------------------------------------------------------
5/1/02(4) 5/20/02(7); 7/15/02; 8/5/02(5); 8/20/02; 5/1/02(4) 5/20/02(7); 7/15/02; 8/5/02(5);
11/11/02; 12/6/02; 12/9/02; 1/6/03; 8/20/02; 11/11/02; 12/6/02;
2/4/03; 2/20/03; 5/15/03; 8/15/03; 12/9/02; 1/6/03; 2/4/03;
11/24/03; 2/1/04; 2/10/04; 8/4/04; 2/20/03; 5/15/03; 8/15/03;
8/10/04; 12/13/04; 12/31/04 11/24/03; 2/1/04; 2/10/04;
8/4/04; 8/10/04; 12/13/04;
12/31/04
--------------------------------------------------------------------------------------------------------------
5/1/03(4) 5/15/03; 6/20/03; 8/15/03; 11/24/03; 5/1/03(4) 5/15/03; 6/20/03; 8/15/03;
2/1/04; 2/10/04; 8/4/04; 8/10/04; 11/24/03; 2/1/04; 2/10/04;
12/13/04; 12/31/04 4/23/04; 8/4/04;8/10/04;
12/13/04; 12/31/04
--------------------------------------------------------------------------------------------------------------
5/1/04(4) 8/4/04; 8/10/04; 10/25/04(5); 12/13/04; 5/1/04(4) 8/4/04; 8/10/04; 10/25/04(5);
12/31/04 12/13/04; 12/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
4 Appendix I
- ------------------------------------------------------------------------------------------------------------------------------------
Product Distributor
--------------------------------------------------------------------------------------------------------------
AXA Advisors AXA Distributors
--------------------------------------------------------------------------------------------------------------
Prospectus and Prospectus and
Product Name SAI Dates Supplement Dates SAI Dates Supplement Dates
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) 9/15/03 9/15/03(10); 11/24/03; 12/5/03; 9/15/03 9/15/0310); 11/24/03; 12/5/03;
Elite(SM) 1/23/04; 2/2/04; 2/10/04; 2/23/04(7); 2/2/04; 1/23/04; 2/10/04;
(2004 Series) 8/4/04; 8/10/04; 12/13/04; 12/31/04 2/23/04(7); 4/23/04; 8/4/04;
8/10/04; 12/13/04;12/31/04
--------------------------------------------------------------------------------------------------------------
5/1/04 7/1/04; 7/19/04; 8/4/04; 8/10/04; 5/1/04 7/1/04; 7/19/04; 8/4/04;
10/25/04(11); 12/10/04(5); 12/13/04; 8/10/04; 10/25/04(11);
12/21/04; 12/31/04 12/10/04(5); 12/13/04;
12/21/04; 12/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) 11/17/00 2/9/01; 3/19/01; 7/30/01(5); 9/1/01; 5/15/00 9/1/00; 9/6/00; 2/9/01;
Advisor(SM) 12/14/01; 1/14/02; 2/22/02; 7/15/02; 7/30/01(5); 9/1/01; 12/14/01;
8/20/02; 11/11/02; 1/6/03; 2/20/03; 1/14/02; 2/22/02; 7/15/02;
5/15/03; 8/15/03; 11/24/03; 2/1/04; 8/20/02; 1/6/03; 2/20/03;
8/4/04; 12/13/04 5/15/03; 8/15/03; 11/24/03;
2/1/04; 8/4/04; 12/13/04
--------------------------------------------------------------------------------------------------------------
5/1/01 9/1/01; 12/14/01; 1/14/02; 2/22/02; 5/1/01 9/1/01; 12/14/01; 1/14/02;
7/15/02; 8/20/02; 11/11/02; 1/6/03; 2/22/02; 7/15/02; 8/20/02;
2/20/03; 5/15/03; 8/15/03; 11/24/03; 1/6/03; 2/20/03; 5/15/03;
2/1/04; 8/4/04; 12/13/04 8/15/03; 11/24/03; 2/1/04;
8/4/04; 12/13/04
--------------------------------------------------------------------------------------------------------------
5/1/02 5/1/02; 7/15/02; 8/20/02; 11/11/02; 5/1/02 7/15/02; 8/5/02; 8/20/02;
1/6/03; 2/20/03; 5/15/03; 8/15/03; 12/16/02; 1/6/03; 2/20/03;
11/24/03; 2/1/04 ; 8/4/04; 12/13/04 5/15/03; 8/15/03; 11/24/03;
2/1/04 ; 8/4/04; 12/13/04
--------------------------------------------------------------------------------------------------------------
5/1/03 5/15/03; 8/15/03; 11/24/03; 12/23/03; 5/1/03 5/15/03; 8/15/03; 11/24/03;
2/1/04; 2/10/04; 8/4/04;12/13/04 12/23/03; 2/1/04; 2/10/04;
8/4/04; 12/13/04
--------------------------------------------------------------------------------------------------------------
5/1/04 7/1/04; 8/4/04; 10/25/04; 12/10/04; 5/1/04 7/1/04; 8/4/04; 10/25/04;
12/13/04 12/10/04; 12/13/04
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) N/A N/A 9/2/99
Express(SM) 10/18/99
5/1/00 9/1/00; 9/6/00; 2/9/01;
7/30/01(5); 9/1/01; 12/14/01;
1/14/02; 2/22/02; 7/15/02;
8/20/02; 1/6/03; 5/15/03;
8/15/03; 11/24/03; 2/1/04;
8/4/04; 12/13/04
--------------------------------------------------
5/1/01 7/30/01(5); 9/1/01; 1/14/02;
2/22/02; 7/15/02; 8/20/02;
1/6/03; 5/15/03; 8/15/03;
11/24/03; 2/1/04; 8/4/04;
12/13/04
--------------------------------------------------
5/1/03 5/15/03; 8/15/03; 11/24/03;
12/23/03; 2/1/04; 2/10/04;
8/4/04; 12/13/04
- ------------------------------------------------------------------------------------------------------------------------------------
(1) applies to Accumulator(R) contracts issued in Oregon only.
(2) applies to Accumulator(R) Select(SM) only.
(3) applies to non-2002 Series only.
(4) applies to 2002 Series only.
(5) applies to contracts issued in Washington only.
(6) applies to Accumulator(R) Select(SM) and Select(SM) II contracts issued in
New York only.
(7) applies to contracts issued in New York only.
(8) applies to Accumulator(R) only.
Appendix I 5
(9) There are two supplements dated 9/15/03 for Accumulator(R) and
Accumulator(R) Select(SM).
(10) There are three supplements dated 9/15/03 for Accumulator(R)Elite(SM).
(11) There are three supplements dated 10/25/04 that apply to 2004 Series.
(12) applies to Accumulator(R) Plus(SM) contracts issued in Oregon only.
6 Appendix I
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Custodian and Independent Registered Public Accounting Firm 2
Distribution of the Contracts 2
Calculating Unit Values 2
Condensed Financial Information 2
Financial Statements 3
How to obtain an Accumulator(R) Statement of Additional Information
Send this request form to:
Accumulator(R)
P.O. Box 1547 Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
Please send me a combined Accumulator(R) series SAI dated May 1, 2005
- --------------------------------------------------------------------------------
Name
- --------------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
City State Zip
(SAI 4ACS(5/03))
Income Manager(R)
Payout annuity contracts
PROSPECTUS DATED MAY 1, 2005
Please read and keep this prospectus for future reference. It contains
important information that you should know before purchasing or taking any
other action under your contract.
- --------------------------------------------------------------------------------
WHAT IS INCOME MANAGER(R)?
Income Manager(R) contracts are payout annuity contracts issued by AXA
Equitable Life Insurance Company. They are designed to provide retirement
income. We offer two versions of the Income Manager(R) payout annuity contract
from which you may choose to receive your retirement income. You may choose to
receive income payable for a specified period ("period certain"). Or, you may
choose to receive lifetime income payable for at least a specified period
("life annuity with a period certain"). Under the life annuity with a period
certain contract, you may choose whether payments are made on a single life or
a joint and survivor life basis. In certain circumstances, the forms of annuity
available under your Income Manager(R) contract may be limited.
Types of contracts. We offer the contracts for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only.
o A traditional individual retirement annuity ("IRA").
o A GMIB Income Manager(R) payout annuity issued upon exercise of the
guaranteed minimum income benefit under an Accumulator(R) series contract
("GMIB Income Manager(R) contract"). A GMIB Income Manager(R) contract can
be used as an NQ and a traditional IRA, as well as a Roth IRA contract
("Roth IRA").
Generally, a contribution of at least $10,000 is required to purchase a
contract.
Fixed maturity options. We allocate your contributions to a series of fixed
maturity options to provide your income payments during the period certain.
Amounts allocated to each fixed maturity option will receive a fixed rate of
interest during the period certain. Interest is earned at a guaranteed rate we
set ("rate to maturity"). We make a market value adjustment (up or down) if you
make a withdrawal from a fixed maturity option before its maturity date.
A registration statement relating to this offering has been filed with the
Securities and Exchange Commission ("SEC"). This prospectus can be obtained
from the SEC's website at www.sec.gov.
The SEC has not approved or disapproved these securities or determined if this
prospectus is accurate or complete. Any representation to the contrary is a
criminal offense. The contracts are not insured by the FDIC or any other
agency. They are not deposits or other obligations of any bank and are not bank
guaranteed. They are subject to investment risks and possible loss of
principal.
x01007
Contents of this prospectus
- --------------------------------------------------------------------
INCOME MANAGER(R)
- --------------------------------------------------------------------------------
Index of key words and phrases 4
Who is AXA Equitable? 5
How to reach us 6
Income Manager(R) at a glance -- key features 7
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 9
- --------------------------------------------------------------------------------
How you can purchase and contribute to your contract 9
Source of contributions (not applicable to GMIB Income
Manager(R) contract) 9
Owner and annuitant requirements 9
What are your investments under the contract? 9
What are your contract choices? 10
Life annuity with a period certain contract 10
Period certain contract (not available if you are purchasing
a GMIB Income Manager(R) contract) 15
- --------------------------------------------------------------------------------
2. OTHER BENEFITS AND FEATURES OF THE CONTRACTS 17
- --------------------------------------------------------------------------------
How you can make your contributions 17
Your right to cancel within a certain number of days 17
Surrendering your contract to receive its cash value 17
When to expect payments 18
- --------------------------------------------------------------------------------
3. CHARGES 19
- --------------------------------------------------------------------------------
Withdrawal charges 19
Amounts applied from other contracts issued by
AXA Equitable 19
Charges for state premium and other applicable taxes 19
Group or sponsored arrangements 19
Other distribution arrangements 20
- --------------------------------------------------------------------------------
4. PAYMENT OF DEATH BENEFIT 21
- --------------------------------------------------------------------------------
Your beneficiary 21
Your annuity payout options (not including GMIB Income
Manager(R) contracts) 21
- ----------------------
"We," "our" and "us" refer to AXA Equitable. "Financial professional" means the
registered representative who is offering you this contract.
When we address the reader of this prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the contract owner.
When we use the word "contract" it also includes certificates that are issued
under group contracts in some states.
2 Contents of this prospectus
- --------------------------------------------------------------------------------
5. TAX INFORMATION 22
- --------------------------------------------------------------------------------
Overview 22
Taxation of nonqualified annuities 22
Special rules for NQ contracts issued in Puerto Rico 23
Individual retirement arrangements ("IRAs") 23
Traditional individual retirement annuities
("traditional IRAs") 24
Federal and state income tax withholding and
information reporting 29
- --------------------------------------------------------------------------------
6. MORE INFORMATION 30
- --------------------------------------------------------------------------------
About our fixed maturity options 30
About the separate account for the fixed maturity
options 30
About our general account 30
Other methods of payment 30
About payments under period certain contracts 31
Dates and prices at which contract events occur 31
About legal proceedings 31
About our independent registered public accounting firm 31
Transfers of ownership, collateral assignments, loans,
and borrowing 31
Distribution of contracts 31
- --------------------------------------------------------------------------------
7. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 33
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDIX: MARKET VALUE ADJUSTMENT
EXAMPLE A-1
- --------------------------------------------------------------------------------
Contents of this prospectus 3
Index of key words and phrases
- --------------------------------------------------------------------------------
This index should help you locate more information on the terms used in this
prospectus.
Page
account value 13
annuitant 9
beneficiary 21
business day 17
cash value 17
contract date 8
contract year 8
contribution 9
deferral period 12
fixed maturity amount 9
fixed maturity options cover
IRA cover
IRS 22
joint and survivor 10
joint owners 9
life annuity with a period certain 10
life contingent annuity 11
market adjusted amount 10
market value adjustment 10
maturity value 9
off maturity date 10
NQ cover
payout option 20
period certain 10
Processing Office 6
rate to maturity 10
Roth IRA cover
SEC cover
separate account 30
single life 10
traditional IRA cover
To make this prospectus easier to read, we sometimes use different words than
in the contract or supplemental materials. This is illustrated below. Although
we use different words, they have the same meaning in the prospectus as in the
contract or supplemental materials. Your financial professional can provide
further explanation about your contract.
- --------------------------------------------------------------------------------
Prospectus Contract or Supplemental Materials
- --------------------------------------------------------------------------------
fixed maturity amount Guaranteed Period Amount
fixed maturity options Guarantee Periods
(Guaranteed Interest Rate Options ("GIRO's") in
supplemental materials)
off maturity date payments Modal Payment Portion
market adjusted amount annuity account value
maturity date Expiration Date
rate to maturity Guaranteed Rate
4 Index of key words and phrases
Who is AXA Equitable?
- --------------------------------------------------------------------------------
We are AXA Equitable Life Insurance Company ("AXA Equitable") (previously, The
Equitable Life Assurance Society of the United States), a New York stock life
insurance corporation. We have been doing business since 1859. AXA Equitable is
a wholly owned subsidiary of AXA Financial, Inc. The sole shareholder of AXA
Financial, Inc. is AXA, a French holding company for an international group of
insurance and related financial services companies. As the sole shareholder,
and under its other arrangements with AXA Equitable and AXA Equitable's parent,
AXA exercises significant influence over the operations and capital structure
of AXA Equitable and its parent. No company other than AXA Equitable, however,
has any legal responsibility to pay amounts that AXA Equitable owes under the
contract.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$598 billion in assets as of December 31, 2004. For more than 100 years AXA
Equitable has been among the largest insurance companies in the United States.
We are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office
is located at 1290 Avenue of the Americas, New York, NY 10104.
Who is AXA Equitable? 5
HOW TO REACH US
You may communicate with our processing office as listed below for the purposes
described. Certain methods of contacting us, such as by telephone or
electronically may be unavailable or delayed (for example our facsimile service
may not be available at all times and/or we may be unavailable due to emergency
closing). In addition, the level and type of service available may be
restricted based on criteria established by us.
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
AXA Equitable
Income Manager(R)
P.O. Box 13014
Newark, NJ 07188-0014
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
AXA Equitable
Income Manager(R)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR WITHDRAWALS, OR REQUIRED
NOTICES) SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
AXA Equitable
Income Manager(R)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR WITHDRAWALS, OR REQUIRED
NOTICES) SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
AXA Equitable
Income Manager(R)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVES:
- --------------------------------------------------------------------------------
You may also use our toll-free number (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on each business day from 8:30 a.m. until 5:30 p.m., Eastern Time.
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o Statement of your contract values at the close of each calendar year and any
calendar quarter in which there was a financial transaction; and
o Written confirmation of financial transactions.
You should send all contributions, required notices, and requests to exercise
any of your rights or privileges to our Processing Office at the address above.
WE HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF
REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) withdrawal requests; and
(4) contract surrender.
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us to
take.
SIGNATURES:
The proper person to sign forms, notices and requests is normally the owner. If
there are joint owners, all must sign.
6 Who is AXA Equitable?
Income Manager(R) at a glance -- key features
- ------------------------------------------------------------------------------------------------------------------------------------
Income Manager(R)
(life annuity with Income Manager(R) GMIB Income
a period certain) (period certain) Manager(R) Contract
- ------------------------------------------------------------------------------------------------------------------------------------
Income payments NQ -- Level or increasing payments. NQ and IRA -- Level payments only. NQ and IRA (traditional and
Roth) -- Level payments only.
IRA -- Level payments only.
o Certain NQ and IRA contracts
may be eligible for
increasing payments.
- ------------------------------------------------------------------------------------------------------------------------------------
Period certain You will receive payments for periods ranging from 7 to 15 years o Generally, you will receive at
depending on the age of the annuitant. least 10 years of payments.
Depending on the annuitant's
age at GMIB exercise and the
issue date and type of your
Accumulator(R) contract, the
period may be longer or
shorter.
o The period certain is
specified in your
Accumulator(R) contract and
cannot be changed.
- ------------------------------------------------------------------------------------------------------------------------------------
Form of payment Single life or joint and survivor. Single life only. Single life or joint and
available survivor.
- ------------------------------------------------------------------------------------------------------------------------------------
Payments after the end Payments continue while the None Payments continue while the
of the period annuitant or joint annuitant is annuitant or joint annuitant is
certain living. living.
- ------------------------------------------------------------------------------------------------------------------------------------
Contribution amounts: The annuity account value
applied from your Accumulator(R)
Initial minimum: o $10,000 o $10,000 series contract upon GMIB
exercise. Additional
Additional minimum: o $1,000 (subject to restrictions) o Not permitted contributions are not permitted.
Maximum investment limitations may Maximum investment limitations
apply. may apply.
- ------------------------------------------------------------------------------------------------------------------------------------
Fixed maturity options o Up to 15 fixed maturity options with maturities generally ranging from approximately 1 to 15 years.
o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to
maturity.
o Principal guarantees.
-- If you make withdrawals from a fixed maturity option before maturity, there will be a market
value adjustment due to differences in interest rates. If you withdraw only a portion of a fixed
maturity amount, this may increase or decrease any value you have left in that fixed maturity
option. If you surrender your contract, a market value adjustment may also apply.
- ------------------------------------------------------------------------------------------------------------------------------------
Taxes Generally, earnings will be taxed at your ordinary income tax rate when distributions are made from
your contract.
o NQ -- A portion of each payment is generally not considered taxable income until you have received a
tax-free recovery of your investment in the contract.
o IRA -- Generally, all amounts distributed from a traditional IRA are taxable. Amounts distributed
from a Roth IRA are generally taxable on an income-last basis and may be eligible for tax-free
treatment under certain circumstances.
---------------------------------------------------------------------------------------------------------
This contract is intended to be a payout annuity. However, there may be some instances where you can
delay beginning payments, so IRS rules governing deferred annuity payments could apply.
- ------------------------------------------------------------------------------------------------------------------------------------
Death benefit A death benefit is provided if the A death benefit is provided if A death benefit is provided if
annuitant dies before the first the annuitant dies before the the annuitant dies or if a
payment is made or if a single sum end of the period certain. single sum is elected within
is elected within one year one year following the
following the annuitant's death. annuitant's death. There is no
There is no death benefit if the death benefit if the annuitant
annuitant dies after the certain dies after thecertain period.
period.
- ------------------------------------------------------------------------------------------------------------------------------------
Income Manager(R) at a glance -- key features 7
- ------------------------------------------------------------------------------------------------------------------------------------
Income Manager(R)
(life annuity with Income Manager(R) GMIB Income
a period certain) (period certain) Manager(R) Contract
- ------------------------------------------------------------------------------------------------------------------------------------
Access to your money o Withdrawals (no withdrawals o Withdrawals (no withdrawals o Withdrawals (no withdrawals
during the period certain permitted during the first permitted during the first permitted during the first
contract year). contract year). contract year).
o Contract surrender. o Contract surrender. o Contract surrender.
You may also incur income tax and You may also incur income tax You may also incure income tax
a penalty tax. penalty tax. and a penalty tax.
You cannot take a withdrawal from, A market value adjustment may You cannot take a withdrawal
or surrender, your life contingent apply. from, or surrender your life
annuity. contingent annuity.
Withdrawals are subject to market Withdrawals are subject to
value adjustment and may reduce market value adjustment and may
your remaining payments and shorten reduce your remaining payments
any remaining certain period. The and shorten any remaining
payment start date under the life certain period. The payment
contingent annuity will begin at start date under the life
an earlier date. contingent annuity will be
earlier.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges o We deduct a charge designed to o We deduct a charge designed to o We deduct a charge designed to
approximate certain taxes that approximate certain taxes that approximate certain taxes that
may be imposed upon us, such as may be imposed upon us, such as may be imposed upon us, such
premium taxes in your state. We premium taxes in your state. We as premium taxes in your
deduct this charge from your deduct this charge from your state. We deduct this charge
contributions. contributions. only to the extent that the
annual income provided by this
o During the first seven contract o During the first seven contract contract after the deduction
years following a contribution, years, a charge will be deducted is at least equal to the
a charge will be deducted from from amounts that you withdraw. income that would be provided
amounts that you withdraw that The charge begins at 7% in the by the application of your
exceed 10% of your account value. first contract year. It declines Accumulator(R) Benefit Base
We use the account value at the each year to 1% in the seventh to guaranteed GMIB annuity
beginning of each contract year contract year. There is no purchase factors.
to calculate the 10% amount withdrawal charge in the eighth
available. The charge begins at and later contract years. o There is no charge on amounts
7% in the first contract year you withdraw.
following a contribution. It o There is no free withdrawal
declines each year to 1% in the amount.
seventh contract year. There is no
withdrawal charge in the eighth
and later contract years following
a contribution.
- ------------------------------------------------------------------------------------------------------------------------------------
The "contract date" is the effective date of a contract. This usually is the business day we receive the properly completed and
signed application, along with any other required documents, and your initial contribution. Your contract date will be shown in
your contract. The 12-month period beginning on your contract date and each 12-month period after that date is a "contract year."
The end of each 12-month period is your "contract date anniversary."
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant NQ and IRA level payments: 45 - 83 For contracts purchased in
issue ages NQ increasing payments: 53-1/2 - 83 connection with the proceeds of
Different ages may apply depending an Accumulator(R) series
on when annuity payments start. contract that was issued:*
pre-May 1997: 60-83
May 1997 - pre-May 1999; 35-90
May 1999 - March 2000; 35-83
March 2000 and later; 35-85
*Actual available issues ages
vary depending on your
Accumulator(R) series contract
and the annuitant's age at the
time of its issue.
- ------------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the
contract. In some cases restrictions or exceptions apply. Also, all features of
the contract are not necessarily available in your state or at certain ages.
For more detailed information we urge you to read the contents of this
prospectus, as well as your contract. Please feel free to speak with your
financial professional, or call us, if you have any questions.
8 Income Manager(R) at a glance -- key features
1. Contract features and benefits
- --------------------------------------------------------------------------------
HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT
o For GMIB Income Manager(R) contracts, you can only purchase a contract by
exercising your GMIB benefit in accordance with your Accumulator(R) series
contract, even if the Accumulator(R) account value is less than $10,000;
no additional contributions are permitted.
o For all other contracts, you may purchase your contract by making payments to
us we call "contributions." We require a contribution of at least $10,000
for you to purchase a contract. Under life annuity with a period certain
contracts, you may make additional contributions subject to the
limitations as described under "Additional contributions" later in this
Prospectus.
SOURCE OF CONTRIBUTIONS (NOT APPLICABLE TO GMIB INCOME MANAGER(R) CONTRACT)
NQ contracts. We will accept only contributions made with after-tax money. You
may make your contributions by check or by transfer of your entire contract
value in a tax-deferred exchange under Section 1035 of the Internal Revenue
Code.
Traditional IRA contracts. Contributions may be made from:
o Eligible rollover distributions from TSA contracts or other 403(b)
arrangements, qualified plans, and governmental employer 457(b) or "EDC"
plans.
o Rollovers from another traditional individual retirement arrangement.
o Direct custodian-to-custodian transfers from another traditional individual
retirement arrangement.
See "Tax information" later in this Prospectus for a more detailed discussion
of sources of contributions and contribution limitations. We may refuse to
accept any contribution if the sum of all contributions under all Income
Manager(R) contracts with the same annuitant would then total more than
$1,500,000. We may also refuse to accept any contributions if the sum of all
contributions under all AXA Equitable annuity payout contracts that you own
would then total more than $2,500,000.
For information on when contributions are credited see "Dates and prices at
which contract events occur" later in this Prospectus.
OWNER AND ANNUITANT REQUIREMENTS
NQ contracts. The annuitant can be different from the contract owner. A joint
owner may also be named provided each owner is of legal age. Only natural
persons can be joint owners. This means that an entity such as a corporation or
a trust cannot be a joint owner.
- --------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining
contract benefits. The annuitant is not necessarily the contract owner.
For Income Manager(R) contracts only, where payments have not started; you are
not the annuitant; and you have not named a specific successor owner, the
beneficiary will become the successor owner upon your death.
For GMIB Income Manager(R) contracts only, the owner and annuitant must be the
same as under your IRA or NQ Accumulator(R) series contract.
- --------------------------------------------------------------------------------
IRA contracts. The owner and the annuitant must be the same person. Joint
owners are not permitted. Your spouse may be named as joint annuitant. In some
cases, an IRA contract may be held in a custodial individual retirement account
for the benefit of the individual annuitant.
WHAT ARE YOUR INVESTMENTS UNDER THE CONTRACT?
FIXED MATURITY OPTIONS
To provide your income payments during the period certain, we allocate your
contributions to fixed maturity options that mature in consecutive date order.
When we allocate your contributions to the fixed maturity options they become
part of a non-unitized separate account. They accumulate interest at a rate to
maturity for each fixed maturity option. The total amount allocated to and
accumulated in each fixed maturity option is called the "fixed maturity
amount."
The rate to maturity you will receive for each fixed maturity amount is the
interest rate in effect for new contributions allocated to that fixed maturity
option on the date we apply your contribution. If you make any withdrawals from
a fixed maturity option before the maturity date, we will make a market value
adjustment that may increase or decrease any fixed maturity amount you have
left in that fixed maturity option. We will discuss market value adjustment
below and in greater detail under "More information" later in this Prospectus.
For applications we receive under certain types of transactions, we may offer
you the opportunity to lock in rates to maturity on contributions.
On the maturity date of each of your fixed maturity options, your fixed
maturity amount (assuming you have not made any withdrawals) will equal amounts
originally allocated to each fixed maturity option plus interest, at the rate
to maturity for that contribution, to the date of calculation. This is the
fixed maturity option's "maturity value." Before
Contract features and benefits 9
maturity, the current value we will report for your fixed maturity amount will
reflect a market value adjustment. It will reflect the market value adjustment
that we would make if you were to withdraw all of your fixed maturity amount on
the date of the report. We call this your "market adjusted amount."
Rates to maturity and price per $100 of maturity value. We can determine the
amount required to be allocated to each fixed maturity option in order to
produce specified maturity values. For example, we can tell you how much you
need to allocate per $100 of maturity value.
Guaranteed rates to maturity for new allocations as of February 15, 2005 and
the related price per $100 of maturity value were as follows:
- ----------------------------------------------------------------
Fixed maturity
options with
February 15th Rate to Price
maturity date of maturity as of per $100 of
maturity year February 15, 2005 maturity value
- ----------------------------------------------------------------
2006 3.00% $ 97.09
2007 3.00% $ 94.26
2008 3.00% $ 91.51
2009 3.00% $ 88.84
2010 3.00% $ 86.25
2011 3.00% $ 83.74
2012 3.10% $ 80.75
2013 3.25% $ 77.41
2014 3.39% $ 74.07
2015 3.47% $ 71.08
2016 3.74% $ 66.76
2017 3.74% $ 64.34
2018 3.74% $ 62.03
2019 3.74% $ 59.79
2020 3.74% $ 57.63
- ----------------------------------------------------------------
Market value adjustment. If you make any withdrawals (including surrender of
your contract or when we make deductions for withdrawal charges) from a fixed
maturity option before it matures we will make a market value adjustment which
will increase or decrease any fixed maturity amount you have in that fixed
maturity option. The amount of the adjustment will depend on two factors:
(a) the difference between the rate to maturity that applies to the amount
being withdrawn and the rate to maturity in effect at that time for new
allocations to that same fixed maturity option; and
(b) the length of time remaining until the maturity date.
In general, if interest rates rise from the time that we originally allocate an
amount to a fixed maturity option to the time that you take a withdrawal, the
market value adjustment will be negative. Likewise, if interest rates drop at
the end of that time, the market value adjustment will be positive. Also, the
amount of the market value adjustment, either up or down, will be greater the
longer the time remaining until the fixed maturity option's maturity date.
Therefore, it is possible that the market value adjustment could greatly reduce
your value in the fixed maturity options, particularly in the fixed maturity
options with later maturity dates.
We provide an explanation of how we calculate the market value adjustment, and
information concerning our general account under "More information" later in
this Prospectus. We provide an example of how we calculate the market value
adjustment in the Appendix at the end of this Prospectus.
SEPARATE ACCOUNT FOR THE FIXED MATURITY OPTIONS
Amounts allocated to the fixed maturity options are held in a "nonunitized"
separate account we have established under the New York Insurance Law. This
separate account provides an additional measure of assurance that we will make
full payment of amounts due under the fixed maturity options. We provide
additional information about this separate account under "More information"
later in this Prospectus.
Off maturity date payments. Generally, your payments will be made on February
15th as each fixed maturity option matures. You may instead choose to have your
payments made in a month other than February. We refer to payments we make
annually in any month other than February as well as monthly or quarterly
payments, as payments made "off maturity dates." If you choose to have your
payments made off maturity dates, we will be required to begin making your
payments before the maturity date of a fixed maturity option. In planning for
these payments we will allocate a portion of your initial contribution to the
separate account, but not to the fixed maturity options contained in the
separate account. We will credit these amounts with interest at rates that will
not be less than 3%.
After that, as each fixed maturity option expires we will transfer your
maturity value from the expired fixed maturity option and hold the maturity
value in the separate account. We will credit interest to these amounts at the
same rate as the rate to maturity that was credited in the expired fixed
maturity option. These amounts will then be used to provide for payments off
maturity dates during the period certain.
- --------------------------------------------------------------------------------
Whether you choose monthly, quarterly, or annual payments, your payments will
be made on the 15th day of the month.
- --------------------------------------------------------------------------------
We will not make a market value adjustment to the amounts held in the separate
account to provide for payments off maturity dates.
WHAT ARE YOUR CONTRACT CHOICES?
We offer two versions of the Income Manager(R) payout annuity contracts from
which you may choose to receive your retirement income, a "life annuity with a
period certain" and a "period certain" annuity. For GMIB Income Manager(R)
contracts, a period certain annuity is not available. We discuss both versions
below.
LIFE ANNUITY WITH A PERIOD CERTAIN CONTRACT
This payout annuity contract provides you with guaranteed payments during the
period certain. When the period certain ends you will continue to receive
payments for as long as an annuitant is living. Payments based solely on the
life of one annuitant are called "single life" payments. You may also elect to
receive "joint and survivor" payments that are based on the lives of an
annuitant and a joint annuitant. These payments will continue as long as one of
the annuitants is living. Payments during the period certain are designed to
pay out your entire account value by the end of the period certain.
10 Contract features and benefits
For GMIB Income Manager(R) contracts, if the annuitant's age at issue is 90, a
period certain is not available. Instead, you will receive payments for the
life of the annuitant, only.
- --------------------------------------------------------------------------------
"Single life" payments are made to you as long as the annuitant is living.
"Joint and survivor" payments continue as long as either annuitant is living.
For IRA contracts, if you are married, the joint annuitant must be your spouse.
- --------------------------------------------------------------------------------
For annuitant ages at which the contracts are available see the chart under
"Your period certain" below.
ADDITIONAL CONTRIBUTIONS
If your annuity payments are set to begin on February 15, 2006 or later, and
(for NQ contracts) the annuitant is age 78 or younger, you may make additional
contributions of at least $1,000 at any time up until 15 days before your
payments actually begin. If the annuitant is over age 78 you can make
additional contributions only during the first contract year.
Under IRA contracts we will accept additional contributions that are "regular"
contributions, rollover contributions or direct transfers. Additional "regular"
contributions may no longer be made after the year in which annuitant is age
70-1/2. If you make a direct transfer or rollover contribution after you turn
age 70-1/2 you must have taken the required minimum distribution for the year
before the contribution is applied to this contract. See "Tax information"
later in this Prospectus.
If you are using the proceeds from another type of contract issued by us to
purchase this contract, including a GMIB Income Manager(R) contract, you will
not be permitted to make additional contributions.
HOW WE ALLOCATE YOUR CONTRIBUTIONS
We determine the allocation of your contributions based on a number of factors.
They are:
o the amount of your contribution;
o the form of payments;
o the age and sex of the annuitant (and the age and sex of the joint annuitant,
if joint and survivor annuity payments are elected);
o the frequency of payments; and
o the period certain.
We then allocate your initial contribution among the fixed maturity options,
the separate account if we need to make payments to you off maturity dates, and
the "life contingent annuity." We will allocate your additional contributions
in the same manner. Additional contributions will increase the level of all
future payments. You may not change this allocation.
- --------------------------------------------------------------------------------
The life contingent annuity continues the payments after the period certain
ends.
- --------------------------------------------------------------------------------
PAYMENTS
NQ contracts. If you are age 45 (35 for GMIB Income Manager(R) contracts) or
older, you may elect to receive level payments. You will receive level payments
during the period certain and under the life contingent annuity. However, if
you are younger than age 59-1/2, there are tax issues that you should consider
before you purchase a contract. If you are age 53-1/2 or older you may instead
elect to receive payments that increase. However, your payments may not start
before you are age 59-1/2. Such payments will increase by 10% every three years
during the period certain on each third anniversary of the date annuity
payments begin. Deferral of payments is not available for GMIB Income
Manager(R) contracts.
If you are using the proceeds from an Accumulator(R) series contract issued in
May 1997 or later to purchase an NQ GMIB Income Manager(R) contract, only level
payments are available.
After the end of the period certain, we will continue your payments under the
life contingent annuity while the annuitant or joint annuitant is living.
Payments continue throughout the annuitant's lifetime (or the lifetime of the
joint annuitant, if joint and survivor payments are elected) on the same
payment schedule (either monthly, quarterly, or annually) as the payments you
received during the period certain.
- --------------------------------------------------------------------------------
The portion of your contribution allocated to the life contingent annuity does
not have a cash value or an account value and, therefore, does not provide for
withdrawals or surrender.
- --------------------------------------------------------------------------------
There is no death benefit provided under the life contingent annuity and
payments are made to you only if the annuitant (or joint annuitant) is living
when the payments are scheduled to begin. These payments are only made during
the annuitant's lifetime and, if applicable, the lifetime of a joint annuitant.
Therefore, you should consider the possibility that no payments will be made to
you under the life contingent annuity if the annuitant (or joint annuitant)
does not survive to the date payments are to begin.
You may elect single life or joint and survivor payments. Joint and survivor
payments are available on a 100%, one-half or two-thirds to survivor basis. If
you elect increasing payments under NQ contracts, your first payment under the
life contingent annuity will be 10% greater than the final payment under the
period certain. After the period certain we will increase your payments
annually on each anniversary of the payment start date under the life
contingent annuity. We will base this increase on the annual increase in the
Consumer Price Index, but it will never be greater than 3% per year.
IRA and Roth IRA GMIB contracts. Generally, only level payments are available
under IRA contracts. You will receive level payments during the period certain
and under the life contingent annuity. If you are using the proceeds from an
Accumulator(R) series contract issued prior to May 1997 to purchase a GMIB
Income Manager(R) contract (traditional or Roth IRA), both increasing and level
payments are currently available, however, increasing payments may not comply
with current treasury regulations. See "Required minimum distributions" under
"Individual retirement arrangements" in "Tax information." Please consult your
tax adviser, if you elect increasing payments, during the period certain,
payments are designed to increase by 10% every three years on each third
anniversary of the payment start date. After the end of the period certain,
your first payment under the life contingent
Contract features and benefits 11
annuity will be 10% greater than the final payment made under the period
certain. Thereafter, payments will increase annually on each anniversary of the
payment start date under the life contingent annuity based on the annual
increase, if any, in the Consumer Price Index, but in no event greater than 3%
per year. For traditional IRA contracts, if at any time your payment would be
less than the minimum amount required to be distributed under required minimum
distribution rules, we will notify you of the difference. You will have the
option to have an additional amount withdrawn from your contract. An adjustment
will be made to future scheduled payments. Or, you may take the amount from
other traditional IRA funds you may have.
MODE (FREQUENCY) OF PAYMENT
Under Income Manager(R) and GMIB Income Manager(R) contracts you may choose to
receive payments monthly, quarterly or annually. Whether you choose monthly,
quarterly or annual payments, you will usually begin receiving payments one
payment period from the contract date, unless you elect otherwise as described
under "Off maturity date payments" earlier in this Prospectus. Your payments
will always be made on the 15th day of the month. For instance, if you choose
annual payments, we make your first payment one year from the issue date of the
Income Manger contract. If you are at least age 59-1/2 you may elect to defer
the date your payments will start. Generally, you may defer payments for a
period of up to 72 months. This is called the deferral period. Deferral of the
payment start date permits you to lock in rates at a time when you may consider
current rates to be high, while permitting you to delay receiving payments if
you have no immediate need to receive income under your contract. Deferral is
not available under GMIB Income Manager(R) contracts or when the owner and
annuitant are different under Income Manager(R) contracts, respectively.
- --------------------------------------------------------------------------------
The deferral period together with the period certain may be referred to as a
"liquidity period." Unlike traditional life annuities that provide periodic
payments, you will be able to make withdrawals before the end of the period
certain. You may also choose to surrender your contract for its cash value
while keeping the life contingent annuity in effect.
- --------------------------------------------------------------------------------
Before you decide to defer payments, you should consider the fact that the
amount of income you purchase is based on the rates to maturity in effect on
the date we allocate your contribution. Therefore, if rates rise during the
deferral period, your payments may be less than they would have been if you had
purchased a contract at a later date. Deferral of the payment start date is not
available if the annuitant is older than age 80. Under IRA contracts, if your
deferred payment start date is after you are age 70-1/2, you should consider the
effect that deferral may have on your required minimum distributions.
YOUR PERIOD CERTAIN
Level payments for NQ and IRA Income Manager(R) contracts. Under level
payments, you may select a period certain of not less than 7 years nor more
than 15 years. The maximum period certain available based on the age of the
annuitant when your Income Manager(R) contract is issued is as follows:
NQ CONTRACTS
- --------------------------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
- --------------------------------------------------------------------------------
45 through 70 15 years
71 through 75 85 less age at issue
76 through 80 10 years
81 through 83 90 less age at issue
IRA CONTRACTS
- --------------------------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
- --------------------------------------------------------------------------------
45 through 70 15 years
71 through 78 85 less age at issue
79 through 83 7 years
Level payments for NQ GMIB, IRA GMIB and Roth IRA GMIB Income Manager(R)
contracts. Under level payments for these contracts, you may select a period
certain of not less than 7 years nor more than 10 years. The maximum period
certain available based on the age of the annuitant when your GMIB Income
Manager(R) contract is issued is shown in the tables below. However, if the
annuitant's age at issue is age 84 or older, the only period certain available
is defined in the chart below.
NQ GMIB INCOME MANAGER(R) CONTRACTS
- --------------------------------------------------------------------------------
Contracts purchased in connection with the proceeds from a pre-May 1997
Accumulator(R) series contract
- --------------------------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
- --------------------------------------------------------------------------------
60 through 80 10 years
81 through 83 90 less issue age
- --------------------------------------------------------------------------------
Contracts purchased in connection with the proceeds from a
May 1997-pre-May 1999 Accumulator(R) series contract
- --------------------------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
- --------------------------------------------------------------------------------
35 through 80 10 years
81 through 90 90 less issue age
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Contracts purchased in connection with the proceeds from a
May 1999-pre-March 2000 Accumulator(R) series contract
- --------------------------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
35 through 80 10 years
81 through 83 90 less issue age
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Contracts purchased in connection with the proceeds from a
March 2000 and later contract
- --------------------------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
- --------------------------------------------------------------------------------
35 through 80 10 years
81 through 85 90 less issue age
- --------------------------------------------------------------------------------
IRA AND ROTH IRA GMIB INCOME MANAGER(R) CONTRACTS
- --------------------------------------------------------------------------------
Contracts purchased in connection with the proceeds from a
pre-May 1997 Accumulator(R) series contract
- --------------------------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
- --------------------------------------------------------------------------------
60 through 75 10 years
76 through 78 85 less issue age
79 through 83 7 years
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Contracts purchased in connection with the proceeds from a
May 1997-pre-May 1999 Accumulator(R) series contract
- --------------------------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
- --------------------------------------------------------------------------------
35 through 75 10 years
76 through 77 85 less issue age
78 through 83 7 years
- --------------------------------------------------------------------------------
12 Contract features and benefits
- --------------------------------------------------------------------------------
Contracts purchased in connection with the proceeds from a
May 1997-pre-May 1999 Accumulator(R) series contract
- --------------------------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
- --------------------------------------------------------------------------------
84 through 90 90 less issue age
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Contracts purchased in connection with the proceeds from a
post May 1999-March 2000 or later Accumulator(R) series contract
- --------------------------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
- --------------------------------------------------------------------------------
35 through 75 10 years
76 through 77 85 less issue age
78 through 83 7 years
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Contracts purchased in connection with the proceeds from a
March 2000 and later Accumulator(R) series contract
- --------------------------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
- --------------------------------------------------------------------------------
35 through 75 10 years
76 through 77 85 less issue age
78 through 83 7 years
84 through 85 90 less issue age
- --------------------------------------------------------------------------------
* For joint and survivor payments, the period certain is based on the age of
the younger annuitant.
The minimum and maximum period certain will be reduced by each year you defer
the date your payments will start. Deferral is not available under GMIB Income
Manager(R) contracts.
Increasing payments. Under NQ contracts (other than NQ GMIB Income Manager(R)
contracts, where increasing payments are generally not available) if you elect
increasing payments, you do not have a choice as to the period certain. Based
on the age of the annuitant when your contract is issued, your period certain
will be as follows:
- --------------------------------------------------------------------------------
Annuitant's age at issue* Period certain
- --------------------------------------------------------------------------------
53-1/2 through 70 15 years
71 through 75 12 years
76 through 80 9 years
81 through 83 6 years
- --------------------------------------------------------------------------------
If you elect increasing payments and defer the date payments will start, your
period certain will be as follows:
- ------------------------------------------------------------------
Period certain based
on deferral period
Annuitant's age 1-36 37-60 61-72
at issue* months months months
- ------------------------------------------------------------------
59-1/2 through 70 12 years 9 years 9 years
- ------------------------------------------------------------------
71 through 75 9 years 9 years n/a
- ------------------------------------------------------------------
76 through 80 6 years 6 years n/a
- ------------------------------------------------------------------
81 through 83 n/a n/a n/a
- ------------------------------------------------------------------
For GMIB Income Manager(R) contracts (both NQ and IRA and Roth IRA) issued with
the proceeds from a pre-May 1997 Accumulator(R) series contract, increasing
payments are currently available, as follows:
- --------------------------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
- --------------------------------------------------------------------------------
60 through 70 15 years
71 through 75 12 years
76 through 80 9 years
81 through 83 6 years
- --------------------------------------------------------------------------------
For all other NQ, IRA (including Roth IRA) and GMIB Income Manager(R)
contracts, increasing payments are not available. For all other IRA contracts,
increasing payments are not available.
The annuitant ages at issue in the above table are also the annuitant ages for
which the contracts are available. Different ages may apply if you purchase a
contract by exercising a benefit under another type of contract that we issue.
* For joint and survivor payments, the period certain is based on the age of
the younger annuitant.
PURCHASE RESTRICTIONS FOR JOINT AND SURVIVOR ANNUITY PAYMENTS
If you elect payments on a joint and survivor basis;
o the joint annuitant must also be the beneficiary under the contract. Under
IRA contracts, the joint annuitant must be your spouse;
o neither the annuitant nor the joint annuitant can be younger than age 45 (age
35 for GMIB Income Manager(R)), or over age 83 unless it is a GMIB Income
Manager(R) contract, as described above then neither can be over the
maximum age at issue shown; and
o under level payments the joint and 100% to survivor form is only available
for the longest period certain we permit.
EXAMPLE OF PAYMENTS
We provide the chart below to illustrate level payments under the contract
using the following assumptions:
(1) a male age 70 (who is both the contract owner and the annuitant);
(2) single life annuity payments;
(3) a contribution of $100,000;
(4) no additional contributions; and
(5) a period certain of 15 years.
If you had a contract date of February 15, 2005, based on rates to maturity on
that date, an election of either monthly, quarterly, or annual payments with
payments starting one payment period from the contract date, the following
level payments would be provided:
- --------------------------------------------------------------------------------
Payment period Monthly Quarterly Annual
- --------------------------------------------------------------------------------
Start date 3/15/05 5/15/05 2/15/06
Payment $ 594.00 $ 1,790.69 $ 7,321.26
- --------------------------------------------------------------------------------
WITHDRAWALS
After the first contract year and before the end of the period certain, you may
take withdrawals from your account value. You may take one withdrawal per
contract year at any time during the contract year. The minimum amount you may
withdraw at any time is $1,000. If you request to withdraw more than 90% of
your current "cash value" we will treat it as a request to surrender your
contract for its cash value. See "Surrendering your contract to receive its
cash value" later in this Prospectus.
- --------------------------------------------------------------------------------
Your account value is the sum of your market adjusted amounts in each fixed
maturity option plus your amounts held in the separate account to provide for
payments off maturity dates. Your cash value is equal to your account value
minus any withdrawal charge. If the life contingent annuity is already in
effect, you may not make any withdrawals.
- --------------------------------------------------------------------------------
Withdrawals in excess of a 10% free withdrawal amount may be subject to a
withdrawal charge. There is no free withdrawal amount if your
Contract features and benefits 13
contract is surrendered for its cash value. For GMIB Income Manager(R)
contracts, withdrawal charges do not apply, and, therefore, the free withdrawal
amount is not applicable. Amounts withdrawn from a fixed maturity option before
its maturity date will result in a market value adjustment.
ALLOCATION OF WITHDRAWALS
We will subtract your withdrawal from all remaining fixed maturity options to
which your account value is allocated as well as from amounts held in the
separate account to provide for payments off maturity dates. As a result we
will reduce the amount of your payments and the length of your period certain.
We will also begin making payments to you under the life contingent annuity at
an earlier date. In order to achieve this result we will withdraw additional
amounts over the amount of the withdrawal you requested. We will withdraw these
amounts from the fixed maturity options and from amounts held in the separate
account to provide for payments off maturity dates and allocate them to the
life contingent annuity. The exact additional amount we withdraw will depend on
how much is necessary to assure that the same pattern of payments will continue
in reduced amounts for the annuitant's life, and if it applies, the life of the
joint annuitant. If you have elected increasing payments, the first increase in
your payments will take place no later than the date of the next planned
increase.
EXAMPLE
The example below illustrates the effect of a withdrawal based on:
(1) a single contribution of $100,000 made on February 15, 2005;
(2) level annual payments of $6,860.07 to be made on February 15th of each
year;
(3) joint and two-thirds to survivor payments for a male and female, both age
70;
(4) a period certain of 15 years; and
(5) a withdrawal made at the beginning of the fourth contract year of 25% of
an account value of $66,121.17 when the annuitants are age 73.
The requested withdrawal amount would be $16,530.29 ($66,121.17 x .25). In this
case, $6,612.12 ($66,121.17 x .10) would be the free withdrawal amount and
could be withdrawn free of a withdrawal charge. The balance of $9,918.18
($16,530.29 - $6,612.12) would be considered a withdrawal of a part of the
contribution of $100,000. This contribution would be subject to a 4.0%
withdrawal charge of $396.73 ($9,918.18 x .04). The account value after the
withdrawal is $49,194.15 ($66,121.17 - $16,530.29 - $396.73). The payments
would be reduced to $5,689.44 and the remaining period certain would be reduced
to 10 years from 12.
DEATH BENEFIT -- FOR ALL CONTRACTS OTHER THAN GMIB INCOME MANAGER(R) CONTRACTS
When the annuitant dies before payments begin
Generally, when we receive satisfactory proof of the annuitant's death before
annuity payments begin we will pay the death benefit to the "beneficiary" named
in your contract. See "Your beneficiary" later in this Prospectus. If the joint
owner who is also the annuitant dies, we will consider the surviving owner to
be the beneficiary, taking the place of any other beneficiary designations.
We determine the amount of the death benefit payable to your beneficiary as of
the date we receive satisfactory proof of the annuitant's death and any
required instructions for the method of payment and any required forms
necessary to effect payment. The death benefit is the greater of:
(1) your account value; and
(2) the sum of the fixed maturity amounts in each fixed maturity option plus
any amounts held in the separate account to provide for payments off
maturity dates.
However, if you are the annuitant and your spouse is the joint owner or the
designated beneficiary under the contract, your spouse may elect to receive the
payments instead of taking the death benefit if payments have not been
deferred, or payments are scheduled to begin within one year. The payments will
then begin on the scheduled date. We will not make any payments under the life
contingent annuity after the annuitant's death unless you have elected the
joint and survivor form of payments. If you elect joint and one-half or joint
and two-thirds to survivor payments, at the death of either annuitant, we will
reduce the payments by one-half or one-third, whichever applies.
- --------------------------------------------------------------------------------
A death benefit is never payable under the life contingent annuity. The death
benefit applies only during the period certain.
- --------------------------------------------------------------------------------
When the annuitant dies after the annuity payments begin
If the annuitant dies after the payments begin, we will continue to make
payments during the period certain to either the joint owner or the designated
beneficiary, whichever applies. If payments continue to the beneficiary, he or
she will be deemed the successor owner. If there is a joint owner, the
surviving joint owner will be deemed the beneficiary, superseding any other
beneficiary designation. The payments will be made on the same schedule that
was in effect before the annuitant's death and will terminate at the end of the
period certain. If you elected joint and survivor payments under the life
contingent annuity, the payments will be made as long as one of the annuitants
is living. If you elected joint and one-half or joint and two-thirds to
survivor payments, at the death of either annuitant, we will reduce the
payments by one-half or one-third, whichever applies.
At the beneficiary's option, payments during the period certain may be
discontinued and paid in a single sum. If the single sum is elected within one
year after the annuitant's death, the single sum will be paid as a death
benefit and will be equal to the greater of:
(1) the account value; and
(2) the sum of the fixed maturity amounts in each fixed maturity option, plus
any amounts held in the separate account to provide for payments off
maturity dates.
If a single sum is elected and there is a joint annuitant, we will begin making
payments to you under the life contingent annuity at an earlier date. These
payments will be made in reduced amounts to
14 Contract features and benefits
compensate for the earlier start date. If you elected joint and one-half or
joint and two-thirds to survivor payments, at the death of either annuitant, we
will reduce the payments by one-half or one-third, whichever applies.
When the NQ contract owner who is not the annuitant dies after the annuity
payments begin.
If your death occurs after annuity payments begin, payments will continue to be
made during the period certain to the designated beneficiary, or in the case of
joint owners, to the surviving owner. In either case this person becomes the
new contract owner. The payments will be made on the same payment schedule that
was in effect before your death. After the period certain, lifetime payments
will be made under the life contingent annuity for as long as the annuitant (or
joint annuitant) is living.
If a single sum is elected, we will begin making payments to you under the life
contingent annuity at an earlier date. The lump sum is treated as a withdrawal.
See the discussion of withdrawals earlier in this section. These payments will
be made in reduced amounts to compensate for the earlier start date. When the
life contingent annuity is in effect and one of the joint annuitants dies, if
you elected joint and one-half or joint and two-thirds to survivor payments, at
the death of either annuitant, we will reduce the payments by one-half or
one-third, whichever applies.
DEATH BENEFIT -- FOR ALL GMIB INCOME MANAGER(R) CONTRACTS
For purposes of determining the death benefit in connection with any GMIB
Income Manager(R) contract, the annuity payments are considered to have begun
at issue of the contract.
When the annuitant dies
In general, we will continue to make payments during the period certain as
described earlier in this section under "Death benefit -- for all contracts
other than the GMIB Income Manager(R) contracts" under "When the annuitant dies
after the annuity payments begin." However, if there is a non-owner joint
annuitant, we will continue to make payments to the original owner until the
death of the joint annuitant.
Payments during the period certain may be discontinued and paid in a single
sum. If there is a joint annuitant, we will begin making payments to you under
the life contingent annuity at an earlier date. The lump sum is treated as a
withdrawal. See the discussion of withdrawals earlier in this section. These
payments will be made in reduced amounts to compensate for the earlier start
date.
When the NQ GMIB contract owner who is not the annuitant dies
We will continue to make annuity payments during the period certain as
described earlier in this section under "Death benefit -- for all contracts
other than the GMIB Income Manager(R) contracts" under "When the NQ contract
owner who is not the annuitant dies after the annuity payments begin."
SURRENDERING YOUR LIFE ANNUITY WITH PERIOD CERTAIN CONTRACT
You may surrender your contract for its cash value at any time during the
period certain and receive lifetime payments after that under the life
contingent annuity. Once your contract is surrendered, the date your payments
are to start under the life contingent annuity will be moved forward to the
date when you were supposed to receive the next payment under the period
certain. However, your payments will be made in reduced amounts. Once your
contract is surrendered, we will return it to you with a notation that the life
contingent annuity is still in effect. You may not surrender the life
contingent annuity.
PERIOD CERTAIN CONTRACT (NOT AVAILABLE IF YOU ARE PURCHASING A GMIB INCOME
MANAGER(R) CONTRACT)
You may purchase the period certain contract if you are age 59-1/2 or older. The
annuitant must be at least age 59-1/2, but not older than age 78. This contract
provides you with level guaranteed payments for a period certain that you
select. The minimum period certain you may select is 7 years and the maximum
period certain is 15 years. If the annuitant is over age 70 when the contract
is issued, the maximum period certain you may select is 85 less the annuitant's
age when the contract is issued.
ADDITIONAL CONTRIBUTIONS
Additional contributions are not permitted under the contract.
HOW WE ALLOCATE YOUR CONTRIBUTIONS
Based on the amount of your single contribution and the period certain you
select, we allocate your contribution among the fixed maturity options and, if
necessary, to the separate account to provide for payments off maturity dates.
You may not change this allocation. See "More information" later in this
Prospectus for an example of payments.
PAYMENTS
Whether you choose monthly, quarterly or annual payments, your payments
normally will start one payment period from the contract date unless you elect
otherwise as described under "Off maturity date payments" earlier in this
Prospectus. Your payments will always be made on the 15th day of the month.
- --------------------------------------------------------------------------------
The period certain may also be referred to as the "liquidity period" because
you have access to your money through withdrawals or surrender of your
contract.
- --------------------------------------------------------------------------------
WITHDRAWALS
After the first contract year you may take withdrawals from your account value.
You may take one withdrawal per contract year at any time during the contract
year. The minimum amount you may withdraw at any time is $2,000 or 25% of your
current cash value if it produces a larger amount. If you request to withdraw
more than 90% of your current cash value we will treat it as a request for
surrender of the contract for its cash value. See "Surrendering your contract
to receive its cash value" later in this Prospectus. Any amounts withdrawn from
a fixed maturity option, before its maturity date, will result in a market
value adjustment. See "Market value adjustment" earlier in this Prospectus.
Withdrawals made during the first seven contract
Contract features and benefits 15
years may be subject to a withdrawal charge. There is no free withdrawal amount
under the period certain contracts.
ALLOCATION OF WITHDRAWALS
We will subtract your withdrawals pro rata from all remaining fixed maturity
options to which your account value is allocated as well as from amounts held
in the separate account to provide for payments off maturity dates. As a
result, your payments will continue in reduced level amounts over the remaining
term of the period certain.
DEATH BENEFIT
When the annuitant dies before payments begin
Generally, when we receive satisfactory proof of the annuitant's death before
annuity payments begin we will pay the death benefit to the beneficiary named
in your contract. See "Your beneficiary" later in this Prospectus. If the joint
owner who is also the annuitant dies, we will consider the surviving owner to
be the beneficiary, taking the place of any other beneficiary designations.
We determine the amount of the death benefit payable to your beneficiary as of
the date we receive satisfactory proof of the annuitant's death and any
required instructions for the method of payment and any required forms
necessary to effect payment. The death benefit is the greater of:
(1) your account value; and
(2) the sum of the fixed maturity amounts in each fixed maturity option plus
any amounts held in the separate account to provide for payments off
maturity dates.
However, if you are the annuitant and your spouse is the joint owner or the
designated beneficiary under the contract, your spouse may elect to receive the
payments instead of taking the death benefit. The payments will then begin on
the scheduled date.
When the annuitant dies after the annuity payments begin
If the annuitant dies after the payments begin, payments will continue to be
made during the period certain to either the joint owner or the designated
beneficiary, whichever applies. The payments will be made on the same schedule
that was in effect before the annuitant's death.
At the beneficiary's option, payments may be discontinued and paid in a single
sum. If the single sum is elected within one year after the annuitant's death,
the single sum will be equal to the greater of:
(1) the account value; and
(2) the sum of the fixed maturity amounts in each fixed maturity option plus
any amounts held in the separate account to provide for payments off
maturity dates.
When the NQ contract owner who is not the annuitant dies after the annuity
payments begin
If your death occurs after annuity payments begin, payments will continue to be
made during the period certain to the designated beneficiary or in the case of
joint owners to the surviving owner. In either case, this person becomes the
new contract owner and receives the payments.
16 Contract features and benefits
2. Other benefits and features of the contracts
- --------------------------------------------------------------------------------
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be by check drawn on a U.S. bank in
U.S. dollars, and made payable to AXA Equitable. We do not accept third party
checks endorsed to us except for rollover contributions, tax-free exchanges or
trustee checks that involve no refund. All checks are subject to our ability to
collect the funds. We reserve the right to reject a payment if it is received
in an unacceptable form. For GMIB Income Manager(R) contracts, you can only
purchase a contract by exercising your GMIB benefit in accordance with your
Accumulator(R) series contract, even if the Accumulator(R) account value is
less than $10,000; no additional contributions are permitted.
For your convenience, we will accept initial and additional contributions, if
applicable, by wire transmittal from certain broker-dealers who have agreements
with us for this purpose. These methods of payment are discussed in detail
under "More information" later in this Prospectus.
Your initial contribution must generally be accompanied by an application and
any other form we need to process the payments. If any information is missing
or unclear, we will try to obtain that information. If we are unable to obtain
all of the information we require within five business days, we will inform the
financial professional submitting the application, on your behalf. We will then
return the contribution to you unless you specifically direct us to keep your
contribution until we receive the required information.
- --------------------------------------------------------------------------------
Generally our "business day" is any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions. Our business day generally ends at 4:00 p.m., Eastern Time for the
purposes of determining the date when contributions are applied and other
transaction requests are processed.
- --------------------------------------------------------------------------------
SECTION 1035 EXCHANGES
You may apply the entire value of an existing nonqualified deferred annuity
contract (or life insurance or endowment contract) to purchase an Income
Manager(R) NQ contract in a tax-deferred exchange if you follow certain
procedures as shown in the form that we require you to use. Please note that
the IRS may not apply tax-free treatment to partial 1035 exchanges. Also see
"Tax information" later in this Prospectus.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
If for any reason you are not satisfied with your contract, you may return it
to us for a refund. To exercise this cancellation right you must mail the
contract directly to our Processing Office within 10 days after you receive it.
In some states, this "free look" period may be longer.
Generally, your refund will equal your account value under the contract. Your
account value reflects any positive or negative market value adjustments in the
fixed maturity options through the date we receive your contract. Under the
life annuity with a period certain your refund will also include any amount
applied to the life contingent annuity. However, some states require that we
refund the full amount of your contribution (not including any investment gain
or loss). For IRA contracts returned to us within seven days after you receive
it, we are required to refund the full amount of your contribution.
If you cancel your GMIB Income Manager(R) contracts within the free look
period, we will reinstate your Accumulator(R) series contract as of the date
you exercised your GMIB. Upon reinstatement, the value applied to the GMIB
Income Manager(R) contract plus any charges that were deducted will be returned
to your Accumulator(R) series contract in accordance with the allocations that
were in effect on said date.
If you cancel your contract during the free look period, we may require that
you wait six months before you may apply for a contract with us again.
For California residents, if you are age 60 or older at the time the contract
is issued, you may return your contract within 30 days from the date that you
receive it and receive a refund as described below.
Your refund will equal your contributions, less any payments you may have
received under the Income Manager(R) payout annuity contract or, if greater,
your account value, computed on the date we receive your Income Manager(R)
payout annuity contract along with your request to cancel at our processing
office.
The 30-day cancellation and refund policy as described above applies to Income
Manager(R) payout annuity contracts only. If you have a GMIB Income Manager(R)
contract please refer to its free look period and refund policy, as described
above.
Please see "Tax information" later in this Prospectus for possible consequences
of cancelling your contract.
SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time during
the period certain. Your cash value is equal to your account value minus any
withdrawal charge. There is no free withdrawal amount if you surrender your
contract. For GMIB Income Manager(R) contracts, there are no withdrawal
charges, and, therefore, no free withdrawal amount applies.
For a surrender to be effective, we must receive your written request and your
contract at our Processing Office. We will determine your cash value on the
date we receive the required information. All benefits under your contract will
terminate as of that date unless you have elected the life contingent annuity.
See "Surrendering your life annuity with a period certain contract" earlier in
this Prospectus.
Other benefits and features of the contracts 17
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments within seven days of the
transaction to which the request relates. We can defer payment of any portion
of the account value (other than for death benefits) for up to six months while
you are living. We also may defer payments for any reasonable amount of time
(not to exceed 15 days) while we are waiting for a contribution check to clear.
18 Other benefits and features of the contracts
3. Charges
- --------------------------------------------------------------------------------
WITHDRAWAL CHARGES
A withdrawal charge applies in two circumstances: (1) if you make a withdrawal
during a contract year and it exceeds any applicable free withdrawal amount,
described below, or (2) if you surrender your contract to receive its cash
value. For GMIB Income Manager(R) contracts, withdrawal charges do not apply.
The withdrawal charge equals a percentage of each contribution (or single
contribution) withdrawn. The percentage that applies depends on how long each
contribution has been invested in the contract. We determine the withdrawal
charge separately for each contribution according to the following table:
- ----------------------------------------------------------------------------------------------------
Contract Year
- ----------------------------------------------------------------------------------------------------
1 2 3 4 5 6 7 8+
- ----------------------------------------------------------------------------------------------------
Percentage of
Contribution 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%
- ----------------------------------------------------------------------------------------------------
For purposes of calculating the withdrawal charge, we treat the contract year
in which we receive a contribution as "contract year 1." Amounts withdrawn up
to the free withdrawal amount are not considered withdrawal of any
contribution. We also treat contributions that have been invested the longest
as being withdrawn first. We treat contributions as withdrawn before earnings
for purposes of calculating the withdrawal charge. However, federal income tax
rules treat earnings under your contract as withdrawn first. See "Tax
information" later in this Prospectus.
We deduct the withdrawal charge from your account value in proportion to the
amount withdrawn from each fixed maturity option and any amounts held in the
separate account to provide for payments off maturity dates. In order to give
you the exact dollar amount of the withdrawal you request, we deduct the amount
of the withdrawal and the amount of the withdrawal charge from your account
value. Any amount deducted to pay a withdrawal charge is also subject to a
withdrawal charge.
The withdrawal charge does not apply to the 10% free withdrawal amount
described below.
The 10% free withdrawal amount applies only to life annuity with a period
certain contracts (not including GMIB Income Manager(R) contracts since there
are no withdrawal charges). It does not apply to your period certain contract
or if you surrender your contract to receive its cash value.
Under life annuity with a period certain contracts, each contract year you can
withdraw up to 10% of your account value without paying a withdrawal charge.
This 10% free withdrawal amount is determined using your account value at the
beginning of each contract year.
AMOUNTS APPLIED FROM OTHER CONTRACTS ISSUED BY AXA EQUITABLE
Life annuity with a period certain contract. If you own certain types of
contracts that we issue, you may apply the entire account value under those
contracts to purchase the life annuity with a period certain contract provided
the issue age and payment restrictions for the new contract are met. Depending
upon the provisions of your Accumulator(R) contract, the amount used to
purchase the GMIB Income Manager(R) may be reduced by the remaining withdrawal
charges and for any outstanding loans, plus accrued interest (Rollover TSA
only) on any Accumulator(R) series contract being surrendered. If you apply
your account value at a time when the dollar amount of the withdrawal charge
under such other contract is greater than 2% of remaining contributions (after
withdrawals), we reserve the right to waive the remaining withdrawal charge.
However, a new withdrawal charge schedule will apply under the new contract.
For purposes of the withdrawal charge schedule, the year in which your account
value is applied under the life annuity with a period certain contract will be
"contract year 1." If you apply your account value when the dollar amount of
the withdrawal charge is 2% or less, we reserve the right to waive the
withdrawal charges under the new contract. You should consider the timing of
your purchase as it relates to the potential for withdrawal charges under the
life annuity with a period certain contract.
Period certain contract. If you own certain types of contracts that we issue,
you may apply your entire account value to purchase the period certain contract
once any withdrawal charges are no longer in effect under the other contracts.
No withdrawal charges will apply under the period certain contract.
To purchase any Income Manager(R) contract we require that you return your
original contract to us. A new Income Manager(R) contract will be issued
putting this annuity into effect.
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed
upon us, such as premium taxes in your state. We deduct the charge from your
contributions. The current tax charge that might be imposed varies by
jurisdiction and ranges from 0% to 3.5%. This deduction may not apply for
certain GMIB Income Manager(R) contracts.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the withdrawal
charge or change the minimum initial contribution requirements. We also may
increase the rates to maturity for the fixed maturity options and reduce
purchase rates for the life contingent annuity. Group arrangements include
those in which a trustee or an employer, for example, purchases contracts
covering a group of individuals on a group basis. Sponsored arrangements
include those in which an employer allows us to sell contracts to its employees
or retirees on an individual basis. IRA contracts are not available for group
arrangements.
Charges 19
Our costs for sales, administration, and mortality generally vary with the size
and stability of the group or sponsoring organization, among other factors. We
take all these factors into account when reducing charges. To qualify for
reduced charges, a group or sponsored arrangement must meet certain
requirements, such as requirements for size and number of years in existence.
Group or sponsored arrangements that have been set up solely to buy contracts
or that have been in existence less than six months will not qualify for
reduced charges.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these rules from time to
time. Any variation in the withdrawal charge will reflect differences in costs
or services and will not be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules,
the Employee Retirement Income Security Act of 1974, or both. We make no
representations with regard to the impact of these and other applicable laws on
such programs. We recommend that employers, trustees, and others purchasing or
making contracts available for purchase under such programs seek the advice of
their own legal and benefits advisers.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate withdrawal charges when sales are made in a manner
that results in savings of sales and administrative expenses. This may include
sales through persons who are compensated by clients for recommending
investments and who receive no commission or reduced commissions in connection
with the sale of the contracts. We will not permit a reduction or elimination
of the withdrawal charge where it will be unfairly discriminatory.
20 Charges
4. Payment of death benefit
- --------------------------------------------------------------------------------
YOUR BENEFICIARY
You designate your beneficiary when you apply for your contract. You may change
your beneficiary at any time. The change will be effective on the date the
written request for change is signed. For Income Manager(R) contracts only
where payments have not begun where the annuitant and owner are different, we
will treat the annuitant as the successor owner and replace the beneficiary.
For Income Manager(R) contracts only where payments have not begun where the
annuitant and owner are different, we will treat the annuitant as the successor
owner and replace the beneficiary. For Income Manager(R) contracts only, where
payments have not started; you are not the annuitant; and you have not named a
specific successor owner, the beneficiary will become the successor owner upon
your death.
YOUR ANNUITY PAYOUT OPTIONS (NOT INCLUDING GMIB INCOME MANAGER(R) CONTRACTS)
If the annuitant dies before annuity payments begin, your beneficiary may elect
to apply the death benefit to an annuity payout option. We offer several
annuity payout options to choose from. Restrictions apply, depending on the
type of contract you own. Please see "Contract features and benefits" under the
"Death benefit" sections earlier in this Prospectus for more information.
ANNUITY PAYOUT OPTIONS
Your beneficiary can choose from among the following death benefit annuity
payout options:
o Life annuity: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last payment before the
annuitant's death. Because there is no death benefit with this payout
option, it provides the highest payment of any of the life annuity
options, so long as the annuitant is living.
o Life annuity -- period certain: An annuity that guarantees payments for the
rest of the annuitant's life, and, if the annuitant dies before the end of
a selected period of time ("period certain"), payments to the beneficiary
will continue for the balance of the period certain.
o Life annuity -- refund certain: An annuity that guarantees payments for the
rest of the annuitant's life. If the annuitant dies before the amount
applied to purchase the annuity option has been recovered, payments
continue to the beneficiary until that amount has been recovered.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15 or 20 years. This option does not
guarantee payments for the rest of the annuitant's life. It does not
permit any repayment of the unpaid principal, so you cannot elect to
receive part of the payments as a single sum payment with the rest paid in
monthly annuity payments.
The life annuity; life annuity -- period certain and the life annuity -- refund
certain are available on either single life or joint and survivor life basis.
The joint and survivor life annuity guarantees payments for the rest of the
annuitant's life and, after the annuitant's death, continuation of payments to
the survivor.
All of the above annuity payout options are available as fixed annuities. With
fixed annuities, we guarantee fixed annuity payments that will be based either
on the tables of guaranteed annuity payments in your contract or on our then
current annuity rates, whichever is more favorable for the annuitant.
When the beneficiary selects a payout option, we will issue a separate written
agreement confirming the beneficiary's right to receive annuity payments. We
require the return of the contract before annuity payments begin.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity, the type of annuity chosen and, in the case of a life
annuity, the annuitant's age (or the annuitant's and joint annuitant's ages)
and in certain instances, the sex of the annuitant(s). Once a payout option has
been chosen and payments begin, no change can be made.
At the time that the beneficiary elects a payout option if the amount to be
applied is less than $2,000, or the initial payment under the form elected is
less than $20 monthly, we reserve the right to pay the account value in a
single sum rather than as payments under the payout option chosen.
Payment of death benefit 21
5. Tax information
- --------------------------------------------------------------------------------
OVERVIEW
In this part of the prospectus, we discuss the current federal income tax rules
that generally apply to Income Manager(R) contracts owned by United States
individual taxpayers. We discuss the tax aspects of each type of contract
separately because the tax rules differ, depending on:
o the type of contract, whether NQ, traditional IRA, or Roth IRA,
o how you acquired your Income Manager(R) contract, whether by purchase or
exercising your GMIB benefit in accordance with your Accumulator(R) series
contract, and
o whether you have deferred your annuity payout start date.
The Income Manager(R) contract is intended to be a payout annuity. However,
except for GMIB Income Manager(R) contracts, you may be able to delay beginning
payments, and certain rules governing deferred annuity contracts indicated
below could apply.
Federal income tax rules include the United States laws in the Internal Revenue
Code and Treasury Department Regulations and Internal Revenue Service ("IRS")
interpretations of the Internal Revenue Code. These tax rules may change
without notice. We cannot predict whether, when, or how these rules could
change. Any change could affect contracts purchased before the change. Congress
may also consider proposals in the future to comprehensively reform or overhaul
the United States tax and retirement systems, which if enacted, could affect
the tax benefits of a contract.
We cannot provide detailed information on all tax aspects of the contracts.
Moreover, the tax aspects that apply to a particular person's contract may vary
depending on the facts applicable to that person. We do not discuss state
income and other state taxes, federal income tax and withholding rules for
non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the
contract, rights or values under the contract, or payments under the contract,
for example, amounts due to beneficiaries, may be subject to federal or state
gift, estate or inheritance taxes. You should not rely only on this document,
but should consult your tax adviser before your purchase.
President Bush signed the Economic Growth and Tax Relief Reconciliation Act of
2001 ("EGTRRA") on June 7, 2001. Many of the provisions of EGTRRA begin to be
effective on January 1, 2002 and are phased in during the first decade of the
twenty-first century. In the absence of future legislation, all of the
amendments made by EGTRRA will no longer apply after December 31, 2010, and the
law in effect in 2001 will apply again. In general, EGTRRA liberalizes
contributions that can be made to all types of tax-favored retirement plans. In
addition to increasing amounts that can be contributed and permitting
individuals over age 50 to make additional contributions, EGTRRA also permits
rollover contributions to be made between different types of tax-favored
retirement plans. Please discuss with your tax adviser how EGTRRA affects your
personal financial situation.
TAXATION OF NONQUALIFIED ANNUITIES
CONTRIBUTIONS
You may not deduct the amount of your contributions to a nonqualified annuity
contract.
CONTRACT EARNINGS
Generally, you are not taxed on contract earnings until you receive a
distribution from your contract, whether as a withdrawal, or as an annuity
payment. Earnings in a deferred annuity contract are taxable even without a
distribution if you transfer a contract, for example, as a gift to someone
other than your spouse (or former spouse).
All nonqualified deferred annuity contracts that AXA Equitable and its
affiliates issue to you during the same calendar year are linked together and
treated as one contract when figuring out the taxable amount of any
distribution from any of those contracts.
Corporations, partnerships, trusts and other non-natural persons generally
cannot defer the taxation of current income credited to the contract unless an
exception under the federal income tax rules apply. There is an exception for
immediate annuities.
- --------------------------------------------------------------------------------
Immediate annuities are generally annuities in which payments begin within one
year from purchase and provide for a series of substantially equal payments
made at least annually.
- --------------------------------------------------------------------------------
Please note that a payout contract purchased through a 1035 exchange may not be
treated as an immediate annuity.
ANNUITY PAYMENTS
Once annuity payments begin, a portion of each payment is taxable as ordinary
income. You get the remaining portion without paying taxes on it. This is your
"investment in the contract." Generally, your investment in the contract equals
the contributions you made, less any amounts you previously withdrew that were
not taxable.
The tax-free portion of each payment is determined by (1) dividing your
investment in the contract by the total amount you are expected to receive out
of the contract, and (2) multiplying the result by the amount of the payment.
Once you have received the amount of your investment in the contract, all
payments after that are fully taxable. If payments under a life annuity stop
because the annuitant dies, there is an income tax deduction for any
unrecovered investment in the contract.
- --------------------------------------------------------------------------------
The section below, "WITHDRAWALS MADE BEFORE ANNUITY PAYMENTS BEGIN," applies to
NQ contracts which are deferred and does not apply to GMIB Income Manager(R)
contracts.
- --------------------------------------------------------------------------------
WITHDRAWALS MADE BEFORE ANNUITY PAYMENTS BEGIN
If you make withdrawals before annuity payments begin under your contract, they
are taxable to you as ordinary income if there are earn-
22 Tax information
ings in the contract. Generally, earnings are your account value less your
investment in the contract. If you withdraw an amount which is more than the
earnings in the contract as of the date of the withdrawal, the balance of the
distribution is treated as a return of your investment in the contract and is
not taxable.
- --------------------------------------------------------------------------------
The section below, "CONTRACTS PURCHASED THROUGH EXCHANGES," applies to NQ
contracts which are deferred and does not apply to GMIB Income Manager(R)
contracts.
- --------------------------------------------------------------------------------
CONTRACTS PURCHASED THROUGH EXCHANGES
You may purchase your NQ contract through an exchange of another contract.
Normally, exchanges of contracts are taxable events. The exchange will not be
taxable under Section 1035 of the Internal Revenue Code if:
o The contract which is the source of the funds you are using to purchase the
NQ contract is another nonqualified deferred annuity contract or life
insurance or endowment contract.
o The owner and the annuitant are the same under the source contract and the
Income Manager(R) contract. If you are using a life insurance or endowment
contract the owner and the insured must be the same on both sides of the
exchange transaction.
The tax basis of the source contract carries over to the Income Manager(R) NQ
contract.
An owner may direct the proceeds of a partial withdrawal from one nonqualified
deferred annuity contract to a different insurer to purchase a new nonqualified
deferred annuity contract on a tax-deferred basis. Special forms, agreement
between the carriers, and provision of cost basis information may be required
to process this type of an exchange. You should also note that the Internal
Revenue Service has announced its intention to challenge transactions where
taxpayers enter into serial partial exchanges and annuitizations in order to
avoid income or penalties applicable to annuity contracts. Although the IRS has
not yet issued specific guidance on this point, you should discuss with your
tax adviser before you purchase an Income Manager(R) contract, intended to be a
payout annuity, with partial 1035 exchange proceeds.
SURRENDERS
If you surrender or cancel the NQ contract, the distribution is taxable as
ordinary income (not capital gain) to the extent it exceeds your investment in
the contract.
WITHDRAWALS MADE AFTER ANNUITY PAYMENTS BEGIN
If you make a withdrawal that terminates all periodic payments due, it will be
taxable as a complete surrender as discussed above. If you make a withdrawal
that does not terminate all periodic payments due, then the withdrawal will
generally be taxable. Also, a portion of the remaining reduced payments will be
eligible for tax-free recovery of investment.
DEATH BENEFIT PAYMENT MADE TO A BENEFICIARY AFTER YOUR DEATH
For the rules applicable to death benefits, see "Payment of death benefit"
earlier in this Prospectus. The tax treatment of a death benefit taken as a
single sum is generally the same as the tax treatment of a withdrawal from or
surrender of your contract. The tax treatment of a death benefit taken as
annuity payments is generally the same as the tax treatment of annuity payments
under your contract.
EARLY DISTRIBUTION PENALTY TAX
If you take distributions before you are age 59-1/2 a penalty tax of 10% of the
taxable portion of your distribution applies in addition to the income tax. The
extra penalty tax does not apply to pre-age 59-1/2 distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o in the form of substantially equal periodic annuity payments for your life
(or life expectancy), or the joint lives (or joint life expectancies) of
you and a beneficiary, in accordance with IRS formulas; or
o payments under an immediate annuity.
Periodic annuity payments we make to you from the life annuity with a period
certain while you are under age 59-1/2 should qualify for the "substantially
equal payments for life" exception noted above. However, this exception may not
apply if you take a withdrawal, surrender your contract or change the payment
pattern in any way.
Please note that a payout contract purchased through a 1035 exchange may not be
treated as an immediate annuity.
SPECIAL RULES FOR NQ CONTRACTS ISSUED IN PUERTO RICO
Income from NQ contracts we issue is U.S. source. A Puerto Rico resident is
subject to U.S. taxation on such U.S. source income. Only Puerto Rico-source
income of Puerto Rico residents is excludable from U.S. taxation. Income from
NQ contracts is also subject to Puerto Rico tax. The computation of the taxable
portion of amounts distributed from a contract may differ in the two
jurisdictions. Therefore, you might have to file both U.S. and Puerto Rico tax
returns, showing different amounts of income from the contract for each tax
return. Puerto Rico generally provides a credit against Puerto Rico tax for
U.S. tax paid. Depending on your personal situation and the timing of the
different tax liabilities, you may not be able to take full advantage of this
credit.
INDIVIDUAL RETIREMENT ARRANGEMENTS ("IRAS")
GENERAL
"IRA" stands for individual retirement arrangement. There are two basic types
of such arrangements, individual retirement accounts and individual retirement
annuities. In an individual retirement account, a trustee or custodian holds
the assets for the benefit of the IRA owner. The assets typically include
mutual funds and/or individual stocks and securities in a custodial account and
bank certificates of deposit in a trusteed account. In an individual retirement
annuity, an insurance company issues an annuity contract that serves as the
IRA.
There are two basic types of IRAs, as follows:
o Traditional IRAs, typically funded on a pre-tax basis; and
Tax information 23
o Roth IRAs, funded on an after-tax basis.
We offer the Income Manager(R) contract for purchase only in traditional IRA
form. We offer the GMIB Income Manager(R) contract in traditional IRA form or
Roth IRA form, depending on the status of your Accumulator(R) series contract.
Regardless of the type of IRA, your ownership interest in the IRA cannot be
forfeited. You or your beneficiaries who survive you are the only ones who can
receive the IRA's benefits or payments. All types of IRAs qualify for tax
deferral, regardless of the funding vehicle selected.
You can hold your IRA assets in as many different accounts and annuities as you
would like, as long as you meet the rules for setting up and making
contributions to IRAs. However, if you own multiple IRAs, you may be required
to combine IRA values or contributions for tax purposes. For further
information about individual retirement arrangements, you can read Internal
Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)").
This Publication is usually updated annually, and can be obtained from any IRS
district office or the IRS website (www.irs.gov).
AXA Equitable designs its traditional IRA contracts to qualify as individual
retirement annuities under Section 408(b) of the Internal Revenue Code. This
prospectus contains the information that the IRS requires you to have before
you purchase an IRA. This section of the prospectus covers some of the special
tax rules that apply to IRAs.
We have not submitted to the IRS a request for an opinion letter to approve the
form of the Income Manager(R) traditional IRA contract for use as a traditional
IRA contract. This IRS approval is a determination only as to the form of the
annuity. It does not represent a determination of the merits of the annuity as
an investment.
CANCELLATION
You can cancel an Income Manager(R) IRA contract by following the directions
under "Your right to cancel within a certain number of days" earlier in the
Prospectus. If you cancel an IRA contract, we may have to withhold tax, and we
must report the transaction to the IRS. A contract cancellation could have an
unfavorable tax impact.
TRADITIONAL INDIVIDUAL RETIREMENT ANNUITIES ("TRADITIONAL IRAS")
- --------------------------------------------------------------------------------
The sections, "Contributions to traditional IRAs," "Rollover and transfer
contributions to traditional IRAs," "Rollovers from eligible retirement plans
other than traditional IRAs," "Rollovers of after-tax contributions from
eligible retirement plans other than traditional IRAs," "Rollovers from
traditional IRAs to traditional IRAs," "Spousal rollovers and divorce-related
direct transfers," and "Excess contributions" do not apply to GMIB Income
Manager(R) contracts.
If you are acquiring your GMIB Income Manager(R) contract by exercising your
GMIB benefit in accordance with your Accumulator(R) series contract, go to
"Withdrawals, payments and transfers of funds out of traditional IRAs," below;
the sections pertaining to contributions to traditional IRAs in the prospectus
are generally intended for individuals who acquire the Income Manager(R)
traditional IRA contract by purchase.
- --------------------------------------------------------------------------------
CONTRIBUTIONS TO TRADITIONAL IRAS
Individuals may make three different types of contributions to a traditional
IRA:
o "regular" contributions out of earned income or compensation; or
o tax-free "rollover" contributions; or
o direct custodian-to-custodian transfers from other Traditional IRAs ("direct
transfers").
We require that your initial contribution to the Income Manager(R) traditional
IRA contract must be either a rollover or a direct custodian-to-custodian
transfer. See "Rollover and transfer contributions to traditional IRAs" below.
If you defer your annuity payout starting date you may be able to make
additional contributions. Any additional contributions you make may be any of
rollover, direct-transfer or regular contributions. Regular contributions to
IRAs are subject to a number of technical rules that differ depending on the
year, your age, whether you are an active participant in an employer-sponsored
plan, and your compensation. If you make subsequent regular contributions to
this contract, please consult your tax adviser or IRS Publication 590 for the
applicable rules.
ROLLOVER AND TRANSFER CONTRIBUTIONS TO TRADITIONAL IRAS
Rollover contributions may be made to a traditional IRA from these "eligible
retirement plans":
o qualified plans;
o governmental employer 457(b) plans;
o TSAs (including Internal Revenue Code Section 403(b)(7) custodial accounts);
and
o other traditional IRAs.
Direct transfer contributions may only be made directly from one traditional
IRA to another.
Any amount contributed to a traditional IRA after you reach age 70-1/2 must be
net of your required minimum distribution for the year in which the rollover or
direct transfer contribution is made.
ROLLOVERS FROM "ELIGIBLE RETIREMENT PLANS" OTHER THAN TRADITIONAL IRAS
Your plan administrator will tell you whether or not your distribution is
eligible to be rolled over. Spousal beneficiaries and spousal alternate payees
under qualified domestic relations orders may roll over funds on the same basis
as the plan participant.
There are two ways to do rollovers:
o Do it yourself:
You actually receive a distribution that can be rolled over and you roll it
over to a traditional IRA within 60 days after the date you receive the
funds. The distribution from your qualified plan or TSA will be net of 20%
mandatory federal income tax withholding. If you want, you can replace the
withheld funds yourself and roll over the full amount.
o Direct rollover:
You tell the plan trustee or custodian of the eligible retirement plan to
send the distribution directly to your traditional IRA issuer. Direct
rollovers are not subject to mandatory federal income tax withholding.
24 Tax information
All distributions from a TSA, qualified plan or governmental employer 457(b)
plan are eligible rollover distributions, unless the distributions are:
o "required minimum distributions" after age 70-1/2 or retirement; or
o substantially equal periodic payments made at least annually for your life
(or life expectancy) or the joint lives (or joint life expectancies) of
you and your designated beneficiary; or
o substantially equal periodic payments made for a specified period of 10 years
or more; or
o hardship withdrawals; or
o corrective distributions which fit specified technical tax rules; or
o loans that are treated as distributions; or
o death benefit payments to a beneficiary who is not your surviving spouse; or
o qualified domestic relations order distributions to a beneficiary who is not
your current spouse or former spouse.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another, because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental employer 457(b) plan are not subject to the
additional 10% federal income tax penalty for premature distributions, but they
may become subject to this penalty if you roll the funds to a different type of
eligible retirement plan such as a traditional IRA, and subsequently take a
premature distribution.
ROLLOVERS OF AFTER-TAX CONTRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS OTHER THAN
TRADITIONAL IRAS
Any after-tax contributions you have made to a qualified plan or TSA (but not a
governmental employer 457(b) plan) may be rolled over to a traditional IRA
(either in a direct rollover or a rollover you do yourself). When the recipient
plan is a traditional IRA, you are responsible for recordkeeping and
calculating the taxable amount of any distributions you take from that
traditional IRA. See "Taxation of Payments" later in this Prospectus under
"Withdrawals, payments and transfers of funds out of traditional IRAs."
After-tax contributions in a traditional IRA cannot be rolled over from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan.
ROLLOVERS FROM TRADITIONAL IRAS TO TRADITIONAL IRAS
You may roll over amounts from one traditional IRA to one or more of your other
traditional IRAs if you complete the transaction within 60 days after you
receive the funds. You may make such a rollover only once in every 12-month
period for the same funds. Trustee-to-trustee or custodian-to-custodian direct
transfers are not rollover transactions. You can make these more frequently
than once in every 12-month period.
SPOUSAL ROLLOVER AND DIVORCE-RELATED DIRECT TRANSFERS
The surviving spouse beneficiary of a deceased individual can roll over funds
from, or directly transfer funds from, an inherited traditional IRA to one or
more other traditional IRAs. Also, in some cases, traditional IRAs can be
transferred on a tax-free basis between spouses or former spouses as a result
of a court ordered divorce or separation decree.
EXCESS CONTRIBUTIONS
Excess contributions to IRAs are subject to a 6% excise tax for the year in
which made and for each year after until withdrawn. The following are excess
contributions to IRAs:
o regular contributions of more than the maximum regular contribution amount
for the applicable taxable year;
o regular contributions to a traditional IRA made after you reach age 70-1/2;
and
o rollover contributions of amounts which are not eligible to be rolled over,
for example, minimum distributions required to be made after age 70-1/2.
You can avoid the excise tax by withdrawing an excess contribution (rollover or
regular) before the due date (including extensions) for filing your federal
income tax return for the year. If it is an excess regular traditional IRA
contribution, you cannot take a tax deduction for the amount withdrawn. You do
not have to include the excess contribution withdrawn as part of your income.
It is also not subject to the 10% additional penalty tax on early distributions
discussed under "Early distribution penalty tax" later in this Prospectus. You
do have to withdraw any earnings that are attributed to the excess
contribution. The withdrawn earnings would be included in your gross income and
could be subject to the 10% penalty tax.
Even after the due date for filing your return, you may withdraw an excess
rollover contribution, without income inclusion or 10% penalty, if:
(1) the rollover was from an eligible retirement plan to a traditional IRA;
(2) the excess contribution was due to incorrect information that the plan
provided; and
(3) you took no tax deduction for the excess contribution.
WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF TRADITIONAL IRAS
NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or
all of your funds from a traditional IRA at any time. You do not need to wait
for a special event like retirement.
TAXATION OF PAYMENTS. Earnings in traditional IRAs are not subject to federal
income tax until you or your beneficiary receive them. Taxable payments or
distributions include withdrawals from your contract, surrender of your
contract and annuity payments from your contract. Death benefits are also
taxable.
Except as discussed below, the total amount of any distribution from a
traditional IRA must be included in your gross income as ordinary income. We
report all payments from traditional IRA contracts on IRS Form 1099R as fully
taxable.
If you have ever made nondeductible IRA contributions to any traditional IRA
(it does not have to be to this particular traditional IRA
Tax information 25
contract), those contributions are recovered tax free when you get
distributions from any traditional IRA. It is your responsibility to keep
permanent tax records of all your nondeductible contributions to traditional
IRAs so that you can correctly report the taxable amount of any distribution on
your own tax return. At the end of any year in which you have received a
distribution from any traditional IRA, you calculate the ratio of your total
nondeductible traditional IRA contributions (less any amounts previously
withdrawn tax free) to the total account balances of all traditional IRAs you
own at the end of the year plus all traditional IRA distributions made during
the year. Multiply this by all distributions from the traditional IRA during
the year to determine the nontaxable portion of each distribution.
A distribution from a traditional IRA is not taxable if:
o the amount received is a withdrawal of excess contributions, as described
under "Excess contributions" above; or
o the entire amount received is rolled over to another traditional IRA or other
eligible retirement plan which agrees to accept the funds, (See "Rollovers
from eligible retirement plans other than traditional IRAs" under
"Rollover and transfer contributions to traditional IRAs" above).
The following are eligible to receive rollovers of distributions from a
traditional IRA: a qualified plan, a TSA or a governmental employer 457(b)
plan. After-tax contributions in a traditional IRA cannot be rolled from your
traditional IRA into, or back into, a qualified plan, TSA or governmental
employer 457(b) plan. Before you decide to roll over a distribution from a
traditional IRA to another eligible retirement plan, you should check with the
administrator of that plan about whether the plan accepts rollovers and, if so,
the types it accepts. You should also check with the administrator of the
receiving plan about any documents required to be completed before it will
accept a rollover.
Since the Income Manager(R) annuity is intended to be a payout contract, it may
not be an appropriate contract if you intend to roll over funds later.
Allocation of funds to the life contingent annuity may make it difficult for
you to roll the contract over to another eligible retirement plan.
Distributions from a traditional IRA are not eligible for favorable ten-year
averaging and long-term capital gain treatment available to distributions from
qualified plans. If you might be eligible for such tax treatment from your
qualified plan, you may be able to preserve such tax treatment even though an
eligible rollover from a qualified plan is temporarily rolled into a "conduit
IRA" before being rolled back into a qualified plan. See your tax adviser.
REQUIRED MINIMUM DISTRIBUTIONS
BACKGROUND ON REGULATIONS--REQUIRED MINIMUM DISTRIBUTIONS
Distributions must be made from traditional IRAs according to the rules
contained in the Code and Treasury Regulations. Certain provisions of the
Treasury Regulations will require, beginning in 2006, that the actuarial
present value of additional annuity contract benefits be added to the dollar
amount credited for purposes of calculating certain types of required minimum
distributions from individual retirement annuity contracts. This could increase
the annual amount required to be distributed from these contracts. Generally,
these provisions will not apply to Income Manager(R) contracts. They could
apply if you defer your payment start dates if account-based withdrawals, as
discussed below, are done before annuitization. In addition, other provisions
of the Treasury Regulations may adversely impact increasing payment GMIB Income
Manager(R) IRAs beginning in 2006.
LIFETIME REQUIRED MINIMUM DISTRIBUTIONS. You must start taking annual
distributions from your traditional IRAs for the year in which you turn age
70-1/2.
WHEN YOU HAVE TO TAKE THE FIRST LIFETIME REQUIRED MINIMUM DISTRIBUTION. The
first required minimum distribution is for the calendar year in which you turn
age 70-1/2. You have the choice to take this first required minimum distribution
during the calendar year you actually reach age 70-1/2, or to delay taking it
until the first three-month period in the next calendar year (January 1 - April
1). Distributions must start no later than your "Required Beginning Date,"
which is April 1st of the calendar year after the calendar year in which you
turn age 70-1/2. If you choose to delay taking the first annual minimum
distribution, then you will have to take two minimum distributions in that year
- -- the delayed one for the first year and the one actually for that year. Once
minimum distributions begin, they must be made at some time each year.
HOW YOU CAN CALCULATE REQUIRED MINIMUM DISTRIBUTIONS. There are two approaches
to taking required minimum distributions -- "account-based" or "annuity-based."
If you are acquiring your GMIB Income Manager(R) contract by exercising your
GMIB benefit in accordance with your Accumulator(R) series contract, and
generally for Income Manager(R) contracts where the payout starting date is not
deferred, the annuity-based method applies.
Account-based method. If you choose an account-based method, you divide the
value of your traditional IRA as of December 31st of the past calendar year by
a number corresponding to your age from an IRS table. This gives you the
required minimum distribution amount for that particular IRA for that year. If
your spouse is your sole beneficiary and more than 10 years younger than you,
the dividing number you use may be from another IRS table and may produce a
smaller lifetime required minimum distribution amount. Regardless of the table
used, the required minimum distribution amount will vary each year as the
account value and the divisor change. If you initially choose an account-based
method, you may later apply your traditional IRA funds to a life annuity-based
payout with any certain period not exceeding remaining life expectancy,
determined in accordance with IRS tables.
Annuity-based method. If you choose an annuity-based method, you do not have to
do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a designated beneficiary, or for a
period certain not extending beyond applicable life expectancies, determined in
accordance with IRS tables.
DO YOU HAVE TO PICK THE SAME METHOD TO CALCULATE YOUR REQUIRED MINIMUM
DISTRIBUTIONS FOR ALL OF YOUR TRADITIONAL IRAS AND OTHER RETIREMENT PLANS? No.
If you want, you can choose a different method for each of your traditional
IRAs and other retirement plans. For
26 Tax information
example, you can choose an annuity payout from one IRA, a different annuity
payout from a qualified plan, and an account-based annual withdrawal from
another IRA.
WILL WE PAY YOU THE ANNUAL AMOUNT EVERY YEAR FROM YOUR TRADITIONAL IRA BASED ON
THE METHOD YOU CHOOSE? No, we do not automatically make distributions from your
contract before your annuity payments begin. We will calculate the amount of an
account-based required minimum distribution withdrawal for you, if you so
request in writing. However, in that case you will be responsible for asking us
to pay the required minimum distribution withdrawal to you. Also, the IRS will
let you calculate the required minimum distribution for each traditional IRA
that you maintain, using the method that you picked for that particular IRA.
You can add these required minimum distribution amount calculations together.
As long as the total amount you take out every year satisfies your overall
traditional IRA required minimum distribution amount, you may choose to take
your annual required minimum distribution from any one or more traditional IRAs
that you own.
WHAT IF YOU TAKE MORE THAN YOU NEED TO FOR ANY YEAR? The required minimum
distribution amount for your traditional IRAs is calculated on a year-by-year
basis. There are no carry-back or carry-forward provisions. Also, you cannot
apply required minimum distribution amounts you take from your qualified plans
to the amounts you have to take from your traditional IRAs and vice versa.
WHAT IF YOU TAKE LESS THAN YOU NEED TO FOR ANY YEAR? Your IRA could be
disqualified, and you could have to pay tax on the entire value. Even if your
IRA is not disqualified, you could have to pay a 50% penalty tax on the
shortfall (required amount for traditional IRAs less amount actually taken). It
is your responsibility to meet the required minimum distribution rules. We will
remind you when our records show that you are within the age group which must
take lifetime required minimum distributions. If you do not select a method
with us, we will assume you are taking your required minimum distribution from
another traditional IRA that you own.
WHAT ARE THE REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER YOU DIE? These could
vary depending on whether you die before or after your Required Beginning Date
for lifetime required minimum distribution payments, and the status of your
beneficiary. The following assumes that you have not yet elected an
annuity-based payout at the time of your death. If you elect an annuity-based
payout, payments (if any) after your death must be made at least as rapidly as
when you were alive.
INDIVIDUAL BENEFICIARY. Regardless of whether your death occurs before or after
your Required Beginning Date, an individual death beneficiary calculates annual
post-death required minimum distribution payments based on the beneficiary's
life expectancy using the "term certain method." That is, he or she determines
his or her life expectancy using the IRS-provided life expectancy tables as of
the calendar year after the owner's death and reduces that number by one each
subsequent year.
If you die before your Required Beginning Date, the rules permit any individual
beneficiary, including a spousal beneficiary, to elect instead to apply the
"5-year rule." Under this rule, instead of annual payments having to be made
beginning with the first in the year following the owner's death, the entire
account must be distributed by the end of the calendar year which contains the
fifth anniversary of the owner's death. No distribution is required before that
fifth year.
SPOUSAL BENEFICIARY. If you die after your Required Beginning Date, and your
death beneficiary is your surviving spouse, your spouse has a number of
choices. Post-death distributions may be made over your spouse's single life
expectancy. Any amounts distributed after that surviving spouse's death are
made over the spouse's life expectancy calculated in the year of his/her death,
reduced by one for each subsequent year. In some circumstances, your surviving
spouse may elect to become the owner of the traditional IRA and halt
distributions until he or she reaches age 70-1/2, or roll over amounts from your
traditional IRA into his/her own traditional IRA or other eligible retirement
plan.
If you die before your Required Beginning Date, and the death beneficiary is
your surviving spouse, the rules permit the spouse to delay starting payments
over his/her life expectancy until the year in which you would have attained
age 70-1/2.
NON-INDIVIDUAL BENEFICIARY. If you die after your Required Beginning Date, and
your death beneficiary is a non-individual, such as the estate, the rules
permit the beneficiary to calculate post-death required minimum distribution
amounts based on the owner's life expectancy in the year of death. However,
note that we need an individual annuitant to keep an annuity
contract/certificate in force. If the beneficiary is not an individual, we must
distribute amounts remaining in the annuity contract after the death of the
annuitant.
If you die before your Required Beginning Date for lifetime required minimum
distribution payments, and the death beneficiary is a non-individual, such as
the estate, the rules continue to apply the 5-year rule discussed above under
"Individual beneficiary." Please note that we need an individual annuitant to
keep an annuity contract/certificate in force. If the beneficiary is not an
individual, we must distribute amounts remaining in the annuity contract after
the death of the annuitant.
IMPORTANT INFORMATION ABOUT MINIMUM DISTRIBUTIONS UNDER YOUR CONTRACT
Although the life contingent annuity portion of the life annuity with a period
certain does not have a cash value, it will be assigned a value for tax
purposes. This value will generally be changed each year. If you are using the
account-based withdrawal method because you have deferred the payment start
date for example, when you determine the amount of account-based required
minimum distributions from your IRA this value must be included. This must be
done before annuity payments begin even though the life contingent annuity may
not be providing a source of funds to satisfy the required minimum
distributions.
If you surrender your contract, or withdraw any remaining account value before
your annuity payments begin, it may be necessary for you to satisfy your
required minimum distribution by moving forward the start date of payments
under your life contingent annuity. Or to the extent available, you have to
take distributions from other IRA funds you may have. Or, you may convert your
IRA life contingent annuity
Tax information 27
under the IRA contract to a nonqualified life contingent annuity. This would be
viewed as a distribution of the value of the life contingent annuity from your
IRA, and therefore, would be a taxable event. However, since the life
contingent annuity would no longer be part of the IRA, you would not have to
include its value when determining future required minimum distributions.
If you have elected a joint and survivor form of the life contingent annuity,
the joint annuitant must be your spouse. In the event of your death or the
death of your spouse the value of such annuity will change. For this reason, it
is important that someone tell us if you or your spouse dies before the life
contingent annuity has started payments so that a lower valuation can be made.
Otherwise, a higher tax value may result in an overstatement of the amount that
would be necessary to satisfy your required minimum distribution amount.
SUCCESSOR ANNUITANT AND OWNER
If your spouse is the sole primary beneficiary and elects to become the
successor annuitant and owner, no death benefit is payable until your surviving
spouse's death.
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
IRA death benefits are taxed the same as IRA distributions.
BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS
You cannot get loans from a traditional IRA. You cannot use a traditional IRA
as collateral for a loan or other obligation. If you borrow against your IRA or
use it as collateral, its tax-favored status will be lost as of the first day
of the tax year in which this prohibited event occurs. If this happens, you
must include the value of the traditional IRA in your federal gross income.
Also, the early distribution penalty tax of 10% may apply if you have not
reached age 59-1/2 before the first day of that tax year.
EARLY DISTRIBUTION PENALTY TAX
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a traditional IRA made before you reach age 59-1/2. Some of
the available exceptions to the pre-age 59-1/2 penalty tax include distributions
made:
o on or after your death;
o because you are disabled (special federal income tax definition);
o used to pay certain extraordinary medical expenses (special federal income
tax definition);
o used to pay medical insurance premiums for unemployed individuals (special
federal income tax definition);
o used to pay certain first-time home buyer expenses (special federal income
tax definition; $10,000 lifetime total limit for these distributions from
all your traditional and Roth IRAs);
o used to pay certain higher education expenses (special federal income tax
definition); or
o in the form of substantially equal periodic payments made at least annually
over your life (or your life expectancy), or over the joint lives of you
and your beneficiary (or your joint life expectancy) using an IRS-approved
distribution method.
WILL PAYMENTS WE MAKE TO YOU FROM THE LIFE ANNUITY WITH A PERIOD CERTAIN WHILE
YOU ARE UNDER AGE 59-1/2 QUALIFY AS SUBSTANTIALLY EQUAL PAYMENTS FOR LIFE?
Same as nonqualified annuities under "Early distribution penalty tax."
ROTH IRA GMIB INCOME MANAGER(R) CONTRACTS
Before you exercise your GMIB benefit in accordance with your Accumulator(R)
series Roth IRA contract, you should discuss with your tax adviser the tax
consequences of distributions from a Roth IRA which may apply to your personal
situation.
Payments from traditional IRAs and Roth IRAs are taxed differently. Payments
from traditional IRAs are generally fully taxable, as discussed earlier in this
prospectus. In any event, the issuer of the traditional IRA is entitled to
report distributions from traditional IRAs as fully taxable and it is the IRA
owner's responsibility to calculate the taxable and tax-free portions of any
traditional IRA payments on the owner's tax return.
Distributions from Roth IRAs generally receive return of contribution treatment
first under federal income tax calculation rules before any income is taxable.
Certain distributions from Roth IRAs may qualify for fully tax-free treatment.
These are distributions after you reach age 59-1/2, die, become disabled or meet
a qualified first-time homebuyer tax rule. You also have to meet a five-year
aging period, which begins when you first contribute funds to any Roth IRA.
For example, if you purchased an Accumulator(R) series traditional IRA contract
in 1998 and did not convert it into a Roth IRA until 2003, and if your
Accumulator(R) series contract is your sole Roth IRA, you have not yet met the
five-year aging period if you exercise your GMIB benefit in 2005. In that case,
payments received before the five-year aging period is met, are treated first
as a recovery of contributions to the Roth IRA, and next as ordinary income,
after all contributions are recovered.
Taxable withdrawals or distributions from Roth IRAs may be subject to an
additional 10% penalty tax if you are under age 59-1/2, unless an exception
applies.
Since federal income rules require Roth IRA owners to aggregate all of their
Roth IRAs together to determine the tax treatment and taxable amount, if any,
of distributions and payments from Roth IRAs, the issuer of any Roth IRA
contract reports on IRS Form 1099-R only the amount of distributions and
payments it makes for the year as "taxable amount not determined." It is your
responsibility to calculate on your tax return the tax-free, contribution
recovery, or taxable income amounts as applicable.
As discussed earlier in this prospectus, traditional IRAs are subject to
required minimum distribution rules which require that amounts begin to be
distributed in a prescribed manner from the IRA after the owner reaches age
70-1/2. These rules also require distributions after the owner's death. No
distributions are required to be made from Roth IRAs until after the Roth IRA
owner's death, but then the required minimum distribution rules apply.
28 Tax information
As in the case of a traditional IRA, borrowing and loans are prohibited
transactions for a Roth IRA.
FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING
We must withhold federal income tax from distributions from annuity contracts.
You may be able to elect out of this income tax withholding in some cases.
Generally, we do not have to withhold if your distributions are not taxable.
The rate of withholding will depend on the type of distribution and, in certain
cases, the amount of your distribution. Any income tax withheld is a credit
against your income tax liability. If you do not have sufficient income tax
withheld or do not make sufficient estimated income tax payments, you may incur
penalties under the estimated income tax rules.
Note that we are required to withhold on the gross amount of a distribution
from a Roth IRA to the extent it is reasonable for us to believe that a
distribution is includable in your gross income. This may result in tax being
withheld even though the Roth IRA distribution is ultimately not taxable. You
may elect out of withholding as described below.
You must file your request not to withhold in writing before the payment or
distribution is made. Our Processing Office will provide forms for this
purpose. You cannot elect out of withholding unless you provide us with your
correct Taxpayer Identification Number and a United States residence address.
You cannot elect out of withholding if we are sending the payment out of the
United States. We might have to withhold and/or report on amounts we pay under
a free look or cancellation.
Special withholding rules apply to foreign recipients and United States
citizens residing outside the United States. We do not discuss these rules here
in detail. However, we may require additional documentation in the case of
payments made to non-United States persons and United States persons living
abroad prior to processing any requested transaction.
Certain states have indicated that state income tax withholding will also apply
to payments from the contracts made to residents. In some states, you may elect
out of state withholding, even if federal withholding applies. Generally, an
election out of federal withholding will also be considered an election out of
state withholding. If you need more information concerning a particular state
or any required forms, call our Processing Office at their toll-free number.
If you are receiving periodic and/or non-periodic payments, you will be
notified of the withholding requirements and of your right to make withholding
elections.
FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS
We withhold differently on "periodic" and "non-periodic" payments. For a
periodic annuity payment, for example, unless you specify a different number of
withholding exemptions, we withhold assuming that you are married and claiming
three withholding exemptions. If you do not give us your correct Taxpayer
Identification Number, we withhold as if you are single with no exemptions.
Based on the assumption that you are married and claiming three withholding
exemptions, if you receive less than $17,760 in periodic annuity payments in
2005 your payments will generally be exempt from federal income tax
withholding. You could specify a different choice of withholding exemption or
request that tax be withheld. Your withholding election remains effective
unless and until you revoke it. You may revoke or change your withholding
election at any time.
FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS
For a non-periodic distribution (total surrender or partial withdrawal) we
generally withhold at a flat 10% rate. We apply that rate to the taxable amount
in the case of nonqualified contracts, and to the payment amount in the case of
IRAs.
Tax information 29
6. More information
- --------------------------------------------------------------------------------
ABOUT OUR FIXED MATURITY OPTIONS
How we determine the market value adjustment. We use the following procedure to
calculate the market value adjustment (up or down) we make if you withdraw all
of your value from a fixed maturity option before its maturity date.
(1) We determine the market adjusted amount on the date of the withdrawal as
follows:
(a) We determine the fixed maturity amount that would be payable on the
maturity date, using the rate to maturity for the fixed maturity
option.
(b) We determine the period remaining in your fixed maturity option (based
on the withdrawal date) and convert it to fractional years based on a
365-day year. For example, three years and 12 days becomes 3.0329.
(c) We determine the current rate to maturity that applies on the withdrawal
date to new allocations to the same fixed maturity option.
(d) We determine the present value of the fixed maturity amount payable at
the maturity date, using the period determined in (b) and the rate
determined in (c).
(2) We determine the fixed maturity amount as of the current date.
(3) We subtract (2) from the result in (1)(d). The result is the market value
adjustment applicable to such fixed maturity option, which may be
positive or negative.
- --------------------------------------------------------------------------------
Your market adjusted amount is the present value of the maturity value
discounted at the rate to maturity in effect for new contributions to that same
fixed maturity option on the date of the calculation.
- --------------------------------------------------------------------------------
For purposes of calculating the rate to maturity for new allocations to a fixed
maturity option (see (1)(c) above), we use the rate we have in effect for new
allocations to that fixed maturity option. We use this rate even if new
allocations to that option would not be accepted at that time. This rate will
not be less than 3%. If we do not have a rate to maturity in effect for a fixed
maturity option to which the "current rate to maturity" in (1)(c) would apply,
we will use the rate at the next closest maturity date. If we are no longer
offering new fixed maturity options, the "current rate to maturity" will be
determined in accordance with our procedures then in effect. We reserve the
right to add up to 0.25% to the current rate in (1)(c) above for purposes of
calculating the market value adjustment only.
ABOUT THE SEPARATE ACCOUNT FOR THE FIXED MATURITY OPTIONS
Investments. Under New York Insurance law, the portion of the separate account
assets equal to the reserves and other contract liabilities relating to the
contracts are not chargeable with liabilities from any other business we may
conduct. We own the assets of the separate account, as well as any favorable
investment performance on those assets. You do not participate in the
performance of the assets held in this separate account. We may, subject to
state law which applies, transfer all assets allocated to the separate account
to our general account. We guarantee all benefits relating to your account
value in the fixed maturity options regardless of whether assets supporting
fixed maturity options are held in a separate account or our general account.
We have no specific formula for establishing the rates to maturity for the
fixed maturity options. We expect the rates to be influenced by, but not
necessarily correspond to, among other things, the yields that we can expect to
realize on the separate account's investments from time to time. Our current
plans are to invest in fixed-income obligations, including corporate bonds,
mortgage-backed and asset-backed securities and government and agency issues
having durations in the aggregate consistent with those of the fixed maturity
options.
Although the above generally describes our plans for investing the assets
supporting our obligations under the fixed maturity options, we are not
obligated to invest those assets according to any particular plan except as we
may be required to by state insurance laws. We will not determine the rates to
maturity we establish by the performance of the nonunitized separate account.
ABOUT OUR GENERAL ACCOUNT
Our general account supports all of our policy and contract guarantees,
including those that apply to the fixed maturity options, as well as our
general obligations. Amounts applied under the life contingent annuity become
part of our general account.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations
of all jurisdictions where we are authorized to do business. Because of
exemptions and exclusionary provisions that apply, interests in the general
account have not been registered under the Securities Act of 1933, nor is the
general account an investment company under the Investment Company Act of 1940.
However, the market value adjustment interests under the contracts are
registered under the Securities Act of 1933.
We have been advised that the staff of the SEC has not made a review of the
disclosure that is included in the prospectus for your information that relates
to the general account (other than market value adjustment interests) and the
life contingent annuity. The disclosure, however, may be subject to certain
generally applicable provisions of the federal securities laws relating to the
accuracy and completeness of statements made in prospectuses.
OTHER METHODS OF PAYMENT
WIRE TRANSMITTALS
We accept initial contributions sent by wire to our Processing Office by
agreement with certain broker-dealers. The transmittals must be
30 More information
accompanied by information we require to allocate your contribution. Wire
orders not accompanied by complete information may be retained as described
under "How you can make your contributions" in "Other benefits and features of
the contracts" earlier in this prospectus.
Even if we accept the wire order and essential information, a contract
generally will not be issued until we receive and accept a properly completed
application. In certain cases we may issue a contract based on information
forwarded electronically. Where we require a signed application, no financial
transactions will be permitted until we receive the signed application and have
issued the contract.
After your contract has been issued, additional contributions under the life
annuity with a period certain contract may be transmitted by wire.
ABOUT PAYMENTS UNDER PERIOD CERTAIN CONTRACTS
The following example illustrates a ten-year level stream of annual payments,
each in the amount of $10,000, purchased on February 15, 2005 with the first
payment on February 15, 2006. To achieve this result, a single contribution of
$84,501.08 is required, and is allocated among the fixed maturity options as
indicated below.
- --------------------------------------------------------------------------------
Price per $100
February 15th of of maturity Allocation of
calendar year Payment value contribution
- --------------------------------------------------------------------------------
2006 $10,000 $97.09 $ 9,708.74
2007 $10,000 $94.26 $ 9,425.96
2008 $10,000 $91.51 $ 9,151.42
2009 $10,000 $88.84 $ 8,884.15
2010 $10,000 $86.25 $ 8,625.39
2011 $10,000 $83.74 $ 8,374.16
2012 $10,000 $80.75 $ 8,075.19
2013 $10,000 $77.41 $ 7,741.11
2014 $10,000 $74.07 $ 7,406.51
2015 $10,000 $71.08 $ 7,108.44
Total $ 84,501.08
- --------------------------------------------------------------------------------
DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR
BUSINESS DAY
Our "business day" is generally any day the New York Stock Exchange is open for
trading. A business day does not include any day we choose not to open due to
emergency conditions. We may also close early due to emergency conditions. Our
business day generally ends at 4:00 p.m., Eastern Time for purposes of
determining the date when contributions are applied and any other transaction
requests are processed; however, we may close or close early due to emergency
conditions. Contributions will be applied and any other transaction requests
will be processed when they are received along with all the required
information unless another date applies as indicated below.
If your contribution or any other transaction request containing all the
required information, reaches us on a non-business day or after 4:00 p.m. on a
business day, we will use the next business day.
CONTRIBUTIONS
o Contributions allocated to the fixed maturity options will receive the rate
to maturity in effect for that fixed maturity option on that business day.
o Contributions allocated to the separate account to provide for payments off
maturity dates will receive the interest rate in effect on that business
day or the same rate as the rate to maturity that applied to the expired
fixed maturity option.
o Contributions allocated to the life contingent annuity will be invested at
the purchase rates in effect on that business day. If you are purchasing
the Income Manager(R) (life with a period certain) option in connection
with your guaranteed minimum income benefit under certain contracts, you
should note that the purchase rates used are more conservative (and
therefore your payments may be smaller) than those we use for other Income
Manager(R) contracts.
ABOUT LEGAL PROCEEDINGS
AXA Equitable and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings is likely to have a material adverse effect
upon our obligations under the contracts, or the distribution of the contracts.
ABOUT OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The consolidated financial statements of AXA Equitable at December 31, 2004 and
2003, and for the three years ended December 31, 2004, in this prospectus by
reference to the 2004 Annual Report on Form 10-K, are incorporated in reliance
on the report of PricewaterhouseCoopers LLP, independent registered public
accounting firm, given on the authority of said firm as experts in auditing and
accounting.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS, AND BORROWING
The contracts may not be assigned except through surrender to us. They may not
be borrowed against or used as collateral for a loan or other obligation.
DISTRIBUTION OF CONTRACTS
The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and
AXA Distributors, LLC ("AXA Distributors") (together the "Distributors").
AXA Advisors (the successor to EQ Financial Consultants, Inc.) an affiliate of
AXA Equitable and AXA Distributors, an indirect wholly owned subsidiary of AXA
Equitable, are registered with the SEC as broker dealers and are members of the
National Association of Securities Dealers, Inc. ("NASD"). Their principal
business address is 1290 Avenue of the Americas, New York, NY 10104. Both
broker dealers also act as distributors for other AXA Equitable annuity
products. AXA Distributors is a successor by merger to all of the functions,
rights and obligations of Equitable Distributors, Inc. ("EDI"). Like AXA
Distributors, EDI was owned by Equitable Holdings, LLC.
Under a distribution agreement between AXA Distributors, AXA Equitable, and
certain of AXA Equitable's separate accounts, including the separate account
that contains the fixed maturity options, AXA Equitable paid AXA Distributors
distribution fees of $418,189,861 for 2004, $429,871,011 for 2003 and
$228,077,343 for 2002, as the
More information 31
distributor of certain contracts, including these contracts, and as the
principal underwriter of several AXA Equitable separate accounts, including the
separate account that contains the fixed maturity options. Of these amounts for
each of these three years, AXA Distributors retained $57,065,006, $84,547,116
and $59,543,803, respectively.
Under a distribution and services agreement between AXA Advisors, AXA Equitable
and certain of AXA Equitable's separate accounts, including the separate
account that contains the fixed maturity options, AXA Equitable paid AXA
Advisors a fee of $325,380 for each of the years 2004, 2003 and 2002. AXA
Equitable paid AXA Advisors as the distributor for certain contracts, including
these contracts $567,991,463 in 2004, $562,696,578 in 2003 and $536,113,253 in
2002. Of these amounts, AXA Advisors retained $289,050,171, $287,344,634 and
$283,213,274, respectively.
The contracts are sold by financial professionals of AXA Advisors and its
affiliates and by financial professionals of both affiliated and unaffiliated
broker-dealers that have entered into selling agreements with the Distributors
("Selling broker-dealers"). Affiliated broker-dealers include MONY Securities
Corporation ("MSC")* and Advest, Inc. The Distributors, MSC and Advest are all
under the common control of AXA Financial, Inc.
AXA Equitable pays sales compensation to both Distributors. In general,
broker-dealers receiving sales compensation will pay all or a portion of it to
its individual financial representatives (or to its Selling broker-dealers) as
commissions related to the sale of contracts.
Sales compensation paid to AXA Advisors will generally not exceed 8.5% of the
total contributions made under the contracts.
Sales compensation paid to AXA Distributors will generally not exceed 5.0% of
the total contributions made under the contracts.
The Distributors may also pay certain affiliated and/or unaffiliated
broker-dealers and other financial intermediaries additional compensation for
certain services and/or in recognition of certain expenses that may be incurred
by them or on their behalf (commonly referred to as "marketing allowances").
Services for which such payments are made may include, but are not limited to,
the preferred placement of AXA Equitable and/or Income Manager(SM) on a company
and/or product list; sales personnel training; due diligence and related costs;
marketing and related services; conferences; and/or other support services,
including some that may benefit the contract owner. Payments may be based on
the amount of assets or purchase payments attributable to contracts sold
through a broker-dealer. We may also make fixed payments to broker-dealers in
connection with the initiation of a new relationship or the introduction of a
new product. These payments may serve as an incentive for Selling
broker-dealers to promote the sale of our products. Additionally, as an
incentive for financial professionals of Selling broker-dealers to promote the
sale of our products, we may increase the sales compensation paid to the
Selling broker-dealer for a period of time (commonly referred to as
"compensation enhancements"). These types of payments are made out of the
Distributors' assets. Not all Selling broker-dealers receive additional
compensation. For more information about any such arrangements, ask your
financial professional.
The Distributors will receive 12b-1 fees from certain portfolios for providing
certain distribution and/or shareholder support services. In connection with
portfolios offered through unaffiliated insurance trusts, the Distributors may
also receive other payments from the portfolio advisers and/or their affiliates
for administrative costs, as well as payments for sales meetings and/or seminar
sponsorships.
In an effort to promote the sale of our products, AXA Advisors may provide its
financial professionals and managerial personnel with a higher percentage of
sales commissions and/or compensation for the sale of an affiliated variable
product than it would the sale of an unaffiliated product. Such practice is
known as providing "differential compensation." Other forms of compensation
financial professionals may receive include health and retirement benefits. In
addition, managerial personnel may receive expense reimbursements, marketing
allowances and commission-based payments known as "overrides." For tax reasons,
AXA Advisors financial professionals qualify for health and retirement benefits
based solely on their sales of our affiliated products.
These payments and differential compensation (together, the "payments") can
vary in amount based on the applicable product and/or entity or individual
involved. As with any incentive, such payments may cause the financial
professional to show preference in recommending the purchase or sale of our
products. However, under applicable rules of the NASD, AXA Advisors may only
recommend to you products that they reasonably believe are suitable for you
based on facts that you have disclosed as to your other security holdings,
financial situation and needs. In making any recommendation, financial
professionals may nonetheless face conflicts of interest because of the
differences in compensation from one product category to another, and because
of differences in compensation between products in the same category.
In addition, AXA Advisors financial professionals who meet specified production
levels for the sale of both affiliated and unaffiliated products may qualify,
under sales incentive programs, to receive non-cash compensation such as stock
options awards and/or stock appreciation rights, expense-paid trips,
expense-paid educational seminars and merchandise.
Although AXA Equitable takes all of its costs into account in establishing the
level of fees and expenses in our products, any compensation paid will not
result in any separate charge to you under your contract. All payments made
will be in compliance with all applicable NASD rules and other laws and
regulations.
- ----------------------
* On or about June 6, 2005, MSC financial professionals are expected to
become financial professionals of AXA Advisors. From that date forward, former
MSC financial professionals will be compensated by AXA Advisors, and the
Distributors will replace MSC as the principal underwriters of its affiliated
products.
32 More information
7. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
AXA Equitable's annual report on Form 10-K for the year ended December 31, 2004
is considered to be part of this prospectus because it is incorporated by
reference.
After the date of the prospectus and before we terminate the offering of the
securities under this prospectus, all documents or reports we file with the SEC
under the Securities Exchange Act of 1934 as amended, ("Exchange Act") will be
considered to become part of this prospectus because they are incorporated by
reference.
Any statement contained in a document that is or becomes part of this
prospectus, will be considered changed or replaced for purposes of this
prospectus if a statement contained in this prospectus changes or is replaced.
Any statement that is considered to be a part of this prospectus because of its
incorporation, will be considered changed or replaced for the purpose of this
prospectus if a statement contained in any other subsequently filed document
that is considered to be part of this prospectus changes or replaces that
statement. After that, only the statement that is changed or replaced will be
considered to be part of this prospectus.
We file our Exchange Act documents and reports, including our annual and
quarterly reports on Form 10-K and Form 10-Q, electronically according to EDGAR
under CIK No. 0000727920. The SEC maintains a website that contains reports,
proxy and information statements and other information regarding registrants
that file electronically with the SEC. The address of the website is
www.sec.gov.
Upon written or oral request, we will provide, free of charge, to each person
to whom this prospectus is delivered a copy of any or all of the documents
considered to be part of this prospectus because they are incorporated herein.
This does not include exhibits not specifically incorporated by reference into
the text of such documents. Requests for documents should be directed to AXA
Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New
York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234).
Incorporation of certain documents by reference 33
Appendix: Market value adjustment example
- --------------------------------------------------------------------------------
The example below shows how the market value adjustment would be determined and
how it would be applied to a withdrawal, assuming that $100,000 was allocated
on February 15, 2005 to a fixed maturity option with a maturity date of
February 15, 2014 at a rate to maturity of 7.00% resulting in a maturity value
at the maturity date of $183,846, and further assuming that a withdrawal of
$50,000 was made on February 15, 2009.
- -----------------------------------------------------------------------------------------------------------
Hypothetical assumed rate to maturity on
February 15, 2009
----------------------------------------
5.00% 9.00%
- -----------------------------------------------------------------------------------------------------------
As of February 15, 2009 (before withdrawal)
(1) Market adjusted amount $144,048 $ 119,487
(2) Fixed maturity amount $131,080 $ 131,080
(3) Market value adjustment: (1) - (2) $ 12,968 $ (11,593)
On February 15, 2009 (after withdrawal)
(4) Portion of market value adjustment associated with withdrawal:
(3) x [$50,000/(1)] $ 4,501 $ (4,851)
(5) Reduction in fixed maturity amount: [$50,000 - (4)] $ 45,499 $ 54,851
(6) Fixed maturity amount: (2) - (5) $ 85,581 $ 76,229
(7) Maturity value $120,032 $ 106,915
(8) Market adjusted amount of (7) $ 94,048 $ 69,487
You should note that if a withdrawal is made when rates have increased from
7.00% to 9.00% (right column), a portion of a negative market value adjustment
is realized. On the other hand, if a withdrawal is made when rates have
decreased from 7.00% to 5.00% (left column), a portion of a positive market
value adjustment is realized.
A-1 Appendix: Market value adjustment example
AXA Equitable Life Insurance Company
SUPPLEMENT DATED MAY 1, 2005 TO THE CURRENT PROSPECTUSES FOR:
ACCUMULATOR(R)
ACCUMULATOR(R) ELITE(SM)
- --------------------------------------------------------------------------------
For delivery to Morgan Stanley customers
This supplement modifies certain information in the above-referenced
Prospectuses, Supplements to Prospectuses and Statements of Additional
Information ("SAIs"), (together, the "Prospectuses"), in the State of
California only. Unless otherwise indicated, all other information included in
the Prospectuses remains unchanged. The terms and section headings we use in
this supplement have the same meaning as in the Prospectuses. You should keep
this supplement with your Prospectuses.
Please note the following information:
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
If you reside in the state of California and you are age 60 and older at the
time the contract is issued, you may return your variable annuity contract
within 30 days from the date that you receive it and receive a refund as
described below. This is also referred to as the "free look" period.
At the time of application, you will instruct your Morgan Stanley financial
professional as to how your initial contribution and any subsequent
contributions should be treated for the purpose of maintaining your free look
right under the contract.
o You may choose to immediately allocate your contributions to one or
more of the variable investment options. In the event you choose to
exercise your free look right under the contract, you will receive a
refund as described in the Prospectus.
o You may also choose "return of contribution" free look treatment of
your contract. If chosen, we will allocate your entire contribution and
any subsequent contributions made during the 40 day period following
the Contract Date, to the EQ/Money Market investment option. In the
event you choose to exercise your free look right under the contract,
you will receive a refund equal to your contributions.
If you choose the "return of contribution" free look treatment and your
contract is still in effect on the 40th day (or next Business Day)
following the Contract Date, we will automatically reallocate your
account value to the investment options chosen on your application.
Any transfers made prior to the expiration of the 30 day free look will
terminate your right to "return of contribution" treatment in the event
you choose to exercise your free look right under the contract. Any
transfer made prior to the 40th day following the Contract Date will
cancel the automatic reallocation on the 40th day (or next Business
Day) following the Contract Date described above. If you do not want
AXA Equitable to perform this scheduled one-time reallocation, you must
call one of our customer service representatives at 1 (800) 789-7771
before the 40th day following the Contract Date to cancel.
AXA Equitable Life Insurance Company
1290 Avenue of the Americas
New York, NY 10104
(212) 554-1234
MAIL-IM-04-34Supp (5/05)
Morgan Stanley (5/05) Cat. no. 134934 (5/05)
Acc. Core 4 Elite '04-New Business x01062
AXA Equitable Life Insurance Company
SUPPLEMENT DATED MAY 1, 2005 TO THE CURRENT PROSPECTUSES FOR:
ACCUMULATOR(R) ACCUMULATOR(R) ELITE(SM)
ACCUMULATOR(R) PLUS(SM) ACCUMULATOR(R) SELECT(SM)
- --------------------------------------------------------------------------------
For delivery to Smith Barney customers
This supplement modifies certain information in the above-referenced
Prospectuses, Supplements to Prospectuses and Statements of Additional
Information ("SAIs"), (together, the "Prospectuses"). Unless otherwise
indicated, all other information included in the Prospectuses remains
unchanged. The terms and section headings we use in this supplement have the
same meaning as in the Prospectuses. You should keep this supplement with your
Prospectuses.
Please note the following information:
ELECTRONIC APPLICATIONS AND INITIAL CONTRIBUTIONS
Your Accumulator(R) Series contract date will generally be the business day
Smith Barney receives your initial contribution and all information needed to
process your application, along with any required documents, and transmits your
order to us in accordance with our processing procedures. We may reject your
application and return your contribution or issue your contract on a later date
if any of the limitations described below apply.
SUBSEQUENT CONTRIBUTIONS
Any additional contributions you may make will generally be applied to your
contract on the business day Smith Barney receives the additional contribution
from you and transmits your order to us in accordance with our processing
procedures. We may reject your order and return your additional contribution or
credit your additional contribution to your contract at a later date if any of
the limitations described below apply.
LIMITATIONS
We consider Smith Barney to be a "processing office" for the purpose of
receiving applications and contributions as described above.
The procedures described above are not available for 1035 exchanges or other
replacement transactions; other types of transactions may also be excluded. You
must provide all information and documents we require with respect to your
initial or additional contribution. The amount of the initial or additional
contribution you are making must be permitted under your contract. Your
application and contribution must be made in accordance with all the other
terms and conditions described in our prospectus. After receiving your
contribution, together with all required information and documents, from you,
Smith Barney must deliver them to us in accordance with our processing
arrangements with Smith Barney.
Smith Barney may establish a "closing time" for receipt of applications and
contribution requests under the above arrangement that is earlier than the end
of the business day. Any such earlier closing time may be established without
prior notice to you. Also, while we are generally open on the same business
days as Smith Barney, a business day for the purposes of this supplement will
be our business day.
We or Smith Barney may change or discontinue these arrangements at any time
without prior notice. If you change Smith Barney as your broker-dealer of
record on your contract, the above procedures will no longer apply, although we
may have similar arrangements with your new broker-dealer.
You may always make subsequent contributions under your contract by any other
method described in the Accumulator(R) Series prospectus for your contract, as
supplemented from time to time. All applications and contributions are subject
to acceptance. These arrangements may not be available in every state.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
If you reside in the state of California and you are age 60 and older at the
time the contract is issued, you may return your variable annuity contract
within 30 days from the date that you receive it and receive a refund as
described below. This is also referred to as the "free look" period.
At the time of application, you will instruct your Smith Barney financial
professional as to how your initial contribution and any subsequent
contributions should be treated for the purpose of maintaining your free look
right under the contract.
o You may choose to immediately allocate your contributions to one or
more of the variable investment options. In the event you choose to
exercise your free look right under the contract, you will receive a
refund as described in the Prospectus.
o You may also choose "return of contribution" free look treatment of
your contract. If chosen, we will allocate your entire contribution and
any
SOLSB 05-04 (5/05) Cat. No. 133518 (5/05)
x01003
subsequent contributions made during the 40 day period following the Contract
Date, to the EQ/Money Market investment option. In the event you choose to
exercise your free look right under the contract, you will receive a refund
equal to your contributions.
If you choose the "return of contribution" free look treatment and your contract
is still in effect on the 40th day (or next Business Day) following the Contract
Date, we will automatically reallocate your account value to the investment
options chosen on your application.
Any transfers made prior to the expiration of the 30 day free look will
terminate your right to "return of contribution" treatment in the event you
choose to exercise your free look right under the contract. Any transfer made
prior to the 40th day following the Contract Date will cancel the automatic
reallocation on the 40th day (or next Business Day) following the Contract Date
described above. If you do not want AXA Equitable to perform this scheduled
one-time reallocation, you must call one of our customer service representatives
at 1 (800) 789-7771 before the 40th day following the Contract Date to cancel.
Acc Series '04
New Business (7/04)
AXA Equitable Life Insurance Company
1290 Avenue of the Americas
New York, NY 10104
(212) 554-1234
2
AXA Equitable Life Insurance Company
SUPPLEMENT DATED MAY 9, 2005 TO THE MAY 1, 2005 PROSPECTUSES:
o ACCUMULATOR(R)
o ACCUMULATOR(R) ELITE(SM)
o ACCUMULATOR(R) PLUS(SM)
o ACCUMULATOR(R) SELECT(SM)
- --------------------------------------------------------------------------------
This Supplement updates the current Prospectuses for the above-mentioned
Accumulator(R) variable annuity products issued by AXA Equitable Life Insurance
Company ("AXA Equitable"). Unless otherwise indicated, all other information
included in the Prospectuses remains unchanged. The terms and section headings
we use in this Supplement have the same meaning as in the Prospectuses. You
should read this Supplement in conjunction with the Prospectuses and retain it
for future reference. You may obtain a copy of the Prospectuses, free of
charge, by writing to AXA Equitable, at 1290 Avenue of the Americas, New York,
New York 10104.
Effective May 9, 2005, for the "Greater of the 6% Roll up to age 85 or the
Annual Ratchet to age 85" enhanced death benefit and/or the "Guaranteed minimum
income benefit," the effective annual interest rate credited to the benefit
base for monies allocated EQ/PIMCO Real Return is 6% (4% for the "Greater of
the 4% Roll up to age 85 or the Annual Ratchet to age 85" enhanced death
benefit, which is available only in Washington). For more information about
these benefits, please see "Contract features and benefits" in your Prospectus,
your contract or consult with your financial professional.
AXA Equitable Life Insurance Company
1290 Avenue of the Americas
New York, New York 10104
EVM5905 (5/05) Cat. No. 135072 (5/05)
'04 Series/New Biz and In-Force x01076
#192136v1 - 04/18/05
AXA Equitable Life Insurance Company
SUPPLEMENT DATED MAY 9, 2005 TO THE MAY 1, 2005 PROSPECTUSES AND/OR SUPPLEMENT
FOR:
o Income Manager Accumulator(R) o Accumulator(R) Plus(SM) o Accumulator(R) Select(SM) II
o Income Manager(R) Rollover IRA o Accumulator(R) o Accumulator(R) Elite(SM)
o Accumulator(R) (IRA, NQ, QP) o Accumulator(R) Select(SM) o Accumulator(R) Elite(SM) II
- --------------------------------------------------------------------------------
This Supplement updates the current Prospectuses and/or Supplement (together,
the "Prospectuses") for the above-mentioned Accumulator(R) variable annuity
products (together, the "Accumulator(R) Series") issued by AXA Equitable Life
Insurance Company ("AXA Equitable"). Unless otherwise indicated, all other
information included in the Prospectuses remains unchanged. The terms and
section headings we use in this Supplement have the same meaning as in the
Prospectuses. You should read this Supplement in conjunction with the
Prospectuses and retain it for future reference. You may obtain a copy of the
Prospectuses, free of charge, by writing to AXA Equitable, at 1290 Avenue of
the Americas, New York, New York 10104.
Effective May 9, 2005, for the purpose of calculating any applicable guaranteed
minimum death benefit or guaranteed minimum income benefit with a benefit base
that rolls up at a specified rate, the effective annual interest rate credited
to the benefit base for monies allocated to EQ/PIMCO Real Return is generally
5% or 6% (4% for the applicable guaranteed minimum death benefit in
Washington), depending on your Accumulator(R) Series contract. For more
information about these benefits, please see "Contract features and benefits"
in your Prospectus, your contract or consult with your financial professional.
AXA Equitable Life Insurance Company
1290 Avenue of the Americas
New York, New York 10104
EVM5905 (5/05)-A
PRE-'04 Series/ In-Force
#192136v1 - 04/18/05
x01077
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS
The by-laws of AXA Equitable Life Insurance Company ("AXA
Equitable") provide, in Article VII, as follows:
7.4 Indemnification of Directors, Officers and Employees. (a) To
the extent permitted by the law of the State of New York and
subject to all applicable requirements thereof:
(i) any person made or threatened to be made a party to any
action or proceeding, whether civil or criminal, by
reason of the fact that he or she, or his or her
testator or intestate, is or was a director, officer or
employee of the Company shall be indemnified by the
Company;
(ii) any person made or threatened to be made a party to any
action or proceeding, whether civil or criminal, by
reason of the fact that he or she, or his or her
testator or intestate serves or served any other
organization in any capacity at the request of the
Company may be indemnified by the Company; and
(iii) the related expenses of any such person in any of said
categories may be advanced by the Company.
(b) To the extent permitted by the law of the State of New
York, the Company may provide for further indemnification or
advancement of expenses by resolution of shareholders of the
Company or the Board of Directors, by amendment of these
By-Laws, or by agreement. {Business Corporation Law ss.ss.
721-726; Insurance Law ss.1216}
The directors and officers of AXA Equitable are insured under policies
issued by Lloyd's of London, X. L. Insurance Company, Arch Insurance Company and
ACE Insurance Company. The annual limit on such policies is $150 million, and
the policies insure the officers and directors against certain liabilities
arising out of their conduct in such capacities.
II-1
ITEM 16. EXHIBITS
Exhibits No.
(1) (a) Form of Distribution Agreement by and among
Equitable Distributors, Inc., Separate
Account Nos. 45 and 49 of Equitable Life and
Equitable Life Assurance Society of the
United States, incorporated by reference to
Exhibit 1(a) to the Registration Statement
on Form S-3 (File No. 33-88456), filed June
7, 1996.
(b) Form of Distribution Agreement dated as of
January 1, 1998 among The Equitable Life
Assurance Society of the United States for
itself and as depositor on behalf of certain
separate accounts and Equitable
Distributors, Inc., incorporated herein by
reference to Exhibit 3(b) to the
Registration Statement on Form N-4 (File No.
333-05593) on May 1, 1998.
(c) Distribution and Servicing Agreement among
Equico Securities (now AXA Advisors, LLC),
The Equitable Life Assurance Society of the
United States, and Equitable Variable Life
Insurance Company, dated as of May 1, 1994,
incorporated herein by reference to Exhibit
3(c) to the Registration Statement on
Form N-4 File No. 2-30070, refiled
electronically July 10, 1998.
(d) Letter of Agreement for Distribution
Agreement among The Equitable Life Assurance
Society of the United States and EQ
Financial Consultants, Inc. (now AXA
Advisors, LLC), dated April 20, 1998,
incorporated herein by reference to
Exhibit No. 3(c) to Registration Statement
(File No. 33-83750), filed on May 1, 1998.
(e) Participation Agreement among EQ Advisors
Trust, The Equitable Life Assurance Society
of the United States, Equitable
Distributors, Inc. and EQ Financial
Consultants, Inc. (now AXA Advisors, LLC)
dated as of the 14th day of April 1997,
incorporated by reference to the
Registration Statement of EQ Advisors Trust,
(File No. 333-17217) on Form N-1A, August
28, 1997.
(f) Form of Participation Agreement among AXA
Premier VIP Trust, Equitable Distributors,
Inc., AXA Distributors, LLC, and AXA
Advisors, LLC, previously filed with this
Registration Statement File No. 333-81501
on December 5, 2001.
(g) Form of Participation Agreement among The
Equitable Life Assurance Society of the
United States, The Universal Institutional
Funds, Inc. and Morgan Stanley Investment
Management Inc., incorporated herein by
reference to Exhibit No. 1-A(9)(d) to
Registration Statement on Form S-6, File
No. 333-17641, filed on October 8, 2002.
(h) Form of Particiption Agreement among BARR
Rosenberg Variable Insurance Trust, BARR
ROSENBERG FUNDS DISTRIBUTOR, INC., AXA
ROSENBERG INVESTMENT MANAGEMENT LLC, and the
Equitable Life Assurance Company of the
United States, previously filed with this
Registration Statement, File No. 333-81501
on Form N-4, on August 5, 2003.
(i) Distribution Agreement for services by The
Equitable Life Assurance Society of the
United States to AXA Network, LLC and its
subsidiaries dated January 1, 2000
incorporated herein by reference to Exhibit
3(d) to Registration Statement File No.
33-83750 filed April 25, 2001.
(j) Distribution Agreement for services by AXA
Network, LLC and its subsidiaries to The
Equitable Life Assurance Society of the
United States dated January 1, 2000
incorporated herein by reference to Exhibit
3(e) to Registration Statement File No.
33-83750 filed April 25, 2001.
(k) General Agent Sales Agreement dated
January 1, 2000 between The Equitable Life
Assurance Society of the United States and
AXA Network, LLC and its subsidiaries,
incorporated herein by reference to
Exhibit 3(h) to the Registration Statement
on Form N-4, File No. 2-30070, filed
April 19, 2004.
(l) First Amendment to General Agent Sales
Agreement dated January 1, 2000 between
The Equitable Life Assurance Society of the
United States and AXA Network, LLC and its
subsidiaries, incorporated herein by
reference to Exhibit 3(i) to the
Registration Statement on Form N-4, File
No. 2-30070, filed April 19, 2004.
(m) Second Amendment to General Agent Sales
Agreement dated January 1, 2000 between
The Equitable Life Assurance Society of
the United States and AXA Network, LLC
and its subsidiaries, incorporated herein
by reference to Exhibit 3(j) to the
Registration Statement on Form N-4, File
No. 2-30070, filed April 19, 2004.
(n) Form of Brokerage General Agent Sales
Agreement with Schedule and Amendment to
Brokerage General Agent Sales Agreement
among [Brokerage General Agent] and AXA
Distributors, LLC, AXA Distributors
Insurance Agency, LLC, AXA Distributors
Insurance Agency of Alabama, LLC, and AXA
Distributors Insurance Agency of
Massachusetts, LLC, incorporated herein by
reference to Exhibit No. 3.(i) to
Registration Statement (File No. 333-05593)
on Form N-4, filed on April 20, 2005.
(o) Form of Wholesale Broker-Dealer Supervisory
and Sales Agreement among [Broker-Dealer]
and AXA Distributors, LLC, incorporated
herein by reference to Exhibit No. 3.(j) to
Registration Statement (File No. 333-05593)
on Form N-4, filed on April 20, 2005.
(4) (a) Form of group annuity contract no.
1050-94IC, incorporated herein by reference
to Exhibit No. 4(a) to the Registration
Statement on Form S-3 (File No. 333-24009)
filed on March 6, 1998.
(b) Form of group annuity certificate nos. 94ICA
and 94ICB, incorporated herein by reference
to Exhibit No. 4(b) to the Registration
Statement on Form S-3 (File No. 333-24009)
filed on March 6, 1998.
(b)(i) Form of Data pages for Equitable Accumulator
TSA, incorporated by reference to Exhibit
No. 4(s) to the Registration Statement on
Form N-4 (File No. 33-05593) filed on May
22, 1998.
(c) Forms of Endorsement Nos. 94ENIRAI, 94ENNQI
and 94ENMVAI to contract no. 1050-94IC and
data pages no. 94ICA/BIM(IRA), (NQ), (NQ
Plan A) and (NQ Plan B), incorporated herein
by reference to Exhibit No. 4(c) to the
Registration Statement on Form S-3
(File No. 333-24009) filed on March 6, 1998.
(c)(i) Form of Data Pages for Equitable Accumulator
Select TSA, incorporated by reference to
Exhibit 4(k) to the Registration Statement
on Form N-4 (File No. 333-31131) filed on
May 22, 1998.
(d) Forms of Application used with the IRA, NQ
and Fixed Annuity Markets, incorporated
herein by reference to Exhibit No. 4(d) to
the Statement on Form S-3 (File No.
333-24009) filed on March 6, 1998.
(d)(i) Form of Data Pages for Equitable Accumulator
TSA, incorporated by reference to Exhibit
No. 4(v) to the Registration Statement on
Form N-4 (File No. 33-83750) filed on May
22, 1998.
(e) Form of Endorsement no. 95ENLCAI to contract
no. 1050-94IC and data pages no. 94ICA/BLCA,
incorporated herein by reference to Exhibit
No. 4(e) to the Registration Statement on
Form S-3 (File No. 333-24009) filed on
March 6, 1998.
(e)(i) Form of Endorsement Applicable to TSA
Certificates, incorporated by reference to
Exhibit 4(t) to the Registration Statement
on Form N-4 (File No. 333-05593) filed on
May 22, 1998.
(f) Forms of Data Pages for Rollover IRA, IRA
Assured Payment Option, IRA Assured Payment
Option Plus, Accumulator, Assured Growth
Plan, Assured Growth Plan (Flexible Income
Program), Assured Payment Plan (Period
Certain) and Assured Payment Plan (Life with
a Period Certain), incorporated by reference
to Exhibit 4(f) to the Registration
Statement on Form S-3 (File No. 33-88456)
filed August 31, 1995.
(f)(i) Form of Enrollment Form/Application for
Equitable Accumulator (IRA, NQ, QF and TSA),
incorporated by reference to Exhibit No.
5(f) to the Registration Statement on Form
N-4 (File No. 333-05593) filed on May 22,
1998.
II-2
Exhibits No.
(g) Forms of Data Pages for Rollover IRA, IRA
Assured Payment Option, IRA Assured Payment
Option Plus, Accumulator, Assured Growth
Plan and Assured Payment Plan (Life Annuity
with a Period Certain), incorporated by
reference to Exhibit 4(g) to the
Registration Statement on Form S-3 (File No.
33-88456), filed on April 23, 1996.
(h) Form of Separate Account Insulation
Endorsement for the Endorsement Applicable
to Market Value Adjustment Terms,
incorporated by reference to Exhibit 4(h) to
the Registration Statement on Form S-3 (File
No. 33-88456), filed on April 23, 1996.
(i) Forms of Guaranteed Minimum Income Benefit
Endorsements (and applicable data page for
Rollover IRA) for Endorsement Applicable to
Market Value Adjustment Terms and for the
Life Contingent Annuity Endorsement,
incorporated by reference to Exhibit 4(i) to
the Registration Statement on Form S-3 (File
No. 33-88456), filed on April 23, 1996.
(j) Forms of Enrollment Form/Application for
Rollover IRA, Choice Income Plan, Assured
Growth Plan, Accumulator and Assured Payment
Plan, incorporated by reference to Exhibit
4(j) to the Registration Statement on Form
S-3 (File No. 33-88456), filed on April 23,
1996.
(k) Forms of Data Pages for the Accumulator,
incorporated by reference to Exhibit 4(k) to
the Registration Statement on Form S-3 (File
No. 33-88456), filed June 7, 1996.
(l) Forms of Data Pages for the Rollover IRA,
incorporated by reference to Exhibit 4(l) to
the Registration Statement on Form S-3 (File
No. 33-88456), filed June 7, 1996.
(m) Forms of Data Pages for the Accumulator and
Rollover IRA, incorporated by reference to
Exhibit 4(m) to the Registration Statement
on Form S-3 (File No. 33-88456), filed
October 9, 1996.
(n) Forms of Data Pages for Accumulator and
Rollover IRA, incorporated by reference to
Exhibit 4(n) to the Registration Statement
on Form S-3 (File No. 33-88456), filed
October 16, 1996.
(o) Forms of Data Pages for the Accumulator,
Rollover IRA, Income Manager Accumulator,
Income Manager Rollover IRA, Equitable
Accumulator, Income Manager (IRA and NQ) and
MVA Annuity (IRA and NQ), incorporated
herein by reference to Exhibit No. 4(o) to
the Registration Statement on Form S-3
(File No. 333-24009) filed on April 30,
1997.
(p) Forms of Enrollment Form/Application for
Income Manager Accumulator, Income Manager
Rollover IRA, Equitable Accumulator, Income
Manager (IRA and NQ) and MVA Annuity (IRA
and NQ), incorporated herein by reference to
Exhibit No. 4(p) to the Registration
Statement on Form S-3 (File No. 333-24009)
filed on April 30, 1997.
(q) Forms of Data Pages for Equitable
Accumulator Select (IRA) and Equitable
Accumulator Select (NQ), incorporated herein
by reference to Exhibit No. 4(q) to the
Registration Statement on Form S-3 (File
No. 333-24009) filed on September 18, 1997.
(r) Forms of Enrollment Form/Application for
Equitable Accumulator Select (IRA and NQ),
incorporated herein by reference to Exhibit
No. 4(r) to the Registration Statement on
Form S-3 (File No. 333-24009) filed on
September 18, 1997.
(s) Form of Data Pages No. 94ICB and 94ICBMVA
for Equitable Accumulator (IRA)
Certificates, incorporated by reference to
Exhibit 4(m) to the Registration Statement
on Form N-4 (File No. 33-83750) on
February 27, 1998.
(t) Form of Data Pages No. 94ICB and 94ICBMVA
for Equitable Accumulator (NQ) Certificates,
incorporated by reference to Exhibit 4(n) to
the Registration Statement on Form N-4 (File
No. 33-83750) on February 27, 1998.
(u) Form of Data Pages No. 94ICB and 94ICBMVA
for Equitable Accumulator (QP) Certificates,
incorporated by reference to Exhibit 4(o) to
the Registration Statement on Form N-4 (File
No. 33-83750) on February 27, 1998.
(v) Form of Data Pages No. 94ICB, 94ICBMVA and
94ICBLCA for Assured Payment Option
Certificates, incorporated by reference to
Exhibit 4(p) to the Registration Statement
on Form N-4 (File No. 33-83750) on
February 27, 1998.
(w) Form of Data Pages No. 94ICB, 94ICBMVA and
94ICBLCA for APO Plus Certificates,
incorporated by reference to Exhibit 4(q) to
the Registration Statement on Form N-4 (File
No. 33-83750) on February 27, 1998.
(x) Form of Endorsement applicable to Defined
Benefit Qualified Plan Certificates No.
98ENDQPI incorporated by reference to
Exhibit 4(r) to the Registration Statement
on Form N-4 (File No. 33-83750) on
February 27, 1998.
(y) Form of Endorsement applicable to
Non-Qualified Certificates No. 98ENJONQI,
incorporated by reference to Exhibit 4(s) to
the Registration Statement on Form N-4 (File
No. 33-83750) on February 27, 1998.
(z) Form of Endorsement applicable to Charitable
Remainder Trusts No. 97ENCRTI, incorporated
by reference to Exhibit 4(t) to the
Registration Statement on Form N-4 (File No.
33-83750) on February 27, 1998.
(a)(a) Form of Enrollment Form/Application No.
126737 (5/98) for Equitable Accumulator
(IRA, NQ and QP), incorporated by reference
to Exhibit 5(e) to the Registration
Statement on Form N-4 (File No. 33-83750)
on February 27, 1998.
(b)(b) Form of Endorsement for Extra Credit Annuity
Form No. 98ECENDI and Data Pages 94ICA/B,
incorporated herein by reference to Exhibit
No. 4(j) to the Registration Statement
File No. 333-64749 on Form N-4, filed
September 30, 1998.
(c)(c) Form of Endorsement for Extra Credit Annuity
Form No. 98ECENDI and Data Pages 94ICA/B,
incorporated herein by reference to Exhibit
No. 4(k) to the Registration Statement
File No. 333-64751 on Form N-4, filed
September 30, 1998.
(d)(d) Form of Endorsement applicable to Defined
Contribution Qualified Plan Certificates No.
97ENQPI and Data Pages 94ICA/B, incorporated
herein by reference to Exhibit No. 4 (k) to
the Registration Statement File No.
333-64749 on Form N-4, filed September 30,
1998.
(e)(e) Form of Endorsement applicable to Defined
Contribution Qualified Plan Certificates No.
97ENQPI and Data Pages 94ICA/B, incorporated
herein by reference to Exhibit No. 4(l) to
the Registration Statement File No.
333-64751 on Form N-4, filed September 30,
1998.
(f)(f) Form of Data Pages for Equitable Accumulator
Express, incorporated herein by reference to
Exhibit No. 4(h) to Registration Statement
File No. 333-79379 on Form N-4, filed on May
26, 1999.
(g)(g) Form of Enrollment Form/Application for
Equitable Accumulator Express, incorporated
herein by reference to Exhibit No. 5 to
Registration Statement File No. 333-79379 on
Form N-4, filed on May 26, 1999.
(h)(h) Form of Data Pages for new version of
Equitable Accumulator, incorporated herein
by reference to Exhibit 4(z) to Registration
Statement File No. 333-05593 on Form N-4,
filed on November 23, 1999.
(i)(i) Form of Data Pages for new version of
Equitable Accumulator, incorporated herein
by reference to Exhibit 4(c)(c) to
Registration Statement File No. 33-83750 on
Form N-4, filed on December 3, 1999.
(j)(j) Form of Endorsement (Form No. 2000
ENRAI-IM) -- Beneficiary Continuation Option
for use with IRA contracts incorporated
herein by reference to Exhibit No. 4(j)(j)
to the Registration Statement on Form S-3
File No. 333-24009 filed on April 26, 2000.
(k)(k) Form of data pages for Equitable Accumulator
Select baseBUILDER incorporated herein by
reference to Registration Statement File No.
333-73121, filed on April 25, 2000.
(l)(l) Form of Endorsement applicable to Roth IRA
Contracts, Form No. 1M-ROTHBCO-1
incorporated herein by reference to
Registration Statement File No. 33-83750 on
Form N-4, filed April 25, 2001.
(m)(m) Revised Form of Endorsement applicable to
IRA Certificates, Form 2000EN/RAI-IM
incorporated herein by reference to
Registration Statement File No. 33-83750 on
Form N-4, filed April 25, 2001.
(n)(n) Form of Endorsement applicable to
Non-Qualified Certificates Form No. 99ENNQ-G
incorporated herein by reference to
Registration Statement File No. 33-83750 on
Form N-4, filed April 25, 2001.
(o)(o) Form of Optional Death Benefit Rider, Form
No. 2000PPDB incorporated herein by
reference to Registration Statement File No.
33-83750 on Form N-4, filed April 25, 2001.
(p)(p) Form of Data Pages for Equitable Accumulator
incorporated herein by reference to Exhibit
4(i)(i) to Registration Statement File No.
33-83750 on Form N-4, filed April 25, 2001.
(r)(r) Form of Data Pages for Equitable Accumulator
Select incorporated herein by reference to
Exhibit 4(v) to Registration Statement File
No. 333-73121 on Form N-4, filed April 25,
2001.
(s)(s) Form of Data Pages for Equitable Accumulator
Advisor incorporated herein by reference to
Exhibit 4(l) to Registration Statement File
No. 333-44996 on Form N-4, filed
April 25, 2001.
(t)(t) Form of Data Pages for Equitable Accumulator
incorporated herein by reference to Exhibit
4(f)(f) to Registration Statement File No.
333-05593 on Form N-4, filed April 25, 2001.
(u)(u) Form of Data Pages for Equitable Accumulator
Select incorporated herein by reference to
Exhibit 4(w) to Registration Statement File
No. 333-31131 on Form N-4, filed
April 25, 2001.
(w)(w) Form of Data Pages for Equitable Accumulator
Advisor incorporated herein by reference to
Exhibit 4(m) to Registration Statement File
No. 333-96177 on Form N-4, filed
April 25, 2001.
(x)(x) Form of Amendment to Certificate Form No.
941CB, Form No. 2000 BENE-G incorporated
herein by reference to Exhibit 4(j)(j) to
Registration Statement File No. 33-83750 on
Form N-4, filed April 25, 2001.
(y)(y) Form of Endorsement applicable to
Non-Qualified Certificates incorporated
herein by reference to Exhibit 4(k)(k) to
Registration Statement File No. 33-83750 on
Form N-4, filed April 25, 2001.
(z)(z) Form of Enrollment Form/Application for
Equitable Accumulator Select II incorporated
herein by reference to Exhibit 5(a) to
Registration Statement File No. 811-07659
(amendment No. 50) on Form N-4 filed on
May 11, 2001.
(a)(b) Form of Data Pages for Equitable Accumulator
Select II (NQ) incorporated
herein by reference to Exhibit 4(e) to
Registration Statement File No. 811-07659
(amendment No. 50) on Form N-4 filed on
May 11, 2001.
(a)(c) Form of Data Pages for Equitable Accumulator
Select II (NQ) Certificates incorporated
herein by reference to Exhibit 4(k) to
Registration Statement File No. 811-08754
(amendment No. 41) on Form N-4 filed on May
22, 2001.
(a)(d) Form of Enrollment Form/Application for
Equitable Accumulator Select II incorporated
herein by reference to Exhibit 5(a) to
Registration Statement File No. 811-08754
(amendment No. 41) on Form N-4 filed on May
22, 2001.
(a)(e) Form of Endorsement (No. 2002 NQBCO)
applicable to non-qualified
contract/certificates with beneficiary
continuation option, incorporated herein by
reference to Registration Statement File No.
333-05593, filed on April 24, 2003.
(a)(f) Form of Guaranteed Minimum Death Benefit
Rider (No. 2002 GMDB-6% Rollup), annual
ratchet to age 85, incorporated herein by
reference to Registration Statement File No.
333-05593, filed on April 24, 2003.
(a)(g) Form of Guaranteed Minimum Death Benefit
Rider (No. 2002 GMDB-6% Rollup), [6%] Rollup
to age 85,incorporated herein by reference
to Registration Statement File No.
333-05593, filed on April 24, 2003.
(a)(h) Form of Guaranteed Minimum Death Benefit
Rider (No. 2002 GMDB-6% or AR) greater of
[6%] Rollup to Age [85] GMDB or Annual
Ratchet to age [85] GMDB, incorporated
herein by reference to Registration
Statement File No. 333-05593, filed on April
24, 2003.
(a)(i) Form of Guaranteed Minimum Income Benefit
Rider (also known as the Living Benefit)
(No. 2002 GMIB), incorporated herein by
reference to Registration Statement File No.
333-05593, filed on April 24, 2003.
(a)(j) Form of Protection Plus Optional Death
Benefit Rider (No. 2002 PPDB), incorporated
herein by reference to Registration
Statement File No. 333-05593, filed on April
24, 2003.
(a)(k) Form of Endorsement, Form No. 2002 DP
(GIA/SEL), incorporated herein by reference
to Registration Statement File No. 333-31131
filed on April 24, 2003.
(a)(l) Form of Data Pages for (No. 2003 DPSelect),
incorporated by reference to Exhibit No.
4(i)(i)(i) to Registration Statement File
No. 333-31131, filed on May 8, 2003.
(a)(m) Form of Data Pages (Inherited IRA) (No.
2003 DPTOBCO-Select) incorporated by
reference to Exhibit No. 4(j)(j)(j) to
Registration Statement File No. 333-31131,
filed on May 8, 2003.
(a)(n) Form of Guaranteed Minimum Death Benefit
("GMDB") Rider (No. 2003 GMDB-RUorAR)
incorporated by reference to Exhibit No.
4(a)(i) to Registration Statement File No.
333-05593, filed on May 8, 2003.
(a)(o) Form of Guaranteed Minimum Death Benefit
("GMDB") Rider (No. 2003 GMDB-AR)
incorporated by reference to Exhibit No.
4(a)(j) to Registration Statement File No.
333-05593, filed on May 8, 2003.
(a)(p) Form of Guaranteed Minimum Income Benefit
("GMIB") Rider (No. 2003 GMIB)
incorporated by reference to Exhibit No.
4(a)(k) to Registration Statement File No.
333-05593, filed on May 8, 2003.
(a)(q) Form of Protection Plus Optional Death
Benefit Rider (No. 2003 PPDB) incorporated
by reference to Exhibit No. 4(a)(l) to
Registration Statement File No. 333-05593,
filed on May 8, 2003.
(a)(r) Form of Enhanced Guaranteed Principal
Benefit ("Enhanced GPB") Rider (No. 2003
GPB) incorporated by reference to Exhibit
No. 4(a)(m) to Registration Statement File
No. 333-05593, filed on May 8, 2003.
(a)(s) Form of Spousal Protection Rider (No. 2003
SPPRO) incorporated by reference to Exhibit
No. 4(a)(n) to Registration Statement File
No. 333-05593, filed on May 8, 2003.
(a)(t) Form of Data Pages (No. 2003 DPTOBCO)
incorporated by reference to Exhibit No.
4(a)(o) to Registration Statement File No.
333-05593, filed on May 8, 2003.
(a)(u) Form of Data Pages (No. 2003 DP)
incorporated by reference to Exhibit No.
4(a)(p) to Registration Statement File No.
333-05593, filed on May 8, 2003.
(a)(v) Form of Data Pages (No. 2003 DPCORE)
incorporated by reference to Exhibit No.
4(a)(q) to Registration Statement File No.
333-05593, filed on May 8, 2003.
(a)(w) Form of Data Pages (No. 2003 DPElite)
incorporated by reference to Exhibit No.
4(z)(z) to Registration Statement File No.
333-60730, filed on May 8, 2003.
(a)(x) Form of Data Pages (No. 2003 DPPlus)
incorporated by reference to Exhibit No.
4(c)(c)(c) to Registration Statement File
No. 333-64749, filed on May 8, 2003.
(a)(y) Form of Guaranteed Withdrawal Benefit
("GWB") Rider (No. 2004 GWB-A) incorporated
by reference to Exhibit No. 4(a)(r) to
Registration Statement File No. 333-05593,
filed May 3, 2004.
(a)(z) Form of Guaranteed Withdrawal Benefit
("GWB") Rider (No. 2004 GWB-B) incorporated
by reference to Exhibit No. 4(a)(s) to
Registration Statement File No. 333-05593,
filed May 3, 2004.
(a)(z)(a) Form of Data Pages (2004DPGWB) incorporated
by reference to Exhibit No. 4(a)(t) to
Registration Statement File No. 333-05593,
filed May 3, 2004.
(a)(z)(b) Form of Guaranteed Withdrawal Benefit
("GWB") Rider [also known as "Principal
Protector"] (2004GWB-A (rev 2/05))
incorporated by reference to Exhibit 4(a)(u)
to Registration Statement (File No.
333-05593) on Form N-4, Filed April 20,
2005.
(a)(z)(c) Form of Guaranteed Withdrawal Benefit
("GWB") Rider [also known as "Principal
Protector"] (2004GWB-B (rev 2/05))
incorporated by reference to Exhibit 4(a)(v)
to Registration Statement (File No.
333-05593) on Form N-4, Filed April 20,
2005.
(a)(z)(d) Form of Guaranteed Withdrawal Benefit
("GWB") Rider [also known as "Principal
Protector"] (2004GWB-A1 (rev 2/05))
incorporated by reference to Exhibit 4(a)(w)
to Registration Statement (File No.
333-05593) on Form N-4, Filed April 20,
2005.
(a)(z)(e) Form of Guaranteed Withdrawal Benefit
("GWB") Rider [also known as "Principal
Protector"] (2004GWB-B1 (rev 2/05))
incorporated by reference to Exhibit 4(a)(x)
to Registration Statement (File No.
333-05593) on Form N-4, Filed April 20,
2005.
(a)(z)(f) Form of Change of Ownership Endorsement
(2004COO) incorporated by reference to
Exhibit 4(a)(y) to Registration Statement
(File No. 333-05593) on Form N-4, Filed
April 20, 2005.
(a)(z)(g) Form of Endorsement Applicable to TSA
Contracts (2004TSA) incorporated by
reference to Exhibit 4(a)(z) to Registration
Statement (File No. 333-05593) on Form N-4,
Filed April 20, 2005.
II-3
Exhibits No.
(5) (a) Opinion and Consent of Robin Wagner, Vice
President and Counsel, as to the legality
of the securities being offered, previously
filed with this Registration Statement File
No. 333-104713 on April 23, 2003.
(b) Opinion and Consent of Dodie Kent, Esq.,
Vice President and Counsel of Equitable, as
to the legality of the securities being
registered.
(c) Copy of the Internal Revenue Service
determination letter regarding qualification
under Section 401 of the Internal Revenue
Code, incorporated by reference to Exhibit
5(b) to the Registration Statement on Form
S-3 (File No. 33-88456), filed August 31,
1995.
(23) (a) Consent of PricewaterhouseCoopers LLP.
(b) Consent of Counsel see Exhibit 5(b).
(24) (a) Powers of Attorney incorporated herein by
reference to Exhibit No. 23(c) to the
Registration Statement (File No. 333-24009)
filed on April 26, 2000.
(b) Powers of Attorney, incorporated herein by
reference to Exhibit No. 7(a) to
Registration Statement on Form S-6, File No.
333-17663, filed on April 28, 2000.
(c) Powers of Attorney, incorporated herein by
reference to Exhibit No. 27(n)(iii) to
Registration Statement on Form N-6, File No.
333-103199, filed on April 4, 2003.
(d) Powers of Attorney, incorporated herein
by reference to Exhibit 10.(a) Registration
Statement File No. 2-30070 on Form N-4,
filed on April 19, 2004.
(e) Powers of Attorney, incorporated herein by
reference to Exhibit 10.(d) to Registration
Statement File No. 333-05593 on Form N-4,
filed on August 4, 2004.
(f) Powers of Attorney, incorporated herein by
reference to Exhibit 10.(f) to Registration
Statement File No. 333-05593 on Form N-4,
filed on April 20, 2005.
II-4
ITEM 17. UNDERTAKINGS
(a) The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or
sales are being made, a post-effective amendment
to this registration statement:
(i) to include any prospectus required
by section 10(a)(3) of the
Securities Act of 1933;
(ii) to reflect in the prospectus any
facts or events arising after the
effective date of the registration
statement (or the most recent
post-effective amendment thereof)
which, individually or in the
aggregate represent a fundamental
change in the information set forth
in the registration statement;
(iii) to include any material information
with respect to the plan of
distribution not previously
disclosed in the registration
statement or any material change to
such information in the registration
statement;
provided, however, that paragraphs (a)(1)(i) and (a)(1)(ii) do not
apply if the information required to be included in a post-effective
amendment by those paragraphs is contained in periodic reports filed
with or furnished to the Commission by the registrant pursuant to
Section 13 or 15(d) of the Securities Act of 1934 that are incorporated
by reference in the registration statement.
(2) That, for the purpose of determining any
liability under the Securities Act of 1933,
each such post-effective amendment shall be
deemed to be a new registration statement
relating to the securities offered therein,
and the offering of such securities at that
time shall be deemed to be the initial bona
fide offering thereof.
(3) To remove from registration by means of a
post-effective amendment any of the
securities being registered which remain
unsold at the termination of the offering.
(b) The undersigned registrant hereby undertakes that, for
purposes of determining any liability under the Securities Act
of 1933, each filing of the registrant's annual report
pursuant to Section 13(a) or 15(d) of the Securities Exchange
Act of 1934 that is incorporated by reference in the
registration statement shall be deemed to be a new
registration statement relating to the securities offered
therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.
II-5
(c) Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers
and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been
advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable. In the
event that claim for indemnification against such liabilities
(other than the payment by the registrant of expenses incurred
or paid by a director, officer or controlling person of the
registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or
controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its
counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question
whether such indemnification by it is against public policy as
expressed in the Act and will be governed by the final
adjudication of such issue.
II-6
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
Registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form S-3 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City and State of New York, on this 20th day of April, 2005.
AXA EQUITABLE LIFE INSURANCE COMPANY
(Registrant)
By: /s/ Dodie Kent
------------------
Dodie Kent
Vice President
AXA Equitable Life Insurance Company
As required by the Securities Act of 1933, this amendment to the
Registration Statement has been signed by the following persons in the
capacities and on the date indicated:
PRINCIPAL EXECUTIVE OFFICERS:
*Christopher M. Condron Chairman of the Board, President,
Chief Executive Officer and Director
PRINCIPAL FINANCIAL OFFICER:
*Stanley B. Tulin Vice Chairman of the Board
Chief Financial Officer and Director
PRINCIPAL ACCOUNTING OFFICER:
*Alvin H. Fenichel Senior Vice President and Controller
*DIRECTORS:
Bruce W. Calvert John C. Graves Scott D. Miller
Christopher M. Condron Mary R. (Nina) Henderson Joseph H. Moglia
Henri de Castries James F. Higgins Peter J. Tobin
Claus-Michael Dill W. Edwin Jarmain Stanley B. Tulin
Joseph L. Dionne Christina Johnson
*By: /s/ Dodie Kent
------------------------
Dodie Kent
Attorney-in-Fact
April 20, 2005
EXHIBIT INDEX
EXHIBIT NO. TAG VALUE
5(b) Opinion and Consent of Counsel EX-99.5b
23(a) Consent of PricewaterhouseCoopers LLP EX-99.23a