 |
Establishing a Nonqualified Stretch Beneficiary Account From an Existing Sun Life Financial* Account
If you are a nonspouse,** person beneficiary of a nonqualified annuity contract, you may establish a beneficiary account as one method of receiving the payment of the death benefit. If you choose to establish a beneficiary account, the death benefit will be paid to you over your life expectancy. This death benefit payment method is referred to as stretch or the life expectancy payment option. The Internal Revenue Service requires that you receive annual payments from the death benefit, and this annual payment is referred to as the stretch payment. Nonqualified stretch is not available for entity beneficiaries, such as estates, trusts or charities.
If you would like to learn about the nonqualified stretch rules, please refer to our Nonqualified Stretch Program FAQ .
To establish a nonqualified stretch beneficiary account, please complete the following forms and return them to us:
Sun Life Financial has a Nonqualified Stretch Program designed to help you satisfy your annual stretch payment automatically each year. We will calculate your annual stretch payment and distribute it to you according to the frequency of your choice (monthly, quarterly, semi-annually or annually). You may enroll in the program by completing the forms referenced above.
Please click here for information to contact us.
Transfer of a Nonqualified Beneficiary Account to a Sun Life Financial Nonqualified Beneficiary Account
If you are the beneficiary of a nonqualified beneficiary account at another financial institution, you may directly transfer the assets of your beneficiary account to a Sun Life Financial beneficiary account by a nontaxable exchange of annuity contracts under Internal Revenue Code Section 1035 (a "1035 exchange").
Please contact your agent to complete and sign the following forms:
A. Product application form for the appropriate product being purchased.
- In any available space within the "Plan Selection" section of the application, write in "Beneficiary Account 1035 Exchange - Nonqualified Stretch"; and
- In the "Special Instructions" section of the application, also write in "Beneficiary Account 1035 Exchange - Nonqualified Stretch."
B.The following forms must also be completed and signed:
Nonqualified Annuity: Beneficiary Account Acknowledgement Form
Nonqualified Annuity: Beneficiary Account Acknowledgement Form NY
Nonqualified Stretch Payments Request Form
The information requested on this form is necessary for the calculation of your annual stretch payment (also referred to as a life expectancy payment). Sun Life Financial has a Nonqualified Stretch Program designed to help you satisfy your annual stretch payment automatically each year. You may enroll in the program by completing this form. To learn about our Nonqualified Stretch Program, please click here.Please check with the releasing institution to be sure there are no additional transfer requirements.
Please click here for the information to contact us.
*Sun Life Assurance Company of Canada (U. S.) issues Regatta, Futurity and All-Star annuity contracts in all states except New York. New York contracts are issued by Sun Life Insurance and Annuity Company of New York. Both companies are members of the Sun Life Financial group of companies.
**Nonqualified Stretch is available for spouse beneficiaries of nonqualified accounts under limited circumstances. The surviving spouse is one of multiple beneficiaries and cannot continue the contract. Or, the surviving spouse cannot continue the annuity contract, because he/she inherited the account from a deceased spouse who had continued the contract upon the death of a spouse from a previous marriage. Spousal continuance of an annuity contract is permitted only once. If either of these circumstances is applicable, the surviving spouse beneficiary may elect to stretch the death benefit. He/she will follow the rules for nonspouse beneficiaries.
SLPC 11024 (06/03)
|
