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Terms & Condition

These Terms of Use ("Terms of Use") are made between the undersigned user ("you") and Lord, Abbett & Co. ("we" or "us"). They become effective on the date that you electronically execute these Terms of Use ("Effective Date").

A. You are a successful financial consultant that markets securities, including the Lord Abbett Family of Funds;

B. We have developed the Lord Abbett Intelligence System (the "Intelligence System"), a state of the art information resource that we make available to a limited community of broker/dealers through the Internet at a secure Web site (the "LAIS Site"); and

C. We wish to provide access to the Intelligence System to you as an information tool responsive to the demands of your successful business pursuant to these Terms of Use. Accordingly, you and we, intending to be legally bound, hereby agree as follows:]

1. Overview. · Scope. These Terms of Use (which we may amend from time to time) govern your use of the Intelligence System. · Revisions; Changes. We may amend these Terms of Use at any time by posting amended Terms of Use ("Amended Terms of Use") on the LAIS Site. Any Amended Terms of Use will become effective immediately upon posting. Your use of the Intelligence System after any Amended Terms of Use become effective will be deemed to constitute your acceptance of those Amended Terms of Use.We may modify or discontinue the Intelligence System at any time, temporarily or permanently, with or without notice to you. Purpose of the Intelligence System. The Intelligence System is intended to be an information resource that you may use to contribute to your business research. The Intelligence System is for broker/dealer use only; it is not to be used with the public in oral, written or electronic form. The information on the Intelligence System and LAIS Site is for your information only and is neither the tax, legal or investment advice of Lord Abbett or its third-party sources nor their recommendation to purchase or sell any security.

2. Your Privileges. · Personal Use. Your use of the Intelligence System is a nontransferable privilege granted by us to you and that we may deny, suspend or revoke at any time, with or without cause or notice. · Access to and Use of the Intelligence System. The User ID and password (together, an "Access ID") issued by us to you (as subsequently changed by you from time to time) is for your exclusive access to and use of the Intelligence System. You will: (a) be responsible for the security and use of your Access ID, (b) not disclose your Access ID to anyone and (c) not permit anyone to use your Access ID. Any access or use of the Intelligence System through the use of your Access ID will be deemed to be your actions, for which you will be responsible. · Required Technology. You must provide, at your own cost and expense, the equipment and services necessary to access and use the Intelligence System. At any time, we may change the supporting technology and services necessary to use the Intelligence System. · Availability. We make no guarantee that you will be able to access the Intelligence System at any given time or that your access will be uninterrupted, error-free or free from unauthorized security breaches.

3. Rights in Data. Our use of information collected from you will be in accordance with our Privacy Policy posted on the LAIS Site. Our compliance with our Privacy Policy will survive any termination of these Terms of Use or of your use of the Intelligence System.

4. Your Conduct in the Use of the Intelligence System. You may access, search, view and store a personal copy of the information contained on the LAIS Site for your use as a broker/dealer. Any other use by you of the Intelligence System and the information contained on the LAIS Site these Terms of Use is strictly prohibited. Without limiting the preceding sentence, you will not: · Engage in or permit any reproduction, copying, translation, modification, adaptation, creation of derivative works from, distribution, transmission, transfer, republication, compilation or decompilation, reverse engineering, display, removal or deletion of the Intelligence System, any portion thereof, or any data, content or information provided by us or any of our third-party sources in any form, media or technology now existing or hereafter developed, that is not specifically authorized under these Terms of Use.

· Remove, obscure or alter any notice, disclaimer or other disclosure affixed to or contained within the Intelligence System, including any copyright notice, trademark and other proprietary rights notices and any legal notices regarding the data, content or information provided through the Intelligence System.

· Create a hyperlink to, frame or use framing techniques to enclose any information found anywhere on the LAIS Site without our express prior written consent.

· Impersonate any person, or falsely state or otherwise misrepresent his or her affiliation with any person in connection with any use of the Intelligence System.

· Breach or attempt to breach the security of the Intelligence System or any network, servers, data, or computers or other hardware relating to or used in connection with the Intelligence System; nor (b) use or distribute through the Intelligence System software or other tools or devices designed to interfere with or compromise the privacy, security or use of the Intelligence System by others or the operations or assets of any person.

· Violate any applicable law, including, without limitation, any state federal securities laws. 5. Your Representations and Warranties. You hereby represent and warrant to us, for our benefit, as of the time of these Terms of Use and for so long as you continue to use the Intelligence System, that (a) you are, and will continue to be, in compliance with these Terms of Use and any applicable laws and (b) you are authorized to provide to us the information we collect, as described in our Privacy Policy.

6. Disclaimer of Warranties.

· General Disclaimers.

THE INTELLIGENCE SYSTEM, THE LAIS SITE AND ALL DATA, INFORMATION AND CONTENT ON THE LAIS SITE ARE PROVIDED "AS IS" AND “AS AVAILABLE” AND WITHOUT ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND. WITHOUT LIMITING THE PRECEDING SENTENCE, LORD ABBETT, ITS AFFILIATES, AGENTS, THIRD-PARTY SUPPLIERS AND LICENSORS, AND THEIR RESPECTIVE EMPLOYEES, CONTRACTORS, DIRECTORS, OFFICERS AND SHAREHOLDERS (COLLECTIVELY, THE “LORD ABBETT GROUP”) EXPRESSLY DISCLAIM ALL WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NONINFRINGEMENT. YOU EXPRESSLY AGREE THAT YOUR USE OF THE LAIS SITE, THE INTELLIGENCE SYSTEM, AND THE DATA, INFORMATION AND CONTENT PRESENTED THERE ARE AT YOUR SOLE RISK AND THAT THE LORD ABBETT GROUP WILL NOT BE RESPONSIBLE FOR ANY (A) ERRORS OR INACCURACIES IN THE DATA, CONTENT AND INFORMATION ON THE LAIS SITE AND THE INTELLIGENCE SYSTEM OR (B) ANY TERMINATION, SUSPENSION, INTERRUPTION OF SERVICES, OR DELAYS IN THE OPERATION OF THE LAIS SITE OR THE INTELLIGENCE SYSTEM.

· Disclaimer Regarding Investment Research.

THE INTELLIGENCE SYSTEM INCORPORATES DATA, CONTENT AND INFORMATION FROM VARIOUS SOURCES THAT WE BELIEVE TO BE ACCURATE AND RELIABLE. HOWEVER, THE LORD ABBETT GROUP MAKES NO CLAIMS, REPRESENTATIONS OR WARRANTIES AS TO THE ACCURACY, TIMELINESS, COMPLETENESS OR TRUTHFULNESS OF SUCH DATA, CONTENT AND INFORMATION. YOU EXPRESSLY AGREE THAT YOU ARE RESPONSIBLE FOR INDEPENDENTLY VERIFYING YOUR INVESTMENT RESEARCH PRIOR TO FORMING YOUR INVESTMENT DECISIONS OR RENDERING INVESTMENT ADVICE. THE LORD ABBETT GROUP WILL NOT BE LIABLE FOR ANY INVESTMENT DECISION MADE BY YOU OR ANY OTHER PERSON BASED UPON THE DATA, CONTENT AND INFORMATION PROVIDED THROUGH THE INTELLIGENCE SYSTEM OR ON THE LAIS SITE.

· Survival.

THIS SECTION 6 SHALL SURVIVE ANY TERMINATION OF THESE TERMS OF USE OR YOUR USE OF THE INTELLIGENCE SYSTEM..

7. Limitations on Liability.

NONE OF THE MEMBERS OF THE LORD ABBETT GROUP WILL BE LIABLE TO YOU OR ANY OTHER PERSON FOR ANY DIRECT, INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE, SPECIAL OR EXEMPLARY DAMAGES (INCLUDING LOSS OF PROFITS, LOSS OF USE, TRANSACTION LOSSES, OPPORTUNITY COSTS, LOSS OF DATA, OR INTERRUPTION OF BUSINESS) RESULTING FROM, ARISING OUT OF OR IN ANY WAY RELATING TO THE INTELLIGENCE SYSTEM, THE LAIS SITE OR YOUR USE THEREOF, EVEN IF THE LORD ABBETT GROUP HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THIS SECTION 7 WILL SURVIVE ANY TERMINATION OF THESE TERMS OF USE OR YOUR USE OF THE INTELLIGENCE SYSTEM.

8. Miscellaneous Provisions.

· Governing Law. This Agreement will governed by and construed in accordance with the laws of the State of New York, without giving effect to applicable conflicts of law principles.

THE UNIFORM COMPUTER INFORMATION TRANSACTIONS ACT OR ANY VERSION THEREOF, ADOPTED BY ANY STATE, IN ANY FORM ("UCITA") WILL NOT APPLY TO THESE TERMS OF USE. TO THE EXTENT THAT UCITA IS APPLICABLE, THE PARTIES HEREBY AGREE TO OPT OUT OF THE APPLICABILITY OF UCITA PURSUANT TO THE OPT-OUT PROVISION(S) CONTAINED THEREIN.

The Intelligence System is not intended to be used by consumers, nor are the consumer protection laws of any jurisdiction intended to apply to the Intelligence System. You agree to initiate and maintain any action, suit or proceeding relating to these Terms of Use or arising out of the use of the Intelligence System exclusively in the courts, state and federal, located in or having jurisdiction over New York County, New York.

YOU HEREBY CONSENT TO THE PERSONAL JURISDICTION AND VENUE OF THE COURTS, STATE AND FEDERAL, LOCATED IN OR HAVING JURISDICTION OVER NEW YORK COUNTY, NEW YORK. YOU AGREE THAT YOU WILL NOT OBJECT TO A PROCEEDING BROUGHT IN YOUR LOCAL JURISDICTION TO ENFORCE AN ORDER OR JUDGMENT OBTAINED IN NEW YORK.

· Relationship of Parties. The parties to these Terms of Use are independent contractors and nothing in these Terms of Use will be construed as creating an employment relationship, joint venture, partnership, agency or fiduciary relationship between the parties.

· Notice. All notices provided under these Terms of Use will be in writing and will be deemed effective: (a) when delivered personally, (b) when received by electronic delivery, (c) one business day after deposit with a commercial overnight carrier specifying next day delivery, with written verification of receipt, or (d) three business days after having been sent by registered or certified mail, return receipt requested. We will only accept notices from you in English and by conventional mail addressed to: General Counsel Lord, Abbett & Co. 90 Hudson Street Jersey City, N.J. 07302-3973 We may give you notice by conventional mail or electronic mail addressed to the last mail or electronic mail address transmitted by you to us.

· Third-Party Beneficiaries. The members of the Lord Abbett Group are third-party beneficiaries of the rights and benefits provided to us under these Terms of Use. You understand and agree that any right or benefit available to us or any member of the Lord Abbett Group hereunder will also be deemed to accrue to the benefit of, and may be exercised directly by, any member of the Lord Abbett Group to the extent applicable.

· Survival. This Section 8 will survive any termination of these Terms of Use or your use of the Intelligence System. The undersigned hereby signs these Terms of Use. By electronically signing and clicking "Accept" below, these Terms of Use will be legally binding on me. To sign these Terms of Use, confirm your full name and enter your User ID and Password (as your electronic signature) in the fields indicated below and click the “I Accept” button.

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Retirement Perspectives

SIMPLE IRAs are a popular retirement-plan option that features low cost, flexibility, and minimal administrative requirements. Here’s what plan sponsors and participants need to know.

For many small-business owners, the waning summer season is a reminder that the leisurely days soon will be replaced with the more eventful schedule of fall, including preparing for the deadline of October 1 to establish a SIMPLE IRA plan for 2018.

The SIMPLE IRA was created in 1996 as part of the Small Business Job Protection Act (SBJPA), replacing the SAR SEP IRA, and now it has become a popular retirement-savings plan for small businesses and sole proprietors alike, due to its low cost, flexibility, minimal administrative requirements, and, yes, simplicity.  In addition, SIMPLEs generally are not subject to the numerous requirements of the Employee Retirement Income Security Act (ERISA) that qualified plans must follow. This makes the SIMPLE IRA well worth considering when discussing the numerous workplace retirement-plan savings options with your clients. Like all tax-advantaged accounts, SIMPLE IRAs have a myriad of rules that must be closely adhered to, or the holder may face unintended consequences. Below, I discuss the rules that have often escaped advisors, accountants, and attorneys in the past, as well as one newer rule that may not be on their radar.

1) 100-employee rule—Any type of entity, including tax-exempt organizations and governmental entities that had no more than 100 employees with $5,000 or more in compensation during the preceding calendar year, can establish a SIMPLE IRA plan.

There is a grace period for employers who subsequently fail to satisfy the 100-employee limit. An employer that maintains a SIMPLE plan for at least one year and, subsequently, ceases to satisfy the 100-employee limit in a later year, will be treated as though the employer had met the requirement for the two calendar years immediately following the calendar year for which the limit was last met.

2) Exclusive plan rule—A SIMPLE IRA must be the only qualified retirement plan (e.g., 401(k), SEP, 403(b), etc.) that an employer maintains during a calendar year. In other words, plan sponsors generally cannot establish a SIMPLE plan if they maintain a 401(k) or other qualified plan in the same year in which contributions are made. However, there is an exception: if another qualified plan is maintained for union employees covered by collective bargaining agreements, the plan sponsor may maintain a SIMPLE IRA for the other non-union employees.

If no contributions are made and no benefits accrue to an existing qualified plan of the employer during this time period, the employer will satisfy the requirement.

3) Plan establishment—Government rules mandate that a new SIMPLE IRA plan must be established between January 1 and October 1 of the year in which the plan is being started.  For example, a new SIMPLE must be established by October 1, 2018, to be effective for the 2018 plan year. Those plans established after October 1 would not be effective until January 1, 2019, at the earliest. Notably, an exception applies for a newly established business. If you’re a new employer that started your business after October 1, you can establish a SIMPLE IRA plan for the plan year by the end of the same calendar year as soon as administratively feasible after your business came into existence.

Tip: SIMPLE IRA plans can be maintained only on a calendar-year basis.

4) Annual notice—SIMPLE IRA plan sponsors must distribute an employee notice annually to all eligible plan participants. November 1, 2018, is the notification deadline for employers that will continue to offer a SIMPLE IRA plan in the 2019 plan year. The notice provides employees a wealth of plan information, including the opportunity to participate in the plan by making salary deferrals, or to change the amount previously being deferred. In addition, the notice informs the participant of the employer contribution formula (e.g., 3% match or 2% non-elective contribution).  Once the employer has chosen the contribution formula, it cannot be modified till the following plan year. Further, an employer is not permitted to terminate a plan during the plan year.

5) Rollovers Rollovers are now easier under recent legislation that gives SIMPLE IRAs full portability.

In late 2015, the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) was signed into law. The legislation contained a SIMPLE IRA rollover sweetener: SIMPLE IRA participants can now roll over employer plan assets (e.g., funds from IRAs, 401(k)s, 403(b)s,  457(b)s, etc.) into their SIMPLE IRA account.

Typically, unless an exception applies, investors who take IRA distributions before age 59½ are subject to a 10% early-distribution penalty, plus income taxes on the amount withdrawn. In general, the same tax rules apply to all IRAs, including a SEP IRA. Unlike any other IRA, SIMPLE IRAs have a unique rule in regard to distributions: the penalty on certain distribution from a SIMPLE IRA can be as high as 25%, if the withdrawal occurs within the first two years of plan participation. Therefore, participants are subject to a two-year holding period that restricts distributions, conversions, or rolling over assets into any account other than another SIMPLE IRA for two years from the date of initial participation, that is, the date that  contributions are deposited into a  worker’s SIMPLE IRA. 

Now, since Congress passed the PATH Act, the two-year rule takes on even more importance. Rollovers will be permitted only after the participant has satisfied a  two-year holding period. Prior to enactment, only SIMPLE assets could be rolled into a SIMPLE IRA. This legislation places SIMPLEs on equal footing with their retirement plan brethren, in that they allow full portability.

During the initial two-year period, participants cannot roll over their SIMPLE IRA assets (even with a direct, “trustee-to-trustee” transfer) to another workplace retirement plan or convert the SIMPLE IRA assets to a Roth IRA without being assessed a 25% penalty. It is, however, permissible to transfer assets to another SIMPLE IRA provider within the first two years. In general, participants may move their accounts to another SIMPLE IRA provider at any time without being penalized.

6) Required minimum distributions (RMDs)—Workers older than 70½ are eligible to participate in a SIMPLE IRA, although they also are subject to RMDs. (Read more about RMDs here.)

Now that we’ve addressed the key rules to follow, let’s address some important questions on SIMPLE IRAs that employers and plan participants may have:

Q: Can an employer sponsor another retirement plan in the same year as a SIMPLE?

A: No. As we noted earlier, SIMPLE IRAs are subject to an “exclusive plan rule.” A SIMPLE plan must be the only qualified plan maintained by the employer.

Tip: This rule does not affect IRA eligibility. Eligible employees can contribute up to the maximum annual limit to their traditional or Roth IRAs, in addition to SIMPLE participation.

Q: When can employees make withdrawals from their SIMPLE IRAs?

A: At any time, but they should proceed with caution. Any withdrawals before age 59½ are subject to a 25% penalty during the first two years of participation in a SIMPLE IRA. For example, converting SIMPLE assets to a Roth IRA or rolling assets to a 401(k) plan within the first two years will subject an employee to the 25% penalty.

Tip: The two-year rule does not apply to SIMPLE-to-SIMPLE transfers. In other words, employees can transfer their SIMPLE accounts directly to a new SIMPLE IRA provider at any time, without incurring taxes or penalties.

Q: Are SIMPLE plans required to file IRS Form 5500?

A: No. Form 5500 is intended to satisfy annual reporting requirements for ERISA-covered qualified plans, such as 401(k)s. SIMPLE plans generally are not subject to ERISA (Employee Retirement Income Security Act), so these filings are not required.

Q: Is the employer required to make an annual contribution on behalf of employees?

A: Yes. An employer has two options available satisfying this requirement: 1) fully vested, dollar-for-dollar matching contributions up to 3% of employees’ compensation, or 2) fully vested, non-elective contributions of 2% of each employee’s compensation.

Tip: An employer has the ability to reduce the matching contribution to less than 3%, but not less than 1%, in two out of any five years.

Q: Can an employer make additional contributions?

A: No. SIMPLE contributions are limited to 1) a rollover from another eligible employer plan, 2) employee pretax salary deferrals, and 3) an employer match, or non-elective contribution. No additional contributions are permitted.

Q Can I contribute to both a SIMPLE IRA and an IRA (traditional or Roth)?

A: Yes. Assuming you’re eligible, you can contribute up to $5,500 ($6,500 if you’re age 50+) in your traditional or Roth IRA in addition to funding your SIMPLE IRA.

Q: What correction methods are available if a mistake was made operating a SIMPLE plan?

A: The IRS has a number of resources available to assist you in correcting plan errors (as explained here). We urge you to discuss any plan issues with a financial professional and/or a tax professional.

Q: How do employers set up a Lord Abbett SIMPLE IRA?

A. The plan setup process is straightforward: Employers can simply follow the steps outlined in our SIMPLE IRA Plan Sponsor Guide or call 888-522-2388.

 

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