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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.

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· 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.

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

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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.

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Retirement Perspectives

Nearly everyone with a tax-deferred retirement account is required to start taking minimal withdrawals at some point. Knowing the different rules for IRAs and qualified plans may avoid a costly error.

In general, participants in employer-sponsored retirement plans and IRA account owners must start taking lifetime required minimum distributions (RMDs) soon after they turn 70½. The RMD rules apply to all qualified plans, including 401(k), 403(b), and 457(b) plans. In addition, minimum withdrawals also apply to employer-sponsored IRAs, including SEP, SAR-SEP, and SIMPLE accounts. Complicating matters further, while designated Roth accounts and qualified plans are subject to lifetime RMDs, Roth IRAs are not.

It is the responsibility of plan participants and IRA owners to make sure that they withdraw the correct amount each year from their account. Failure to do so can result in stiff penalties.

Here, then, is a quick guide to highlight the RMD rules that apply to both IRAs and qualified plans to help account owners and participants avoid potential pitfalls.

RMD Timing
IRAs (including traditional, SEP, SAR-SEP, SIMPLE, but not Roth):

  • In general, individuals are required to take their initial RMD by December 31 of the year in which they turn 70½, although the initial RMD can be deferred until as late as April 1 of the following year. In that case, two RMDs will be required the following year. For example, Sarah turns 70½ in 2015. She can either take her first RMD in 2015 or delay until as late as April 1, 2016. Assuming she delays until 2016, Sarah will need to take two RMDs in 2016. And she will be required to take one each year thereafter by December 31.
  • An individual who is 70½ or older is eligible to participate in a SIMPLE IRA, assuming that all SIMPLE IRA eligibility requirements have been satisfied. However, the individual must still take minimum distributions.
  • An individual 70½ or older is eligible to participate in a SEP IRA, assuming that all SEP IRA eligibility requirements have been satisfied. However, the individual also must take minimum distributions.
  • Roth IRAs are not subject to lifetime RMDs for either the account holder or a surviving spouse. A non-spouse beneficiary is required to take minimum distributions.

Qualified Plans (including 401(k), 403(b), 457(b):

  • Unlike with an IRA, investors generally are able to delay their initial RMD until April 1 following the year in which they turn 70½ or the year in which they retire—whichever is later. This option is available to those participants who are less than 5% owners of the business sponsoring the plans. Participants who own 5% or more of the business sponsoring the retirement plan must take their first RMD by April 1 following the calendar year in which they turn 70½, regardless of retirement age.
  • Although it is uncommon, a plan may specify that all participants take an RMD at 70½, regardless of work status. (Check the summary plan description (SPD) for your plan’s rules.)

RMD amounts
IRAs (including, traditional, SEP, SAR-SEP, SIMPLE):

  • RMD calculations are based on the value of the accounts on December 31 of the preceding distribution year—and on the life expectancy of the account holder, based on the IRS’ Uniform Lifetime Table. If the account holder’s spouse is the sole designated beneficiary, and more than 10 years younger than the account owner, the Joint Life and Last Survivor Expectancy Table is used instead.
  • Investors with multiple accounts must calculate the RMD separately for each IRA owned (including SEP and SIMPLEs). However, the resulting total RMD amount may be taken from any one or multiple IRAs. Multiple accountholders may want to consider consolidating or rolling over separate IRAs into a single account to simplify the RMD process.

Qualified Plan (including 401(k), 403(b), 457(b)):

  • Like IRAs, RMDs are based on the account value on December 31 of the preceding distribution year—and on the life expectancy of the account owners, using the IRS’ Uniform Lifetime Table. If the account owner’s spouse is more than 10 years younger, the Joint Life and Last Survivor Expectancy Table is used instead.
  • In general, individuals who have more than one employer-sponsored qualified plan must calculate and take an RMD from each separate account.
  • An exception is 403(b) plans: Individuals still need to calculate the RMD for each account separately, but they can withdraw the total amount from any one or more of their accounts.
  • Unlike Roth IRAs, designated Roth 401(k), 403(b), and 457(b) accounts are subject to lifetime RMDs.

(For more information, see my blog, “IRAs: RMD Mistakes to Avoid.” )

Tax Implications 
IRAs and Qualified Plans:

  • Distribution amounts drawn from deductible (pretax) contributions and earnings are taxed as ordinary income, subject to federal and state income tax (if applicable).
  • The portion of distributions applicable to nondeductible (aftertax) contributions potentially can be recovered tax-free. It is the IRA owners’ responsibility to keep track of their basis, whereas with qualified plans, it is the responsibility of the plan sponsor.
  • A penalty of 50% is applied for failure to take an RMD. The penalty (reported on IRS Form 5329) is 50% of the amount that was due to be distributed, but wasn’t. The IRS has leeway to waive the penalty for good cause.
  • You are not permitted to roll over an RMD to either an IRA or a qualified plan.

Frequently Asked Questions
To further help you understand the lifetime minimum distribution rules, we offer answers to some frequently asked questions:

Q. Am I allowed to take more than the RMD amount? 
A. Yes.

Q. Can a distribution above the RMD amount taken in one year be applied to the RMD for a future year? 
A. No.

Q. Can I arrange to have an RMD of a qualified plan distributed from my IRA or vice versa?
A. No. If you participate in more than one qualified plan, your RMD for each plan is determined separately and distributed from its respective plan. However, if you have multiple IRAs, you can withdraw the total RMD amount from any IRA account or accounts you choose.

Q. Can I roll over my RMD to an IRA, Roth IRA, or other eligible retirement plan? 
A. No. If you choose to roll over your RMD, it will be treated as an excess contribution and potentially would be subject to taxes and/or penalties.

Q. If I convert my traditional IRA to a Roth IRA, would I still have an RMD?
A. Anyone, regardless of age, can convert traditional IRA assets to a Roth IRA. Although the amount of the RMD is required to be distributed prior to the conversion, RMDs would cease for all future years. For example, Tom’s 2015 RMD is $5,000. Tom must distribute his RMD prior to converting his IRA to a Roth IRA. Assuming the rest of his IRA is converted, Tom will never be required to take another RMD. 

For additional information on RMDs, refer to my blogs, “IRAs: FAQs about RMDs”  and “IRAs RMD Mistakes to Avoid.”

 

This is being provided for general educational purposes only and is not intended to provide legal, tax, or  investment advice. Please consult with your financial advisor for more detailed information or for advice regarding your individual situation.

To comply with Treasury Department regulations, we inform you that, unless otherwise expressly indicated, any tax information contained herein is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed under the Internal Revenue Code or any other applicable tax law, or (ii) promoting, marketing, or recommending to another party any transaction, arrangement, or other matter.

Traditional IRA—This is an individual retirement savings account in which contributions plus earnings, interest, dividends, and capital gains may compound tax-deferred until you withdraw them as retirement income. Amounts withdrawn from traditional IRA plans are generally included as taxable income in the year received and may be subject to 10% federal tax penalties if withdrawn prior to age 59½, unless an exception applies.

401(k) is a qualified plan established by employers to which eligible employees may make salary deferral (salary reduction) contributions on an after tax and/or pretax basis. Employers offering a 401(k) plan may make matching or nonelective contributions to the plan on behalf of eligible employees and may also add a profit-sharing feature to the plan. Earnings accrue on a tax-deferred basis.

A Roth IRA is a tax-deferred and potentially tax-free savings plan available to all working individuals and their spouses who meet the IRS income requirements. Distributions, including accumulated earnings, may be made tax-free if the account has been held at least five years and the individual is at least 59½, or if any of the IRS exceptions apply. Contributions to a Roth IRA are not tax-deductible, but withdrawals during retirement are generally tax-free.

SEP IRA—A Simplified Employee Pension Plan is a retirement plan specifically designed for self-employed people and small-business owners. When establishing a SEP IRA plan for your business, you and any eligible employees establish your own separate SEP IRA; employer contributions are then made into each eligible employee's SEP IRA.

SAR SEP IRA—A Salary Reduction Simplified Employee Pension Plan is a simpler alternative to a 401(k) and is available only to companies with 25 or fewer employees. It gives employees the opportunity to make contributions to their SEP accounts with pretax dollars and reduce their current year's net income. Also called a 408(k) plan.

SIMPLE IRA—A Savings Incentive Match Plan for Employees' IRA is an IRA-based plan that gives small-business employers a simplified method to make contributions toward their employees' retirement and their own retirement. Under a SIMPLE IRA plan, employees may choose to make salary reduction contributions and the employer makes matching or non-elective contributions. All contributions are made directly to an individual retirement account (IRA) set up for each employee (a SIMPLE IRA). SIMPLE IRA plans are maintained on a calendar-year basis.

Qualified Retirement Plan—This is a savings plan that is allowed certain tax advantages because it meets criteria spelled out in the IRS Code and in the Employee Retirement Income Security Act [ERISA] of 1974. Employers can take tax deductions for any contributions they make to an employee's account. Employee contributions and investment returns are tax-deferred until withdrawn. Contribution limits apply, as do penalties for early withdrawal.

403(b)—A qualified retirement plan for certain employees of public schools, tax-exempt organizations, and certain ministers. Generally, retirement income accounts can invest in either annuities or mutual funds. Also known as a tax-sheltered annuity (TA) plan.

457(b) plan—A 457(b) is a nonqualified, deferred-compensation plan established by state and local governments, tax-exempt governments, and tax-exempt employers. Eligible employees are allowed to make salary deferral contributions to the 457(b) plan. Earnings grow on a tax-deferred basis and contributions are not taxed until the assets are distributed from the plan.

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