403_b_ Sticker - Prudential Annuities

ACCESS TO ACCOUNT VALUEWHAT TYPESOFDISTRIBUTIONS ARE AVAILABLE TO ME?During the accumulation period you can access your Account Value through partial withdrawals, Systematic Withdrawals, andwhere required for tax purposes, Minimum Distributions. You can also surrender your Annuity at any time. There is no ContingentDeferred Sales Charge applied upon surrender or partial withdrawal. However, if you surrender your Annuity, wemaydeduct theAnnual Maintenance Fee, any Tax Charge that applies and the charge for any optional benefits. We may also apply a Market ValueAdjustment to any Fixed Allocations being withdrawn or surrendered. Unless you notify us differently, withdrawals are takenpro-rata based on the Account Value in the investment options at the time we receive your withdrawal request. Each of these typesofdistributions is described more fully below.ARE THERE TAX IMPLICATIONS FORDISTRIBUTIONS?(For more information, see “Tax Considerations”.)During the Accumulation PeriodA distribution during the accumulation period is deemed to come first from any “gain” in your Annuity and second as a return ofyour “tax basis”, if any. Distributions from your Annuity are generally subject to ordinary income taxation on the amount of anyinvestment gain unless the distribution qualifies as a non-taxable exchange or transfer. If you take adistribution prior to thetaxpayer’s age 59 1 ⁄ 2 , you may besubject to a 10% penalty inaddition to ordinary income taxes on any gain. You may wish toconsult a professional tax advisor for advice before requesting a distribution.During the Annuitization PeriodDuring the annuitization period, a portion of each annuity payment is taxed as ordinary income at the tax rate you are subject to atthe time of the payment. The Code and regulations have “exclusionary rules” that we use to determine what portion of each annuitypayment should be treated as a return of any tax basis you have in your Annuity. Once the tax basis in your Annuity has beendistributed, the remaining annuity payments are taxable as ordinary income. The tax basis in your Annuity may be based on thetax-basis from a prior contract in the case of a 1035 exchange or other qualifying transfer.Special Rules for Distributions to Pay Advisory FeesWe treat partial withdrawals to pay advisory fees as taxable distributions unless:▪ your Annuity is being used in conjunction with a “qualified” retirement plan (plans meeting the requirements of Sections 401,403 or 408 of the Code); and▪ in relation to Section 403 or 408 plans, you and your Advisor provide acceptable proof to us, limiting the source of theAdvisor’s compensation to the assets of an applicable qualified retirement plan, and making certain other representations.CAN I WITHDRAW APORTION OF MYANNUITY?Yes, you can makeawithdrawalduring the accumulation period.We call this a “partial withdrawal.” The minimum partial withdrawal you may request is $100. We may apply a Market ValueAdjustment to any Fixed Allocations.Partial withdrawals may also be available following annuitization but only if you choose certain annuity payment options.To request the forms necessary to make awithdrawal from your Annuity, call 1-800-752-6342 or visit our Internet Website atwww.americanskandia.prudential.com.CAN I MAKE PERIODIC WITHDRAWALS FROM THE ANNUITY DURING THE ACCUMULATION PERIOD?Yes. We call these “Systematic Withdrawals.” You can receive Systematic Withdrawals of earnings only or a flat dollar amount.Systematic Withdrawals can be made from Account Value allocated to the Sub-accounts or Fixed Allocations. SystematicWithdrawals are available on a monthly, quarterly, semi-annual or annual basis.The minimum amount for each Systematic Withdrawal is $100. If any scheduled Systematic Withdrawal is for less than $100(which may occur under a program that provides payment of an amount equal to the earnings in your Annuity for the periodrequested), we may postpone the withdrawal and add the expected amount to the amount that is tobe withdrawn on the nextscheduled Systematic Withdrawal.DO YOU OFFER A PROGRAM FOR WITHDRAWALS UNDER SECTIONS 72(t)OF THE INTERNAL REVENUE CODE?Yes. If your Annuity is used as a funding vehicle for certain retirement plans that receive special tax treatment under Sections 401,403(b) or 408 of the Code, Section 72(t) of the Code may provide an exception to the 10% penalty tax on distributions made priorto age 59 1 ⁄ 2 if you elect to receive distributions as a series of “substantially equal periodic payments”. We may apply a MarketValue Adjustment to any Fixed Allocations. To request a program that complies with Sections 72(t), you must provide uswith44