XTra Credit Premier - Prudential Annuities

The amount of any Target Value Credits are not immediately vested and can be recovered by American Skandia under thecircumstances and for the time periods shown below. If American Skandia exercises its right to recover the amount of any TargetValue Credit, any investment gain on the Target Value Credit will not be taken back.1. If you surrender your Annuity before the 10 th anniversary of the Issue Date of the Annuity.2. If you elect to begin receiving Annuity payments before the first anniversary of the Issue Date.3. If a person on whose life we pay the Death Benefit dies, or if a "contingency event" occurs which triggers a medically-relatedsurrender:• within 12 months after the date a Target Value Credit was allocated to your Account Value; or• within 10 years after the date a Target Value Credit was allocated to your Account Value if any owner was over age 70on the Issue Date, or, if the Annuity was then owned by an entity, the Annuitant was over age 70 on the Issue Date.Following completion of the above time periods, the amount of any Target Value Credits are vested in the Owner.ACCESS TO ACCOUNT VALUEWHAT TYPES OF DISTRIBUTIONS ARE AVAILABLE TO ME?During the accumulation period you can access your Account Value through Partial Withdrawals, Systematic Withdrawals, and whererequired for tax purposes, Minimum Distributions. You can also surrender your Annuity at any time. We may deduct a portion of theAccount Value being withdrawn or surrendered as a CDSC. If you surrender your Annuity, in addition to any CDSC, we may deductthe Annual Maintenance Fee, any Tax Charge that applies and the charge for any optional benefits. We may also apply a MarketValue Adjustment to any Fixed Allocations. Certain amounts may be available to you each Annuity Year that are not subject to aCDSC. These are called "Free Withdrawals." In addition, under certain circumstances, we may waive the CDSC for surrenders madefor qualified medical reasons or for withdrawals made to satisfy Minimum Distribution requirements. Unless you notify usdifferently, withdrawals are taken pro-rata based on the Account Value in the investment options at the time we receive yourwithdrawal request. Each of these types of distributions is described more fully below.ARE THERE TAX IMPLICATIONS FOR DISTRIBUTIONS?(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 of your"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 a distribution prior to thetaxpayer’s age 59½, you may be subject to a 10% penalty in addition to ordinary income taxes on any gain. You may wish to consulta 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 at thetime 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 the Annuity. Once the tax basis in the Annuity has been distributed,the remaining annuity payments are taxable as ordinary income. The tax basis in the Annuity may be based on the tax-basis from aprior contract in the case of a 1035 exchange or other qualifying transfer.CAN I WITHDRAW A PORTION OF MY ANNUITY?Yes, you can make a withdrawal during the accumulation period.• To meet liquidity needs, you can withdraw a limited amount from your Annuity during each of Annuity Years 1-8 without aCDSC being applied. We call this the "Free Withdrawal" amount. The Free Withdrawal amount is not available if youchoose to surrender your Annuity. Amounts withdrawn as a Free Withdrawal do not reduce the amount of CDSC that mayapply upon a subsequent withdrawal or surrender of the Annuity. The minimum Free Withdrawal you may request is $100.Contract described herein is no longer available for sale.• You can also make withdrawals in excess of the Free Withdrawal amount. We call this a "Partial Withdrawal." The amountthat you may withdraw will depend on the Annuity’s Surrender Value. The Surrender Value is equal to your Account Valueminus any CDSC, the Annual Maintenance Fee, the Tax Charge, any charges for optional benefits and any Market ValueAdjustment that may apply to any Fixed Allocations. After any Partial Withdrawal, your Annuity must have a SurrenderValue of at least $1,000, or we may treat the Partial Withdrawal request as a request to fully surrender your Annuity. Theminimum Partial Withdrawal you may request is $100.44